In today's world, with the ever-changing landscape of competition, it is imperative that any company stays on top of the latest trends. Rebranding can be a great way to do this and help you stay competitive in today's market. A rebrand is a big decision for any company, but it could be the difference between success and failure in the changing business climate. With that in mind, it's important to know what to look for when considering whether or not to rebrand.
Every company, no matter how big or small, has to go through periods of change. That could mean merging with another company, restructuring to stay in business, rebranding due to competition, or even having a completely new idea. If you can’t foresee these changes, then you should not be in business. There are many ways to develop the new changes needed. There are also different ways to manage the company so that it will be in a position to survive and compete effectively when the changes do occur. This company's vision, mission, and values always stay the same, but the company's brand positioning and message are always evolving. This is where rebranding comes into play.
Why do companies rebrand? The word "rebranding" can conjure many meanings and outcomes, but usually when a business initiates a rebranding, it's for one of a multitude of reasons. The decision to rebrand can be a tough one, but it's also necessary. Take a look at some of the top reasons to consider rebranding your company:
1. Relevancy: In a time of ever-changing standards and unconventional customer expectations, the most common threat facing most brands today is the loss of their relevance. To remain ahead of the competition, companies that are slowly slipping behind in consumers' minds and priorities might need to take a bold step and rebrand. Example: Blackberry, Kodak, and Xerox were all once great brands that lost its credibility due to a market change and have since been trying to find their way back to the forefront of their customers.
2. New Audience: When a company is planning to go in a new direction might find it useful to rebrand and stay engage with a new target audience without abandoning existing user. As cultural shifts after pandemic, consumers are more willing to buy and promote brands that reflect their preferences to go digital and support healthy lifestyle. Bank BCA - the renowned Indonesia transactional banking, is fine tuning their marketing strategies and redefining themselves to a place that appeals to the digital savvy young individual through its new endorsed brand, called Blu by BCA Digital.
3. New Line of Business or Market: A rebranding might be in order when a company enters into a new line of business or market that is not cohesive to the existing core brand competency. Xiaomi is the perfect example of rebranding transformation from China’s hottest smartphone start-up to a prominent lifestyle brand in Asia. Successfully rebranding will extend the longevity and sustain long-time customers.
4. Projected Growth: This is especially true of companies that are expanding significantly both vertical and horizontal market, it might rebrand products and services into a cohesive brand across its business units and offerings. An example of this type of rebranding is seen when a company needs to create a greater sense of brand clarity. Telkomsel is expanding and rebranding with a brand message "Open up a world of more" to be known for one-stop digital lifestyle services. Kuncie, e-learning app and Fita, e-health app are the new digital services released in recent months.
5. Merger and acquisition: When companies merge or get acquired, they might give up their original names to adopt a more dominant, branded house approach. One of the more successful examples of this is the merger of Gojek and Tokopedia, as it transformed into Goto, the 2nd largest super app company in Southeast Asia. Rebranding campaign will concisely communicate brand purpose and mission to all stakeholders and create long-lasting cultural impact.
6. Intellectual Property Issues: It is not always an easy decision to rebrand a company, especially intellectual property issues, in this care trademark infringement is causing the need for the rebrand. It is important that your brand assets need to be trademark and patent, as you do not want a third party or competitor to use them, steal your ideas or produce similar products. You are only the owner of certain rights for your brand: the right to be known (to register as a trademark) in the country you are doing business with. Tons of global brands have faced trademark issues when they enter new countries. Usually, they change their product or name in the local language. IKEA, Swedish furniture brand, ventured to Indonesia and found that trademark infringement is a problem there. Nike Jordan USA filed a lawsuit against Qiaodan for infringing on their trademark in China.
7. Negative publicity: When a company that continuously faces press coverage that damages their reputation for many years will never be able to save it that could cause a company to rebrand. Uber has found themselves at the center of a lot of controversies. One of the most famous ones is how they treat their drivers and how they have a toxic company culture. The complete brand overhaul in 2016 was necessary to break ties with Uber's bad reputation. Brands connect genuinely and consistently will create lasting customer loyalty and ensure long-time survival.
What you can learn: Rebranding is a necessary process that companies of all sizes need to go through. The process of restructuring your branding strategies is the roadmap to be a successful brand. Whether you are big or small, it doesn't matter, the market is always changing and rebranding is inevitable. What's next? you need to determine the extent of the rebranding and how you’re going to get it done. Listen to your customer, realize your purpose and mission by choosing the strategy and executing your brand plan.
Do you still feel confused and in need to know more about branding, you can check our article Good Branding brings Good Business. If you need further assistance on your rebranding assessment, Feel free to schedule up for a one-on-one conversation with our brand consultant today by clicking here!
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