Wednesday, 27 August 2014

Why Brands go for Rebranding

New Old 
Rebranding: It is the process of creating of a new look and feel for an established product in order to differentiate from its competitors. Rebranding efforts may include a name change, new logo or packaging and updated marketing materials that includes the latest industry buzzwords. The goal of rebranding is to influence a customer’s perception about a product by reawakening the brand and making it seem more modern and relevant to the customer’s needs.
Brands are constantly evolving to ensure they keep abreast of changing needs in the marketplace.Rebranding can be applied to new products, mature products, or even products still in development.The importance of maintaining a strong brand image means always catering to consumer needs. This is why successful companies are continuously working to improve brand image by adapting to consumers and delivering effective messages.
Usually,  organisations and brands change their corporate identities once in every five to ten years. In a small number of cases, the name of the organisation is also changed during this process. Although there is usually one main reason for making the change, the motivation behind a rebranding project is a combination of several factors. Here is an overview of the ten most common reasons for a corporate rebranding.
Nokia
Leading  mobile handset manufacturer Nokia, underwent a series a changes in its logo.
It started as a  professional logo, Nokia converted its logo into a colorful image and ultimately the “two shaking hands” with the brand name became a household name of its tagline “Connecting People”
Rebranding can be categorised with reference to Nokia which includes one or more then one combination of all the items listed:
1)A new Brand Name
2)Brand Identity (Brand Logo), Trademark , Tagline or Slogans
3)A change in brand profile focuses on goals, story, message, promise, offerings, personality, emotion, behaviours, culture etc.
The Importance of Rebranding: When a company looks at their existing marketing materials (logo, brochures, website, videos, etc.) they might wonder why they should invest the time and money to re-brand themselves. After all, the existing brand has worked for them since years till now. Here are few points to consider regarding the need for an updated brand:
1.       Re-branding is a part of a company’s life cycle: Usually, existing marketing     materials, logos, etc. are good for 5-10 years. After that time period, businesses evaluate existing materials and will re-brand…
a)    to reflect current design themes
b)    to embrace current marketing strategies
c)     to announce the transition into a new phase of their company
d)     to communicate the company’s vision for its future
Think of how quickly our world is advancing, with the help of modern technology.  A mobile phone you purchase today will be obsolete within few months.  A corporate video produced with today’s technology will look a lot different from one produced in 1995. And so it’s important for businesses to assess their brand and its effectiveness every 5-10 years in an effort to remain competitive and current.
2.       Re-branding tells your audience that you are committed: A business that takes the time to update its marketing materials is a business committed to the long haul. You want your clients and potential clients to feel safe and secure, knowing that you will be around for years to come. When the public sees that a company has taken the time and invested the money to re-brand, they understand that this is a company that is looking to the future and plans to increase its strength and position in the marketplace.
3.       Re-branding is about looking your best: A company’s credibility among audiences depends on the image they put forth for public consumption. Presentation is everything.
a.       When a candidate walks in for a job interview, the way he/she looks is important.
b.       When your employees show up for work, how they present themselves is important.
c.       When company representatives go out for sales or service calls, the way they look and act is important.
d.       When customers, clients, or potential clients come into your office building, how it looks is important.
Everything reflects back onto your business, either positively or negatively. It’s easy to overlook the current status of your brand with other daily tasks filling your calendar, but it’s important to take the time to review that brand on an annual basis. Updating that brand communicates two things…
1)   Your company is growing, and
2)   You are concerned for its reputation.
Few examples of rebranding :-
1)    Addidas
 Adidas
Sports equipment and apparel giant completely overhauled its logo and introduced a new looking design. Adidas logo, representing the durability and elegance, is a three parallel striped design that symbolizes the mountain which is to point towards the goals and challenges that lay ahead.
2)    Compaq
Compaq 
 Compaq’s logo branding wasn’t a drastic change but a very subtle change and the redesigning of “Q” can impact the brand more positively as and when it becomes a more recognisable icon 
3)Domino’s
 Dominos Pizza
 Pizza brand Dominoes did not make a major change in its logo but just empahsised more on the logo and lesser on the brand name and keyword “Pizza” as the logo had already become a brand recall attribute as a global inconic brand
4)Holiday Inn
 Holiday Inn
Hospitality company Holiday Inn changed its logo to a more symbolic icon and removed the complete name and replaced it with an “H” which can be a value addition for any diversification strategy
5)                Mahindra
Mahindra 
 The logo was redesigned to be more contemporary and according to the official press release The new word mark and other elements of our refreshed visual identity have been adopted after extensive research and feedback.We also had to ensure that it would have universal appeal across consumer and business segments in urban and rural areas, as well as overseas. We have tried to create a modern futuristic feel, while retaining the dependability, reliability and warmth associated with the Mahindra brand”
Remember when rebranding :-
1)    Focus on a target audience, customer experience, perceptions, product quality, look, feel, tone of communication – visual, audio and written.
2)    Don’t forget to step into customers shoes keeping in mind your competitors strategies as to what they offer.
3)    Before rebrand do a market research in order to know and study the current market scenario.
4)    Carry out a survey amongst customers to know their feedup on the concept of rebranding.

Establishing a new company and a new brand is a massive undertaking.  Rebranding has made it possible to open up new opportunities by creating a consistent and well-recognised character to the company throughout the globe based on quality, performance and presentation. An updated brand can positively affect public perception about your company encourage them to do business with you.
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