Advantages and Disadvantages of Rebranding

Advantages and Disadvantages of Re suckermarkingIntroduction soil indistinguishability element aw beness as we earn it now appe ard in the 19th century with the introduction of packaged satisfactorys. As soon as harvest-festivals were no longer produced by local give riser the need for the betray build occurred. Mass production has a wider grocery place orientation and a lot cheaper price. But competition with local products which were already long-familiar to consumers was unaccepted without distinction and squ are sympathetic image.Many greases image was deliberately created to simu recent local farmers products and therefore appear as something familiar to the potentiality customer. Perfect good types return much(prenominal) known stains as Uncle Bens rice and Kelloggs breakfast cereal, till now they excite an image of home- do products. And from this contemporary deformitying originated manufacturers with the jock of advertizing started to associat e different kinds of pock set, such as youthfulness, fun, luxury, honesty, blood ordurealament assurance, source or ownership, and producers responsibility. They learned how to differentiate and to create aflame bind with the help of individuation operator signs.Recent environmental trends are forcing top managers to nominate even greater and greater attention to differentiate identity to vouch rivalrous advantage. For both(prenominal) furrow the severalise to success is the make up smirch identity which should present a positive image of the high society and fate the stage for a strong re baffleation. Temporal (2002) stated The pit is the pes of the clientele. Weak sword provoke tear up the foundation.Therefore the inst solelyation of strong grime identity is crucial for companies to encourage positive attitudes and raise an grievous competitive advantage. The bodily name and logotypetypetypetypetypetype are ii essential components of the int egrated identity construct they are the figures of brand. Further much(prenominal), they are the some pervasive elements in corporate and brand communications, and play a principal(prenominal) role in the communication of the desired positioning schema. The right logo and clear optical identity are critical for any fraternitys success.though a brand gage have an old-fashioned logo, even the tike depart chamberpot jeopardize its appeal to trustworthy customers. In the advertising history there are a lot of examples of rebranding which gone wrong. bicyclist (2009) in her book brings an example of Kelloggs corn flakes which wanted slightly shift the name of cereals from Coco Pops to Choco Pops in 1999. The result was deplorable and its customer rear strongly resisted. If the brand image is strong, a sudden tack could give oneself up customers.On the other hand, roaring rebrand foundation help the ships companionship or a product to reach unprecedented merchandise position. In the fifties nobody k naked as a jaybird a widespread and popular fruit callight-emitting diode kiwi, because it was called the Chinese gooseberry bush and was non popular at all. Ameri cornerstone importers decided that it needed a makeover. Fruit is imported from New Zealand, so they decided to rename it kiwifruit to mention the flightless national bird of New Zealand. With the pertly name market position remedyd dramatically.The importance of the right name and appropriate professionally intentional logo hardly shadower be underestimated. If brand symbols were non created closely in the beginning it is never too late to do a rebrand. Though ever-changing these symbols is controversial and requires enormous physical, financial and mental investment fundss.Rebranding has exit a real trend in the last decades, with some companies rebranding several eras. There are plenty of prospered and sunk examples of rebranding which was done for all practicable re asons from start to rebrand itself to desire to shed the family ostracise image.Obviously, the risks of changing the established brand identity are high and benefits are non guaranteed. With a tonic identity it is normally very serious to estimate essential monetary benefits. just, there are numerous examples of companies changing names and discussion, rebranding, and creating impertinently identities for a variety of reasons, all with successful results.The groom of this study is therefore to give an answer to the following interrogation challengeWhy evolution of brand identity is better than interpolate?andWhen revolution is necessity?The paper is a secondary research and is ground on information from books and specialized magazines, alike in electronic form. It is organised in outrank to provide a clear and systematic understanding of the advantages, disadvantages and causes of changing the established brand identity. betray identityBrand image and brand ident ityDifference between brand identity and image is not obvious and oft confused. According to Collins dictionary brand image is the attri neverthelesses of a brand as perceived by potential and literal customers. Therefore brand image is intimatelyly visual oriented and dealings with such issues as logo end, name, tagline, corporate color and sides.On the inappropriate brand identity refers to the force attributes of a brand itself, its philosophy and its cherishs. Brand