Companies opt for rebranding for various reasons, from shedding negative images to tapping into new markets. The reason for the rebrand will determine the type of rebrand undertaken. Rebranding types include proactive, reactive, refresh, overhaul, mergers and acquisitions, digital, cultural, and geographical. Companies also need to consider timing, budget, stakeholder engagement, measurement, legalities, internal communication, phasing, and future-proofing when planning a rebrand.
In the whirlwind of today’s business landscape, staying relevant is akin to keeping your balance on a tightrope. Enter rebranding – a transformative process that can revitalize a company’s corporate image, from its name and logo to its entire marketing strategy. But let’s be clear: rebranding isn’t just about a shiny new logo. It’s about reimagining how your business connects with the world and understanding the different types of rebranding that can be applied.
Companies opt for rebranding for many reasons. Some aim to shed a negative image, while others are eager to tap into new markets. No matter the motive, the rebranding process can inject new life into a business, helping it forge fresh and exciting connections with customers. Understanding the nuances of a brand refresh versus a complete overhaul is crucial in this journey.
Research from the Harvard Business Review reveals that successful rebranding can lead to a 5-7% increase in market share, especially when efforts focus on enhancing the perceived value and experience of the brand. In this article, we’ll explore different types of rebranding, from proactive moves to reactive necessities. Ready to dive into the world of rebranding? Let’s get started!
The Makeover Before the Mirror Cracks: Proactive Rebranding
Proactive rebranding is like getting a makeover before the signs of age start showing. It’s about staying ahead of the curve and making changes before they’re needed. Companies often initiate proactive rebranding when they sense market shifts or target new audiences. This type of rebranding process ensures a company remains relevant and competitive.
For example, a tech company might rebrand to appear more approachable as it expands into consumer markets. Or a fashion brand might refresh its image to appeal to a younger demographic.
Take Apple, for instance. In the late 1990s, Apple proactively rebranded from its rainbow apple logo to the sleek, monochromatic design we know today. This change wasn’t due to any crisis but was a strategic move to position Apple as a premium, cutting-edge tech brand. The result? Apple became one of the most valuable and recognizable brands in the world.
Other notable examples include Mastercard’s logo simplification in 2016, removing the name and keeping only the iconic interlocking circles, and Dunkin’ Donuts dropping “Donuts” from its name in 2019 to emphasize their broader menu offerings.
A McKinsey & Company study found that companies engaging in proactive rebranding often see a 20% improvement in customer perception and a similar increase in overall market performance.
Questions companies should ask:
1. How might our industry evolve in the next 5-10 years?
2. Are there emerging demographics or markets we should be targeting?
3. Does our current brand align with our long-term business strategy?
4. How can we stay ahead of our competitors in terms of brand perception?
Turning Lemons into Lemonade: Reactive Rebranding
Reactive rebranding is the corporate equivalent of damage control. It’s typically triggered by a crisis or negative publicity that threatens a company’s reputation. Reactive rebranding can be challenging, requiring quick thinking and careful execution, but when done right, it can turn a potential disaster into an opportunity for growth and positive change.
Consider Burberry’s situation in the early 2000s. The luxury brand’s iconic check pattern had become associated with “chav” culture in the UK, threatening its upscale image. In response, Burberry underwent a massive rebranding effort, limiting the use of their check pattern, bringing in new designers, and repositioning themselves as a modern luxury brand. The result? Burberry successfully shed its negative associations and regained its status as a high-end fashion label.
Additional examples include Volkswagen’s rebranding efforts after the 2015 emissions scandal, focusing on electric vehicles and sustainability, and Uber’s 2018 rebranding following a series of scandals, aiming to portray a more mature and responsible image.
The Journal of Marketing indicates that reactive rebranding can mitigate losses by up to 30% in the short term, and potentially lead to long-term gains if the strategy is effectively implemented.
Questions companies should ask:
1. What aspects of our brand have been most damaged by the crisis?
2. How can we demonstrate tangible changes in our operations or values?
3. What steps can we take to rebuild trust with our stakeholders?
4. Should we address the issue directly in our rebranding, or take a more subtle approach?
The Facelift: Brand Refresh
Sometimes, a full rebrand isn’t necessary. Enter the brand refresh – giving your brand a facelift rather than a complete overhaul. A brand refresh typically involves updating your brand identity (elements like logos, color schemes, and website design), modernizing your look while maintaining your core brand identity.
