Advantages and Disadvantages of Rebranding


Brand individuality awareness as we understand it now appeared in the nineteenth century with the debut of packaged goods. Equally shortly as merchandises were no longer produced by local maker the demand for the trade name image occurred. Mass production has a wider market orientation and frequently inexpensive monetary value. But competition with local merchandises which were already familiar to consumers was impossible without distinction and strong appealing image.

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Many trade names image was deliberately created to imitate local husbandmans ‘ merchandises and hence appear as something familiar to the possible client. Perfect illustrations provide such known trade names as Uncle Ben ‘s rice and Kellogg ‘s breakfast cereal, till now they have an image of home-made merchandises. And from this modern-day stigmatization originated: makers with the aid of advertisement started to tie in other sorts of trade name values, such as juvenility, merriment, luxury, honestness, quality confidence, beginning or ownership, and manufacturers duty. They learned how to distinguish and to make emotional bonding with the aid of individuality marks.

Recent environmental tendencies are coercing top directors to give even greater and greater attending to trade name individuality to vouch competitory advantage. For every concern the key to success is the right trade name individuality which should show a positive image of the company and set the phase for a strong repute. Temporal ( 2002 ) stated “ The trade name is the foundation of the concern. Weak trade name can rupture up the foundation. ”

Therefore the creative activity of strong trade name individuality is important for companies to promote positive attitudes and supply an of import competitory advantage. The corporate name and logo are two indispensable constituents of the corporate individuality concept ; they are the symbols of trade name. Furthermore, they are the most permeant elements in corporate and trade name communications, and play a chief function in the communicating of the coveted placement scheme. The right logo and clear ocular individuality are critical for any company ‘s success.

Though a trade name can hold an antique logo, even the minor alteration can endanger its entreaty to loyal clients. In the advertisement history there are a batch of illustrations of rebranding which gone incorrect. Wheeler ( 2009 ) in her book brings an illustration of Kellogg ‘s maize flakes which wanted somewhat change the name of cereals from Coco Pops to Choco Pops in 1999. The consequence was distressing and its client base strongly resisted. If the trade name image is strong, a sudden alteration could estrange clients.

On the other manus, successful rebrand can assist the company or a merchandise to make unprecedented market place. In the 1950s cipher knew a widespread and popular fruit called “ Chinese gooseberry ” , because it was called the Chinese Ribes uva-crispa and was non popular at all. American importers decided that it needed a makeover. Fruit is imported from New Zealand, so they decided to rename it kiwifruit to honor the flightless national bird of New Zealand. With the new name market place improved dramatically.

The importance of the right name and appropriate professionally designed logo barely can be underestimated. If trade name symbols were non created good in the beginning it is ne’er excessively late to make a rebrand. Though altering these symbols is controversial and requires tremendous physical, fiscal and psychological investings.

Rebranding has become a existent tendency in the last decennaries, with some companies rebranding several times. There are plentifulness of successful and unsuccessful illustrations of rebranding which was done for all possible grounds from effort to rebrand itself to want to cast the company negative image.

Obviously, the hazards of altering the established trade name individuality are high and benefits are non guaranteed. With a new individuality it is usually really hard to gauge existent pecuniary benefits. However, there are legion illustrations of companies altering names and Sons, rebranding, and making new individualities for a assortment of grounds, all with successful consequences.

The purpose of this survey is hence to give an reply to the undermentioned research inquiry:

Why development of trade name individuality is better than revolution?


When revolution is necessity?

The paper is a secondary research and is based on information from books and specialised magazines, besides in electronic signifier. It is structured in order to supply a clear and systematic apprehension of the advantages, disadvantages and causes of altering the established trade name individuality.

Brand individuality

Brand image and trade name identityA

Difference between trade name individuality and image is non obvious and frequently confused. Harmonizing to Collins dictionary “ trade name image ” is “ the properties of a trade name as perceived by possible and existent clients ” . Therefore trade name image is largely ocular oriented and covering with such issues as logo design, name, tagline, corporate colorss and founts.

On the contrary “ trade name individuality ” refers to the nucleus properties of a trade name itself, its doctrine and its values. Brand individuality is alleged “ trade name personality ” – a fantastic sum which form the singularity of trade name ; it is an individualism which singles out the trade name. Brand individuality is the frontage of the company or administration and should be an accurate representation of it. On the other manus it is the entire proposition and promises that a company makes to consumers. But the imperativeness and the competition can besides act upon trade name individuality. To set up and keep distinguishable individuality every facet of a concern has to be taken into consideration.