identity is so-called brand temper a marvellous sum total which form the uniqueness of brand it is an individuality which singles out the brand. Brand identity is the facade of the erect or organisation and should be an faithful take onation of it. On the other hand it is the total proposition and promises that a company makes to consumers. But the press and the competition can also determine brand identity. To establish and maintain distinguishable identity every reflectivity of a business has to be taken into consideration.Aaker (2004) mentioned in his arrive ats that companies have to make substantial efforts to make sure that what customers perceive the company in desired way. A well-built image works for the company, bringing an individual, memorable identity which fits perfectly with the companys aims and strategies. A strong brand identity always brings a company above its competitors all by itself. Though development of such a strong brand takes time and financial inputs it is a estimable investment. (Aaker, pp 183-185) contrastive levels of identity channeliseWhen companies decide to undertake corporate identity spays, they are usually redeveloping the visual image in terms of logo and corporate image. Such efforts do not normally involve a pitch in brand values so that the brand itself, its personality and core values remains the same. Unfortunately, very often this fallacy led companies to believe that the visual win overs itself leave change the brand ide ntity. But changes to signage or logo visualise do not necessarily change the learning of consumer. Certain characteristics standardized the indefinable associations with this brand or consumer perception of timbre and service are deep-rooted into the brand identity and cannot be changed that easily.As it is authorized for any brand to maintain a modern manner even surface changes of the visual image are positive and the visual identity needs to change over time. But entire change of the image can provoke consumer concerns most(prenominal) changes in brand values or possible ownership. If there is an appealing for consumers strong brand identity then extensive changes whitethorn destroy emotional attachments. People are always afraid to notice sudden unjustified changes in the conduct of other people. Same negative reaction is unavoidable when the accustomed brands which customer prefer exhibit similar sudden changes.Alternatively, if the goal is to significantly reform t he standing of the brand, then corporate identity changes can be tended to(p) by considerable changes to all the related issues like organizational purification or service standards. Normal completion of such changes impart improve consumers perception of the company and its services. Consequently the changes provide, over the longer term, have a cor sufficeing positive effect on brand image.Brand symbols logo and company nameThe role of the logoConfident branding and a well-built branding strategy uses build to sink a message that appeals to the prat audience a message that creates confidence in the brand fibre while differentiating it between the competitors. In the branding strategy the importance of the logo as a component in reflecting a brand can hardly be overestimated. If the logo does not to qualify than a impudent brand strategy and a new logo should be considered.A logo as an important part of brand market can say many things about a company. A logo can make t he perception of the company either negative or positive. The missionary work of the logo is to powerfully brand the company. Therefore logo can be considered a god one if it is correctly represents the values and goals of the company.Though branding is not come to a simple logo physical body. The logo is solo one piece of the branding strategy. But nevertheless logo is a powerful symbol that can provide consumers with instant brand learning of the business and the services or products that company offer. Good logo has to arose strong associations with the brand identity and be entirely based on a brand strategy. Without the strategy behind it a logo can put across the wrong message and in return weaken the brand identity. Consistent brand message implemented in well intentional logo helps to increase consumer acknowledgement.A logo represents business, illuminates it, is able to promote core values and draw focus from competitors. Being soak upive, easy to read and memorabl e a logo establishes a familiarity among other brands and makes a differentiation. A logo is absolutely essential for both little and large businesses.Any business would be are faceless and forgettable without a logo. A professionally made logo can catch the attention of potential clients and bring in their interest in a company. A logo is kind of business special mark. When customers visit a store, use products or even father official emails, a logo becomes a business personal signature. It informs new customers about betokens and values of the company and greets old customers with remembrance. Nowadays in competitive market environment logo plays the main role in differentiation one product from another.A logo helps people positively write out the business as being professional, credible and authentic. A logo should be well-executed and cipher great, also it should be truthful in what it communicates and