Why rebrand?

Not many people wake up and say to themselves ‘I think I fancy changing my brand’. However, we’re experiencing an increased amount of rebranding discussions with clients and potential clients currently. So why would rebranding in a global pandemic be such a hot topic? What we’re seeing are the reasons to reposition and update brands being emphasised. Here are the most common reasons:

Change is happening faster than ever…

For some organisations, there might be reasons to postpone brand change. Budgets could be reduced at this time or the reputational risk for ‘unnecessary’ spending is just too high. However, the fast-moving changes that are happening globally, at the moment, also emphasise the urgency to reposition and rebrand. Mergers and acquisitions are now on the increase as the economy resets and many industries have been forced to adapt and become online-focused brands. A rebrand can have a very positive outcome for both short-term and long-term business results.

The world is shrinking

We’re all spending much of our time online, and business is growing globally for lots of companies. There are more opportunities to focus outside of your local market, in both B2B and B2C. Globalisation is not a new thing, but the pandemic has sped up this process significantly. For many brands, this is the time to expand their business internationally and, in many cases, a change is necessary to ensure the brand fits international markets. This might be because the brand name is specific to a particular country, for example. Or, in certain countries, a brand name or an element of the corporate identity may conjure up negative associations. Organisations that sell the same product in several countries, but under different brand names, are also increasingly opting to use one international brand.?

Repositioning due to changing market needs and proposition/product offer

We are seeing market changes that mean a brand’s very existence comes under threat. The digitalisation of our consumer habits is making it necessary for certain sectors to reinvent themselves. Different consumer needs call for different products and services. When changing your products/services or route to market drastically, repositioning your brand is a strong signal of your new direction. In most cases, the old brand doesn’t really fit the new strategy, and changing your brand gives you the opportunity to reinvent yourself and let your audience know you are adapting to fit their needs.

A symbol of change

A rebrand is the perfect way to signal to the outside world that change is happening and it naturally attracts attention. The brand exposure that a rebrand generates can be offset against the cost to rebrand, and is often more cost effective than the equivalent media spend to explain a new strategy.?

Bringing a new strategy to life for an organisation’s employees, customers and stakeholders is no easy exercise – the world is full of media noise already. This is a strong reason for many boards to decide to go with a rebrand.

A bad rep

A bad reputation can have a serious impact on a company. When your company is suffering from a bad reputation, rebranding is often one of the solutions that needs to be implemented with urgency. A rebrand can, after time, reduce or even eliminate negative associations with a brand, but only if the rebrand is not a cosmetic exercise and is partnered with real change in approach or brand promise.

Keep it simple

More recently, digitalisation has become the main trigger for brand and logo change. Many brands were developed at a time when ‘digital’ played a limited role in brand application and a corporate identity mainly consisted of a logo, a primary colour palette, and typography created for offline expressions. However, a simplified logo can be easier to repurpose in this dynamic world. Online, screen resolution affects the crispness of images and small screens do not reproduce small details so it’s important to consider legibility at all sizes. We absorb streams of images, videos, text and more daily. Smart brands don’t try to compete with this. Instead, they create messages that speak to their audiences using easily recognisable visuals and straightforward messages.?Take the Starbucks logo transformation as an example. It has been gradually simplified to a point where it no longer includes the name and is just a single colour. This shows confidence that the brand is ubiquitous to the point where reinforcement of the name is not necessary. Brands are choosing to do away with elements that no longer serve a purpose.

Off trend

A common reason for undertaking a corporate rebrand project is modernisation. Your brand identity may well be showing signs of age – that logo which was once trendsetting now looks tired and outdated. Lots of brands are now looking to step away from complex logos with 3D effects (which were very much the trend when brand application was moving to be digitally led and improved printing techniques enabled easier reproduction). Now, brands are opting for a flat design, resulting in a clear logo without any distracting elements, to bring focus to the brand name. Although, it is not usually the main reason, a refreshed image is often one of the drivers behind a rebrand project. The VW identity is a really good example of a brand moving back from a 3D emblem to a simplified marque and identity.

Change of ownership

Turbulent times often result in changes in business ownership such as mergers, acquisitions, and demergers. In these situations, a rebrand is usually top of the agenda. New brands will be born, and old brands fall by the wayside. In the case of demergers, the party that is splitting off is obliged to develop its own brand. When it comes to mergers and acquisitions, there are several possibilities: the new company may develop a completely new brand, keep a portfolio of brands, or there might be an interim position – a lot depends on the brand equity and reputation involved and the sensitivity of the market sector. We work in complex sectors that are often regulated; we’re seeing these sectors go through huge transformations and this is reflected in their brands.

Fixing a brand soup

Over time, organisations can find their brand architecture becomes overly complicated, perhaps due to historical acquisitions of brands or because they developed new services/products marketed under different brands. Often these decisions seemed like a good idea at the time and might have been made by someone who has long since left the company. This can all lead to a complex soup of brands, creating confusion for consumers and stakeholders alike.

We are seeing many brands move back to a strong monolithic brand structure or a simplified brand architecture. Returning to simplicity allows efficiency in brand management, cost savings and increased impact. Through a rebrand, an organisation can concentrate on the true essence of the company and can condense its brand portfolio to a smaller, simpler one.?

Time for a rebrand? Email [email protected]?-?feel free to pick his brain and share your ideas, concerns or thoughts on this article and what it?means for your brand and business.?