Aaker ( 2004 ) mentioned in his plants that companies have to do significant attempts to do certain that what clients perceive the company in coveted manner. A well-built image plants for the company, conveying an person, memorable individuality which fits absolutely with the company ‘s purposes and schemes. A strong trade name individuality ever brings a company above its rivals all by itself. Though development of such a strong trade name takes clip and fiscal inputs it is a worthy investing. ( Aaker, pp 183-185 )

Different degrees of individuality alteration

When companies decide to set about corporate individuality alterations, they are normally redeveloping the ocular image in footings of logo and corporate design. Such attempts do non usually affect a alteration in trade name values so that the trade name itself, its personality and nucleus values remains the same. Unfortunately, really frequently this false belief led companies to believe that the ocular alterations itself will alter the trade name individuality. But alterations to signage or logo design do non needfully alter the perceptual experience of consumer. Certain features like the undefinable associations with this trade name or consumer perceptual experience of quality and service are deep-rooted into the trade name individuality and can non be changed that easy.

As it is of import for any trade name to keep a modern expression even surface alterations of the ocular image are positive and the ocular individuality demands to alter over clip. But full alteration of the image can arouse consumer concerns about alterations in trade name values or possible ownership. If there is an appealing for consumers strong trade name individuality so extended alterations may destruct emotional fond regards. Peoples are ever afraid to detect sudden undue alterations in the behavior of other people. Same negative reaction is ineluctable when the accustomed trade names which client prefer exhibit similar sudden alterations.

Alternatively, if the end is to significantly better the standing of the trade name, so corporate individuality alterations can be accompanied by considerable alterations to all the related issues like organisational civilization or service criterions. Normal completion of such alterations will better consumers ‘ perceptual experience of the company and its services. Consequently the alterations will, over the longer term, have a corresponding positive consequence on trade name image.

Brand symbols: logo and company name

The function of the logo

Confident stigmatization and a well-built stigmatization scheme uses design to pass on a message that entreaties to the mark audience – a message that creates assurance in the trade name quality while distinguishing it between the rivals. In the stigmatization scheme the importance of the logo as a constituent in reflecting a trade name can barely be overestimated. If the logo does non to measure up than a new trade name scheme and a new logo should be considered.

A logo as an of import portion of trade name selling can state many things about a company. A logo can do the perceptual experience of the company either negative or positive. The mission of the logo is to efficaciously trade name the company. Therefore logo can be considered a God one if it is right represents the values and ends of the company.

Though stigmatization is non come to a simple logo design. The logo is merely one piece of the stigmatization scheme. But nevertheless logo is a powerful symbol that can supply consumers with instant trade name acknowledgment of the concern and the services or merchandises that company offer. Good logo has to originate strong associations with the trade name individuality and be wholly based on a trade name scheme. Without the scheme behind it a logo can set across the incorrect message and in return weaken the trade name individuality. Consistent trade name message implemented in good designed logo helps to increase consumer acknowledgment.

A logo represents concern, illuminates it, is able to advance nucleus values and draw focal point from rivals. Being attractive, easy to read and memorable a logo establishes a acquaintance among other trade names and makes a distinction. A logo is perfectly indispensable for both little and big concerns.

Any concern would be are faceless and forgettable without a logo. A professionally made logo can catch the attending of possible clients and ask for their involvement in a company. A logo is sort of concern ‘ particular grade. When clients visit a shop, usage merchandises or even receive functionary electronic mails, a logo becomes a concern ‘ personal signature. It informs new clients about marks and values of the company and greets old clients with recollection. Presents in competitory market environment logo plays the chief function in distinction one merchandise from another.

A logo helps people positively recognise the concern as being professional, believable and reliable. A logo should be well-executed and look great, besides it should be true in what it communicates and non be exaggerative or delusory, to demo that a concern is believable. And most significantly, a logo should stand for the trade name individuality values confidently to ask for trust from clients and being reliable.

Brand design

To depict the ocular design elements of a trade name experience, such as aA in writing logo designA and the most important sides of a trade name a term “ trade name design ” is used. Professional interior decorators can develop a trade name design in a manner to link the company with its clients, to make the right image, and communicate the right information about merchandise benefits.

