Why Rebranding Is Important and How to Make It Happen

Rebranding is a deliberate process of changing a company's image, identity, or message to align with its evolving values, mission, or target audience. This can be a make-or-break decision for businesses, with 75% of consumers saying they would switch to a competitor if a company's values don't align with their own.

A successful rebranding effort requires a deep understanding of the company's strengths and weaknesses. For instance, a company may discover that its outdated logo is hindering its ability to attract a younger demographic. By updating its visual identity, the company can better connect with its target audience and boost its online presence.

Rebranding can also be a strategic move to distance a company from a negative association or to signal a significant change in its business model. In one notable example, a company transformed its image from a traditional brick-and-mortar store to an e-commerce platform, resulting in a 30% increase in sales within the first year.

Rebranding is a process of reshaping how a company or product is perceived, and it's most effective when it starts with brand research (Example 4).

You might be wondering why rebranding is even necessary. Well, it's often necessary to maintain brand strength and give your business better positioning within the markets (Example 5). A strong brand identity is one of the most important investments you can make for your company's long-term strategy, and it can pay the most long-term dividends (Example 5).

There are many reasons why rebranding is a good idea. For one, it can breathe new life into your business and keep you from being overshadowed by the competition (Example 2). You can also consider rebranding if you want to stay ahead of the competition, and 9 reasons indicate it's absolutely time for a change (Example 1).

Rebranding is an investment that, if done right, will yield exponential returns over the life of your business (Example 3). This is because rebranding can include the reinvention of everything from a brand's name and tagline to its logo and visual identity to its website and marketing collateral (Example 4).

If you're thinking about rebranding, consider the benefits it can bring. There are 7 benefits of rebranding that are hard to argue with, including the fact that it's an investment that will yield exponential returns (Example 3).

Rebranding is a crucial step for any business looking to refresh its image and connect with its target audience. A rebrand can be a game-changer, as seen with Formation Ventures, which grew its Instagram following from 0 to over 3,000 accounts in just 30 days after updating its brand messaging and visual system.

Outdated branding is one of the top reasons for rebranding a company, and it's a valid reason to make the change. Formation Ventures recognized that their branding wasn't doing a great job of reaching their core audience, so they decided to revamp it.

If you're considering a rebrand, you want to make sure it's based on robust user research, like the Literal Humans team did with Formation Ventures. This will ensure that your new branding is tailored to your target audience's needs and preferences.

A rebrand can also help you engage your target audience, as Formation Ventures found out when their Gen Z audience praised their new branding for having a "cool look and feel". This kind of feedback is music to any marketer's ears!

Here are some scenarios that may warrant a rebrand, based on the article:

If you're on a team that needs to convince executives to rebrand, it's essential to create a presentation that includes feedback from different departments, such as sales. This will help you build a strong case for the rebrand and show that it's not just a whim, but a well-researched decision.

Targeting a new audience can be a game-changer for a brand. Brands like Tiffany & Co. have successfully refocused on a younger demographic, shedding their old image to appeal to a new audience.

Tiffany & Co.'s rebranding effort, exemplified by the slogan "Not Your Mother's Tiffany", is a bold move to target a younger audience. This new branding strategy is a clear indication that the company is shifting its focus to appeal to a demographic that values edginess and modernity.

Rebranding to target a new audience can be a delicate process, as seen with Tiffany & Co.'s rebranding controversy among older customers. However, the benefits of targeting a new audience can be substantial, including attracting more and better customers.

Going international can be a thrilling but also challenging experience for a brand. You have to consider how your brand identity will resonate with a new audience.

A brand name that works in one country may not elicit the same associations in another. This is why Twix, a popular chocolate bar, was originally called "raider" bars in the UK market.

You need to put the audience first and create a sense of connectedness. Twix did this by renaming themselves in the US, combining "twin" and "bix" to create a shorter, snappier name.

In fact, the rebranding process is all about understanding the cultural associations of your brand name and adjusting it accordingly. This can make all the difference in how your brand is perceived by a new audience.

Here are some key takeaways to consider when rebranding for an international audience:

Targeting a new audience can be a game-changer for your business. A rebrand is often necessary to refocus on a new demographic or target audience, as seen with Tiffany & Co. The company had to get the attention of a younger buying audience, so it decided to save itself from decline with a bold brand reinvention.

You can't just cling to your existing identity, especially if it's not resonating with your target audience. In fact, trying to market to everyone is a recipe for failure. By rebranding, you can create a more evocative and relatable brand identity that speaks directly to your target audience.

A key part of rebranding is identifying the right customers through brand research. This helps you understand which customers are aligned with your brand's unique purpose and positioning. With the right customers, you're more likely to attract better customers, increase customer loyalty, and even get customers to become brand advocates.

To attract a new audience, you may need to alter certain aspects of your brand identity, as seen with Twix when they expanded to the US. The company renamed themselves Twix, creating a shorter and snappier name that resonated with their new target audience.

Here are some key reasons why targeting a new audience may require a rebrand:

Rebranding can significantly boost the value of your company, making it a more attractive asset when it's time to sell. This is because rebranding increases brand equity, enabling you to raise the price point of your products or services and positively impacting your brand's financial performance.

A well-defined brand is easier to sell, as its value proposition is built into its brand narrative. This gives sales teams an advantage in closing deals with confidence and ease.

Here are some key benefits of rebranding for growth:

Scaling up or down can bring significant changes to your brand. A change in audience demographics or what you're selling can be a huge benefit shift.

