How Rebranding Can Save a Business

Many businesses go through rebranding, and companies with a long history may undergo it several times. Brands often decide to change when they feel a decline in interest. Rebranding is even necessary if the previous concept no longer matches the times or the new goals of the company. The main thing is that the changes should be justified and not just made for the sake of change. A well-thought-out rebranding can save a company, giving it a second life. In contrast, poorly timed and unsuccessful changes can destroy a business.

In this article, I will discuss when and how a company should undergo rebranding and when it should not.

What is Rebranding

Many mistakenly call even minor changes to a logo rebranding. This would be more accurately described as a redesign. True rebranding implies a new perception of the brand by the audience. Its main task is not just a “cosmetic repair”. Suppose your company was manufacturing tires and then decided to add car rental services. The goal and concept of the brand have changed. If you just changed the color of your logo and did not communicate the new concept to the consumers, you will still be perceived as a tire manufacturer. This means that no rebranding has occurred.

Why Companies Undertake Rebranding: Goals and Intent

The extent to which a brand changes depends on the goals of the rebranding. Sometimes it’s enough to change the font, but in some situations, a completely new name and concept are required. Cases where a company needs rebranding:

- The Brand has Become Outdated

The world changes very quickly. What was super trendy at the start of the business can lose relevance in just a few years. For example, “successful success” was once trendy, then replaced by “eco-friendliness” and “self-care”.

- The Target Audience Has Changed

Your regular customers may grow older, their values and views on life and income may change. Or the brand itself decided to expand its audience. Rebranding is necessary here.

- A Strong Competitor has Appeared

Competition is one of the strongest motivations that force companies to change and improve. Suppose you opened the first coffee shop in the area. All the residents of the nearby houses came to you because you were the only such establishment. They didn’t even need to remember your name, they could arrange meetings “at the coffee shop” and everyone understood. But over time, dozens of other coffee shops opened, and now you need to stand out from the rest.

- Unsuccessful Positioning at the Start

Everyone is prone to mistakes, especially in new endeavors. For example, when starting a business, you didn’t have money for a designer and marketer and you developed your own name and logo. But in the process, it turned out that the brand does not match the company’s activity. In this case, it is important to recognize the error in time and entrust the rebranding to professionals.

- The Company has Changed or Expanded its Scope of Activity

For example, you were engaged in the production of women’s bags and positioned yourself as a women’s brand with a corresponding name, logo, and communication style. But then you decided to add men’s bags and children’s backpacks to the assortment. In this case, it is necessary to change the positioning so that the brand is not associated only with a female audience.

- Company Merger

If this is not just an acquisition, but a merger of two more or less equal businesses, you get a new company that needs a new brand. Especially when both companies have a long history and a well-known name. If you just keep one of the brands, its name, logo, and concept, you may lose potential customers who loved the second company.

- The Brand’s Reputation has Suffered

This is a case where a new logo won’t help; radical changes are required. Starting from the name and ending with goals and concepts. Your task is to get rid of any associations with the previous version of the brand and change the image.

- The Company is Entering the International Market

One of the common mistakes companies make when going abroad is to do things as before. When you open a business abroad, you should study the new audience and market even more thoroughly than you did at the start in your home country. You may simply be unaware of certain features of the local mentality, language, and traditions. For example, your company name in some dialect may have a negative connotation.

- Your Goal and Concept have Changed

Perhaps one of the most compelling reasons for rebranding. The formulation of the goal and concept of the company is what should start any business. It’s the mission that lies at the heart of any brand, on which the name, design, corporate style, and everything fundamental depend. If your foundation changes, you’ll have to rebuild the building.

Stages of Rebranding

Rebranding should be approached as thoroughly as creating a new brand from scratch. Even more carefully, in fact. Firstly, you already have customers, and it’s important not to lose them. Secondly, if you have decided to change, you want to solve one of the tasks described above. To do this, you need to think through all the steps and make a plan of action.

• Brand Analysis

First, you need to determine what needs to be changed and what is desirable to keep. Conduct a brand audit, identify its strengths and weaknesses. Order a study to find out the company’s recognizability and the audience’s attitude towards it. This will help you understand how strong the changes need to be and in what direction to move.

• Strategy Development

When you have the analysis data, you can draw up a roadmap. List all the elements that need to be changed, as well as how you will do it. Decide how you will highlight your strengths and get rid of weaknesses.

• Rebranding

The stage where your strategy is implemented in life: a new logo or name is approved, the corporate style, website, packaging, and everything you planned to change are changed.

• PR

Now you need to inform your audience. Not just to report that something has changed, but to explain the new concept and ideology to customers. To do this, advertising and PR campaigns, promo campaigns are conducted — everything that will help you tell the audience about yourself anew.

When Rebranding is Not Needed

There are situations when rebranding is not just harmful but at least useless. When owners try to solve global problems by changing the signboard, for example. If you are thinking about changing the name, check whether your reason is on this list:

- Wanting Something New

The brand has no particular problems, the company is successfully operating, bringing profit. There is no need to change anything in the brand itself, and the owner just got bored. As rebranding in this case does not solve any business task, there is a risk of making things worse.

- Trying to Hide a Crisis

You have a hole in the ceiling, but you’re painting the walls in hope. If you have a low-quality product, poor customer service, and delivery misses deadlines, rebranding won’t help. You will just get an updated brand with the same set of problems. First, fix the leak, and then do the beautification.

- Attracting Attention or Showing Off

Sometimes new top managers in a

company initiate rebranding. They try to recommend themselves, and demonstrate their usefulness, but ultimately create an imitation of activity that can harm the company.

Examples of Successful Rebranding in Global Companies

Here are a few examples where changes have benefited the brand.

1. S7 Airlines

Now, perhaps few remember that the company was once called “Sibir” (Siberia). The brand not only changed its name, but it also got rid of the Soviet style, concept, and negative reputation. From a company on the brink of bankruptcy, S7 has become one of the most recognizable air carriers in the country.

2. Airbnb

The service for renting accommodation was once called AirBed and Breakfast. Both in the name and in the logo, there was a reference to inflatable mattresses. At the start, you could mainly rent a place in a room and tourists often had to sleep on mattresses. But over time, both offers and customer requests have changed significantly. For example, now you can find luxury apartments and townhouses there. To get rid of outdated associations, the brand changed its logo and shortened its name.

3. Energizer

The company was a market leader for decades. But with the emergence of competitors, it became just one of the battery manufacturers. The brand conducted an analysis of competitors and found that they mainly use red and black colors. Therefore, to stand out among other manufacturers, Energizer changed its usual style to a brighter one.

As you can see, rebranding can either help a company or harm it. If you clearly understand why you need changes and carry them out step by step, they can save the brand from bankruptcy or take the business to a new level. But thoughtless rebranding will negate all past achievements.