“ The trade name ‘s consequence on purchaser ‘s penchants and continued trueness are the keys. ” ( Shimp ( 2003 ) , p. 136 ) The chief end of stigmatization is to do merchandise or service emotionally appealing for consumers. Brand design is refering with planing the consumer ‘s acquaintance with the trade name. Consequently it is of import to pass on to the clients anA imageA of the company, merchandises and services that is value oriented. Then once more the trade name alone value is constitutes of the degree of consumers awareness. With every new experience to the trade name, clients repeatedly pick up on the trade names benefits and qualities.

Logo and name design

A logo design is critical for the trade name individuality as it has a function of a symbol of the merchandise. Without trade name individuality and accordingly logo design it would be about impossible to sell merchandises or services. The truth is, people usually buy non merely the merchandises and services, but they besides buy a promise, repute and individuality. All mentioned above qualities the logo design should stand for.

Any logo design consists of two cardinal elements: the logo ‘s text ( company name ) and the in writing or image that accompanies it. The expression of a company ‘s name conveys significance and is every bit important as image. Different founts convey different significances and emotions to the possible client and utilizing the right fount is critical. However logo design images often become the cardinal acknowledgment constituent of any company ‘s selling publicities.

In order to hold right trade name placement and the strength trade name a corporate logo or merchandise logo should be good designed. An image should be simple and bold, doing it easy to see at a glimpse and should work good with the company name. A strong, balanced image with no small supernumeraries that confuse its expression would be appropriate for any company. Additionally it is ever of import to do certain that logo expressions good in black and white, every bit good as in coloring material.

The logo should non be merely nice, but it should pass on certain values which are of import for the company. The logo design has to pass on the nature of the concern clearly and has in writing imagination that looks appropriate for the concern. Corporations are moved in new and different waies by internal and external factors. Therefore with the oversight of clip Sons can lose their significance. Many celebrated companies have successfully introduced a new logo or re-positioned existing 1s.

Different sorts of design

The most widely used font-based design focuses chiefly on text and font but can integrate other elements as good. The Son of IBM, Microsoft and Sony, for case, usage type interventions with a turn that makes them typical. This type is best suited for companies whose name efficaciously describes what they do and can convey the message without graphical elements.

The subtype of a font-based design is usage of monograms and anagrams. The missive ( s ) represent a symbol of the company and are frequently used when initials translate diagrammatically better than the existent name. This type is a entirely typographically oriented, normally affecting initials or abbreviations.

This design type is preferred when communicating financess are limited and should be focused on name acknowledgment. Besides when the company name is already moderately typical and when the end is to tie in merchandises with the company more clearly and straight than a symbol permits. Using a monogram is possible merely if a company is large plenty to afford learning the populace what the monogram means.

Another well known type consists of a simple but strong in writing symbol, an emblem on a merchandise. The symbol is frequently abstract, complements an facet of a concern or service and represents a company by association. The Son of Nike or Apple are like this. Besides there are plentifulness of company logo designs that literally exemplify what a company does, such as when a house-painting company uses an illustration of a coppice in its logo.

This type is deserving utilizing when the company name is excessively long, excessively generic, does n’t interpret good globally, or has no personality. Equally good as a monogram it can be dearly-won and hard to make public consciousness for the symbol type.

Small concerns with limited selling budgets frequently use a combination of a symbol with words. Combination can be loose or built-in and the elements can be used together or individually. A good designed combined logotype can efficaciously pass on what a company does every bit good as reflect the company personality. Since combined logo communicate the thought behind easy, less selling is required for the logo to be effectual. Therefore, combined Sons are the most cost effectual type of logo design available.

Distinctive ticket line

Solis ( 2010 ) describes a tag line as “ an amusing or memorable phrase designed to catch attending in an advertizement ” . ( Solis ( 2010 ) , p.247 ) A tag line usually consists of three to seven words phrase that accompanies the logo. It expresses the company ‘s most of import benefits and on the other manus what a company wants to pass on to clients about its work.

Despite the effortlessly visual aspect of some great tag lines, making and polishing one takes a batch of clip and difficult work, merely like planing a great logo. However the benefits of taking the clip to craft a great ticket line are incontestable. Main quality index of a great ticket lines is it stickiness in to the consumers ‘ memory.

