Successful Rebranding involves restoring a brand’s overall goal, message and culture – not just a logo or name change. It means connecting with consumers. But do all rebranding exercises bring the desired results? Or can they go horribly wrong?
Branding and rebranding can be a very tricky business. Brands distinguish a company for who they are and convey value to customers. But when a brand’s value proposition, personality and values no longer align with their vision, function and purpose; it prompts a marketing message realignment or rebranding.
A successful rebranding can refresh, renew and improve customer’s sentiments towards the company. But rebranding can also become a costly affair if it fails to re-build that all-important emotional connection with customers. Some implications of unsuccessful rebranding include:
- High level of expenditure
- Unexpected results
- Dent in rebranded brand
Careless rebranding can be very damaging to a brand. One of the greatest rebranding debacles was when Tropicana redesigned its Pure Premium Beverage line in 2009. Their new Pure Premium beverage line led to a 20% plunge in sales post rebranding! Dollar sales further dropped 19% which means an estimated USD33 million to USD137 million loss between January 1 to February 22 in 2009.
The history of rebranding is littered with more failures than successes, not to mention plenty of episodes of under-performing “rebranded brands” that fail to justify the costs of rebranding.
The moral of the story seems to be that iconic brands are deeply emotional entities. And rebranding risks cracking this delicate Humpty Dumpty. It should be undertaken only as a last resort.