Rebranding
Re branding is the creation of a new look and feel for an established product or
company. The usual goal of re branding is to influence a customer's
perception about a product or service or the company overall by
revitalizing the brand and making it seem more modern and relevant
to the customer's needs.
There are many other reasons a business might want to present a
different brand image. Possibilities include repositioning the
company and vision to reflect a change of focus, setting the
company apart from its competitors, updating the corporate image
to appeal to a younger market, expanding the business scope, and
reflecting a significant merger or acquisition. Companies sometimes want to present a new
image for reputation management, to distance themselves from problems of
the past. Another purpose of rebranding is to exploit the
popularity of some current trend, such as green computing (see: greenwashing).
Rebranding efforts may include a name change, a new logo or packaging
and updated marketing materials that include the latest industry buzzwords.
There are tons of reasons why
organizations engage in a brand overhaul including:
- competitive influences
- predicted growth
- intent to boost relevance
- the desire to target a new audience
- diversification of the enterprise
- completed merger or acquisition
- the threat of legal issues
- a spate of negative publicity
Now that you know the basics, you’ll
be able to truly appreciate five of the most successful rebranding strategies
in recent history.
1.
HARLEY-DAVIDSON
Harley-Davidson executed a
rebranding strategy way back in 1985. Despite a loyal customer base and an
unmistakeable name, a decline in quality relative to the competition left the
iconic motorcycles on the verge of becoming nothing more than collector’s
items.
In response, the company came up
with a faultless strategy. Work out competitors’ strengths. Emulate those
strengths. Add Harley-Davidson tradition and mystique.
And KAPOW. A winning strategy.
Harley-Davidson bikes were also
priced more reasonably to attract younger, clean-cut buyers compared to the
big, grey-haired beasts that traditionally donned the mark of Harley-Davidson
on their biceps. It’s safe to say that the desperate, yet brilliant, rebranding
strategy saved Harley-Davidson’s sweet leather behinds.
2. BURBERRY
Until recently, Burberry had a
“thuggish” tag attached to it… At least, it did where I’m from
As a young boy in southeast England,
I soon learned that if you saw someone sporting Burberry, you should get the
hell out of their way. These “chavs” were dangerous.
The kind of people who would beat
you up in a dark alley. Or even a light alley. Or so I was led to believe.
All because of Burberry and the
stigma attached to it.
I apologize for the rant about the
terrors of an English high street, but I want you to understand that, although
it might not have seemed like a big deal here in the U.S., a brand overhaul was
absolutely necessary to protect the tradition and history of the organization
on a global scale.
In 2006, at the height of my
Burberry-induced anxiety, the company renovated its product line to reposition
itself as a luxury label. Harnessing the power of heritage, Burberry on-boarded
a number of high-profile celebrities such as supermodel Kate Moss and
superhuman Emma Watson, who helped propel the campaign to success.In 2011,
Interbrand named Burberry the fourth fastest-growing brand behind only Apple,
Google and Amazon. A year later, Burberry announced that revenue and operating
income had hit $3 billion and $600 million, respectively. Double the figures
recorded only five years earlier.
3. UPS
UPS and FedEx have a history of
intense rivalry. So when the latter began to progress from a package delivery
service to a logistics operator on a global scale, the former had to catch up.
With the growth of e-commerce, UPS
needed to demonstrate its ability to cope with the growing external pressures
and completed a string of acquisitions.The immediate result of these purchases?
Consistent confusion and a lack of unification across the entire enterprise.
In 2001, the organization was
restructured, paving the way for the emergence of a clear logo,
forward-thinking slogans and supporting messaging that identified UPS as a hub
of global commerce.The results were impressive. A 13% increase in annual
operating income and recognition by Fortune Magazine as the #1 “Delivery” brand
4. MICROSOFT
The software and consumer
electronics industry is constantly changing, so you’d expect that major
industry players will regularly update their brand to keep up.
Not Microsoft. The revolutionary
beast has traditionally been a bit slow in this area. The company hadn’t
updated its logo since 1987…But with tech giants Apple and Google experiencing
significant growth, 2012 saw Microsoft finally reposition its brand to make it
applicable to the 21st Century.
The company logo was redesigned. Associated products got an identity revamp. Public perception improved significantly, and Microsoft
returned to the frontline of competition once again.
3.OLD SPICE
Old Spice is arguably one of the
greatest rebranding success stories out there. Formerly associated with men who
we will generously describe as “aging,” Old Spice is now the king of helping
younger guys “improve their mansmells” (seriously, that’s Old Spice’s
description).
The creativity behind the video campaign deserves all the recognition it has
received.
Sales increased 107% in the month (a
more sustainable 11% on the year) immediately following the release of the
first viral video. Perhaps men did want to smell like this guy…Old Spice’s social media also blew
up. Over 2.6 million Facebook likes, 224k Twitter followers and 453k YouTube
followers indicate strong engagement with the newly-targeted, younger
demographic.Great success! Old Spice’s rebranding strategy shed the tag of a
grandfather’s deodorant and developed a fresh identity for the brand.