Let us analyze the illustration of Hallmark recognizing cards tag line. “ When you care adequate to direct the really best, ” entreaties to the human desire to be viewed as holding good gustatory sensation and an enjoyment for luxury. With this tag line Hallmark positioned itself as the pick for quality. Company was founded by J. C. Hall, so the name Hallmark was a natural.

Hallmark was an official series of Markss, instituted by legislative act in 1300, and later modified, stamped by the Guild of Goldsmiths at one of its check offices on gold, Ag, or Pt ( since 1975 ) articles to vouch pureness, day of the month of industry. ( Collins Dictionary ) Therefore it was besides superb from a selling position because the word itself means a grade of genuineness or excellence. The name attaches the image of quality to a merchandise in the best possible manner. The tag line makes the most of the image with words that stick in the head.

Making a all right logo and typical ticket line are important for a trade name individuality as they provide the right image of the company and give it capableness to be memorable plenty. Therefore these are besides critical qualities for the competitory capacity.

Change of trade name symbols

In the dynamic environment of the recent decades the really thought of altering trade name symbols – name and logo – is a prevailing phenomenon in every given country of concern. Redesign in most of the instances is caused by the emotional apprehensiveness of top direction. The company logo design seems to go disused or does n’t hold the same advertisement entreaty that it did a few old ages ago. Other common ground for redesign can be narrow fortunes, clip and/or budget shortage in which logo was created. To reason, the determination of the company logo redesign is one of the most dubious determinations any company can do due to tremendous hazards involved.

Changing an established name or logo requires wise attack to a jobs, caution and consideration. A right executed logo redesign can positively impact the company trade name and hence aid to accomplish a competitory position in the market. Even most of import corporations sometimes change their trade name individuality and logo design.

When alterations in market focal point are occurred the demand of logo redesign frequently became inevitable. Because company needs a logo that is more conforming to new fortunes and more appropriate for a new demographics. Logo redesign can assist to accomplish current concern ends. Decision to alter logo should be calculated and scrupulous as it includes legion issues. First of all there are different degrees of alterations possible: a makeover ( a new design ) and a fix.


Logo fix is suited in instance the logo merely necessitate a small simplification, or possibly a more technically adept rendering. This is the least hard instance and the most frequent as the modern engineerings require new proficient specifications. For illustration logo design should be easy reproduced on web colors. Besides letter paper and letterhead design can be unfoundedly expensive to reproduce if the colorss are non suited. In add-on excessively complicated logo with little inside informations besides can be debatable. A logo fix involves a re-rendering of the graphics so that a new improved logo become versatile and more adaptable and can be used in a scope of a media. Besides non the least of the factors logo fix allows for slow integrating into the branding stuff – booklets, cards and marks. After the logo has been re-rendered into new editable format, the assorted design constituents can be improved, such as colorss and founts.

Brand symbols gradual alteration

Paul Temporal ( 2002 ) discusses few illustrations of the companies which are non traveling to alter their Sons anytime shortly. As they already have spent enormous amounts of money to acquire their Son into the public oculus. For case it is decidedly non the design that makes the Nike logo “ whoosh ” impressive, but the acknowledgment factor.

This logo was created by Caroline Davidson in 1971 for merely $ 35, yet it ‘s still a strong, memorable logo, effectual even without coloring materials and easy scalable. It represents the wing of the Greek goddess of triumph, Nike and is perfect for a clean dress concern. However, Nike is still seeking to do their image more amusive. The ‘Nike ‘ fount manner has been transformed many times, in an effort to maintain up with alterations in gustatory sensation and design esthesia.

The Microsoft Windows logo besides went through figure of undistinguished design alterations. Introduced in 1995 the first logo was highly simple – merely a in writing representation of a winging window. Afterwards the Windows icon had become much more refined: 3D, glowing and with a new fount. It still remained in the same design household as the transmutation was non beyond acknowledgment, but became calendered and modern.

Apple was the first computing machine house which did non utilize its name as its corporate individuality, even the word “ Macintosh ” is the name of an apple assortment. The thought of selling a computing machine under the name and image of an apple was conceived by Steve Jobs and his co-workers. Apple computing machines besides developed their Apple icon from a rainbow-striped version to a solid and much ‘classier ‘ modern icon in the late 1890ss. The Apple icon has remained reasonably stable over the old ages, but its intervention has changed on several occasions in order to keep the logo ‘s strength while accommodating to the corporation ‘s current selling focal point.


