eBusiness Weekly
Leslie Mupeti
According to the economic times, rebranding is the process of modifying an organisation’s corporate image.
It is a market strategy that involves giving an existing brand a new name, symbol, or design update.
The concept behind rebranding is to differentiate a brand from its competitors in the market. Rebranding is like a buzzword in business today, with most companies constantly refreshing their images according to the trending styles of the day.
To maintain their desirability, brands have to evolve. Long-term brand management often entails rebranding in the context of evolving market views to which every organisation must adapt. If done right, rebrands can give existing brands a fresh look as well as increased potential for new customer acquisition and penetration into new markets.
Rebranding blunders on the other hand can be expensive and embarrassing. Rebranding carries a high level of reputation risk which can be a very costly exercise. For example, The Royal Mail company rebranded to Consignia, which attracted a public outcry. It cost The Royal Main £2,5 million to become Consignia plus an additional £1 million to change the name back to Royal Mail. This case in point shows that a rebrand has to be supported by strong theory and research (Muzellec and Lambkin 2006).
The Heritage rebranding trap
Before deciding to rebrand, corporate managers should know what customers already think of the brand, especially whether customers appreciate the heritage of the brand. For example, it has become fashionable for local Zimbabwean companies to downplay their heritage and “Zimbabweaness” in favour of a more global look. An example is a recent rebrand of the Joshua Mqabuko Nkomo Airport earlier this year when the people in charge of the rebrand decided to adopt a more global look.
A public outcry on social media ensued because of this. An international example is when two airlines tried to dissociate themselves from their respective heritage and roots. Swissair group tried to disguise the “Swiss” name by changing to the name SAir group. The strategy backfired and they resorted to their original name.
In a similar fashion, British Airways decided to do away with the Union Jack on the tail fins of their planes in favour of Chinese calligraphy and Maori tattoo designs. The new look was supposed to reflect their customer base which was 60 percent non British and 40 percent British. Long story short, they terminated that campaign and resorted to their original look.
Rebranding strategies
- Phase-in/phase-out strategy
During the phase-in stage, the new brand is linked/tied to the old brand in various ways for a limited time. The previous trademark is progressively phased away after a transition period. Disney used this method in its Paris theme park as an example. When it first opened, the park was known as Euro Disney, but it was later renamed Disneyland Paris.
The procedure was carried out in phases. Initially, the Euro component of Euro Disney was shrunk while the term “land” was added. Euro Disney became Euro Disneyland, then Euro Disneyland Paris. The euro was abandoned entirely, and the theme park was eventually renamed and branded to “Disneyland Paris”.
- Combined branding
This strategy combines the existing brands in some way. An example of a company which does this is visa. The company used to be called The National Bank Americard. They used to issue cards under 22 names around the globe before combining them under one brand called VISA. They chose the name because it is pronounced the same in different languages. They have partnered with over 21 000 member institutions as of this day, with more than a billion cards in more than 130 countries and territories.
- Translucent warning strategy
Customers are notified both before and after the brand name change. This is accomplished through aggressive marketing, in-store displays, and product packaging. Consider the rebranding of Marathon in the United Kingdom. When Marathon was renamed Snickers, there was some fear that altering the name of such a well-known and profitable brand might have an effect on sales.
However, the campaign was a success. Marathon packaging carried the tagline “known worldwide as Snickers” prior to the campaign, and once it was redesigned, the tagline simply read “formerly known as Marathon”. The packaging remained nearly unchanged, with the same aesthetic style that preserved the brand’s power. Marathon’s rebranding was effective because the shift was communicated to customers through vigorous advertising campaigns although the packaging remained mostly identical.
- Sudden eradication strategy
This strategy involves dropping the old brand name almost over-night and immediately replacing it with a new name, with no transition period. This strategy is appropriate when the organisation wants to disassociate itself from its old image. This is perfect for dying brands with no chance of resuscitation. Executives must however come up with a plan to handle the death and burial of the aging brand. Failing to eradicate a weak brand has a negative impact on the well performing brands.
- Counter-takeover rebranding
Usually implemented after an acquisition. While those who acquire the brand tend to hold on to their own brand to show their dominance, in counter-takeover branding the acquirers abandon their own brand in favor of the acquired brand.
This is an admission by the acquirers that the acquired brand is more famous than their brand. For example, France Telecom acquired a company called Orange in 2000. They abandoned their France Telecom name and they branded it globally as Orange. This sky-rocketed Orange to 33 million customers in 20 countries. This made Orange a global player.
- Retro-branding
Through this strategy, companies reinstate a name they abandoned some time ago, thus admitting an error and trying to regain lost or potentially lost customers.
Stages of a rebranding strategy
For a rebranding strategy to be successful, it must follow certain stages. These stages are namely: analysis, planning and evaluation.
- Analysis
Quantitative and qualitative factors like market size and potential, market attitudes and preferences and competitor strengths and weaknesses should be studied. Brand audits should provide the market’s perspective on the brands involved in the rebranding, showing their strengths and weaknesses and those of competing brands.
Internal marketing should also commence by researching management’s and employees’ (Internal customers) attitudes in the legacy brand company. The people in charge of the rebranding strategy must learn about management’s and employees’ perceptions, attitudes, fears and aspirations.
- Internal customer communication
After discovering internal customer attitudes, a firm must now design both communication and training programs to garner employee support and commitment, as well as teach personnel in the acquiring company’s rules and processes. The general rules for designing integrated external communications should be followed while planning the internal communications program.
- Creating a renaming strategy
It is advised to use one of the four renaming approaches: interim/dual, prefix, substitute, or brand merger. The brand audit should assist management in determining which of the four to utilise. Renaming, on the other hand, may be an emotive matter for customers, management, and employees.
Boardroom sentimentality has frequently meant that heritage brands are kept as part of the new brand. However, selecting a renaming approach should be done objectively.
- Creating a rebranding
marketing plan
Terminating a well-known and respected brand, and hence a valuable asset, is a significant choice. The rebranding marketing strategy adheres to well-defined marketing planning concepts, beginning with situation analysis, self-analysis, assumptions and scenarios, and ending with resources and budgets. Each component of the mix must be planned for the rebranding effort.
Decisions must be taken, for example, concerning product benefits, product variety, price, integrated messaging, and all other aspects of the mix.
Participants and the internal training program definitely have a tight relationship. Employees play a critical role in achieving customer satisfaction and business objectives, thus it is critical that participant roles are clearly defined and that they are taught to achieve both technical and functional quality.
- Evaluation
Many possibilities to improve the campaign will be lost if assessment is not conducted during the planning phase. This type of staged review permits any part of a plan to be changed as the of the planning process.
Leslie Mupeti is a brand strategist and Innovator. He can be contacted for feedback on [email protected] or +263 785 324 230. His Twitter and Facebook is @lesmupeti
