Rebrand or not to rebrand, that’s the question

It’s a tough world out there - the competition is not only becoming more severe and pressing for most of us, but new companies popping up every day like mushrooms in September. This of course means that brands face increasing pressure to remain relevant and competitive. Often, in the minute of doubt, companies turn to rebranding (the process of fundamentally reimagining a company’s identity) as a way to not only stay competitive but also be relevant to their target audience. So, let’s explore the strategic considerations you should evaluate when deciding whether to embark on a rebranding journey or maintain your current identity.

When to consider a rebrand

The marketplace is in constant flux, with consumer preferences and industry trends shifting at an accelerated pace. What this means is that you must regularly assess whether your current identity effectively resonates with your target audience. Here are a few situation in which you might want to consider a rebranding strategy.

Shifting market dynamics: When significant changes occur within your industry, rebranding may be necessary to maintain relevance. For instance, as digital transformation reshapes consumer behaviour, brands that appear outdated may struggle to connect with modern audiences.
Expanding target demographics: If your organisation aims to reach new customer segments, your current branding may not appeal to these potential customers. A great example here is Apple - their evolution from a computer company to a lifestyle brand exemplifies how rebranding can facilitate market expansion.
Declining brand perception: Consistent negative feedback about your brand identity may signal the need for change. This could manifest through social media sentiment, direct customer feedback, or formal market research.
Confusion about brand offering: If customers express uncertainty about what your company actually does, your brand identity may be failing to communicate your core value proposition effectively.
Outdated visual elements: Visual assets that appear antiquated or inconsistent across touchpoints can undermine brand credibility. Starbucks demonstrated this understanding when they removed “Starbucks Coffee” from their logo in 2011, allowing the brand to expand beyond coffee offerings.
Evolved business model: When an organisation fundamentally changes its business model or core offerings, the existing brand may no longer accurately represent the company’s purpose. Airbnb’s 2014 rebrand with the introduction of the “Bélo” logo reflected its transformation from a budget accommodation service to a global travel platform.

What you should consider before embarking on a rebranding project

So you ticked one or more of the reasons to rebrand. Hold on from sending your marketing team or agency a rebranding project request. There are a few things you need to consider first.

Established brand loyalty: If your brand enjoys strong customer loyalty and positive associations, radical changes may alienate your core audience. The recent example of Jaguar's rebranding made a lot of their customers question whether the brand aligns with their values and purpose.
Iconic brand elements: Brands with highly recognisable visual or verbal identity components should consider whether these elements might be evolved rather than replaced. Coca-Cola have elevated their brand several times whilst keeping the main component consistent to maximise recognition.
Aesthetic preferences alone: Visual identity is quite a subjective element of the brand anyway, we all have different tastes and visual preferences. However, changes driven primarily by subjective design preferences rather than strategic imperatives often fail to deliver meaningful results. I often had to remind myself - it’s not about what I like, it’s about what works for a particular company.
Reaction to temporary challenges: I generally would advise you against spontaneous and not thought-through decisions, but as I said to one of my clients recently - rebrand is one of the things that’s very easy to screw up and very difficult to rectify. Short-term market fluctuations or isolated negative incidents rarely justify the significant investment of a comprehensive rebrand.
Resource limitations: Effective rebranding requires substantial financial resources, time commitment, and organisational focus. The Royal Mail’s rebranding to “Consignia” in 2001 cost £1.5 million for the name change alone, with another £1 million spent reverting to the original name after public backlash. You might not be the size of Royal Mail but the investment will still be significant for any size of a company, even if more proportionate.
Implementation capabilities: Organisations must honestly assess whether they have the infrastructure and expertise to execute a rebrand effectively across all touchpoints. There is nothing worse than embarking on a complicated and cost-intense project like rebrand only to realise that you weren’t quite sure what size of a pie you were trying to bite.

Key factors to consider in the decision-making process

So you identified the need for a rebrand and considered all the relevant factors that might impact the result. Now let’s talk about elements that would help your rebranding project to be a success.

Competitor positioning: Analyse how competitors are positioning themselves and whether differentiation opportunities exist through rebranding. Determine whether your brand effectively distinguishes your organisation from competitors in meaningful ways.
Industry trajectory: Assess whether your industry is trending toward certain aesthetic directions, communication styles, or positioning approaches.
Customer research: Conduct surveys, focus groups, and interviews to gauge customer perceptions of your current brand and test potential new directions. This can be done through utilisation of existing relationships and social listening.
Brand audit: Conduct a comprehensive assessment of all brand touchpoints to identify inconsistencies, weaknesses, and strengths.
Alignment with strategy: Evaluate how well your current brand identity supports your business strategy and long-term objectives. Create a very strong understanding of what needs to change in order for your brand to be aligned with your north star.
Potential for negative perception: Consider the possibility that rebranding could be perceived negatively by customers, stakeholders, or the media. Evaluate the impact and way to mitigate the risk.
Implementation challenges: Create a bullet-proof project plan! Identify potential obstacles to successful implementation, such as budget constraints, organisational resistance, or logistical complexities.
Loss of brand equity: Calculate the potential loss of recognition and positive associations tied to your current brand identity. Make sure to cover brand strengthening programs in your rebranding strategy.

The rebranding framework

Before proceeding with rebranding, take a (long!) moment to answer these fundamental questions:

Strategic alignment: Does our current brand accurately reflect our strategic vision and business direction?
Market relevance: Is our brand keeping pace with evolving market trends and customer expectations?
Competitive positioning: Does our brand effectively differentiate us from competitors in ways that matter to customers?
Customer perception: What does customer feedback tell us about how our brand is perceived in the marketplace?
Resource assessment: Do we have the financial resources, expertise, and organisational capacity to execute a rebrand effectively?
Risk evaluation: Have we thoroughly assessed the potential risks associated with rebranding, including impact on brand equity and customer loyalty?
Implementation feasibility: Can we realistically implement rebranding across all touchpoints with consistency and quality?

Full speed ahead

If the decision to rebrand is made, organisations should:

Create a detailed plan addressing all aspects of the rebrand, from visual identity to messaging and implementation.
Involve all the relevant stakeholders throughout the process, including employees, customers, and partners.
Establish a phased implementation plan with clear milestones and responsibilities.
Ensure adequate budget, personnel, and expertise are dedicated to the effort.
Continuously assess the rebrand’s impact on key metrics, including brand perception, customer engagement, and business performance.

Rebranding represents a significant strategic decision with far-reaching implications for an organisation’s market position, customer relationships, and overall business performance. By carefully evaluating market trends, customer feedback, brand identity, and potential risks, you can make informed decisions about when to embark on rebranding initiatives and when to focus on evolving your existing brand assets.

The most successful rebrands are driven by clear strategic imperatives, supported by thorough research, and executed with meticulous attention to implementation across all brand touchpoints. Conversely, rebrands that fail tend to lack strategic justification, underestimate emotional connections to existing brand elements, or suffer from poor execution.

Although one of my favourite quotes sounds like “Ruins is a gift, it is the way to transformation”, rebranding ruins is not where you’d like to find yourself.