Brand symbols makeover is a creative activity of a new image and new properties for the trade name image. Logos are chief symbols of a company ‘s trade name identify and are cardinal to consumer acknowledgment. Decision to do a logo redesign has its hazards and wagess. Harmonizing to Aaker a company logo can be maintained for up to 20 old ages functioning as an digesting symbol of a company impact and being. ( Aaker ( 2004 ) , pp 112-127 )

However a company can make up one’s mind to alter its logo for several important grounds which include altering client and industry tendencies or alterations in the company ‘s concern focal point and market scheme. Besides a amalgamation and acquisition is a frequent ground for logo makeover, as new logo should stand for new merged company.

The procedure of altering an already established logo should be approached carefully, it is of import to specify whether there is a demand for a wholly new logo or a important makeover of the already bing logo. The hazards involved in altering the current logo include first of all possible losingss in trade name equity that has been built after tonss of difficult work and important fiscal investing over the old ages. Besides clients trade name trueness can be affected. Current clients used to seeing old logo in company selling collaterals like envelopes, concern cards and letterheads may non instantly connect with the new logo.

Logo makeover is a hazardous and hard measure which can be performed merely one time. Since the first clip it can be interpreted and justified as an betterment. Any more alterations can unfavorably impact the company. The repute would be affected, and the company would look unsure of its individuality, its hereafter and its consumer environment.

On the other manus a good executed logo makeover can assist a company undertaking a new image as a forward believing company and accomplish new visions of possibilities. The benefits of a logo redesign or important makeover could include shifting of the company ‘s trade name in the head of clients and contemplation of the company new concern focal point or way.

While a logo makeover gives the feeling of comparatively painless procedure, it includes a entire redevelopment of the trade name individuality. Though represents a considerable costs, hazards and perturbation to the selling effectivity. Logo makeover can significantly determine company trade name identify and relationship with already bing clients. Despite all the hazards and possible disbursals a successful logo makeover can convey a great net income to the company.

Change of trade name individuality

Brand individuality appraisal

The get downing point of any trade name individuality transmutation is careful assessment and specifying mark market and alone selling place of the company. Afterwards these findings will ease the development of new trade name individuality. Brand individuality include everything from client perceptual experience and experience to quality, trade name expression and design, to client attention, retail and website, and even the tone and voice of communications.

Specifying corporate individuality is frequently hard, and the hints to what factors shape individuality vary widely among industries and houses. To be ready for alteration at any clip, directors must be more cognizant of how cardinal stakeholders, such as employees, clients, investors and the community, view the company ‘s individuality.

Change, when necessary, should so be structured so that it does non run counter to this perceived position. Effective rebrands are based on a elaborate analysis of every activity in the company including aims, mark markets, budget and resources, timeframe, known and unknown parametric quantities, blessing construction and stakeholders.

Resistance to alter in a trade name individuality is inevitable in most of the instances. Therefore direction ‘s undertaking is to place possible resistance and happen ways to neutralize it. It is frequently utile to get down the procedure of rebranding with treatment affecting all the employees of the chief thought behind the company ‘s concern, what its clients need and what they will necessitate in the hereafter. Sometimes a research can be helpful to find the possible every bit good as current state of affairs.

When the thought is defined a theoretical account that will outdo represent that thought should be considered. Merely after these stairss are successfully implemented new ocular individuality, existent logo and all other new imagination can be created.

Lofty purposes of rebranding

Value of the trade name can be barely overestimated and all the companies are endeavoring to possess this intangible value. Therefore as temporal advancement is traveling further some companies may happen it necessary to revise their trade name individuality in order to hold an up-to-date image, to be relevant and appealing to possible and existent consumers and the altering market state of affairs.

Lambkin and Muzellec ( 2006 ) studied more than 150 rebranding illustrations and explicate a hypothesis that irrespective of grounds it invoke, rebranding purposes at “ appealing, recovering, reassigning and/or animating the corporate trade name equity ” . The purpose of rebranding is hence ever a huge betterment of the trade name image, though non ever approachable.

