More than one in three companies have undergone rebranding in the past five years, while one in four companies still has visual identification that is older than 10 years – such are conclusions from a market survey carried out by IPSOS as ordered by OEX1 Group. Why do companies choose rebranding?
The same survey tells us that as much as 80% of the companies included in the survey states that the reasons for rebranding are related to image aspects and more specifically – their willingness to freshen up the brand. Polish companies want to be perceived as modern enterprises keeping up with the latest trends. They care about the proper positioning and how the brand is perceived by the consumers. Other reasons for rebranding included: changed business strategy and changes in organisational structure.
What is rebranding?
It is a complex and time-consuming process that requires plenty of both work and financial resources. Each company should have clearly specified goals relating to how the company should compete and grow. Branding is brand management, while rebranding is changing the image and using it effectively to achieve business goals. Rebranding is often associated with changing the image only, but the reasons for the change are what is most important, which is not only altering the brand exposure, but, most of all, building the advantage over the competition.
The process will bring a range of benefits, including image-wise, organisational, and financial if you do it well. Rebranding allows putting the company internal processes in order, while for the sales, it means a higher turnover and margin. It makes the customers perceive the brand as more attractive, it increases its value, which in turn translates into higher satisfaction from choosing a given brand instead of other ones.
Who needs rebranding?
The decision to change the brand image usually comes up when a drop in sales is recorded or a company wants to expand the market share. Usually, it is the largest companies with an established market position that decide to make such changes – rebranding has been done by such companies as Reebok, PKO Bank Polski, UPS, Pepsi, or BP. When it comes to Biedronka, rebranding was necessary when the company, due to media reports, started to be perceived as a company that does not take care of its employees, profits started to drop, and a group of customers warned that they will boycott the store – thus, rebranding is also a solution when a brand struggles with an image crisis.
Consumer behaviours and trends are constantly changing. Companies should not stand still. New market needs, consumer attitudes and new competition require changes in the strategy we adopt and the values we represent. The target group also changes frequently, the one from before ten years might be long out of date. Rebranding is useful when we want to change the target and use new chances and opportunities that the market gives us.
The company image change should not be superficial and relate to the visual identification system only. Rebranding should be accompanied by an extensive promotional action and clear communication directed to customers and employers explaining the reasons behind these changes and their expected effects. Rebranding should also arise from the newly adopted strategy of a redesigned business. It is only then that rebranding will achieve its goals, such as better brand perception and higher profits.