The advantages of a brand refresh are numerous: it’s less disruptive than a full rebrand, more cost-effective, and allows you to maintain brand recognition while still signalling positive change.
Starbucks is a great example of a successful brand identity refresh. Over the years, they’ve gradually updated their iconic mermaid logo, simplifying it and removing the “Starbucks Coffee” text. These subtle changes kept the brand feeling fresh and modern without losing its essential identity.
Other examples of a brand refresh include Coca-Cola’s periodic updates to its script logo and bottle designs while maintaining core elements, and Google’s subtle logo changes over the years, refining its color palette and typeface.
A survey by the Brand Consultancy found that 58% of consumers prefer subtle changes that modernize a brand without completely altering its identity, aligning with the concept of a brand refresh.
Questions companies should ask:
1. Which elements of our brand identity are most recognizable and should be preserved?
2. How can we modernize our visual elements without losing brand recognition?
3. Are there any dated aspects of our brand that need updating?
4. How can we ensure consistency across all touch points during the refresh?
The Full Monty: Brand Overhaul
Sometimes, a refresh just won’t cut it. That’s when it’s time for a brand overhaul – the big leagues of rebranding, involving a complete reimagining of a company’s identity. A brand overhaul might be necessary when a company’s current brand is severely outdated, expanding into entirely new markets, or trying to distance itself from a troubled past. This type of rebranding process is more intensive but can be highly rewarding.
Unlike a brand refresh, an overhaul can be risky. You’re essentially starting from scratch, potentially losing the brand equity you’ve built up over the years. But when executed well, it can completely transform a company’s fortunes.
Take Old Spice, for instance. Once seen as your grandfather’s aftershave, Old Spice underwent a complete brand overhaul in 2010. With a new, quirky advertising campaign and updated product lines, they successfully repositioned themselves as a young, fun brand. The result? Sales skyrocketed, and Old Spice became relevant to a whole new generation.
Other companies who have done a successful rebrand are Airbnb’s 2014 rebrand, introducing the “Bélo” symbol and a new color scheme to represent belonging, and Uber Eats rebranding to Uber in 2022, unifying its services under one cohesive brand.
Questions companies should ask:
1. What core values or mission should our new brand embody?
2. How can we differentiate ourselves from competitors with this overhaul?
3. What risks are associated with a complete brand change, and how can we mitigate them?
4. How will we communicate this significant change to our stakeholders?
According to a Nielsen study, companies that undergo a brand overhaul see an average increase of 25% in brand equity, making it a viable option for businesses in need of significant change.
The Shake and Bake: Mergers and Acquisitions Rebranding
Mergers and acquisitions often necessitate rebranding. After all, when two companies come together, decisions need to be made about how to present the new entity to the world. Several approaches exist for M&A rebranding: sometimes, one brand is absorbed into the other, while in other cases, a completely new brand is created.
A great example of successful M&A rebranding is the merger of United Airlines and Continental Airlines. They chose to keep the United name but adopted Continental’s globe logo and color scheme. This approach allowed them to leverage the strengths of both brands while creating a unified identity.
Additional examples include the merger of Bell Atlantic and GTE to form Verizon in 2000, and the acquisition of Whole Foods by Amazon, leading to co-branding and integration of Amazon services.
Research from the Journal of Business Research highlights that successful M&A rebranding can lead to a 15-20% increase in combined market value, showcasing the importance of strategic brand integration.
Questions companies should ask:
1. How can we combine the strengths of both brands in our new identity?
2. Should we maintain separate brand identities or create a new, unified brand?
3. How will we manage the transition for customers of both original brands?
4. What legal considerations do we need to address in terms of trademarks and brand assets?
The Virtual Facelift: Digital Rebranding
In our increasingly digital world, an online presence is crucial. Digital rebranding focuses on how a company presents itself in the digital realm, from its website to its social media profiles. Key components of digital rebranding include updating website design, refreshing social media visuals, and ensuring consistent messaging across all digital platforms. This type of rebranding process is essential for maintaining a strong online presence.
One tip for digital rebranding: don’t forget about user experience. Your new digital presence should not only look good but also be intuitive and easy to navigate.
