Planning a Rebrand in the New Year?
Five Reasons Why Rebranding can be Good
Rebranding your business, product or service can be one of the most important yet scary decisions you will make. A rebranding exercise requires a tremendous amount of time and effort. As you will see from the two examples below, it is critical that rebranding is managed properly.
Some brands, such as Old Spice, have rebranded very successfully. Old Spice changed from being a 70-year old brand with products only used by your grandfather to a line of body washes, sprays and deodorants that have experienced annual double-digit sales growth over the last few years. This was not accomplished by a simple logo redesign, but by a clever ad campaign and smart use of social media.
However, not every rebranding is so wildly successful. For example, in 2010, the giant clothing retailer, Gap, decided to rebrand without any warning during the busy holiday shopping season. The company launched a new logo design that lasted a whole six days in the market! This debacle cost Gap an estimated $100 million.
If you are thinking about a rebranding, you should consider the following five reasons why it can be good for your business:
- Change in Your Target Audience
To appeal to younger generations and stay relevant in today’s marketplace, you may need to rebrand. Just in the U.S., Millennials have $200 billion in annual buying power. And, Generation Z is indirectly influencing $333 billion in yearly spending. However, Gen Z is set to become the largest generation in the world in 2019, and their direct spending will increase as they continue to enter the workforce. As these younger generations become more influential, a focus on different marketing tactics such as digital marketing and the use of micro influencers may benefit your business.
- Your Business has Transformed in a Significant Way
Businesses change every day and yours may be ready to go through a transformation of its own in 2019. Perhaps your company plans to introduce a new product or even a product line. Businesses are becoming increasingly global, and maybe in 2019 you will be expanding into new markets outside of your country. Mergers and acquisitions introduce another significant change to your company. Rebranding is a way to reflect these significant changes. You do not want to hang future sales on an old company identity.
- Your Brand is Dated
Orange shag carpeting and olive colored appliances may have been popular in the 1970s, but today’s homeowner could not image this type of décor in their home. Since 1975, Microsoft has gone through five company rebrandings. If your company’s brand still has a 1970s vibe, 2019 may be the year to rebrand.
- Your Company no Longer Stands out from the Competition
Every day new companies are opening their doors, resulting in a crowded and fierce marketplace for businesses. Many of these new businesses may offer similar products with names, logos and even messaging that may be very close to yours. This can cause confusion in the marketplace for your company and even result in lost revenue. If this type of competition is encroaching upon your business, the budget spent on rebranding will quickly pay for itself.
- A Bad Reputation is Hampering Your Business
Over the last few years Chipotle has had its share of negative news with E. coli outbreaks and other issues. Now the company has brought in new leadership and is rebranding with a new tagline, social media presence and more. If your company has encountered some issues recently, a rebranding in 2019 can refresh your business and the public’s perception of it.
The diamonddog team has been instrumental in many rebranding activities. A few years ago, we completely overhauled the 5 Star Consultants brand, which helped to grow the business tremendously. For Motl Accounting, we refreshed the company’s brand with a new logo, tagline, messaging and overview brochure.
With a successful rebrand, you can gain access to new markets, win a bigger portion of mindshare, increase your top and bottom lines, and build a truly powerful brand. And, the diamonddog team is ready to help you achieve these goals. Whether your company is looking for a totally revamped image or just a new logo design, we are interested in hearing from you. You can contact us at firstname.lastname@example.org or 847-269-1422.
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