Branding – Jun, 2024

Is rebranding worth it?

A question we rarely get asked (but probably should more) is, is rebranding worth it? All change involves risk and undertaking a rebrand is no exception. That said, there are usually very good reasons to consider a rebranding exercise. This could be to help with a shift in the positioning of the organisation, to make the company better known, to re-inspire, re-invigorate or to create more cohesion across the board. It may also be for some other tactical objective such as attracting more/better talent or to increase brand equity.

So, is rebranding worth it? Branding change is a necessary manifestation of change organisations have to make in order to be successful and survive. It is in this context branding change or rebranding should be considered.

When asking the question ‘is rebranding worth it?’ it should also be made plain, agency associated fees for a rebrand are relatively low when compared to the outputs required to deliver the exercise successfully. There may be vans and lorries, signage and interiors, packaging and stationery. Websites, sales decks and social comms. Workwear, newsletters and brochures amongst many other pieces of communication to consider. In most cases much of this will come out of annual spend and new items ordered when the old ones run out. However, some organisations prefer to have a ‘d-day’ reveal where overnight all aspects touched through the rebranding exercise have to be made ready for launch. This can be initially expensive and time consuming depending on how large the organisation is and the scope of the delivery.

To answer the question, ‘is rebranding worth it?’ we also have to understand worth and value and how it can be measured, or at least evaluated. To read more about how to measure brand value, click here.

For the right reasons, in the correct right circumstances and with clear objectives from the outset, good brand design is overwhelmingly worth it. Here are some thoughts in determine if rebranding is worth it the right move for an organisation and necessary:

Market repositioning

Changing market conditions: If the market reasons has shifted and the brand no longer resonates with your target audience.

New target audience: When a business aims to attract a new demographic or enter a new market.

Brand image

Negative perception: If the brand is associated with negative connotations or bad publicity. Outdated image: When the brand looks outdated or out of touch with current zeitgeist.

Merger or acquisition

Integration: Combining brands post-merger or acquisition can necessitate a unified brand identity.

Expansion

Product/Service Expansion: If the business expands its offerings, rebranding can help reflect the new range of products or services.

Competitive advantage

Differentiation: To stand out in a crowded market or to differentiate from competitors more clearly. Pros and cons of a rebranding exercise

Pros:

  1. Renewed interest: Can generate excitement and renewed interest from customers.
  2. Alignment: Better alignment with current business goals and values.
  3. Relevance: Keeps the brand relevant and appealing to modern consumers.
  4. Market positioning: Can reposition the brand more favourably within the market.

Cons:

  1. Cost: Rebranding can be expensive when considered in the content of the necessary creation of communications and  marketing materials, website redesign and potentially new inventory.
  2. Risk: There’s a risk that the new brand might not resonate with existing customers.
  3. Confusion: Potential confusion among loyal customers if the rebrand is too removed from the existing position and the exercise has not properly sought to bring them along on the ride.
  4. Time-consuming: The rebranding process can be lengthy and may divert focus from core business activities.

To read more about brand research and the creative process when underating a rebrand exercise, click here. 

Posted by Jack Owen