Mailchimp’s digital rebrand is a great example. They updated their logo, introduced a new color palette, and even created their own font. These changes were consistently applied across their website, app, and all digital touchpoints, creating a unified and distinctive online presence.
Additional examples include Slack’s 2019 rebrand, which included a new logo and color palette optimized for digital platforms, Dropbox’s 2017 digital rebrand, introducing a more vibrant color scheme and playful illustrations.
A Forrester study found that companies investing in digital rebranding experience a 20% increase in user engagement and a 15% boost in online sales, emphasizing the critical role of a strong digital presence.
Questions companies should ask:
1. How can we improve our website’s user experience as part of this rebrand?
2. Are our digital assets (logos, icons, etc.) optimized for various screen sizes and platforms?
3. How can we ensure our brand translates well across all digital touch points (website, app, social media)?
4. Should we incorporate new digital technologies (AR, VR, etc.) into our rebranded digital presence?
Values in Vogue: Cultural Rebranding
Cultural rebranding is about aligning your brand with changing societal values or shifting your company culture. This type of rebranding goes beyond visual changes; it’s about redefining what your company stands for. Cultural rebranding might involve updating your mission statement, revising your corporate values, or changing your messaging to reflect new priorities. Successful rebranding in this area can lead to deeper connections with your audience.
Nike’s embrace of Colin Kaepernick in their advertising is a prime example of cultural rebranding. By aligning themselves with the athlete’s social justice stance, Nike repositioned itself as a brand that’s not afraid to take a stand on important issues. While controversial, this move ultimately strengthened Nike’s connection with its core audience.
Additional examples include Patagonia’s ongoing commitment to environmental activism, integrating this into its brand identity, and Ben & Jerry’s vocal stance on social issues, making it a core part of their brand.
According to a report by Edelman, 64% of consumers worldwide buy or boycott a brand solely because of its position on a social or political issue, underscoring the impact of cultural rebranding.
Questions companies should ask:
1. What social or cultural issues align with our company’s values?
2. How can we authentically integrate these values into our brand identity?
3. Are we prepared to potentially alienate some customers by taking a stand?
4. How can we ensure our internal culture aligns with our externally projected values?
Local Flavor: Geographical Rebranding
As businesses expand globally, they often need to adapt their branding to different markets. This is where geographical rebranding comes in. Geographical rebranding might involve translating your brand name, adjusting your visual identity to appeal to local tastes, or even creating entirely new sub-brands for specific markets. This type of rebranding process ensures global brands resonate locally.
The key challenge here is maintaining a consistent global brand while also resonating with local audiences. It’s a delicate balance, but when done right, it can lead to significant international success.
McDonald’s is a master of geographical rebranding. While maintaining its core brand identity, McDonald’s adapts its menu, marketing, and even restaurant designs to local tastes and cultures around the world. This approach has helped them become one of the most successful global brands.
Additional examples include KFC’s adaptation in China, offering locally inspired menu items and marketing campaigns, and Coca-Cola’s use of local languages and cultural references in its global “Share a Coke” campaign.
A Kantar study found that brands effectively implementing geographical rebranding strategies see a 20-30% increase in international market share, highlighting the importance of localizing global brands.
Questions companies should ask:
1. What aspects of our brand may not translate well in this new market?
2. How can we respect and incorporate local cultural elements without appropriation?
3. Should we create a separate sub-brand for this market or adapt our existing brand?
4. How can we maintain global brand consistency while allowing for local customization?
Additional Considerations for All 8 Types of Rebranding
1. Timing: When is the best time to launch our rebrand? Consider market conditions, internal readiness, and potential external events.
Timing is critical in the success of a rebranding initiative. Assess current market conditions to ensure that launching the rebrand will not coincide with economic downturns or industry disruptions. Internally, the organization must be prepared with sufficient resources and an aligned team. External events, such as major industry conferences or competitor activities, should also be considered to avoid clashes that might overshadow the rebrand. Careful timing can enhance the impact and reception of the new brand.
