Rebranding is the process by which a service or product that was developed in one brand, or company is marketed in a different brand name or identity. This involves essential changes in the brands name, logo, image, advertising, and marketing strategies. Generally after a Merger or Acquisition, companies rebrand their newly acquired products, to keep them along with their existing product line. The process of rebranding aims to reposition the brand or the company, or to distinguish itself from the negative opinions about the previous brands or to climb the success ladder by moving the brand still upwards.
Brand, Branding, and Re-branding:
Brand: Brand is a symbolic embodiment of all information related to the product, service, or company. It is an intangible and emotional bond created by every interaction, even insignificant ones. It is a feeling that is being evoked when the organization or the products name is heard. A brand has a unique name, identity, character, and personality; just like a human being. A good brand possesses the following characters:
- Deliver messages in an appropriate way.
- Confirm credibility.
- Get connected with the prospects, and sustain relationship with the existing members.
- Attract potential business opportunities.
Branding: Branding is the art of creating and maintaining a brand; successfully. The brand experience of the target audience can be directed in a positive momentum through appropriate branding activities. It enfolds the company's commitment to the ultimate consumers that the product carries quality and posses some features that makes it unique from that of its competitors'.
Rebranding: This can be defined as "a process of giving a product or an organization a new image, in order to make it more attractive and successful" (Collins English Dictionary). This is done to increase consumer loyalty, improve member professionalism, enter a new market trend, create a stronger voice in the industry, increase share holder value or to reenergize a company.
Is Rebranding Necessary?
Contradictory opinions exist regarding the process of rebranding. One is that rebranding is essential for business success; to evolve the brands so as to make sure that it keeps abreast of the competition, and meet the consumers ever changing preferences. The other side of the coin depicts an opinion that rebranding should be avoided at all costs. If brands like Kodak and Coca Cola can be market leaders why should rebranding ever be considered? Generally many companies consider rebranding as a 'Cosmetic Work out'. When companies fail to establish one brand, or companies whose brand had been through any kind of scandal, may go for a rebranding process. Here, the intention is to erase the previous brand image and establish a fresh one. Some others have positive reasons; like mergers, or a company that is expanding its product line.
Rebranding can be successfully applied to new products, those that are still in the process of development or even to mature products. As this is a very complex process, utmost care must be taken. The new brand should be launched with much empathy and care. This involves a methodical process of proper strategy, personal interactions and memorable visuals.