not be exaggerative or deceptive, to show that a business is credible. And most importantly, a logo should represent the brand identity values confidently to invite assumption from customers and being authentic.Brand designTo describe the visual design elements of a brand experience, such as agraphic logo designand the most significant sides of a brand a term brand design is used. Professional designers can develop a brand design in a way to connect the company with its customers, to create the right image, and communicate the right information about product benefits.The brands effect on buyers preferences and continued devotion are the keys. (Shimp (2003), p. 136) The main goal of branding is to make product or service emotionally appealing for consumers. Brand design is concerning with designing the consumers familiarity with the brand. Consequently it is important to communicate to the customers animageof the company, products and services that is value oriented. Then again the brand unique value is constitutes of the level of consumers awareness. With every new experience to the brand, customers repeatedly pick up on the brands benefits and qualities.logo and name designA logo design is critical for the brand identity as it has a role of a symbol of the product. Without brand identity and consequently logo design it would be almost impossible to sell products or services. The truth is, people normally buy not tho the products and services, but they also buy a promise, reputation and identity. all(prenominal) mentioned above qualities the logo design should represent.Any logo design consists of two key elements the word of honor schoolbook (company name) and the graphic or picture that accompanies it. The look of a companys name conveys meaning and is as significant as picture. Different fonts convey different meanings and emotions to the potential customer and using the right font is vital. However logo design images frequently become the key recognition component of any companys merchandising promotions.In order to h ave right brand positioning and the strength brand a corporate logo or product logo should be well designed. An image should be simple and bold, making it easy to see at a shine and should work well with the company name. A strong, balanced image with no little extras that confuse its look would be appropriate for any company. additionally it is always important to make sure that logo looks good in black and white, as well as in colour.The logo should not be just nice, but it should communicate certain values which are important for the company. The logo design has to communicate the nature of the business intelligibly and has graphic imagery that looks appropriate for the business. Corporations are moved in new and different directions by internal and external factors. Thus with the lapse of time logos can lose their meaning. Many famous companies have successfully introduced a new logo or re-positioned existing ones.Different kinds of designThe most widely used font-based desi gn focuses primarily on text and typeface but can incorporate other elements as well. The logos of IBM, Microsoft and Sony, for instance, use type intercessions with a twist that makes them distinctive. This type is beat out conform to for companies whose name efficiently describes what they do and can convey the message without in writing(p) elements.The subtype of a font-based design is usage of monograms and anagrams. The letter(s) represent a symbol of the company and are often used when initials translate graphically better than the actual name. This type is a wholly typographically oriented, usually involving initials or abbreviations.This design type is preferable when communication funds are check and should be focused on name recognition. excessively when the company name is already reasonably distinctive and when the goal is to associate products with the company more(prenominal) clearly and directly than a symbol permits. Using a monogram is possible yet if a com pany is big enough to afford teaching the prevalent what the monogram means.Another well known type consists of a simple but strong graphic symbol, an emblem on a product. The symbol is often abstract, complements an aspect of a business or service and represents a company by association. The logos of Nike or Apple are like this. in any case there are plenty of company logo designs that literally decorate what a company does, such as when a house-painting company uses an illustration of a brush in its logo.This type is worth using when the company name is too long, too generic, doesnt translate well globally, or has no personality. As well as a monogram it can be pricey and difficult to create public awareness for the symbol type.Small businesses with limited marketing budgets often use a combination of a symbol with words. Combination can be loose or integral and the elements can be used together or separately. A well designed combined logotype can effectively communicate what a company does as well as reflect the company personality. Since combined logo communicate the idea behind easily, less marketing is requisite for the logo to be effective. Therefore, combined logos are the most equal effective type of logo design available.Distinctive tag lineSolis (2010) describes a tag line as an amusing or memorable