Rebranding can intend a assortment of different things, from simple alteration of the company name to more deep alterations of the trade name individuality policy such as alteration of logo and coloring material pallet. Rebranding is relevantly easy if the alterations are deliberately little to guarantee continuity with the past, but besides to shift the company as modern-day. Difficult instance is a complete rebranding which means alteration of the trade name image in order to shift the established trade name in the market.

Rebranding is ever made in effort of repositing the trade name in the market and heads of consumers when trade name individuality is non any longer appealing, current trade name placement is non valid for the mark market any longer, or mark market alterations. Sometimes companies make rebranding to distance themselves from certain negative intensions of the old stigmatization. For illustration if the trade name has a controversial image, a repositioning is required to better the blemished repute.

However the chief ground for a rebranding is to pass on a new message for a company. The end of rebranding is to restitute trade name image and distinguish state of affairs for stakeholders and market place. “ Far from merely a alteration of ocular individuality, rebranding should be portion of an overall trade name scheme for a merchandise or service. ” ( Lambkin, Muzellec ( 2006 ) , p. 2 )

Brand image is one of the most cherished assets, and that value is a apogee of many old ages ‘ investing and committedness. Deep apprehension of initial trade name values and thorough research are required for the rebranding project because of the immense impact on a company place that rebranding or even alteration of a logo can raise. Launch of the new trade name individuality should be besides made in a delicate and systematic mode in order to avoid forcing off old clients, while taking to pull new one.

Establishing trust and emotional bounds based on careful scheme are critical in the rebranding procedure. Appropriate rebranding scheme, consistent merchandise or service quality, reasonable pricing and effectual distribution will assist to reconstruct trade name consciousness and create associations in client memory after rebrand execution.

Rebranding is expensive and involves a measure of hazards. Necessity to explicate to loyal clients the grounds of rebranding and its benefits has to be anticipated. This is an expensive and non one hundred per cent successful project. A company usually make up one’s mind to set about rebranding with all its cost, attempts and hazards merely if there are really good grounds for it.

Reasons for trade name individuality alteration

Though rebranding is ever an earnest project grounds for it can be sometimes pathetic or baseless. A company might desire to reassign already bing individuality into a new name, individuality policy or positioning for a figure of grounds, in order to react to external or internal concerns.

The most common ground is effort to remain modern, signal a alteration in way, focal point, attitude or scheme, if a company has a feeling that the trade name image has become antique. In a fast-changing environment it can be utile to alter because of globalization, worsening profitableness or consumer indifference. The other ground is distinction from rivals and willingness to get the better of them. Deriving bad imperativeness or bad events experience would usually advance a corporate individuality alteration. Besides the launch of new concerns that are significantly different from the traditional one can be a ground.

However large companies really frequently have alleged “ rebranding rhythms ” in order to remain current with the times or put themselves in front of the competition. ( Temporal ( 2002 ) , pp 112-117 ) Companies besides utilize rebranding as an effectual selling tool to conceal discomfiture of the past and to cast negative intensions that could potentially impact profitableness.

The attractive force of new clients

Ambition to aim a new market is a most common ground for rebranding. A good illustration of such effort can be Cadillac which in recent times designed a scope of new autos to supply a trendy, vernal expression to their trade name image.A

A batch of companies presents want to look modern and progressive. A pattern of altering company logo and name in effort to pull new clients became one of the most common and widespread in recent decennaries. The name for a merchandise sometimes does n’t sound good and the logo can be disused or inappropriate for the selling scheme.

However logo or trade name symbols redesign in order to do company current or stylish is the worst possible solution. There is ever a high hazard that alteration of the logo will estrange clients alternatively of pulling new one. Recent rebranding of the Pepsi logo which was made in effort to pull new clients is perfect illustration of how unsuccessful it can be. Made by Arnell Group the Pepsi rebranding took three twelvemonth and cost about $ 1 billion. Pepsi wanted to do a complete packaging and selling rebranding of its soft drinks. The white band on the new logo supposed to be “ smilings, ” but all the attempts were wastes, consumers strongly disliked it.

Change in advertisement subjects and scheme, public dealingss alternatively of trade name symbols and logo are required for this type of rebrand. To make a new mark market and establish a new merchandise or service a company in most of the instances should besides alter its corporate individuality.

High competitory force per unit area force companies, particularly little and in-between size, to alter their logo and individuality in order to stand out against a background of similar organisations supplying the same service and aiming the same client base. To pull new clients distinguishing from rivals is important.

