Marketing

What is rebranding, who needs it, and when?

What is rebranding, who needs it, and when?

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CEO and co-founder of the Radar agency. Radar Agency is a member of the Association of Communications Agencies of Russia (ACAR) and the Branding and Communications Association of Russia (ABKR). Our clients include such well-known brands as Aliexpress, VkusVill, STADA, Makfa, Johnson & Johnson, and many others. We provide high-quality, results-oriented marketing and advertising services, enabling our clients to compete successfully in the market.

Links play a vital role in the online world, enabling navigation and access to various resources. They are interactive elements that can lead to other pages, documents, or external sites. Effective use of links improves user experience and contributes to website SEO.

Internal links help users quickly navigate between pages of a single site, increasing their time spent on the resource and reducing bounce rates. External links pointing to authoritative sources can increase the credibility of your content and improve its ranking in search engines.

When creating links, it's important to use descriptive anchor texts that accurately reflect the content of the target page. This not only helps users but also improves the site's indexing by search engines. It's also worth regularly checking the functionality of all links to avoid errors that could negatively impact the site's reputation.

Thus, links are an integral part of an effective content marketing and SEO strategy, helping to improve the visibility and accessibility of information online.

In 2018, the Russian Football Premier League updated its logo, which had remained unchanged for 17 years. In 2019, similar changes affected companies such as Ozon, Lamoda, and Yula. But what's behind these updates? Why do brands decide to change their visual style if they could create it once and never have to return to this issue?

Changing a logo and corporate identity is often justified by the need to adapt to changing market conditions and current trends. Brands strive to remain contemporary and attractive to their audiences. This not only helps them strengthen their market position but also attract new customers. A corporate identity update can signal a company's growth, innovative approach, and willingness to embrace change. Therefore, regularly updating branding becomes an important tool for maintaining competitiveness.

Rebranding is a crucial process for companies to achieve success. In this article, we will look at the main aspects of this process, its importance for business, and the key points to consider when rebranding.

  • What is rebranding and how does it differ from restyling and renaming?
  • Why is rebranding needed?
  • What changes occur during rebranding?
  • How does rebranding affect companies?
  • What are the risks and how can you tell if rebranding has failed?
  • What stages does rebranding include?

CEO and co-founder of the Radar agency. Our agency is a member of the Association of Communications Agencies of Russia (ACAR) and the Association of Branding and Communications of Russia (ABCR). We are proud to cooperate with such well-known clients as Aliexpress, VkusVill, STADA, Makfa, Johnson & Johnson and many others. Our experience and professionalism allow us to effectively solve our clients' marketing and advertising challenges.

Links play a key role in the structure of the internet and SEO. They serve as a link between different web pages, allowing users and search engines to find and interact with content. It's important to use internal and external links correctly to improve your website's visibility in search engines. Internal links help distribute page weight and improve navigation, while external links can increase your website's authority if they lead to high-quality and relevant resources.

Additionally, consider anchor text; it should be informative and relevant to the content of the page being linked to. Proper use of links not only improves user experience but also contributes to improved search engine rankings. Link optimization, their quantity and quality can significantly impact the success of your website on the internet.

What is rebranding?

Rebranding is the process of adapting a brand to changing market conditions and the demands of the target audience. During rebranding, not only the ideology and positioning of the brand can change, but also its overall perception by consumers. This process often requires significant time and can stretch out over several years, which requires careful planning and analysis. Rebranding is important for maintaining the competitiveness and relevance of the brand in a dynamically changing market.

Rebranding is aimed at extending the life of a company or product. Each brand goes through a certain life cycle, which can be roughly divided into three main stages. The first stage is the formation of identity and recognition. The second stage includes growth and development, when the brand begins to conquer the market and attract customers. The third stage is maturity, when it is important to maintain relevance and adapt to changing market conditions. Rebranding can be a vital tool for updating your image, attracting new audiences, and boosting competitiveness. A well-executed rebrand can breathe new life into a company and help it stay afloat in a saturated market.

  • Emergence. A product with innovative service or image enters the market. The product is intended for an audience ready to try new things.
  • Entering the mass market. A strong brand is tested by competition. Now the company's main goal is to capture the maximum market share. The brand must meet the audience's needs, create an emotional connection with them - become a love brand.
  • Aging. After the peak of success, any product eventually loses relevance. If the owners realize they are ready to call it a day, the brand switches to low-cost production of mass-market goods or leaves the market. If not, the product needs an update.

Rebranding is an important process at various stages of the product life cycle. It helps enter the mass market and prevents obsolescence. Changing the product and adapting its brand to current conditions allows its life to be extended for many years. A successful rebranding can revitalize interest in a product, attract a new audience, and strengthen its market position.

