One of the most common words in the business world is branding. But what exactly is branding? As I scrolled around searching for a definition that was both comprehensive and simple (a big ask I know), I came across this one by Shopify, “Branding is the process of creating a distinct identity for a business in the mind of your target audience and consumers.” In business as in our personal lives, we often get to a point where we know that something has to change. At this point, some people may simply take up new habits like going to the gym, practicing meditation, or running. 

Others could consider a complete overhaul of their habits, routines, and values. The reasons for this differ from person to person. For some people, it could be a near-death experience that rocks them so hard and forces them to reconsider their lives. For others is could it be because they have set a new goal for themself and to achieve this goal, they must change certain aspects of their lives. Whatever the motive, the result is the same, growth and transformation. The same goes for any business that wants to grow, it must (at some point) rebrand itself.  

Toyota Motor Corporation was established in 1933. Many years after some of the renowned car companies like Benz, BMW, and General Motors were founded. Although the Toyota brand was already seeing positive reception in some international markets, it was still unable to compete effectively, especially in America. To do so, Toyota executives decided to create a luxury brand. After about 8 months of market research and over 200 names, the company executives decided to go with the name LEXUS, which according to some theories stands for “Luxury Exports To The US”.  But rebranding is more than a shiny new name and logo, after all, luxury is an experience. 

To attract new customers, Toyota had to do much more than come up with a name. They needed something that would embody luxury. Omotenashi the spirit of hospitality, the unparalleled craftsmanship of the Takumi and Kaizen - the quest for continuous improvement. You can call these the triple treat, the not-so-secret ingredients that have turned Lexus into one of the best-selling luxury car brands in America and the rest of the world. The Lexus RX was the best-selling luxury car brand in 2022 topping famous brands like BMW and Mercedes Benz.

Many other companies like Uber, Coca-Cola, Apple, and Nike have taken advantage of the power of rebranding to tell a new story, recreate themselves, and scale up. But what exactly is rebranding and how can you go about it? 

What is rebranding?

If branding is about creating an identity, rebranding is about changing that identity, much like molting. A business can decide to rebrand for many reasons like;

To expand into a new market or industry - moving into a new market sector can be challenging. The competition is different and so are the consumers. To survive, a business/company must molt, and this could mean completely changing the way it operates or the value it provides to a new and different set of values, or simply building on what it already had. The decision will depend on if the company is making a complete rebrand or just a facelift. 

To attract new customers - Uber started as a ride-hailing service for the elites but soon rebranded into a ride-hailing company accessible to anyone. By going from focusing on a niche group of people to a broader group, Uber became an international company with customers in Africa, Europe, and even Asia. 

To adjust to changing market conditions/trends - one of the biggest forces behind rebranding is the alternating market conditions. What is the market condition? Simply put, it is the changes in the desire of the consumers brought about by changes in time, technological advancement, etc. For example, books were once only sold as hard copies until Amazon changed the game by introducing ebooks. Over the past decade, many industries have witnessed a shift in trend and those companies that failed to rebrand themselves were soon left behind.

To stand out from the competition - if a company finds itself among several competitors all offering the same value. The easiest way to stand out of the pack would be to rebrand itself. This can come in the form of repackaging, product delivery, or optimization in process flow. 

To provide more value to its customers - from time to time, businesses add to the list of values it offers to customers. Rebranding is not always necessary in this case, but When doing this, it is not but sometimes it is, especially if the business will be upgrading its structure and value proposition in the process. s, especially if the business would be overhauling certain aspects of its operation that directly affect the customers. Such as price increments. 

To rebuild the brand image - another reason why a business has to rebrand is after suffering severe damage to its reputation. This could happen for any reason and the business environment can be very unforgiving. When this happens, some businesses either merge or rebrand themselves to avoid the negative perception associated with its previous identity. 

Four Things To Consider When Rebranding

So you know rebranding helps, but where do you start? Here is a quick step-by-step guide to follow.

#1 - Why do you have to rebrand?

As I mentioned, rebranding happens for various reasons and before you start rebranding your business, you should know exactly why you are doing so. Is it to attract new customers and penetrate into a new market, or is it to rebuild your company’s image? Whatever it is, having a clear reason will help you know what the end goal is and when you have achieved it. 

#2 - Know the cost

Rebranding can be expensive. So before you start, make sure you have taken stock of what and how much it will cost the company. Yes, I said “what”, because apart from the financial cost, there are other costs to the company. For example, a company may lose some of its previous customers after rebranding. This happens, so it is important to know if it is worth it and prepare a countermeasure against any challenge that could arise. 

#3 - Market Survey

How would the market react to your new brand identity? Not every rebranding effort had a positive reception. There are situations where a company has to rebrand again just after rebranding. Famous examples of rebranding gone wrong are; Tropicana, Mastercard, Gap, and Pepsi. Read all about it here. Market surveys may cost the company a few bucks compared to the millions of dollars that could be lost if the rebranding fails. So yes, it is important to know what your customers think of the new brand before making it official. One way to do this is through focused groups. 

#4 - Pre-Launch preparations

If there’s one thing you can learn from tech companies like Apple and Samsung it will be their pre-launch preparations. They build enough hype around the launch of their new products and organize events to show their customers what they should be expecting months before the product is launched. This is a very effective way to get genuine reactions and firsthand feedback from your customers. If anything goes wrong, this pre-launch preparation should make it clear and also give you the opportunity to make necessary changes before it’s too late. 

Conclusion 

Are you considering rebranding? If yes, then this article is a good place to start. I have talked about why rebranding may be necessary and some of the most important things to consider when rebranding. One final note, the rebranding process would differ by industry so the information here is more of a general guide rather than an industry-specific one.

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