Top 7 Reasons For Rebranding A Business: By Marketing Experts

There is a lot more to rebranding than just changing a brand’s logo. While visual cues like a new color scheme, font design, or tone of communication are important, there is a lot more that goes into rebranding.

According to leading marketing experts that offer digital rebranding services, on average, businesses do this after seven to ten years. A rebranding can help a brand in multiple ways. Some of the major ones are-

• Connect to a new target audience that might be younger.
• Create a marketing buzz around the brand as well as its offerings.
• Improve sales, revenues, and profit margins for the brand.
• Established better visibility and awareness in new and present markets.
• Build a differentiation with a competitor in the same niche or ecosystem.

While the above are benefits, we must try to list down some major reasons for rebranding a business. If you are someone that is looking to rebrand their business, you should check out this article till the end.

List of the Top Reasons for Rebranding a Business by Marketing Experts

1. Announcing a major new decision by the brand-

One of the foremost reasons why brands should go for rebranding is to announce something big. By big, we mean mergers, acquisitions, and independence. With companies getting funding, start-ups investing in IPOs, and acquisitions taking place left, right, and center, rebranding is a great way to announce the same to the market.

2. Positioning a brand in international markets-

Every brand wants to break out of its geographical borders and take over the world. This means establishing new markets and consumers. In some cases, the brand name might have different connotations in a foreign country. While a brand might have a specific name in the USA, when it starts operations in China, it might need a new name and rebranding accordingly.

3. Breaking away from a negative image or story-

In this day and age, businesses that have gotten wiped out because of extensive data breaches are not unheard of. If a brand wants to cut its cord with its history that was littered with negativity, it needs a fresh and positive approach. This is where rebranding can help a brand. It involves setting up the brand with little or no touch with its past.

4. Legal reasons following the loss of a trademark or copyright case-

We all know how brands can go to extreme lengths in their marketing. Sometimes, this results in conflicts with competitors who can accuse a brand of indulging in a violation of its copyright. A court order may compel the brand to lose its logo, change its visual imagery and start life afresh. This is something that was made famous by the Multimate Versus Ikea clash.

5. Hiring brand-new higher management-

For some of the biggest companies in the world, a change in guard at the highest levels means a new rebranding. Appointing a new CEO is usually perceived off as a new direction for the company. It corresponds to a new vision, undertaking new strategies, developing new product lines, and more. All this necessitates rebranding a business from the ground up.

6. Entering into a new brand or product class altogether-

Imagine an established car company whose entire focus was on creating affordable vehicles for the masses. However, now it wants to expand into the luxury niche. It would need an entirely new rebranding exercise to separate its identity across the two niches. A rebranding strategy can help create two identities and personalities of the same brand for different classes.

7. Shifting to a digitized world dominated by technology and software-

In recent years, several businesses have gone in for extensive rebranding following their shift to digital platforms. This can be in the form of starting an E-commerce platform for the brand. With a digital presence, brands have now found new opportunities for growth on search, social, and other platforms. A rebranding strategy would be needed in announcing the transition.

The Bottom Line

Not all rebranding strategies work. Some can lead to severe negative results. This is why choosing the right direction as far as rebranding is concerned is important. Working with an agency that understands rebranding should be a top priority for brands.

Can you list down some positive rebranding examples and some negative ones in the comments section below?