9 reasons why you need to rebrand your business is among the numerous valid reasons for rebranding a business. What is rebranding? According to the Economic Times, “ rebranding is a marketing strategy that is used to give a new name, symbol or change in design to an already established business”. There are two types of rebranding and are proactive and reactive rebranding. While proactive rebranding takes place when a business sees a new opportunity to grow, innovate and harness such opportunities. Reactive rebranding is used when a business needs rebranding after the business is discontinued or changed.
Over the years, research has shown that many companies all over the world, both big and small rebrand their businesses at intervals of seven to ten years. This is carried out to ensure continued high productivity of the business’s success and keeping up with modernity to stay relevant in the marketplace.
Rebranding is essential for the survival of a business and 9 reasons for rebranding are discussed below:
- Repositioning: With the help of rebranding, a business can be reposition to retain and fight for a better position in the online and offline market place while striving to remain relevant among rivals. Through, rebranding a company can achieve an 80% business expansion both internationally and nationally.
For example Walmart’s Successful Rebrand; With a reputation of rock bottom prices, Walmart repositioned its brand to suggest its low prices, by changing the slogan from ‘Always Low Prices’ to ‘Save Money, Live Better’ in 2007. This put a positive spin on the company.
- Bad reputation: A company that has been linked with a bad reputation over the past years, can secure an opportunity for a second chance of a new beginning by acquiring a good reputation for the company through rebranding. For example, McDonald’s Evolution; In the past, McDonald’s audience saw the brand as a cheap and unhealthy option until McDonald’s spent a huge amount of money to rebrand its company to acquire a good reputation that would be appealing to their audience and retain their interest.
- Acquisition and development of brands: Many big companies acquire or partner with smaller brands when the possibility of expanding their business is identified. The best strategy to inform their audience about this new development is through rebranding. For example; Access Bank acquisition of Diamond Bank in Nigeria, this information was made public to the audience through the rebranding of merging both logos to form one logo.
- Old Identity: Rebranding put the visual of the business in a more appealing way to the audience. Thereby, solving the problem of the outdated image which can no longer retain the interest of the majority of the users of the brand. Also, the public gets to know about the new addition and subtraction of products and services offered by the company through rebranding.
For example Shell Oil and Pepsi Cola; Shell has updated its logo 8 times since 1909 to keep its image modern. Pepsi’s logo is now unrecognisable from its first logo in 1898. Another example is found in the telecom sector, Airtel is the rebranded name for ‘Zain’ and 9mobile is the rebranded name for ‘Etisalat’.
- The Similarity of Brands: Many companies over the years, has suffered from different and numerous lawsuits because of the similarity of products and services. But with rebranding, many companies can be exempted from experiencing such an ‘ugly’ situation. This is because rebranding is capable of giving a company its distinct identity. For example, PayPal vs Pandora; PayPal and Pandora logos are strikingly similar. As a result of this, PayPal filed a lawsuit against Pandora.
- Change in Administration: Every administration requires its strategy, which may or maybe not be favourable to the business. This is because every new administration has the power to influence the business. However, a new administration can correct the failures of the past administration through rebranding. For example, Steve Jobs rebranded the ‘Apple logo’ during his tenure as the CEO of Apple Company in 1997.
- Low sales: one of the best ways to tackle low sale is through rebranding. Rebranding can retrieve the lost interest of the audience’s majority, which brings an increase in sales for the business.
- Low Visibility or Recognition: When a business suffered from low visibility or recognition in an online and offline marketplace, it reduces the business’s productivity. However, with rebranding, that business can achieve high visibility in the marketplace.
- Less Business Promotion: Many companies, have a limited number of marketers they can employ to promote the business. However, with rebranding, a business has access to an unlimited number of unpaid marketers through an engaged audience.
In conclusion, rebranding is the bridge between the old and the new. It is the fastest method to adopt to save a dying business, sustain a successful business and enables a brand to keep up with the marketplace’s modernity for relevant . These 9 reasons discussed are not the only reasons why you need to rebrand your business. Hence, if your business falls under any of the categories of the 9 reasons why you need to rebrand your business, then make a firm decision to rebrand your business to enjoy all the benefits of rebranding. At #DaManager, we offer the best rebranding services, so reach us today firstname.lastname@example.org