Company Rebranding: Purpose

Today’s markets move at the speed of light. Customer’s needs and desires can change on a dime based on everything from a social media post gone viral, to a shift in the political or economic landscape. As a result, companies need to move in concert with the market, or even their own internal shifts. Rebranding your business is an essential and ever-evolving strategy that helps a business remain relevant, fresh, and competitive.

By refreshing a brand, companies can rejuvenate their brand identity, attract new customers, and maintain relevance in the market. This article delves into the purpose, process, pitfalls, and best practices for achieving a company rebrand that packs a punch.

Defining Company Rebranding

Before I dive into the depths of why and how to embark on rebranding of a company, let’s take a moment to understand what it really means to rebrand a company.

As a start, rebranding is more than just a brand identity face-lift resulting in a new logo, color scheme or website design. David Aaker , in his book “Building Strong Brands”, underlines that rebranding dives deep into the core of a brand, altering how it provides value, distinguishes itself, and nurtures customer loyalty. In today’s dynamic business landscape, rebranding isn’t merely an option—it’s often an imperative.

For example, consider Apple during the late 90s. Before it embarked on its iconic “Think Different” campaign, Apple was a competent, albeit indistinguishable, computer manufacturer. Post-rebranding, it transformed into a harbinger of innovation and creativity.

In the simplest terms, rebranding your business is the process of changing the company’s overall brand identity and positioning. It may include an update of the business logo, visual elements, messaging, website, marketing materials, and anything else that communicates to the customer (and the world) who the business is, what they do, and why. The strategic decision to engage in a business rebrand is often driven by the desire to align the company with its current and future objectives, and to better resonate with its target audience.

Another important aspect of company rebranding is the opportunity to redefine the company’s mission, values, and overall purpose. A rebranding exercise often involves revisiting the company’s core values and identifying how they can be better communicated. This process not only helps the company clarify its identity, but also enables it to connect with customers and employees on a deeper level by appealing to their values and aspirations.

Furthermore, rebranding of a company can be a strategic move to expand into new markets or attract a different customer base. By repositioning the brand and tailoring its messaging to a specific audience, companies can tap into previously untapped market segments and unlock new growth opportunities.

It’s important to note that despite the value company rebranding creates, it is not without its challenges and should not be taken lightly. An impactful rebrand requires research, a roadmap, and the commitment of time and money it takes to achieve the outcome. In addition, employees must be aligned with the new brand identity and understand the reasons behind the rebranding. Customers and other external stakeholders need to be informed about the changes and reassured that the company’s values and commitment to quality remain intact.

In conclusion, the rebranding of a company is a strategic decision that involves changing a company’s brand identity to better align with its objectives and resonate with its target audience. It offers an opportunity to stay relevant in a changing market, redefine the company’s mission and values, and expand into new markets. However, it also comes with its challenges and requires careful planning and effective communication. In the following sections, we will explore the various aspects of company rebranding in more detail.

Purpose of Rebranding Your Business

A company’s reputation has been damaged by a crisis. A business has not updated their website for a decade. An organization realizes it is leaving money on the table by not reaching out to a specific segment of the market. From start up to Fortune 500, there are a myriad of reasons why a company may decide to embark on the rebranding journey, and in some cases, the reasons may be multi-faceted. Below are some of the most common reasons why a company may want to undertake a rebranding.

1. Adapt to Market Evolution

Philip Kotler & Kevin Lane Keller, in “Marketing Management,” emphasize the continuous tug and pull brands experience due to shifting consumer needs and preferences. For example: As generations evolve, so do their priorities. Michael Solomon explores, in “Consumer Behavior”, how global culture and societal shifts mold these evolving tastes. For example, the surge in sustainable products coincided with millennials and Gen Z becoming dominant market players.

In addition, market saturation can become a factor. With a myriad of options available, standing out is vital. Baker’s insights on differentiation underscore this challenge. For example, amidst countless soda varieties, organic and artisanal sodas have carved a niche.

