Identifying when a business should rebrand is a critical decision that can have a significant impact on its success and longevity. Rebranding involves a strategic overhaul of a company’s image, which can encompass changes in its name, logo, visual identity, messaging, market positioning and more. It takes a considerable investment in time, resources and money – the financial implications of wide scale change can be considerable.
So why do it? Businesses often consider rebranding for various reasons, such as shifting consumer preferences, market competition, evolving business goals, or to distance themselves from negative associations. However, the timing of a rebrand is equally crucial, as doing it too soon or too late can lead to costly mistakes.
At the time or writing this article Twitter has become X. Since 2006 Twitter and the tweets it facilitated have fuelled conversation, created news and helped individuals become organisations. With what seems like very little preparation and without fanfare, its name changed to X. Awkward, cold, unknown and unfriendly. Its iconic blue bird gone and the simplistic beauty of quoting a tweet becoming lost. On the back of other (widely regarded as) unpopular changes leadership made in the months prior, the negativity has been clear to see.
X may be unique in that the richest man in the world owns it, but it is still a business and the brand has undoubtedly taken a significant hit. You now write an X on X. And in that X you might quote-X someone else. It’s dreadful, isn’t it? I would suggest indefensible against what they had before. Two days after the logo in the profile picture changed to an X, an updated version of the logo was released with thicker lines. The reason being, I am guessing, it didn’t look right at small sizes (like a phone screen) – so why on earth was the primary visual platform not considered before it went live? It then took over a week for the logo to be updated across the platform and other Twitter features and tweet related wording to be removed.
Whether it will hurt the brand long-term, only time will tell, but its newest rival Threads (lovely name) should be delighted with how the rebrand was conducted, the negative reception, the timing of their launch and how much better and more appealing it made their platform feel.
The Best Time to Rebrand
So when is a good time to rebrand? The answer is; its complicated! One thing is for sure; rebranding should never be an impulsive decision. It requires careful evaluation, planning and commitment. Here are some indicators of when it might be the right time to consider rebranding:
Changing Business Goals and Target Market
As your business grows, your goals and target markets may change. Perhaps you are targeting a different audience or providing new products or services, in which case a rebrand can help align the brand image with both audience perception and strategic current objectives.
Negative Associations
In some cases, a company may face public relations crises or negative associations due to past mistakes or bad decisions. A rebrand can serve as a fresh start, allowing the business to distance itself from previous issues, rebuild its reputation and focus on the future.
Outdated Image
Over time, a brand’s image may become stale and outdated, no longer resonating with the modern consumer. An updated and fresh identity can help the business stay relevant and capture the attention of its target audience while connecting with new customers.
Market Changes and Competition
In dynamic markets, keeping pace or outpacing the competition is crucial. If your competitors undergo a successful rebrand and capture market attention, or if the industry experiences significant shifts, a rebrand can help the business adapt to the changing landscape and effectively reposition.
Mergers and Acquisitions
When companies merge or acquire other businesses, a rebrand may be necessary to integrate the new entities and create a more unified proposition.
International Expansion
Expanding into new markets, especially different countries or cultures, may necessitate a rebrand to ensure your brand’s message translates well and resonates with the local audience.
Innovation and Technological Advancements
Companies that are at the forefront of technological advancements or innovation may opt to rebrand to reflect their cutting-edge nature and stand out in the market.
Declining Performance
If a business is experiencing declining sales, customer engagement, or overall performance, a rebrand may reinvigorate interest and trust in the brand. In this instance understanding the reasons for decline would be critical to reposition.
Legal or Trademark Issues
Less common but should a business face legal challenges relating to its name or branding elements, rebranding can help avoid further complications (or legal costs).
Changing Business Goals
and Target Market
As your business grows, your goals and target markets may change. Perhaps you are targeting a different audience or providing new products or services, in which case a rebrand can help align the brand image with both audience perception and strategic current objectives.
Negative Associations
In some cases, a company may face public relations crises or negative associations due to past mistakes or bad decisions. A rebrand can serve as a fresh start, allowing the business to distance itself from previous issues, rebuild its reputation and focus on the future.
Outdated Image
Over time, a brand’s image may become stale and outdated, no longer resonating with the modern consumer. An updated and fresh identity can help the business stay relevant and capture the attention of its target audience while connecting with new customers.
Market Changes and Competition
In dynamic markets, keeping pace or outpacing the competition is crucial. If your competitors undergo a successful rebrand and capture market attention, or if the industry experiences significant shifts, a rebrand can help the business adapt to the changing landscape and effectively reposition.
Mergers and Acquisitions
When companies merge or acquire other businesses, a rebrand may be necessary to integrate the new entities and create a more unified proposition.
