Used to be, but slightly different. We can easily recall changes among familiar companies. For example, Facebook changed the company’s name to Meta, and Pepsi simplified its logo. All these attempts are a part of rebranding. Rebranding is a rearrangement of business identity, which includes logo redesign, updating the business motto, or expanding the business area.
Rebranding is a response to consumer demand. The shift in the main customer responsible for consumption would be an appropriate sign of the rebranding timing. One big example of this is a pop-up store. A lot of companies have opened pop-up stores and held events to create a young image while maintaining their heritage. Simmons, once considered a luxurious and expensive bed brand, has been tempted to reach out to consumers familiar with pop-up marketing without even using beds. This innovative attempt focused on giving the familiar brand image to people in their 20s and 30s, who have the potential to be future customers.
Not only does age-shift motivate rebranding, but the growth of consumers’ awareness levels also transforms brand philosophy. Victoria’s Secret is a good example. Though it was a dominant force in the fashion industry, it faced the controversial issue of ignoring body diversity. The company responded by raising money to support their main consumer, women, and gained more support by accepting diverse body shapes. This is an example of a rebranding response to customer awareness, ultimately leading to the growth of social awareness.
As a method of marketing, the success of rebranding can be evaluated by costs and sales. It is a very dangerous attempt to shake the logo or values, which are the column of the brand - and not just because of uncertain success, but also of the huge input costs. If you cannot fill this cost with operating profit, it will be judged as a failed rebranding. In 2010, the classic fashion brand GAP tried rebranding by promoting a new logo costing about 100 million USD. The new logo seemed more modern and simpler, but it was very far from the brand image of “classic American design.” There were a lot of complaints from customers and GAP decided to return to its old appearance. Ironically, GAP ambitiously brought up rebranding as the way to break the financial crisis, but ultimately worsened financially.
Almost certainly, a company’s introspection is essential before rebranding. Rebranding without sufficient understanding of the brand can lead to considerable bleeding. Soft launch, also called soft opening, is one way to avoid damage. A soft launch is a pre-release of a product or system to a limited number of customers. This allows companies to respond to customers’ complaints and prevent serious failure. Instagram and Google provide updated versions to randomly limited users and check users’ re actions. After this experience, companies can provide stable services to users.
There are various ways to rebrand, but the purpose is the same. Companies strive to promote customer consumption and solidify their brand identity through rebranding. This is because a positive perception of the brand is directly related to customer consumption. By focusing on this strategic process and observing company transformations, you will be a sensitive customer in the flood of rebranding.
