When you see a company with any type of longevity (in any market) re-brand, it’s a strong indication to the general public (and their existing client base) that there has been a shift in overall business strategy. Re-branding may be driven by any number of variables so I'll list the the top three that come to mind:
- Stimulate Consumer Expectations: Not because the current brand is losing its relevance but more because the buying public love things that are new and fresh. Design, technology and advertising mediums are always changing. A re-brand under these circumstances has an overall objective of generating a buzz within your buying community letting everyone know you are going strong and here to stay.
- Change in Ownership: When partnerships end or large capital dollars are used to acquire a current business, re-branding will usually ensue. (This may be more in small/medium sized business in that the partner that retains ownership wants his buying public to know that a significant change has occurred.)
- Change to the Business Environment (where the overall brand exists): Most often this is a strategic change in competitor dynamics which dictates a re-brand. (Such as, low end to high end, wholesale to retail.) I think of it was opening a new business with in a business or the directional change is so definite a name change is also a factor.
Yes, re-branding is an exciting process but it’s critical that the entire business be trained to focus on the new brand. Be sure to establishing an ongoing program for measuring employees’ consistent and complete use of your new strategic position. Everything from sales messaging to letterhead must be taken into the equation.
No matter what the change in business strategy – the most common mistake made by companies when they make the critical decision to re-brand is they assume that the exercise is a one day affair. This is a gigantic mistake! That will cost your bottom line dearly.