New Technologies and Digital Landscapes play a role in why a company may need to rebrand as a response to market changes. Labrecque et al.’s (2013) research in Consumer Power: Evolution in the Digital Age highlights the sea change the digital age has brought about, emphasizing the consumer’s newfound power. For example, the dichotomy of Blockbuster’s downfall and Netflix’s ascendancy elucidates the transformative power of streaming technology.

2. Revitalize a Stagnant Brand

Brands, just like bread, can become stale and experience periods of stagnation. As detailed by Keller, Apéria, & Georgson (2008) in “Strategic brand management”, comprehensive strategies can infuse them with new life. As Keller et al. point out, rebranding your business and revitalizing a brand requires a deep understanding of its current position in the market and the factors contributing to its stagnation. For example, remember when Old Spice was pigeonholed as your dad’s cologne? Their innovative “The Man Your Man Could Smell Like” campaign turned that narrative on its head.

3. Company Growth or Evolution

In 2015, Google determined that it wanted to move beyond merely being a search engine and transformed itself into Alphabet. As the parent company, Alphabet allowed Google to expand into domains outside of internet search and advertising to become a technology conglomerate. Brands are living entities; they grow and evolve. In Strategies for Diversification (Ansoff, H. I., 1957), the author points out that companies need to assess the fit between their current brand and new markets or product categories before diversification. That being said, there are three main growth and evolutionary paths that lead a business to engage in a company rebrand process, including:

• Increasing brand relevancy: As consumer preferences change, a brand must transform to remain pertinent in their eyes.
• Reaching a new audience: Brands can tap into new market segments through rebranding, ensuring they appeal to a broader audience.
• Differentiating from competitors: To avoid blending in, brands must differentiate themselves from competitors. Rebranding offers a chance to underscore those differences.
• New product/service offerings: Companies expanding their offerings often require a rebrand to communicate these new facets of their business.
• Mergers and acquisitions: When companies merge or acquire another brand, rebranding helps in creating a unified identity.
• International expansion: Entering global markets might necessitate a rebrand to resonate with international audiences and cultures.

4. Align with Current Brand Values and Mission

A brand’s values are not necessarily fixed in time forever. They can shift based on internal growth, external changes, or a combination of both. A company can evolve in their core beliefs, as well as feel a need to update their company culture to attract new talent and customers. Consider how McDonald’s, when facing criticisms about health concerns, rebranded by introducing healthier menu options and began emphasizing transparency in its food sourcing. In Measuring brand image effects on brand equity , Bruhn (2012) states that brand image plays a pivotal role in driving brand equity, and that positive brand associations can lead to increased consumer loyalty, willingness to pay a premium, and favorable word-of-mouth.

5. Overcome Negative Publicity

In 1982, Johnson & Johnson was embroiled in a crisis that could have brought down the company. A series of tampering incidents with their Tylenol capsules had resulted in multiple deaths. The company’s adept handling of this situation is still a masterclass in crisis rebranding. Johnson & Johnson responded to the tampering incidents with immediacy— issuing a mass recall of 31 million bottles. The company then developed an industry-leading triple tamper-evident seal, and then returned the popular product to the market. Dawar & Pillutla (2000) in Impact of Product-Harm Crises on Brand Equity found that negative events associated with a brand (like product recalls) can significantly damage brand equity and that brands with high equity tend to recover faster from negative events than brands with lower equity.

The bottom line is that rebranding of a company can help revive a business’s reputation, especially after a period of decline or negative press. In particular:

• Addressing PR disasters: Companies facing public relations challenges can use rebranding as a tool to redirect the narrative and show commitment to change.
• Rebuilding trust: For brands that have faced scandals or have lost public trust, rebranding provides a fresh start and an opportunity to mend relationships with their audience.

We’ve all seen companies face public scrutiny and backlash due to various reasons, such as product recalls, ethical controversies, or poor customer service. In such cases, rebranding offers a fresh start and an opportunity to rebuild trust with consumers. By presenting a new face to the world, companies can redefine themselves and shape public perception.

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