The constantly evolving nature of the marketplace pushes companies to rebrand to align with changing times. Giving your brand a new look and feel helps you connect with a new audience and differentiates you to show that what you are offering is unique, setting you apart from competitors.
Branding and design trends are essential in how current and potential customers perceive you. With the rebranding, your brand stays current and proves to your customers that you’re always looking out for trends in your industry. It also allows you to showcase how your business has grown and evolved. Here are six reasons to consider rebranding.
1. Outdated image
Over time, businesses evolve, causing a mismatch between your image and product portfolio. To determine if your image is outdated, look at your website, logo, and other visuals you use to connect with your audience. Consider when your branding was designed and if it’s still delivering the intended results.
Does the positioning and messaging truly reflect customer pain points and your value proposition? When your image outgrows its effectiveness, it’s time to rebrand. You can have a custom business logo design made and all other aspects of branding, including shapes and color, refreshed to achieve modernization.
2. Brand repositioning
Depending on how you implement it, brand repositioning and promise can significantly affect your business. Every business aspect, including products and services, customer contact, HR policy, corporate identity, and more, is adapted based on the company’s new promise and strategy. Rebranding makes the change more visible to all stakeholders.
3. Mergers, demergers, and acquisitions
Business ownership changes like acquisitions, demergers, and mergers result in immediate rebranding. This not only aims to show the change but also meet legal requirements. For mergers and acquisitions, the new company may create an entirely new brand or use the name of one of the parties. When it comes to demergers, the company that splits off can build its brand.
4. Brand internationalization
Suppose a company uses a brand name specific to a particular country and plans on expanding internationally or growing an international customer base. In that case, rebranding may be necessary to accommodate the expansion and the new audience you’ll be targeting. This is because some brand names may be misunderstood or not understood in other countries.
5. Poor brand reputation
Environmental scandals, lawsuits, or hidden data breaches may lead to a bad reputation, negatively impacting a company’s bottom line. The organization can reduce or eliminate associations with a bad reputation with a rebrand. It’s essential to consider a complete change so that current and prospective customers and investors can see and appreciate the actual change. This rebranding exercise also gives you a chance to cut all negative associations with the original brand, enhancing success.
6. Aggressive competition
In a fast-moving business environment with stiff competition, you should establish ways to gain a competitive advantage, excel, and go beyond the curve. Rebranding allows you to change the market offering to give your potential customers a reason to buy. It can also help you block, outmaneuver competitors, or act to handle high price competitiveness.
Businesses rebrand for various reasons. However, regardless of your reasons for rebranding, being careful about choices helps curb rebranding risks. Use the above tips to determine why your business may need a rebrand.