A good illustration of smart application of the alone individuality value can be Apple portable MP3 participant iPod.A There are 100s of different MP3 participants on the market that possess the same or even better proficient and design qualities as iPod does but because of its well promoted uniqueness iPod has a biggest market portion and a prima position.A

Shifting and market cleavage

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It is non uncommon for trade names to alter their names as a rebradging exercising, frequently to shorten their name and/or to avoid unfortunate/regional intensions. One version of this is “ call stigmatization ” where trade name proprietors recognise that their clients call the trade name something other than its official name. An illustration of this is “ Bud ” for “ Budweiser ” . This type of rebranding does non normally cause many troubles.

Packaged goods companies have sometimes changed names in certain states to develop one planetary trade name name. The most common ground for this is to streamline trade name communicating investings, such as advertisement, literature and packaging.

As for merchandise offerings, when they are marketed individually to several mark markets this is called market cleavage. When portion of market cleavage scheme involves offering significantly different merchandises in each market, this is called merchandise distinction. This market segmentation/product distinction procedure can be thought of as a signifier of rebranding. What distinguishes it from other signifiers of rebranding is that the procedure does non imply the riddance of the original trade name image. Dexxa computing machine mice are rebranded Logitech devices sold at a lower monetary value by Logitech in the low-end market section without underselling their mid-range merchandises. Rebranding in this mode allows one set of technology and QA to be used to make multiple merchandises with minimum alterations and extra disbursal.

Another signifier of merchandise rebranding is the sale of a merchandise manufactured by another company under a new name. An original design maker is a company which manufactures a merchandise which is finally branded by another house for sale. This is frequently the instance with international trade. A merchandise is manufactured in a topographic point with lower operating costs, and sold under a local trade name name.

The alteration of the market focal point is a similar ground for rebrand. Some companies have a obscure focal point ; some are make up one’s minding to appeal to a sub-market. Many makers re-brand their merchandises to come in a lower terminal section because they do n’t desire to thin the value of their nucleus trade name or do n’t desire the new trade name to be dragged down by the old 1. For illustration Lexus is good known as a luxury auto, but it is owned by Toyota. Dexxa is the name on low priced computing machine mice, but is manufactured by Logitech. There are a batch of other illustrations, but the cardinal constituent here is doing certain that the new trade name does n’t hold a negative consequence on the old trade name or be influenced by the old trade name.

Lego is re-branding its full merchandise scope and presenting a new motto to simplify what the Lego trade name stands for. Lego says that in the yesteryear, consumers have been confused by the different sub-brands, such as Lego Technic, Duplo and Primo, and non realised that they were all portion of the Lego group.

From the start of 2003 all merchandises will be grouped under four new classs:

aˆ? Explore

aˆ? Make & A ; Create

aˆ? Stories & A ; Action

aˆ? Next

Each of these new classs will be represented by their ain set of colorss.

The new merchandise construction replaces the old stigmatization construction which mostly categorised Lego merchandises by mark age scope.

At the same clip, a new motto called “ Play on ” , will come into consequence, replacing “ Merely Imagine ” . It is meant to stand for the five values behind Lego: creativeness, imaginativeness, acquisition, merriment and quality.

Lego besides plans to open a concatenation of branded retail shops, get downing with one in Cologne and a 2nd in Milton Keynes.

Negative image

Many companies rebrand out of the necessity to animate their image, neutralize negative perceptual experience of the trade name or even negative promotion that was n’t their mistake. A The most celebrated illustration is rebranding of Phillip Morris to Altria which took topographic point in 2003. The company at that clip already owned an 84 % interest in Kraft Foods and wished to give accent to that portion of its concern and to shadow negative image of the baccy company. In modern civilization image is everything and if the trade name image of the company is damaged, no 1 will purchase its goods and services.

A little figure of companies have to wholly rebrand their name and logo, but others can set them to the altering environment and demands. For case McDonalds is now seeking to rebrand in order to shadow negative image of the nutrient of the working category, undemanding, unhealthy and gross outing. Company introduced assortment of salads and other healthier options, and they even willing to alter their celebrated ruddy logo for the green one to hold an image a healthier concatenation eating house.

A great illustration of a company that has done a remarkable, about incredible occupation of rebranding their image is the American company FedEx, which used to be Federal Express and changed its name because of negative perceptual experience of the word “ federal ” in new markets they were seeking to make.

