What is rebranding and why your business needs it

In today’s dynamic world, brands need to constantly adapt in order to remain competitive. One of the key tools for company development is rebranding – a comprehensive brand update that can change the audience’s perception of the brand and strengthen the company’s position. The essence of rebranding, the main reasons for its implementation, the stages of its realization and the risks associated with brand change are discussed below.

What is rebranding

Rebranding is an active marketing strategy that involves a set of changes to the brand or its elements (name, logo, slogan, corporate identity) simultaneously with a change in the company’s positioning. In other words, it is not just a change of design, but a radical revision of the image and value positioning of the brand. Rebranding affects both external attributes (visual elements) and internal brand philosophy (mission, values) in order to update the image of the company, attract new audiences and restore the reputation in case of its loss.

It is important to distinguish a full-fledged rebranding from a simple redesign. A redesign deals only with the visual component (e.g., updating the logo or packaging), while a rebranding affects the brand’s strategy and positioning, as well as the format of communication with customers. Thus, rebranding is used when a company needs a meaningful brand change that reflects the new business environment.

Reasons for rebranding

Companies resort to rebranding for a variety of strategic reasons. The main reasons for brand renewal include:

1. Changing target audience.
   Over time, the portrait of the target customer may change significantly. A brand designed for the previous audience ceases to “speak” effectively to new groups of consumers. Rebranding helps to adapt the company’s image to the new target audience and its expectations.
2. Outdated brand image.
   A design and message that was relevant ten years ago loses its appeal over time. If a brand looks outdated, it can deter today’s consumers. Updating visual style and positioning can make the brand image modern and keep the audience interested.
3. Increased competition in the market.
   With increased competition, companies are looking to differentiate themselves from similar offerings. Rebranding can help emphasize a brand’s uniqueness and reintroduce its benefits to consumers.
4. Mergers and acquisitions.
   Corporate restructuring (company mergers, change of ownership, new business structure) often requires the creation of a new brand or the redesign of an existing brand. Rebranding allows to integrate different corporate cultures and form a unified image after the merger, as well as to adjust the brand to the new organizational structure.
5. Reputational crisis or negative associations.
   Serious image damage to the brand (scandals, outdated stereotypes about the company) can also become a reason for rebranding. By updating the name or corporate identity, the company tries to distance itself from the negative past and form a positive image anew. However, in such cases, rebranding must be accompanied by real changes in the company’s operations, otherwise a change of signage alone will not solve the underlying problems.

For example, the international brand Pepsi changed its logo in 2023. A new design in contrasting colors, in the style of the 1980s, gave Pepsi a more energetic and modern look, while maintaining a connection to the brand’s heritage. This case study demonstrates how rebranding helps large companies adapt to new market realities and audience expectations.

Rebranding process

Implementing a rebrand is a complex, multi-step process that requires careful planning. As a rule, the following key stages can be distinguished:

1. Brand analysis. At the first stage, a comprehensive audit of the current state of the brand is conducted: its recognition and reputation, audience attitude, strengths and weaknesses are studied, competitors and market trends are analyzed. Based on the results of this analysis, a decision is made as to how deep changes are necessary for the brand.
2. Formulation of objectives and strategy. Based on the results of the research, management determines the specific objectives of the rebranding (e.g., changing positioning or increasing market share). A strategy is then developed – a plan for what elements of the brand need to be changed and how to do it. This stage includes thinking through the key messages for the new brand and the choice of communication channels to reach the target audience. The strategy also includes ways to preserve the strengths of the old brand while transitioning to the new image.
3. Brand Renewal. Once the strategy is approved, practical implementation begins. First of all, an updated brand identity is developed – the design of the logo, corporate colors, packaging, advertising materials and other visual elements that reflect the new essence and positioning of the brand. If necessary, renaming (name change) is also carried out if the previous name no longer corresponds to the new strategy.
4. Brand communication and launch. Before officially presenting the updated brand to the market, the company conducts internal communication: employees are informed in advance about the upcoming changes and the new ideology, so that the staff becomes the brand’s ambassadors. Next, an external advertising campaign is launched, announcing the rebranding to a wide audience and explaining the reasons and benefits of the changes to customers.

Risks and mistakes in rebranding

Even a carefully planned rebranding carries certain risks. The main common mistakes when changing a brand are as follows:

1. Ignoring the opinion of customers. If the opinion of the target audience is not taken into account when developing a new image, there is a high probability of a negative reaction. Neglecting feedback from regular customers can lead to loss of their loyalty. Therefore, it is important at the stage of preparation to know the expectations and attitudes of consumers so that the changes do not become an unpleasant surprise for them.
2. Hasty, ill-conceived changes. The decision to change the brand should be made in a balanced way. Too abrupt or unreasonable changes to the image can easily cause distrust in the audience.
3. Inconsistent implementation. All elements of the new brand and communication should be consistent with each other. If the update is carried out partially or inconsistently (for example, a new slogan is used in advertising, while the old elements are still visible on the website), it confuses customers and undermines trust. Rebranding should be done comprehensively, otherwise the corporate identity will lose its integrity.
4. Underestimating budget and resources. A full-fledged brand refresh requires significant investment – in research, brand agencies, changing signage, redesigning promotional materials, etc. Incorrect budget estimation can lead to shortfalls at critical stages of the process. As a result, the rebranding will either not be completed or will be realized in a reduced version, which will have a negative impact on the image.
5. Ignoring current trends. It is a mistake to rebrand without taking into account market trends – in this case, the new image will quickly become obsolete.

In conclusion, rebranding, if done correctly, is a powerful driver of business development. It allows you to attract new customers, retain existing customers and strengthen the company’s position. The success of rebranding depends on thorough research, clear planning and consistent implementation of the strategy. If the changes are justified and properly communicated to the target audience, the updated brand