In yesterday’s post, we discussed brand experience and the importance of establishing a consistency of brand value and message across all consumer touch points from product to customer service. Defining the correct message and positioning your product are the founding reasons for branding. But what options are available to you if market research suggests negative consumer brand perception and market share results conclude that you are losing business to competitors? Is it time to consider re-branding?
Pros and Cons
If you are considering re-branding your current business, you have to consider all the possible outcomes.
Rebranding offers a business many positive outcomes. Ultimately, brands follow the process of evolution. It is likely that when you started the company formation process, your brand was relevant and positioned to issues of the day. However, as time moves on, your brand may be less relevant to contemporary consumers. For example, not many brands formed in the eighties had a distinct green agenda, and yet in today’s society a company’s ethical stance is a vital part of how they establish brand value.
Markets can also become saturated and competitors more aggressive. Brands that do not evolve to answer different consumer demands can miss opportunities offered by new consumers and emerging elements of consumer behaviour.
Though, re-brand offers established companies a lot of positive opportunities, many companies make the fundamental mistake of ignoring the potential pitfall of losing brand equity. The premise of branding is based on consumers establishing a loyal and positive relationship with a company. If a consumer has established a long term relationship with a company, they are reassured by the stability that brand offer them.
If a company begins to change the values and personality upon which their brand was established, in the hope to attract a different demographic, they run the risk of alienating their established consumer base. Some company’s have started the re-branding process with the objective of increasing market share, only to lose their existing percentage as a result of poor planning and short sighted strategy.
However, a re-brand does not always have to be a high risk strategy. If you carefully consider what you have previously achieved and how your rebrand will complement that, a rebrand can deliver extremely successful results. In tomorrows, post we consider the three key areas you should consider before going ahead.