What is REBRANDING? What does REBRANDING mean? REBRANDING meaning - REBRANDING pronunciation - REBRANDING definition - REBRANDING explanation - How to pronounce REBRANDING?
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
Rebranding is a marketing strategy in which a new name, term, symbol, design, or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, competitors, and other stakeholders. Often, this involves radical changes to a brand's logo, name, legal names, image, marketing strategy, and advertising themes. Such changes typically aim to reposition the brand/company, occasionally to distance itself from negative connotations of the previous branding, or to move the brand upmarket; they may also communicate a new message a new board of directors wishes 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 "Chapter 11 corporate restructuring," "union busting," or "bankruptcy." Rebranding can also refer to a change in a company/ corporate brand that may own several sub-brands for products or companies.
Rebranding has become something of a fad at the turn of the millennium, with some companies rebranding several times. The rebranding of Philip Morris to Altria was done to help the company shed its negative image. Other rebrandings, such as the British Post Office's attempt to rebrand itself as Consignia, have proved such a failure that millions more had to be spent going back to square one.
In a study of 165 cases of rebranding, Muzellec and Lambkin (2006) found that, whether a rebranding follows from corporate strategy (e.g., M&A) or constitutes the actual marketing strategy (change the corporate reputation), it aims at enhancing, regaining, transferring, and/or recreating the corporate brand equity.
According to Sinclair (1999:13), business the world over acknowledges the value of brands. “Brands, it seems, alongside ownership of copyright and trademarks, computer software and specialist know-how, are now at the heart of the intangible value investors place on companies.” As such, companies in the 21st century may find it necessary to relook their brand in terms of its relevancy to consumers and the changing marketplace. Successful rebranding projects can yield a brand better off than before.
Due to the tremendous impact that renaming and rebranding a company can have, it is critical to take the client through the process with great sensitivity and care. The new company identity and brand should also be launched in a subtle and methodical manner in order to avoid alienating old customers, while aiming to attract new business prospects. There is no magic formula. However, there is a methodical process that involves careful strategy, memorable visuals and personal interactions, all of which must speak in unison for a customer to place full trust and invest their emotions in what is on offer.
Marketing develops the awareness and associations in consumer memory so that customers know (and are constantly reminded) which brands best serve their needs. Once in a lead position, it is marketing, consistent product or service quality, sensible pricing and effective distribution that will keep the brand ahead of the pack and provide value to its owners (Sinclair, 1999:15).
Corporations often rebrand in order to respond to external and/or internal issues. Firms commonly have rebranding cycles in order to stay current with the times or set themselves ahead of the competition. Companies also utilize rebranding as an effective marketing tool to hide malpractices of the past, thereby shedding negative connotations that could potentially affect profitability.