2. Budget: What resources can we allocate to this rebranding effort?
Consider not just the initial rebrand but also the cost of implementing changes across all touchpoints. A thorough budget analysis is essential for a successful rebrand. Allocate funds not only for the creative aspects such as logo design and marketing materials but also for the practical implementation across all touchpoints, including websites, social media, product packaging, and physical locations. Plan for contingencies and post-launch activities to sustain the new brand presence. An underfunded rebrand can lead to inconsistencies and dilute the intended impact.
3. Stakeholder Involvement: How can we involve key stakeholders (employees, customers, partners) in the rebranding process to ensure buy-in and gather valuable input?
Engaging stakeholders early and often is crucial for a smooth rebranding process. Conduct workshops and surveys to gather insights and feedback from employees, customers, and partners. Their involvement not only fosters buy-in and support but also provides diverse perspectives that can enhance the rebrand’s relevance and resonance. Transparent communication throughout the process helps build trust and ensures that the final brand aligns with the values and expectations of all key stakeholders.
4. Measurement: How will we measure the success of our rebranding efforts?
Consider setting clear KPIs before launching the rebrand. Defining clear Key Performance Indicators (KPIs) before launching the rebrand is essential for tracking progress and evaluating success. Metrics such as brand awareness, customer engagement, sales growth, and market share can provide quantitative insights. Qualitative measures, such as customer and employee sentiment, can also be valuable. Regularly reviewing these metrics will help identify areas for improvement and ensure the rebranding effort is meeting its strategic objectives.
5. Legal Considerations: Are there any trademark or copyright issues we need to address with our new branding?
Legal considerations are a vital aspect of rebranding. Conduct a comprehensive review to ensure that the new brand elements do not infringe on existing trademarks or copyrights. Registering new trademarks and securing intellectual property rights will protect the brand from potential legal challenges. Consulting with legal experts can help navigate the complexities and ensure compliance with all relevant regulations, safeguarding the rebrand’s integrity and longevity.
6. Internal Communication: How will we ensure all employees understand and can effectively communicate the new brand?
Effective internal communication is key to a successful rebrand. Develop comprehensive training programs and materials to educate employees about the new brand values, messaging, and visual identity. Regular updates and Q&A sessions can address any concerns and ensure alignment across all levels of the organization. Empowering employees to be brand ambassadors helps create a cohesive brand experience and reinforces the rebrand internally and externally.
7. Phased Approach: Should we roll out the rebrand all at once, or take a phased approach?
Deciding between a phased approach and an all-at-once rollout depends on the scope and complexity of the rebrand. A phased approach allows for gradual implementation, reducing risk and providing opportunities to address any issues that arise. This method can be particularly effective for large organizations or those with multiple touchpoints. Conversely, an all-at-once rollout can generate significant buzz and make a bold statement, but requires meticulous planning and execution to avoid missteps.
8. Future-Proofing: How can we ensure our new brand has longevity and flexibility for future growth or changes?
Future-proofing the brand involves designing with adaptability and longevity in mind. Create a brand identity that can evolve with market trends and organizational changes. Incorporate elements that are timeless yet flexible enough to accommodate new products, services, or market expansions. Regularly review and update brand guidelines to ensure they remain relevant and effective. Future-proofing helps maintain the brand’s strength and coherence in a dynamic business environment.
Conclusion
In conclusion, rebranding is a complex but potentially transformative process for businesses. By carefully considering the type of rebrand needed, asking the right questions, and learning from successful examples, companies can revitalize their image, connect with new audiences, and drive business growth. Remember, successful rebranding is not just about changing how a company looks, but about aligning that new image with real, substantive changes in how the company operates and interacts with its customers.
How SMG Helps Our Clients to Meet These Challenges
For over 20 years, I have helped CEOs accomplish their business rebranding goals. Much of what I’ve learned about this topic comes from up close and in the fieldwork consulting work with leaders from Inc. 5000 companies, mid-cap companies, and startups.
As an author and columnist for Inc.com, I constantly search for studies, surveys, real-world examples, and techniques to help my clients achieve stronger rebrands that keep them on trend, on brand, and up to date with the marketplace.
If, after reading this article, you find yourself thinking, “Yes, I get it. I need to hire a rebranding agency to help me with this,” but are in a quandary about how to get there, consider booking an initial consultation with me at no charge.
I will review your current brand before our call and give you at least one or two specific ideas you can use to rebrand: no sales, just helpful information and insight. You can book a session with me here.