Amalgamation and acquisition

Amalgamation and acquisition and, rather the contrary, de-merger is a widespread ground for rebranding and logo alteration. DANONE Group evolved out of a little glass fabrication house to a large nutrient and drink company, and it took over two decennaries of alteration through gradual acquisitions. Gradual alterations allow employees of the company, consumers and other stakeholders to understand the way of alteration and accept it. Necessitate to alter or unify individualities in instance of a amalgamation are inevitable.

Depending on the comparative power, and value, of the different trade name names amalgamation and acquisition can hold a different impact on the trade name individuality. Typically the purchased trade name keeps its individuality as it in malice of everything is one of the most valuable assets of the company. Other option is to take over a buying company. There can be besides a joint stigmatization where two names and Sons can be combined together or a wholly new name and logo invented.

A thorough readying for amalgamation and acquisition, decisive actions and development of a new stigmatization scheme in progress is required from both of the companies. It may take several old ages to make mutual understanding and it is of import to avoid drawn-out deliberation of the specifying scheme as it confuses both clients and employees.

De-mergers will more frequently than non originate new trade name development. In the best instance the new detached company had be smart plenty to salvage its original trade name image long plenty to be able to construct up a new one on its base. Otherwise the complete development of the new trade name individuality will be needed.


The determination to rebrand is a really serious and it is much more than merely a alteration of logo. Although rebranding seems sometimes as a sensible measure it should non be taken without due consideration. A rebrand is a company image alteration and it can enable a company to update its message, entreaty to new audiences or even signal a complete alteration in way. The grounds behind individuality alteration are normally bad imperativeness, new mark market, new merchandise, amalgamation, or aspiration to derive a competitory border.

The main purpose of rebranding is a whole company delicate “ update ” because rebrand is more than merely an image alteration. The ideal procedure of rebranding has to be slow one. Successful rebrands are about balance, harmonizing to Abrahams, guaranting the value of the trade name remains while signalling a alteration in way. “ It should be about a positive development non a despairing revolution, ” he says. ( Abrahams ( 2008 ) , pp 116-119 )

The purpose of any rebrand is to alter consumers ‘ heads therefore it can be really helpful to establish a publicity run along with rebranding run. An incorporate selling push across a assortment of media channels can be expensive and seemed unneeded, but without it rebranding consequences can be unequal.

“ Rebranding is about striking out one dictionary significance and infixing another, ” says Wheeler. ( Wheeler ( 2009 ) , p. 57 ) Change of the logo or company name is seemed sometimes as an easy undertaking, but to do it work to the concern advantage in intend manner is a hard one. The hazards of a rebrand can be immense, but if done right it can review a concern, better the image, take to more clients, and even raise morale within the company.

Balance between benefits and costs should be besides estimated. Rebranding means non merely a logo redesign, or changing the letter paper and corporate colorss. Rebranding entails a whole package of intangible points that are needed to be considered every bit good. An effectual communications scheme needs to be implemented in order to maximize the value and success of a rebrand. Therefore all elements of the selling from advertisement to public dealingss must be combined to back up a new image. It is really of import to maintain all the assorted factors in harmoniousness and pass on one new thought of the new trade name.

Decision to do rebranding is erroneous if made merely for the interest of making it or because rivals did so. Rebranding should ever hold a clear intent and should non be taken thoughtless, as it is a monolithic inspection and repair of trade name images and individuality. No rebrand is possible without equal research, shifting the image without analyzing consumer demographics and psychographics is unsafe. The hazard to lose trade name loyal clients is ever involved, particularly if the trade name was strong before rebranding and certain customer-base was devoted to it. Rebranding can estrange some of the loyal clients if what originally attracted them will be lost.

Change for the interest of alteration is hazardous, particularly if the consequences of the transmutation are unsure. Therefore farsighted and experient directors are seeking to see a long-run schemes and purposes, and so update trade name individuality to suit the changing ends. A alteration of individuality should ever be considered and well-planned. And it ‘s besides of import to believe about the terminal consequence of the alteration, including negative elements. Rapid and extended alterations are harmful in most of fortunes. Therefore the most effectual and safe scheme is evolve easy by updating the current image to modernize an bing, well-trusted trade name, in order to maintain the established client base.

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