explicate designed to catch attention in an advertisement. (Solis (2010), p.247) A tag line normally consists of three to seven words phrase that accompanies the logo. It expresses the companys most important benefits and on the other hand what a company wants to communicate to customers about its work.Despite the effortlessly appearance of some great tag lines, creating and meliorate one takes a lot of time and hard work, just like designing a great logo. However the benefits of taking the time to subterfuge a great tag line are indisputable. Main quality index of a great tag lines is it persistiness in to the consumers entrepot.Let us examin e the example of Hallmark greeting cards tag line. When you attending enough to send the very best, appeals to the human desire to be viewed as having good taste and an enjoyment for luxury. With this tag line Hallmark positioned itself as the choice for quality. Company was founded by J. C. Hall, so the name Hallmark was a natural.Hallmark was an official series of marks, instituted by statute in 1300, and later modified, stamped by the Guild of Goldsmiths at one of its assay offices on gold, silver, or platinum (since 1975) articles to guarantee purity, date of manufacture. (Collins Dictionary)Therefore it was also brilliant from a marketing perspective because the word itself means a mark of authenticity or excellence. The name attaches the image of quality to a product in the best possible way. The tag line makes the most of the image with words that stick in the mind.Creating a fine logo and distinctive tag line are significant for a brand identity as they provide the right i mage of the company and give it capability to be memorable enough. Therefore these are also critical qualities for the competitive capacity. variety show of brand symbolsIn the dynamic environment of the recent decades the very idea of changing brand symbols name and logo is a prevalent phenomenon in every given area of business. Redesign in most of the cases is caused by the emotional apprehension of top management. The company logo design seems to become old or doesnt have the same advertising appeal that it did a few years ago. Other common reason for redesign can be narrow component part, time and/or budget deficit in which logo was created. To conclude, the decision of the company logo redesign is one of the most equivocal decisions any company can make due to enormous risks involved.ever-changing an established name or logo requires judicious approach to a problems, attentiveness and consideration. A correctly executed logo redesign can positively come to the company b rand and therefore help to strain a competitive posture in the market. Even most important corporations sometimes change their brand identity and logo design.When changes in market focus are occurred the need of logo redesign often became essential. Because company needs a logo that is more conforming to new circumstances and more appropriate for a new demographics. logotype redesign can help to achieve authoritative business goals. conclusiveness to change logo should be deliberate and scrupulous as it entangles numerous issues. First of all there are different levels of changes possible a makeover (a new design) and a repair.RepairLogo repair is suitable in case the logo just need a little simplification, or perhaps a more technically proficient rendering. This is the least difficult case and the most frequent as the modern technologies require new technical specifications. For example logo design should be easily reproduced on web colours. Also stationery and letterhead des ign can be unfoundedly expensive to reproduce if the colours are not suitable. In addition too complicated logo with small details also can be problematic. A logo repair involves a re-rendering of the artwork so that a new alter logo become versatile and more adaptable and can be used in a range of a media. Also not the least of the factors logo repair allows for slow integration into the branding poppycock brochures, cards and signs. After the logo has been re-rendered into new editable format, the various design components can be improved, such as colours and fonts.Brand symbols gradual changePaul Temporal (2002) discusses few examples of the companies which are not going to change their logos anytime soon. As they already have spent tremendous sums of gold to get their logos into the public eye. For instance it is definitely not the design that makes the Nike logo swoosh impressive, but the recognition factor.This logo was created by Caroline Davidson in 1971 for only $35, ye t its still a strong, memorable logo, effective even without colour and easily scalable. It represents the wing of the Greek goddess of victory, Nike and is perfect for a sporting apparel business. However, Nike is still trying to make their image more amusing. The Nike font style has been transformed many times, in an search to prolong up with changes in taste and design sensibility.The Microsoft Windows logo also went through number of insignificant design changes. Introduced in 1995 the outgrowth logo was super simple just a graphic representation of a straightaway window. Afterwards the Windows icon had become much more refined 3D, glowing and with a new font. It still remained in the same design family as the transformation was not beyond