Rebranding can revitalize a company… But should you do it?
Have you ever thought about rebranding?
If you’re like many business owners, the answer is a resounding yes.
After all, in the face of stagnant sales, incessant competition and changing markets, the idea of becoming a new, “different” company can be alluring.
But rebranding isn’t a walk in the park—and if you do it wrong, the consequences to your business can be dire.
Should you consider rebranding?
Here are some scenarios where overhauling your brand might make sense.
- New product. If you’ve recently launched a new product or service that has the potential to confuse your customers, you might think about rebranding that part of the business. We don’t often recommend this approach, though. At BRANDING FOR THE PEOPLE, we feel it makes sense most of the time to create one Master Brand and then roll out sub-brands underneath it.
- New mission. A shift in your most basic reason for being definitely merits a rebranding conversation. For example, if you’ve been providing services to clients and now want to focus exclusively on teaching them, a rebrand is probably in order.
- New image. If you’ve had a PR disaster—or an actual one—and you’re trying to distance yourself from it, rebranding may help you achieve your goal. This is difficult to do though, especially in a world where the internet can help even the least savvy customers see through your efforts. Witness tobacco giant Philip Morris and their attempt to rebrand as Altria.
- New customers. If you’ve managed to attract a new market—whether by choice or by accident—rebranding may make sense. In the early 2000s, for example, Andersen Consulting split from its parent because its best clients wanted only consulting services. It then rebranded to Accenture to further distance itself from the accounting giant. (Good thing, too, as Andersen collapsed over its ties to Enron.)
- New needs from current customers. The Canadian arm of Radio Shack, after being bought out in a consumer electronics deal, initially rebranded as The Source by Circuit City. But when its new owner began to falter, it became simply The Source—a move whose timing couldn’t have been better. Circuits and radios are things of the past, and the new name suggests that no matter where electronics go in the future, The Source will be there to provide that tech to its customers. (And both Circuit City and Radio Shack are now distant memories.)
- New competition. To say things were different in the 90s than they were in the 50s is an understatement. But through that whole time, Kentucky Fried Chicken had the word “fried” right there in its name. 1991 saw a move to KFC, however, in a move away from that F-word. Too many healthy restaurants were giving the chicken giant a run for its money—so the move made sense. (Unfortunately, they handled the rebranding poorly; rumors persist to this day that they switched to KFC because they were no longer legally allowed to claim their product was “chicken.”)
When shouldn’t you rebrand?
Occasionally, businesses undertake a rebranding for the wrong reasons. Here are three.
- New management. If all you’ve changed about your company is the management group—and the same problems you’ve always had continue to exist—your rebranding will never work.
- New whims. Department store Macy’s lost a staggering amount of brand equity when it moved to a “one-brand” policy and renamed iconic brands like Chicago’s Marshall Field’s and Memphis’ Goldsmith’s. At the time, the decision was seen as foolish; Macy’s seemed to have recovered by the beginning of this decade but is struggling again.
- New internal issues. If you’ve identified that you’re having trouble connecting with your market, is that a branding problem? Or is it because your marketing is horrible, or your customer service is poor, or your services aren’t delivered well? Be careful—not every issue is one that rebranding can solve.
In a perfect world, your competition would never change their strategy, your customers would stay loyal forever, and you’d see exponential growth year after year. This is obviously not the case—and while you don’t want to be too hasty with a rebranding exercise, don’t discount the power of reinventing your brand, either.