Rebranding is often confused with renaming and restyling, but these terms refer to different processes. Rebranding involves changing the brand's image and market positioning, including changing the logo, color palette, and communications strategy. Renaming is the process of changing the brand name, which can be part of a rebranding, but does not always involve a complete image overhaul. Restyling, on the other hand, involves updating visual design elements, such as packaging or advertising materials, without changing the brand's core positioning. Understanding these differences is important for successful brand management and consumer perception.

  • Renaming is a change in a company's name. Names are changed for compelling reasons: to capture new markets, to improve reputation, or in cases where there are legal risks.
  • Restyling, or redesign, is a transformation of the visual component of a brand. For example, changing the logo, color palette, corporate identity, or graphics. This changes the perception of the brand.

Rebranding is a comprehensive process that includes renaming and restyling. It involves not only changes in the external appearance of a company or product, but also internal transformations. Rebranding helps update the image, attract a new audience, and adapt to changes in the market. Effective rebranding helps increase brand awareness and strengthen its position.

Who, when, and why needs rebranding

Rebranding is relevant for both large brands and small businesses. Companies initiate this process for various reasons and with a variety of goals, seeking to update their image, adapt to changes in the market, or attract a new audience. Rebranding can include changing the logo, updating the corporate identity, and revising the marketing strategy. This approach allows a business to stand out from the competition and strengthen its position in the industry.

Rebranding can be prompted by several common reasons. One of them is changing market conditions, when a company faces new competitors or changes in product demand. Rebranding may also be necessary in the case of a target audience update, when a company decides to change its image to attract new customers.

Another reason may be a merger or acquisition of companies, which requires the creation of a unified brand to ensure recognition and trust. In addition, an outdated image or an ineffective marketing strategy may also be a reason for a brand update. Finally, changes in a company's corporate culture or values ​​​​may require a brand update to more accurately reflect its mission and vision.

Thus, rebranding becomes an important step for companies striving to remain relevant and competitive in the market.

  • The visual style and brand communications are outdated. Because of this, audience loyalty has decreased.
  • The company has updated its product, recipe, or production technology.
  • New distribution channels have appeared, the company has changed the formats of communication with the audience.
  • The profile of the target audience, its values, interests, habits, or demographic characteristics have changed.
  • Geographical and cultural scaling into new markets is taking place.
  • The company has expanded its product range, updated its service, or started providing new services.
  • Global and local market trends have emerged.
  • The brand's reputation has deteriorated.
  • Legal risks have emerged. For example, another company is laying claim to the brand name.
  • The brand is undergoing a digital transformation.
  • New strong competitors have emerged that can conquer the market.
  • The company has a new owner, as is the case with McDonald's and "Vkusno - period."

Rebranding usually occurs as a result of a change in business strategy. For example, a company may have previously produced a product in Russia, but is now moving production to Vietnam. This change in production location leads to an update of the recipe and technology, which in turn requires a revision of the product's positioning in the market. Rebranding allows you to adapt a product to new conditions and consumer expectations, which is an important step in maintaining competitiveness.

Rebranding is not a common practice and is not used for minor changes, as this process requires significant financial investment. Rebranding is usually resorted to in case of unsatisfactory business performance or significant changes in the company, brand, or product. A striking example is the transition of the Yandex.Taxi app to Yandex.Go, which occurred due to the expansion of its functionality: taxi hailing services were supplemented with public transport schedules, food delivery, and the ability to call couriers. Rebranding is becoming a necessary step to adapt to new market conditions and improve the company's position.

Now the application interface looks like this Screenshot: "Yandex.Go"

Rebranding is aimed at changing the perception of the company by the target audience in order to improve business performance. During the rebranding process, specific goals can be set, such as improving brand awareness, increasing customer loyalty, and attracting a new audience. This allows you to not only update the company's image but also adapt to changing market conditions, which in turn contributes to sales growth and strengthening its position in the market. Rebranding is a strategic step that can significantly change the dynamics of a business and create new opportunities for its development.

  • reach new segments of the target audience;
  • increase brand awareness;
  • change the perception of the brand by the target audience, and so on.

To successfully track the effectiveness of rebranding, it is necessary to establish key metrics that will help evaluate the changes. It is important to regularly monitor these metrics to identify the impact of rebranding on the business. A detailed description of this process is provided below.

What Changes During Rebranding

Effective communication requires taking into account the specific situation, goals, and target audience. In some cases, a comprehensive rebranding is necessary, while in others, partial changes are sufficient. The right approach to rebranding can significantly increase brand awareness and improve customer engagement.

Comprehensive rebranding is a process that may include changes to the company name, logo, slogans, corporate identity, unique selling proposition (USP), positioning, and corporate ethics. Rebranding may become necessary in situations where a product has lost its relevance or when a company faces a negative reputation, resulting in a decline in sales. This process helps update the company's image and attract new customers, as well as restore the trust of existing consumers. A well-executed rebranding can not only change brand perception but also open up new opportunities for growth and development in the market.

