2020: The Year of Rebranding
The dynamic world of business is extremely difficult to keep up with. Its ever-changing trend and innovative technology keep businesspersons and entrepreneurs on their toes. Every day, a sheer number of competitors enter the industry with fresh ideas and brand new strategies. Whether you are a start-up clothing brand or a billion-dollar fast-food company, staying ahead of your competitors and keeping up with the modern trend is a must.
One primary strategy to keep you afloat in the business world is rebranding. Rebranding is often associated with negative connotations. But, there are a multitude of reasons why an enterprise decides to rebrand. It is not always out of a reaction to a negative effect.
Before diving into the nits and grits of rebranding, let us first look at what branding is.
Branding is a marketing technique designed to cement business or a company’s identity. It is the creation of an identifiable name, design, or symbol that allows your customers to recognize your business. A strong branding should set you apart from your competitors. It should reflect the entirety of your business—company “personality”, quality products and customer experience and service. A strong brand attracts customers and converts them from buyers to brand loyalists.
Branding should be in the works even before launching your business. While rebranding comes during the latter part of your business years and operation. So, what is rebranding? Why do companies rebrand and what are its benefits?
What is Rebranding?
Rebranding is a company “makeover”. It is a significant, glaring change to a company’s brand, name, or operations for the greater good.
Rebranding is time-consuming, expensive, and risky but it is an essential part of a business’s strategy. It is a way of updating and keeping your company in sync with the latest innovations. It is not limited to a change in your brand logo, name, or typographies. A rebranding also encompasses a shift in your brand value, mission, and awareness. It can be a change in how you communicate with your audience or an internal change within the organization.
So, why rebrand?
Reason for Rebranding (and its Benefits!)
1. Company expansion
Business growth, either local or international, calls for the consideration to rebrand. A growing and scaling business may rebrand to create a sense of unity within their products and services. You need to conjure different strategies and marketing techniques for a new environment, especially if you are expanding internationally. Also, it is a way to create consistency and attract new audiences.
2. A new line of business
Adding a new line of business means entering a whole new market. Especially if it is something completely different from the product or service that you were known for. To market your new product or service in association with the value and trust that your company already holds, rebranding is a must.
Rebranding is a way to form a cohesive unit between your businesses, no matter how big their difference is. It is a method to tie your businesses together, forming a leveled-up and integrated brand.
3. Stay relevant
If you have been in the business since the ‘90s, you need to think about ways on how to stay relevant to the eyes of your consumers.
Rebranding brings your business up-to-date. It realigns your company’s brand message and awareness into what is relevant today. It will remind your former customers of who you are as well as attract new ones with your innovative version.
Your target audience also changes over time. Rebranding is the only way to establish a connection with them. One that resonates with their preferences.
A shift in the modern trend is one of the most popular reasons why businesses rebrand. The traditional way that once was the hype is now trumped with the latest trend.
For example, the simplification of brand names. Newly established companies invest in creating a strong, one-word name that has an impact on target audiences (Netflix, Lyft, Tiktok). They start dropping unnecessary words or descriptors in their brands to join in the hype. Like the Dunkin’ Donuts company who rebranded last year. They transitioned into the new brand name of Dunkin’ last January 2019.
Also, aesthetically-pleasing and Instagrammable brand elements are what audiences go for today. Pastel color palettes with minimalistic designs are what floods the Instagram feeds of modern audiences.
Another one is sustainability. Consumers are now using their voice to advocate for the importance of health and sustainability. They seek companies and brands with eco-friendly ways. They stand with those who show care for the environment and the world we live in.
5. New competitors
With the rise of new competitors in the market, the only way to keep up with them is to rebrand.
You need to establish a way to stand out amidst thousands of competitors. Show your audience what makes you unique and important. Showcase on what sets you apart from the other. A rebranding gives new life to your outdated logo, brand message, and strategies to catch the eye of potential clients.
One reactive cause of rebranding is due to a negative circumstance like a bad reputation. Company reputation can make or break your business. It takes years to establish a good one and it only takes a minute or a small mistake to destroy it.
For example, the international fast-food company of McDonald’s. It was deemed as cheap and reputed to contain only unhealthy food options on their menu. To completely erase this bad reputation and to bring back their customers’ trust, McDonald’s did a company rebranding. They start putting healthy options like salad and veggies to their meal. They spent dollars on creating a brand that emanates health and wellness.
7. Change in management
A change in leadership can sometimes prompt a company to rebrand. New leaders like a general manager or a CEO have fresh plans and ideas to deter a company away from failure or bankruptcy. Especially if the old ways and organization structure is causing a decline in the company’s success.