Why do companies rebrand themselves?
By Priyanka Neelakantan
Rebranding is the process of changing the identity of a company. It could be subtle, softer changes like updating brand values or more concrete changes like revamping logo/brand name, changing designs, new symbols, etc.
There are various reasons companies decide to rebrand. Let us consider the case of Abercrombie & Fitch (A&F). I recently watched a Netflix documentary- “White Hot: the rise & fall of Abercrombie & Fitch” that depicted the meteoric rise of A&F from a garden gear company of 1800’s to an aspirational apparel brand in 1990/2000’s and its eventual downfall. Their success was built on going after an exclusionary clientele- people that looked a certain way (and were considered ‘desirable’ in a conventional way). This creation of niche made the brand aspirational for the youth in 1990’s/early 2000’s ; however with time this targeting became their reason for downfall.
While the niche market wasn’t the issue, the means of achieving the ‘elitist’ status was the reason that caused the downfall of the once aspirational apparel brand- they ensured their store personnel looked a certain way and perpetuated need for perfect body and looks in all their marketing- however, this messaging was no longer accepted by the audiences! They found the brand racist & discriminatory. A&F has since then had a change in top management, and a change in marketing tactics (doing away with their overly sexualized ads) to win back their audiences.
There are two types of rebranding exercises: 1- Proactive rebranding (company recognizes opportunity for growth), 2- Reactive rebranding (company is in a situation that demands the need for change) . A&F indulged in the latter. It is not just negative publicity that creates the need for reactive branding. Other possible reasons could be: Legal issues, Need for upgrade to keep pace with competition, Merger & Acquisitions. While A&F failed to make a comeback, here’s an example of company that rebranded itself after a negative publicity- “Andersen Consulting” was part of Enron prior to the scandal. However in 2000 it was allowed to go independent from its parent company, and they rebranded themselves as the widely popular consulting firm- “Accenture.” With Proactive rebranding, companies are trying to get into new businesses, targeting a different audience, preempting need to for change in brand values, or planning an expansion over geographical boundaries. Media company- Star India had changed their logo in 2011 when they were trying to grow their footprint across India - the new logo symbolized “zeal to continuously innovate, create and invent for the 21st century India".
How do we build successful rebranding strategies?
Rebranding can be tricky and cumbersome exercise- the end objective is to change consumer’s perception of what the brand entails. Things to consider for the same:
1- Understand the need for rebranding- what are we going after?- new audience or enhanced growth?
2- Spend time on research- Study your audience, competition closely and then build proposition accordingly
3- Ensure differentiation for the brand is significant, strong & clear so that it reaches audiences effectively
4- Invest in building the revamped brand via continuous and strategic messaging & communication of the new identity