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Why do companies rebrand? Find out who did it right and who missed the mark

By Margo Waldrop, Content Writer

March 21, 2023 | 9 min read

Rebranding a company is more than a topical facelift, it is a concentrated strategy to keep its position in the marketplace and remain relevant for the future.

Why do brands rebrand?

Why do brands rebrand? / Brian Yurasits/Unsplash

Why do brands rebrand?

There are a variety of reasons why companies take the rebrand plunge, but one thing is certain – they feel the action is worth the risk. The consumer market is so highly competitive that brands often need to take drastic measures to stay relevant. For many companies it can take a massive overhaul to fuel a brand enough to push through the masses and stay top of mind for consumers. And it definitely takes more than just a new logo or name change to create a transformative result that will ride along with the future. Ten of the top reasons why companies rebrand are:

1. Technology has improved – As technology advances brands must be able to keep up with the times, whether that is through products, customer experience, or marketing methods.

2. Customer behavior has changed – As many consumers resort to online shopping or purchasing based off recommendations brands must adapt to these changes.

3. Sales are not improving – Some brands may be left in the dust with stagnant sales as consumerism progresses.

4. The brand itself is evolving – Brands may need to re-invent themselves to reflect who they now are as a company and how their values have developed.

5. Outdated image or representation – Brands that have been around for a long time often need to repurpose their image or the way they represent themselves to better represent the current state of the company.

6. Reputation repair – Brand mistakes can be big news and cause companies to take a hit, rebranding is often the result of an attempt to re-invent itself in a positive light.

7. Upper-level management or ownership changes – New management or ownership often results in a new trajectory for brands, as well as changing vision and goals.

8. Market changes – As the consumer market changes, especially since Covid, brands often need to readjust company strategies such as elevating online shopping channels or material sourcing.

9. Repositioning – To better appeal to target audiences and expand their audience, brands may need to work to change their brand perception.

10. Internationalization – Some brands need to adjust logos, names, and other aspects to sell efficiently in other countries.

Examples of re-brands

While rebranding isn’t a one-size-fits-all, its success does depend on how far the company is willing to go to enhance a new image for themselves as well as their commitment for long-term changes. It’s important that a rebrand aligns with the intended customer experience and implements strategies that stay consistent and focused. Here are three examples of brands who have re-invented themselves in a tight market. Two scored big, while the jury is still out on the other.

Meta

Meta logo

One of the most notorious examples of rebranding is Facebook’s controversial switch to Meta in an attempt to immerse users in a metaverse – a fusion of virtual and augmented reality. Since Meta’s rebrand was on the heels of yet another scandal, public trust for the social channel fell dramatically.

One of their rebrand goals is to intensify engagement by allowing users the convenience of accessing the platform from different smart devices. However, it’s not lost on consumers that this veiled accessibility also allows Meta to gather enormous amounts of user data. Meta’s virtual future also depends on the acceleration of technology and its application on the social platform. Considering that Facebook was primarily a social channel, its intended reach beyond the interests of users is questionable. Therefore, it’s success at rebranding remains to be seen.

Dunkin’

Dunkin'

One of the sweeter rebrand success stories involves Dunkin’ Donuts transition to simply Dunkin’. The 73-year-old company’s goal was to give itself a more modern vibe, as well as represent all of its offerings beyond its namesake donuts. The brand also invested over $100 million in new equipment and training for employees to make ordering their new selection of coffee easier and more efficient. The vastly successful rebrand led customers to consider the brand as a coffee company as well as a purveyor of tasty breakfast treats. Dunkin’ coffee soon became a boon for store sales as well as a coffee cornerstone in supermarkets and big box chains.

What Dunkin’ did right was to take a version of themselves already being used by customers and parlay that into a crafty rebrand – thus the name Dunkin’. They also moved past a simple visual rebrand into actual store efficiency and improved product selections. Just by shedding the donut image, Dunkin’ more than doubled its stock price on the New York Stock Exchange (DNKN) within three years.

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Old spice

Old Spice

In one of the more successful rebranding campaigns, Old Spice reinvented itself to a younger, broader customer base with a lot of ‘new’. New site design, new packaging, new marketing strategy, new ads, new products, new social media presence, and a jocular, muscular new spokesperson. Their strategy worked and Old Spice became new Old Spice, appealing to a fresh generation of men who wanted to smell good, all the while doubling their sales within a few months.

The unexpected catch?

The new Old Spice marketing strategy was primarily aimed at women. One of the more infamous lines spoke directly to the demographic who does the majority of purchasing: “Hello, ladies. Look at your man, now back to me, now back at your man, now back to me. Sadly, he isn’t me, but if he stopped using ladies scented body wash and switched to Old Spice, he could smell like he’s me. “ It was a clever way to envelop both women and men within their marketing fold and its immediate success launched Old Spice into an aftershave laden future. And while the Old Spice rebrand isn’t new, it’s still a great example of upending the stage for a successful reinvention of an old product.

If your company is considering a rebrand it’s important to remember why your brand exists in the first place. Keep sight of what consumers like, love, and think about your products. How are you serving them and what can you do better? A rebrand doesn’t have to drain your budget or take years to complete, sometimes simple steps that are effectively communicated can start you on the road to a successful rebrand.

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