Top 7 reasons for rebranding

Paula DonnellyBy Paula Donnelly|4th March 2020|12 Minutes

On average, businesses rebrand every 7-10 years. Sometimes, a rebrand is compulsory however more often than not the company, product offering, or audience has evolved and so the brand too must evolve in line with this.

 

There are sometimes multiple contributing factors that motivate a rebrand but commonly there is one main motivator. Below are the top 7 main reasons for rebranding 👇 👇 👇

Bad reputation ❌ 🙅 🛑

 

If a brand has a bad rep and business is suffering as a result, rebranding can ensure the negative connotations with the brand are dissipated.

 

A prime example of this is the new CEO for RBS Group, Alison Rose announcing a rebrand of RBS Group to Natwest Group later this year (2020). Alison said her focus is on making sure they’re a ‘safe, smart bank for the future’ and considering the association of ‘government bailout’ every time you hear ‘RBS’, a rebrand makes complete sense.

 

Topically, with the spread of Covid-19 a.k.a Coronavirus, 38% of beer-drinking Americans cited they would under no circumstances drink Corona beer (according to Uber Facts). With their worst quarter in over a decade and no signs of Coronavirus spread slowing, it begs the question, should Corona be considering a rebrand?

Internationalisation 🌍 🌎 🌎

 

Sometimes rebranding is necessary so your product can be sold internationally.

 

Do you remember Jif? In Spain, this would be pronounced ‘Hif’ so the company rebranded to ‘Cif’.

 

Or the Vauxhall Nova which, accordingly to myth, didn’t sell particularly well in Spain or Latin America because ‘no va’ in Spanish means ‘doesn’t go’.

A German company introduced a brand of beer called Fucking Hell in 2010. The brand name was a deliberate choice which referred to the village of Fucking in Austria, combined with the German word Hell which refers to pale lager. The European Union Intellectual Property Office initially refused to grant a trademark for the beer on the grounds that it contained an English expletive but relented on appeal.

 

Personally, I think this beer would sell particularly well around Newcastle. C’mon, send it over!

Copyright Fucking Hell Beer

Changing Markets 💱 💱 💱

 

Companies can face a serious threat of closure if they don’t ‘move with the times’. Changes to requirements may mean offering an additional product/service or pivoting completely in a sense of ‘out with the old and in with the new’.

 

HMV was forced into administration twice in the space of 6 years because they failed to evolve to meet the needs and wants of their audience and the move to entertainment being consumed digitally. Although adding a new product may not have been enough. A simultaneous rebrand would certainly help convey their diversification into other markets and aid their survival.

Outdated image 🧓 👉 🆕

 

What was trendy 20 years ago, or even 5 years ago, may not be so trendy now. We see it with fashion when we look back at pictures of our parents growing up but brands too can come across as old-fashioned if they have not been updated. Guinness does an impeccable job of keeping their brand fresh and this transfers to their adverts with them being released seasonally and topically. The Six Nations adverts are some of their best but the ‘Shane’ advert is my personal favourite:

Aligning Brand Portfolio 📏 📐 🖇️

 

When a business has many brands in their portfolio it often leads to high costs when it comes to maintaining and promoting the brand. Rebrand­ing can ensure that the entire brand portfolio is aligned and details a clear narrative about the organisation. Virgin does this well, with its companies (Money, Media, Mobile, Atlantic, Holidays and Trains) all being similarly identified. Positive association with one will translate to all categories; however the same is true of negative publicity.

Mergers and Acquisitions 👬 👫 👭

 

Generally, any change in business ownership will lead to a rebrand, not only to make the change apparent but to comply with legal and regulatory requirements as well. In the case of spin-offs, the new company is required to develop its own brand. This expresses that it is no longer part of the larger organization.

 

The merger of T-Mobile and Orange to EE wasn’t a quick rebranding exercise, rather a careful co-branding exercise that took over 5 years to execute. Their success was due in part to the long-term strategic approach with which they tackled this merger rather than rushing it through.

New CEO 🚀 🔝 👑

 

A new CEO normally equates to a new lease of life within a business. Oftentimes this can lead to major changes that influence the course the company takes. I mentioned the Alison Rose/RBS example under ‘Bad reputation’ however it is equally applicable in the context of a new CEO shaking things up.