Every successful company has a killer branding strategy that'sthat's crucial to its success. Research from Lucidpress shows that branding consistently applied across all touchpoints can boost revenues by up to 33%. But branding isn't just about making money. It's about creating a unique identity, standing out from competitors, building customer relationships, fostering loyalty and trust, and driving sales. It also supports marketing and advertising campaigns, among other things.
However, even the most comprehensive and robust branding strategies crafted by the best experts can't stay fresh forever. They can'tcan't account for all industry trends, market shifts, customer preferences, and disruptive innovation. Eventually, the existing brand vision will become outdated, giving the enterprise's decision-makers valid reasons for rebranding a company.
This article dives into the question, "Why do companies rebrand themselves?" and outlines 11 reasons to rebrand.
11 key reasons for rebranding a company
Why would a business want to rebrand? With our extensive experience working with organizations across various industries at Dworkz, we've identified the most common motives behind significant brand identity and representation modifications.
Modernization
Your company might be undergoing radical changes, revolutionizing all aspects and approaches. An outdated logo won't cut it, as it fails to reflect your organization's new positioning and values. Therefore, one of the most common reasons why companies should rebrand is to remind your audience that you're still in the game, committed to innovation, and taking these changes in stride.
Take Google, for example. This brand loves to keep things fresh and has updated its logo multiple times. The last rebranding was in 2015, and it responded to 52% of users who welcomed the change.
Google highlighted simplicity and crisp online readability by ditching its classic serif font for a custom one.
Mergers, acquisitions, and demergers
When a company restructures, you definitely don't have to ask yourself, "Why rebrand?" since a new entity needs to create a fresh name (often by merging the original names), brand story, and messaging. This unified image reflects both the continuity of tradition and a new path for the expanded organization.
On the flip side, rebranding is essential when a company splits into several enterprises. The newly created organizations distinguish themselves from the former company, each building its image from scratch.
For instance, when the Belgian company InBev acquired Anheuser-Busch in 2008, the newly merged brand developed new imagery to blend the best values from both companies while maintaining positive feelings among customers and investors.
Today, ABInBev boasts a six-million-strong customer base, 200 breweries, and 12% organic earnings growth.
Product/Service changes
When launching a new product or service line, you want your customer audience to keep the association with the traditional brand while introducing the clientele to your company's fresh options. Rebranding is a powerful way to achieve this, and Instagram is a perfect example. Initially launched in 2010 as a photo-sharing platform, it has since added multiple features and shifted its focus to video. This transformation required a complete brand overhaul. The company simplified its previous logo, making it more minimalistic to highlight its content and appeal to advertisers.
The rebranding was essential in boosting the company's profile, leading to its spectacular growth from 400 million in 2016 to two billion users today.
Corporate philosophy changes
Every major company kicked off as a small startup. Naturally, their vision, goals, and values have evolved over time. For instance, nowadays, many businesses prioritize responsibility and sustainability over immediate profit. Rebranding helps these companies align their brand image with shifts in their corporate culture and effectively communicate these changes to their target audience.
For example, Korean carmaker KIA removed the word "motors" from its logo to signify its planned transition to electric mobility. Their new logo, resembling a handwritten signature, catches the eye and demonstrates the company's confidence and high ambitions.
Globalization
Going international means reaching out to new audiences with unique cultural distinctions, consumer traditions, and national preferences. The updated brand name, colors, logo, and other identity elements should attract various consumer groups and avoid any negative associations.
Coca-Cola exemplifies this approach. They successfully combined these with localized messaging by promoting universal values like family, sharing, and happiness. In 2000, they introduced a "think local, act local" marketing strategy to enhance local sensitivity and connect more deeply with regional audiences.
Brand perception issues
Why do companies rebrand if not to address their issues with their brand perception? These issues may crop up when an enterprise has already undergone a rebranding. Both external and internal stakeholders might find the new logo and tagline uninspiring or misguided. Consequently, there could be a push for a re-rebranding or a return to the previous brand image that had brought success and recognition to the company.
A classic example is the case of the popular clothing retailer GAP. When they introduced a new logo, consumers reacted negatively, prompting the company to reject it and revert to its previous logo.
Technological advancements
Companies aiming to stay in sync with their clientele must embrace innovations in the high-tech realm. The rise of smartphones, social media, AI, IoT, and other cutting-edge technologies drives shifts in business goals, approaches, and strategies. Naturally, a company's branding strategies can't remain unchanged amidst such developments, making rebranding an integral part of adapting to these transformations.
Take Apple as an example. By removing "computer" from its name, Apple paved the way for groundbreaking products like iPod, iPhone, iTunes, and more. These innovations have revolutionized the contemporary digital landscape and positioned the brand at the forefront of technology.
How much does rebranding cost?
Understanding the necessary budget is crucial regardless of the driving force behind rebranding. Costs vary depending on the rebranding type. Let's consider rebranding efforts at large corporations as an example. A brand refresh, the most economical option, typically costs between $30,000 and $50,000. A brand reboot, more extensive, ranges from $60,000 to $80,000), while a comprehensive brand overhaul can be a substantial investment, ranging from $100,000 to $250,000. For smaller companies, rebranding may not be such an expansive endeavor. Overall, allocating around 10–20% of your company's marketing budget to rebranding is advised.
Besides, this complex and multi-faceted process hinges on meticulous planning and execution by seasoned professionals in the field.
Dworkz's experience in company rebranding app design
Our seasoned UX design agency in San Francisco offers top-tier services nationally and internationally. Our vetted experts possess in-depth theoretical knowledge of why rebranding is important and a wide scope of hands-on skills in building and designing SaaS solutions and digital products. Understanding how to prioritize user stories and being aware of the importance of UX design for SaaS apps, we recognize that effective branding is pivotal to the success of any high-tech solution. If you feel the company's current brand no longer resonates with its reality and audience demands, we're here to help.
We specialize in refurbishing app designs to align with your new branding approach. Additionally, we can craft new imagery, logos, color palettes, fonts, and taglines that reflect a modernized tone and vocabulary while preserving your company's core values.
Drop us a line to embark on the journey to a refreshed brand identity that will keep the best of your traditions and values while meeting the demands of today's market.