Re Branding Draft Report 2

download Re Branding Draft Report 2

If you can't read please download the document

  • date post

    22-Oct-2014
  • Category

    Documents

  • view

    29
  • download

    0

Embed Size (px)

Transcript of Re Branding Draft Report 2

REBRANDINGWE live in an age when attitudes are not to be simply kept deep within but must be slipped on as a T-shirt or footwear. And company names need not be anything to do with the promoters but are to reflect ideals even if unreachable. When a brand owner revisits the brand with the purpose of updating or revising based on internal or external circumstances. Rebranding is often necessary after an M&A or if the brand has outgrown its identity/marketplace. The decision to rebrand is about much more than a change of logo, and should not be taken lightly - it can mean making changes to the very heart of a company. New year, new logo. As makeover mania takes hold, some of the world's most iconic brands are starting the year with a new look.

Rebranding

Page 1

INTRODUCTION

Rebranding is the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated (new) position in the mind of stakeholders and competitors. Far from just a change of visual identity, rebranding should be part of an overall brand strategy for a product or service. This may involve radical changes to the brand's logo, brand name e.g. orphan initialism, image, marketing strategy, and advertising themes. These changes are typically aimed at the repositioning of the brand/company, sometimes in an attempt to distance itself from certain negative connotations of the previous branding, or to move the brand upmarket. However, the main reason for a rebrand is to communicate a new message for a company, something that has evolved, or the new board of directors wish to communicate. Rebranding can be applied to new products, mature products, or even products still in development. The process can occur intentionally through a deliberate change in strategy or occur unintentionally from unplanned, emergent situations, such as a " corporate restructuring," "union busting," or "bankruptcy." Rebranding is a science and the stakes are so high that it requires a brand specialist to navigate the obstacles, barriers and opportunities that this important business initiative requires. There are many different interpretations to the meaning of re-branding, and ideas on when it's called for and exactly how it should be undertaken. There are two schools of thought when it comes to the subject of re-branding. The first is that re-branding is an essential ingredient of business success; you need to re-brand in order to evolve your brand so that it keeps up with the times and meets consumers' ever-changing needs. The other, that re-branding should be avoided at all costs; after all, if brands like Kellogg's, Kodak, Coca Cola and Gillette can still be market leaders in their categories as they were in 1925, then is re-branding really necessary? Too often companies perceive Rebranding as shallow cosmetic exercise. New color here, tweak of the logo there and throw in some nice TV ads. Corporate mergers will often result in complete rebrand. When organizations have failed to establish a brand, or have been through any kind of scandal, total Rebranding may also be in order. In these cases, the intent is to erase any previous brand identity and replace it with completely new imagery and messaging. There are just about as many reasons to rebrand. Some of these are positive (two organization have merged or a company has significantly expanded its offering), while others are less rosy (the current brand has been tainted in some way or has become outdated).

Rebranding

Page 2

What is meant by Rebranding?In today's business world, re-branding can take many guises and need not be confined to circumstances where there has been a name change only. Rebranding can be defined as "affecting a change to a brand in order to stimulate a change in consumer attitudes, perceptions and behavior with the end goal of generating positive market growth". The reality is that the scope of this change could be as minor as subtle changes to the company's graphics and logo or as major as a full-blown name change. In effect, changing any of the tangible elements of the brand can do re-branding, whether through the advertising, corporate stationery & sales literature, packaging design, staff uniforms, vehicle livery or the corporate identity and trademark. Changes to any or all of these can have the effect of re-branding a company OR

Rebranding:This can be defined as "a process of giving a product or an organization a new image, in order to make it more attractive and successful" (Collins English Dictionary). This is done to increase consumer loyalty, improve member professionalism, enter a new market trend, create a stronger voice in the industry, increase share holder value or to reenergize a company.

Partial RebrandIn situations when a brand has been firmly established yet is simply outdated or needs to be refreshed due to the addition of new products or services, tweaking is required, rather than a full-blown rebrand. In these cases, you don't want to eliminate the brand value that's been developed over the years, but merely make subtle changes to update it or make it representative of an expanded offering.

Total RebrandCorporate mergers will often result in complete rebrands. When organizations have failed to establish a brand, or have been through any kind of scandal, total rebranding may also be in order. In these cases, the intent is to erase any previous brand identity and replace it with completely new imagery and messaging.

Rebranding

Page 3

Reasons for rebrandingRebranding occurs when a business or organization decides to change a significant element of the brand. Such a change could be glaringly obvious like a new brand name or logo, or it might be more subtle such as a slight shift in messaging to better communicate a more relevant brand promise. Anyway you slice it, rebranding is extremely important. Not only can it be expensive to execute a complete rebrand, but it can also be risky. Sometimes employees and consumers wont accept a rebranding, and thats when disaster strikes. Why do companies rebrand? There are actually a multitude of reasons why a business might initiate a corporate rebranding or the rebranding of a product or service, but no matter what the reasons are, those reasons can always be categorized as either proactive or reactive. Lets take a closer look. Proactive Rebranding: Sometimes a company sees a reason to rebrand to seize an opportunity or thwart potential threats in the future. For example, proactive rebranding might happen in the following situations:

Predicted Growth: When a company is preparing for expected growth, particularly international growth, it might rebrand products and services into a consolidated brand. This is often done for consistency and to save money over time. This type of rebranding is also done when a company simply needs to create a greater sense of brand unity across its business.

New Line of Business or Market: When a company enters into a new line of business or market that is not cohesive to the existing brand identity, a rebranding might be in order. Remember when Apple was known as Apple Computer? As the company evolved into new lines of business beyond computers, the original brand name was too restrictive. With a simple snip to the ancillary word in the brand name in 2002 (which most people didnt use anymore), the brand was ready for new growth and opportunities.

Rebranding

Page 4

New Audience: When a company wants to appeal to a new audience, a rebranding might be necessary. Keep in mind, the rebranding might not require an actual name or logo change. Think of McDonalds referring to itself as MickeyDs in commercials to target a different demographic from its traditional family audience.

Relevancy: When a company realizes its brand is losing relevancy in consumers minds, it might be time to rebrand. The Yellow Pages rebranding is a perfect example. With the use of printed Yellow Pages directories declining, Yellow Pages rebranded to YP and began to focus more attention on the digital space making it significantly more relevant.

Reactive Rebranding Other times, companies rebrand in reaction to an event that is so significant that the existing brand must be changed. For example, reactive rebranding might happen in situations like the ones listed below:

Merger or Acquisition: When companies merge or acquire other companies (and even when they break apart), rebrandings are often required. Thats how weve gotten brand names like Pricewaterhouse Coopers and Bank of New York Mellon. When AT&T broke up into three separate companies in the late 1990s, Lucent Technologies was born. These types of rebrandings are very common and often go through multiple iterations.

Legal Issues: There are a number of different legal issues that could cause a company to rebrand. Trademarks are often at the root of these rebranding examples. Thats why its so important to conduct an exhaustive trademark search and obtain the trademark rights to your brand name before you launch it.

Competitive Influences: Sometimes a companys competitors activities can be the catalyst to a rebranding. When a competitor renders your brand useless or dated, a rebranding could help you regain a foothold in your market and give you the facelift you need to effectively strike back.

Rebranding

Page 5

Negative Publicity: Remember a company called Andersen Consulting? It was part of a larger company along with the accounting firm Arthur Andersen that was tied to the collapse of Enron. Andersen Consulting was granted independence from its parent company in 2000, and on New Years Day 2001, the consulting company was reborn as Accenture, representing a great example of effective rebranding in respons