Instagram is a great example of this. The company scaled up from 400 to 500 million users to over one billion by June 2018, and a rebrand in 2016 played a big role in this growth.

A change in target audience, like focusing on small businesses instead of large enterprise companies, may mean you need to rebrand. This shift in focus can be a significant change for your brand.

A rebrand can help you adapt to these changes and better connect with your new target audience. As Instagram's rebrand shows, a well-executed rebrand can have a huge impact on your growth.

Here are some key changes Instagram made as part of its rebrand:

Rebranding can have a significant impact on the value of your company. Strong brands are more profitable and build more equity, allowing you to raise your asking price accordingly.

Research has proven the ROI of branding, with well-defined brands selling at higher multiples. A fresh, boldly differentiated brand is like a Ferrari - it's easier to sell because its value proposition is built into its brand narrative.

By rebranding, you can increase the price point of your products or services, and also boost the value of your company. The increased brand equity that comes from rebranding has a measurable effect on share price.

One of the most valuable long-term benefits of rebranding is that your brand becomes a more valuable asset when it comes time to sell the company. According to research, rebranding positively impacts customer perception, which positively impacts customer behavior, which positively impacts your brand's financial performance.

Here are some potential benefits of rebranding on the value of your company:

By rebranding, you can unlock the full potential of your company and increase its value.

Revenue is a key indicator of a company's success. If your revenue is dropping, it's essential to investigate the cause.

You've increased pricing and it's less than popular, as seen with Netflix. This can be a significant contributor to decreased revenue.

There are seasonal highs and lows that can impact revenue. For example, a company in the retail industry may experience a decline in sales during the off-season.

A change in the market can also reduce the effectiveness of your software, as happened when Facebook rolled out native split testing. This can lead to a decrease in revenue.

There was a PR incident, ala Meta, that can damage a company's reputation and lead to decreased revenue.

An economic recession or a downturn in the particular industry your clients belong to can also impact revenue.

If none of these factors seem to be having a significant impact on decreased revenue, it may be time for a rebrand.

If you're struggling to stand out in a crowded market, it's time to consider rebranding. A fresh new look and identity can help you differentiate yourself from the competition.

You want to know if you should rebrand? Here are some signs that indicate a yes is the answer.

A strong brand can help you outcompete the field, even if your products or services aren't tangibly superior. This is evident in a wildly effective brand like Apple.

Branding is all about competitive differentiation, and it's surprising how few companies can effectively communicate or even identify their key differentiators. Sales and business growth can be challenging without clearly articulated differentiators.

The most valuable benefit of rebranding is that it can help you define your key differentiators, including your competitive advantage. A strong brand is a powerful and sustainable competitive advantage.

To stand out from the competition, consider the following scenarios that may warrant a rebrand:

These scenarios can help you determine if it's time for a rebrand and give you a clear direction for your rebranding efforts.

Mergers and acquisitions can be a great way to expand your business, but it also means you'll need to reevaluate your brand focus. This is especially true if there are overlaps in audiences, geography, or products.

Rebranding can help you create a new visual identity that appeals to a broader range of customers. A new visual identity can help you stand out in a crowded market and attract new customers.

If you're planning a merger or acquisition, take the time to examine your key messages and brand focus. This will help you create a cohesive brand identity that resonates with your target audience.

A new visual identity can help you differentiate yourself from competitors and establish a strong brand presence.

Rebranding is a natural part of a business's evolution, especially when there's a lot of change taking place. Mark Zuckerberg's Instagram, for instance, went from being a photo-sharing service to a platform with a growing focus on video, new features, and sub-brands like Boomerang and Layout.

A rebrand can help you stay relevant and connected with your audience. Instagram's rebrand in 2016 played a big role in taking the platform from 400 to 500 million users to over one billion by June 2018.

Sometimes, a rebrand is necessary due to a change in leadership. Brands are commonly linked to company leaders, and when the founder departs, a new CEO comes in, or a company is handed down from one generation to another, it's a good time to consider a new identity.

A rebrand can also be necessary when your business has shifted in a significant way. For instance, if you started out as a copywriter but shifted to a content marketer, you may need to rebrand your site, messaging, and business profile to speak to the new audiences you're targeting.

Rebranding can be intimidating, but it's essential for businesses to stay competitive. Even big brands like Coca-Cola, Target, and Disney know this, and have undergone rebranding efforts over the years. Apple has rebranded three times, while Starbucks has done so four times, and Pepsi has rebranded 11 times.

Here are some key reasons to rebrand:

• Your service or product mix has changed

• Leadership has changed

• Your business has shifted in a significant way

• Your brand no longer aligns with your business

• New leadership wants to move things in a new direction

Rebranding can be a game-changer for your business, enabling you to attract better customers and command higher prices for your products or services.

You want to make sure you're executing a rebrand well, so it's essential to know that it's needed. There are nine reasons why the answer to the question "should I rebrand" should be a yes.

To justify the need for a rebrand, create a presentation in advance, getting opinions from as many different departments as possible. This will help you gather feedback and evidence to support your case.

If your logo and interface are failing to abide by current popular design trends, include screenshots or videos in your presentation to demonstrate the issue. This will help you make a strong case for a rebrand.

Clear suggestions are crucial when presenting a rebranding plan. Do you think your brand voice in social media is too late, or maybe your taglines need to be reconfigured to appeal to higher-value audiences? Provide detailed suggestions for what you'd like to accomplish.

Here are some potential benefits of rebranding:

By looking at rebranding as an investment, rather than a cost, the benefits are clear. Rebranding pays out over the lifetime of your company, enabling you to achieve exponential returns on investment.