International Expansion
Expanding into new markets, especially different countries or cultures, may necessitate a rebrand to ensure your brand’s message translates well and resonates with the local audience.
Innovation and Technological Advancements
Companies that are at the forefront of technological advancements or innovation may opt to rebrand to reflect their cutting-edge nature and stand out in the market.
Declining Performance
If a business is experiencing declining sales, customer engagement, or overall performance, a rebrand may reinvigorate interest and trust in the brand. In this instance understanding the reasons for decline would be critical to reposition.
Legal or Trademark Issues
Less common but should a business face legal challenges relating to its name or branding elements, rebranding can help avoid further complications (or legal costs).
Real-world examples of big businesses rebranding in the face of challenging times, changing strategies or public discourse:
Apple Inc.: In 1997, Apple was facing financial troubles and had lost its innovative image. After Steve Jobs returned to the company, he initiated a rebranding effort that included a revamped product lineup, a new logo, and the iconic “Think Different” campaign. This rebrand marked the beginning of Apple’s resurgence as an innovative and influential technology giant.
Starbucks: In 2011, Starbucks underwent a subtle yet significant rebranding effort, dropping the word “Coffee” from its logo. This move reflected the company’s intention to expand its product offerings beyond coffee and into other beverages and food items. The simplified logo retained the iconic Siren and showcased Starbucks’ broader vision.
Uber: Originally known for its black and white “U” logo, Uber underwent a significant rebranding in 2016. The company adopted a new logo with a geometric design and a custom typeface. This rebrand represented Uber’s growth from a mere ride-hailing service to a global transportation and logistics platform.
Old Spice: Known as a brand for older men, Old Spice rebranded in 2010 to attract new younger audience. Deploying a humorous, irreverent social media campaign featuring Isaiah Mustafa, the brand grew its appeal and sales. The following year reportedly saw sales increase 107%.
O2: In 2002 BT Cellnet rebranded to become O2 in order to differentiate itself as an independent network operator and separate the connection to BT. The distinctive brand helped it quickly become one of the biggest providers here in the UK.
Royal Mail: in 2001 Royal Mail rebranded to Consignia but it didn’t last long… The new name was introduced to represent more broadly what the business did but after spending £2 million and 16 months, the name changed back to Royal Mail along with becoming one of the most disastrous rebranding efforts in recent history.
Branding is for all businesses
While global corporations often dominate discussions on branding, it is essential to recognise that effective branding is not limited to large-scale enterprises. Businesses of all sizes benefit from strategic branding efforts. When thinking about your own business, how it operates and the resources available, consider these steps:
- Define your unique selling points: Identify what sets your business apart from competitors and develop a brand identity highlighting these unique qualities. Focus on building a compelling story that resonates with your target audience.
- Build consistency across touchpoints: Ensure your brand’s visual elements, messaging, and tone of voice are consistent across all customer touchpoints, be it your website, social media, packaging, physical stores or workplaces. Consistency creates familiarity and builds trust.
- Engage with customers: Leverage social media platforms and other marketing channels to engage with customers directly. Respond to their feedback, address their concerns, and create a community around your brand. This drives customer loyalty and encourages word-of-mouth recommendations.
- Adapt and evolve: Stay attuned to market trends and changing consumer preferences. Regularly evaluate and update your branding strategies to stay relevant and maintain a competitive edge.
- Define your unique selling points: Identify what sets your business apart from competitors and develop a brand identity highlighting these unique qualities. Focus on building a compelling story that resonates with your target audience.
- Build consistency across touchpoints: Ensure your brand’s visual elements, messaging, and tone of voice are consistent across all customer touchpoints, be it your website, social media, packaging, physical stores or workplaces. Consistency creates familiarity and builds trust.
- Engage with customers: Leverage social media platforms and other marketing channels to engage with customers directly. Respond to their feedback, address their concerns, and create a community around your brand. This drives customer loyalty and encourages word-of-mouth recommendations.
- Adapt and evolve: Stay attuned to market trends and changing consumer preferences. Regularly evaluate and update your branding strategies to stay relevant and maintain a competitive edge.
Branding plays a pivotal role in generating more sales and increasing customer engagement and here at The Agency we can help.
Based in Birmingham UK we have worked with businesses of all sizes to improve their brand effectiveness through strategic thinking, creative campaigns and impactful graphic design.
We are focused on creating differentiation, building trust, establishing connections, and enhancing recognition – delivering effective branding allows our customers to thrive in today’s dynamic marketplaces. Regardless of size or sector, leveraging strategic branding efforts to communicate unique value propositions, create a memorable customer experience, and drive growth.
Talk to us more about the power of branding and how it can unlock new opportunities for your business.
