The term “rebranding” covers all steps that serve to create a new image for an already established product or company. But what needs to be considered?
The aim of rebranding is to influence a customer’s perception of a product, a service or the company as a whole. The brand is revitalized and becomes more modern and thus more relevant to the needs of the customer. There are numerous reasons why a company wants to present a different brand image. These include:
- to reposition the company and create a change of focus,
- to differentiate the company from its competitors,
- to improve the image of the company,
- to appeal to a younger market,
- to expand the business area
- or to present a significant merger or acquisition.
In some cases, companies need a completely new image, for example to distance themselves from past problems – here too, rebranding provides reliable services.
How does rebranding work?
Behind the rebranding is usually a name change, a new logo, revised slogans or innovative packaging. Although the marketing strategy may sound like a 21st century buzzword, rebranding has in fact always been commonplace within competitive markets. After all, even the most unique and successful strategies can still be improved. Sometimes the best way for a company to respond to changes in the business world or to past problems is to reinvent itself through rebranding. The true definition of marketing strategy is often misinterpreted.
Cleverly implementing rebranding
It is important that rebranding does not only consist of a name change, a redesign or a new logo. After all, rebranding or “branding” also consists of more than just its visual elements. Studies suggest that while customers buy products in the short term because of their external characteristics and their own associations, they become loyal buyers in the long term because of their subjective associations. These emotional reactions play a crucial role for successful brands. For example, most people do not just appreciate the characteristic design features of Hermès handbags or BMW cars. These elements change every year. They value what the name and logo mean to them: elegance, exclusivity, freedom or performance.
Rebranding begins in the minds of consumers
A brand is therefore not the same as the company. Branding always also serves to influence potential buyers. This fundamental definition of brand image is more important today than ever. The ultimate goal in business is to create a unique perception of the company, its products and services that is valuable, meaningful and above all different from that of its competitors. It is the combined activities of the entire company, from the business units to management, production, sales, human resources, customer service and marketing, that create the actual experiences, impressions and interactions that together determine consumer feelings about a brand.
The failure of many rebranding initiatives is also based on the misunderstanding that a brand is merely the symbols of a company. Simple logo changes, name changes or redesign are not enough. All rebranding activities must cover the emotional and mental connections that customers have built up with a company over hundreds of thousands of individual experiences.