While rebranding may be an increasingly popular discipline in the modern age, it is one that remains fraught with risk. After all, there is nothing more central to a business than its brand and visual identity, so compromising this can actually more harm than good (regardless of your reasons for the change).
The unpredictable nature of rebranding, coupled with the cost of this process, means that your business must think long and hard before pursuing this course of action. You need to look at Pepsi’s baffling, £1 million rebranding failure to understand the risks involved, and appreciate that lavish spending does not always deliver rewards.
In this article, we will look at the key questions to ask before deciding whether or not to rebrand:
What Does Rebranding Involve?
In simple terms, the process of rebranding involves the repositioning, adaptation and re-imagining of your businesses written, visual and philosophical values.
The process is also an holistic one, however, and one in which each individual element must be considered from a single-minded perspective. This ensures clarity of thought and consistency throughout the brand, which in turn helps you to seamlessly adapt your businesses proposition without alienating your existing consumer base.
Make no mistake; this is an intense and challenging process, and one that will require detailed strategy, considerable amounts of time and a willingness to invest financially in the business.
What Are the Benefits of Rebranding?
When rebranding, you should always have a clear motivation for following this course of action. This will ensure that the eventual spend is justified, while it can also lead to a larger and more diverse ROI.
This leads us into the general benefits of rebranding, however, which has gained greater credibility and relevance in the digital age. This is because it offers companies a unique opportunity to adapt and reposition themselves in a rapidly changing marketplace, whether they are responding to innovation, consumer behaviour or the evolving practices of competitors.
You may also rebrand to target new customer segments, as you look to expand your venture and drive a desired level of growth. The only caveat to this is that you do not compromise values at the expense of existing customers, and companies like McDonald’s have successfully achieved this with the diversification of their menu and core brand messaging.
What Are the Dangers and Negative Aspects of Rebranding?
The last point highlights the primary danger of rebranding, as it can damage the perception of your brand in the eyes of pre-existing customers. So even though the final rebrand may enable you to target new audiences, this means little if you lose access to others in the process.
This is particularly true if you dramatically alter your messaging, values or core product ranges, so the execution and the motivation behind your rebrand must outweigh this considerable risk.
On a similar note, you will also need to consider the cost of rebranding in line with your expected returns. There have been many instance in which businesses have managed to successfully reach new customers by rebranding, only to find that the subsequent increase in turnover was offset by costs. This remains a key consideration when looking to rebrand, as you must strive to reduce costs and ensure that it deliver value and profit to your business.
The Last Word
Ultimately, the decision of whether or not to rebrand is a deeply personal one, which must be taken based on individual needs, circumstances and expectations.
These general considerations will help you to make a more informed decision, however, while ensuring that your proposed rebrand benefits your business more than it compromises it.