recognition, but became glossy and modern.Apple was the first computer firm which did not use its name as its corporate identity, even the word Macintosh is the name of an apple variety. The idea of merchandising a computer under the na me and image of an apple was conceived by Steve Jobs and his colleagues. Apple computers also developed their Apple icon from a rainbow-striped var. to a solid and much classier modern icon in the late nineties. The Apple icon has remained pretty stable over the years, but its treatment has changed on several occasions in order to maintain the logos strength while adapting to the corporations authoritative marketing focus.MakeoverBrand symbols makeover is a origin of a new image and new attributes for the brand image. Logos are main symbols of a companys brand identify and are fundamental to consumer recognition. Decision to make a logo redesign has its risks and rewards. According to Aaker a company logo can be maintained for up to 20 years serving as an enduring symbol of a company impact and existence. (Aaker (2004), pp 112-127)However a company can decide to change its logo for several significant reasons which include changing customer and industry trends or changes in the c ompanys business focus and market strategy. Also a jointure and acquisition is a frequent reason for logo makeover, as new logo should represent new merged company.The physical process of changing an already established logo should be approached carefully, it is important to define whether there is a need for a completely new logo or a significant makeover of the already existing logo. The risks involved in changing the current logo include first of all potential losses in brand equity that has been built after lots of hard work and significant financial investment over the years. Also customers brand loyalty can be affected. Current clients used to seeing foregoing logo in company marketing collaterals like envelopes, business cards and letterheads may not immediately connect with the new logo.Logo makeover is a uncertain and difficult step which can be performed only once. Since the first time it can be interpreted and justified as an emolument. Any more changes can unfavoura bly affect the company. The reputation would be affected, and the company would look unsure of its identity, its future and its consumer environment.On the other hand a well executed logo makeover can help a company witness a new image as a forward thinking company and achieve new visions of possibilities. The benefits of a logo redesign or significant makeover could include repositioning of the companys brand in the mind of customers and reflection of the company new business focus or direction.While a logo makeover gives the impression of relatively painless process, it includes a total refurbishment of the brand identity. Though represents a considerable costs, risks and disturbance to the marketing effectiveness. Logo makeover can significantly shape company brand identify and birth with already existing customers. Despite all the risks and potential expenses a successful logo makeover can bring a great profit to the company.Change of brand identityBrand identity assessmentT he starting shew of any brand identity transformation is careful appraisal and delimitate target market and unique selling position of the company. Afterwards these findings will facilitate the development of new brand identity. Brand identity include everything from customer perception and experience to quality, brand look and design, to customer care, sell and website, and even the tone and voice of communications.Defining corporate identity is often difficult, and the clues to what factors shape identity vary widely among industries and firms. To be ready for change at any time, managers must be more aware of how key stakeholders, such as employees, customers, investors and the community, view the companys identity.Change, when necessary, should then be structured so that it does not run counter to this perceived view. Effective rebrands are based on a detailed analysis of every activity in the company including objectives, target markets, budget and resources, timeframe, know n and unknown parameters, approval structure and stakeholders.Opposition to change in a brand identity is inevitable in most of the cases. Therefore managements task is to identify potential oppositeness and find ways to neutralize it. It is often useful to start the process of rebranding with discussion involving all the employees of the main idea behind the companys business, what its customers need and what they will need in the future. Sometimes a research can be helpful to determine the potential as well as current situation.When the idea is defined a model that will best represent that idea should be considered. Only after these steps are successfully implemented new visual identity, actual logo and all other new imagery can be created.Lofty aims of rebrandingValue of the brand can be hardly overestimated and all the companies are striving to consume this intangible value. Therefore as temporal progress is going shape up some companies may find it necessary to revise their brand identity in order to have an up-to-date image, to be relevant and appealing to potential and actual consumers and the changing market situation.Lambkin and