As per the Cambridge dictionary, ‘Rebranding’ is defined as “the process to change the way that an organization, company, or product is seen by the public.”
Now, we all know the level of effort and the amount of time it takes for a business to establish a brand name for itself. For some, it may be a matter of few months, while, for some businesses, it may take decades to become a household brand name.
So, it is imperative to strike the question that why do a business even need to go for rebranding in the first place?
Why is it that an already established brand needs to go for a do-over when it is already a known entity in the market?
Well, there can be several reasons for rebranding.
A company may decide to go for a total brand makeover due to the following reasons;
-The target audience has changed.
-The current brand identity is not working out anymore.
-The business goals have changed.
And, then, there can be several other reasons for a company to decide on rebranding.
Check out this blog where we have extensively discussed the signs that show it’s time for a business to rebrand.
Rebranding, however, is not a new concept.
Over a period of several decades, a lot of companies (which are now huge brands) have opted for rebranding. Some of these famous brands include;
All these brands, at some point, were on the verge of going out of business but, a solid rebranding strategy not only saved them but, in fact, took them to the pinnacle of their business operations.
However, there are several other brands that, on the contrary, faced the brunt of a failed rebranding strategy. Some of these brand names include;
This brings us to our today’s topic of discussion; the Pros and Cons of Rebranding. and, whether your business needs it or not?
Expand customer base
Rebranding has been seen doing wonders for companies who are looking to expand their market segment.
When done right, rebranding can help businesses to explore new demographics and acquire a new set of loyal customers; while retaining the existing ones.
This largely works well for companies who are planning to expand their product line or launching a new set of services to their operations.
For example, let’s say you are into manufacturing and selling electronic toys and for many years have been targeting only male kids under the age of 10. A solid rebranding plan can, not only help you tap into a new segment of other gender kids but, also help target the parents; who are eventually the decision-makers.
Target new goals
Another benefit of rebranding is that you can work towards achieving new goals.
Often, brands reach a point of stagnation where they see no further scaling up of their current operations.
In such a situation, a solid rebranding can help set new objectives and goals which bring in a new wave of energy within the team.
Scale up the audience engagement
When you decide to rebrand your business, it generates a great opportunity to excite your existing customers and supports proactive engagement from them.
Rebranding can ignite an extensive discussion amongst your customers on different social media channels. People sharing stories and news about any new product launch, etc.
The process of rebranding offers a chance to engage with people on multiple platforms about your new value proposition.
Adapt with new trends
There is absolutely no doubt about the fact that brands need to keep up with the latest trends in order to stay relevant.
If in the mid 20th century, female consumers were considered to be the decision-makers (as they use to do all the household shopping), then the 21st century has definitely removed that gender imbalance.
So, brands who use to crate their marketing designs keeping only women in mind will now have to focus on gender-neutral marketing.
Become more accurate
When you start a business, there is a very solid possibility that it would see a lot of updates and changes in its identity over a period of time.
Be it the logo design, the brand colors used, or even the brand name entirely. The internal perspective of your branding can change when your company begins to grow.
So, let’s say you opened a bakery that used a cake in its logo but, mostly sold savory foods. Taking the time to think about your brand and how you should be representing it means that you can retool your logo, name, and general brand identity to better suit your business.
That is why many organizations choose to take a different name or shift their message as they begin to establish themselves in the market.
Can turn chaotic
One of the biggest threats of rebranding is getting lost in the entire process.
While ‘change is the only constant’ is a common idiom, another thing that is common is the reluctance of people towards any kind of change.
When you change your message after consumers have gotten used to the older outreach effort, then they can be confused just as easily as they can be encouraged by the process.
So, in order to avoid any such circumstances, it is highly advised to be very clear and proactive with the communication.
Can shrink your current customer count
Taking the cue from the earlier point, the uncertainty that change brings with it can invoke fear and mistrust in consumers towards a brand.
Irrespective of the fact whether your rebranding strategy is flawless or not, it is highly likely that you may lose some customers. This is mainly because some consumers don’t like any change; whether it is for their good or not.
Again, solid communication with your consumers while explaining to them all the new features and benefits can help minimize this shrinkage.
Can be expensive
Rebranding can take a significantly heavy toll on your business’s budget.
It’s not just about creating a new logo or adding an extra letter to the brand name. Rebranding is an entire overhauling of your brand’s already existing image. And, therefore, would require an extensive approach.
You need to be prepared to spend money on developing a creative rebranding strategy, new content, custom graphic design, as well as marketing and advertising campaigns to support your rebranding project.
However, it is good to remember that, if done right, every penny spent on your rebranding campaign will provide high returns for a long time. For that to happen, it is important that you hire professionals.
GraphicsZoo provides professional and affordable graphic design services for small businesses and helps them in establishing a solid brand identity. Get in touch to know more at email@example.com
Can be tough to turn back
Rebranding can be a time-taking process and it may so just happen that after a point you may feel like canceling the campaign and get back to how things originally were.
Spoiler alert! Once you get down on the road of rebranding, there’s no turning back.
Not that you can’t at all but, doing so will only further your brand’s bad reputation and shrinking of existing customers.
Also, all the time and money that you have already spent in reaching where you are will all go down in vain.
A good way to avoid facing any such conundrum is to be clear with your rebranding goals from the first place. Create a solid strategy and plan before getting on to the execution level.
Rebranding can be a lifesaver or a name spoiler. It all depends on how your planning and approach is towards the project.
We hope these pros and cons of rebranding helped you get a clearer picture and showed you the right point, to begin with.
If you still have any doubts or queries regarding whether or not you must go for rebranding and how to do it, then simply get in touch with our advisors at firstname.lastname@example.org; today