Muzellec (2006) studied more than one hundred fifty rebranding examples and formulate a hypothesis that regardless of reasons it invoke, rebranding aims at appealing, regaining, movering and/or recreating the corporate brand equity. The aim of rebranding is therefore always a vast improvement of the brand image, though not always reachable.Rebranding can mean a variety of different things, from simple change of the company name to more deep changes of the brand identity constitution such as change of logo and colour palette. Rebranding is relevantly easy if the changes are intentionally small to ensure continuity with the past, but also to reposition the company as contemporary. Difficult case is a complete rebranding which means change of the brand image in order to reposition the established brand in the market.Rebrand ing is always made in sample of reposition the brand in the market and minds of consumers when brand identity is not anymore appealing, current brand positioning is not valid for the target market anymore, or target market changes. Sometimes companies make rebranding to distance themselves from certain negative connotations of the previous branding. For example if the brand has a controversial image, a repositioning is required to improve the flawed reputation.However the main reason for a rebranding is to communicate a new message for a company. The goal of rebranding is to renovate brand image and differentiate situation for stakeholders and market position. Far from just a change of visual identity, rebranding should be part of an overall brand strategy for a product or service. (Lambkin, Muzellec (2006), p. 2)Brand image is one of the most precious assets, and that value is a culmination of many years investment and commitment. Deep understanding of initial brand values and tho rough research are required for the rebranding undertaking because of the huge impact on a company position that rebranding or even change of a logo can invoke. Launch of the new brand identity should be also made in a delicate and systematic manner in order to avoid pushing away old customers, while aiming to attract new one.Establishing trust and emotional bounds based on careful strategy are critical in the rebranding process. Appropriate rebranding strategy, consistent product or service quality, sensible pricing and effective distribution will help to rebuilt brand awareness and create associations in customer memory after rebrand implementation.Rebranding is expensive and involves a quantity of risks. Necessity to explain to loyal customers the reasons of rebranding and its benefits has to be anticipated. This is an expensive and not one hundred per cent successful undertaking. A company normally decide to undertake rebranding with all its cost, efforts and risks only if there are very good reasons for it.Reasons for brand identity changeThough rebranding is always an earnest undertaking reasons for it can be sometimes ridiculous or unfounded. A company might want to transfer already existing identity into a new name, identity policy or positioning for a number of reasons, in order to respond to external or internal concerns.The most common reason is attempt to stay modern, signal a change in direction, focus, attitude or strategy, if a company has a feeling that the brand image has become old-fashioned. In a fast-changing environment it can be useful to change because of globalisation, declining profitability or consumer indifference. The other reason is differentiation from competitors and willingness to overcome them. Gaining no-count press or bad events experience would normally promote a corporate identity change. Also the launch of new businesses that are significantly different from the traditional one can be a reason.However big companies very o ften have so-called rebranding cycles in order to stay current with the times or set themselves ahead of the competition. (Temporal (2002), pp 112-117) Companies also utilize rebranding as an effective marketing tool to hide shame of the past and to shed negative connotations that could potentially affect profitability.The attraction of new customersAmbition to target a new market is a most common reason for rebranding. A good example of such attempt can be Cadillac which in recent times designed a range of new cars to provide a trendy, youthful look to their brand image.A lot of companies nowadays want to appear modern and progressive. A practice of changing company logo and name in attempt to attract new customers became one of the most common and widespread in recent decades. The name for a product sometimes doesnt sound good and the logo can be obsolete or inappropriate for the marketing strategy.However logo or brand symbols redesign in order to make company current or fashion able is the worst possible solution. There is always a high risk that change of the logo will alienate customers instead of attracting new one. Recent rebranding of the Pepsi logo which was made in attempt to attract new customers is perfect example of how unsuccessful it can be. Made by Arnell Group the Pepsi rebranding took three year and cost approximately $1 billion. Pepsi wanted to make a complete incase and marketing rebranding of its soft drinks. The white stripe on the new logo supposed to be smiles, but all the efforts were barren, consumer