Sber's comprehensive rebranding is a shining example of its successful transformation in recent years. The brand updated its name and positioning, and also changed its approach to customer communications. This allowed the company not only to strengthen its position in the market, but also to create a more modern and attractive image that corresponds to current trends and consumer needs.
An example of a comprehensive rebranding: Sber has become not just a bank, but a digital one EcosystemImage: SberBank

Partial rebranding involves changes to a number of elements, including restyling. It can be relevant in cases where new ways of interacting with the audience emerge or a brand value update is required. Partial rebranding allows a company to adapt to market changes and maintain relevance in the eyes of consumers.

Many restyling cases demonstrate a trend toward visual simplification. Complex elements previously present in logos are gradually disappearing. This is explained by the fact that audiences in the digital environment do not perceive cumbersome visual systems. To maintain effective communication with customers, brands need to adapt to modern requirements and user preferences. Simplifying design helps improve brand perception and memorability, which is key in the highly competitive online space.

In Russian retail, we see examples of partial rebranding, which companies are actively using to update their image. In 2021, chains such as VkusVill, Azbuka Vkusa, and Lenta rebranded. These companies updated their visual elements, including logos and typography, to better reflect their unique advantages. The main goals of the rebranding are to convey key differences to consumers and to align with modern design trends, which will increase audience loyalty and strengthen its position in the market.

"VkusVill" remains a grocery store - it just slightly changed its visual style. Image: VkusVill

How Rebranding Impacts Business: Examples

Radar Agency has successfully implemented three rebranding projects that demonstrate their approach to creating a unique image for various companies. Each project aimed to update the visual identity and improve brand perception in the market. These examples illustrate how a well-executed rebranding can increase a business's competitiveness and attract a new audience.

The rebranding project for Icebear, a Chinese outerwear brand, aimed to attract more loyal customers from Russia and create a unique image that would distinguish it from competitors on marketplaces. The main goal was to increase brand awareness and improve its positioning in the Russian market, which will lead to increased sales and stronger consumer trust. An effective rebranding strategy helped create an attractive image that will foster long-term customer relationships and provide a competitive advantage.

A new visual style and product card design standards were developed for the brand. Information about product benefits is presented in infographic form, meeting the expectations of Russian marketplace users accustomed to this type of information presentation. This innovation contributed to a 2.5-fold increase in purchases, and up to fourfold for certain items. A more detailed case study can be found here.

The rebranding of Jewelry Traditions was an important step in entering the B2C market. The main goal was to create a new image that would attract end consumers and highlight the uniqueness of jewelry. The updated brand emphasizes quality and tradition, allowing the company to stand out from the competition and earn customer trust.

To achieve these goals, the identity was updated, a promotion concept, and an SMM strategy were developed. The positioning places emphasis on people and their stories, rather than on the jewellery itself. This allowed us to attract the attention of end consumers and create an emotional connection with the brand, which had a positive impact on audience engagement and increased interest in the product.

To enter the B2C market, we placed greater emphasis on people's stories. Image: Radar

The rebranding of the "Healthy Menu" brand from the manufacturer "Soyuzpischeprom" was aimed at the successful introduction of products into large retail chains. This process included updating the visual style, as well as revising the marketing strategy to attract customer attention and increase brand awareness. The main objective was to create an attractive image that would correspond with modern healthy eating trends and contribute to increased sales in large retail outlets.

The topic of healthy eating has remained relevant for several years, which has led to the emergence of many competitors. To distinguish the brand from others, a new bright visual identity was developed, reflecting the company's mission. The created design system is applied to all product packaging, which allows for the creation of a unified style. Instead of extensive product descriptions, key benefits are placed on the packaging, making it easier for consumers to choose. "Healthy Menu" products are now available in retail chains such as Auchan and X5 Retail Group. Learn more about this example of successful brand positioning.

What are the risks of rebranding and how to understand that something went wrong

The main risk when rebranding is the possibility of its failure, which can lead to failure to achieve the set goals. For example, a company may rebrand with the intention of entering a new market, but the product in this market may not generate interest from buyers. A situation is also possible when the goal of rebranding is to increase margins, but as a result this indicator is not achieved. It is important to carefully analyze the risks and conduct preliminary research to minimize the likelihood of a negative outcome.

Incorrect assessment of the market situation and insufficient analysis of the target audience can lead to negative consequences for the brand. Errors in the communication strategy, such as the lack of a warning about the rebranding and insufficient information about its goals, can make the brand unfamiliar to consumers. As a result, those who were previously loyal to your brand may not recognize its updated look and, as a result, stop purchasing. It's important to ensure clear and compelling communication to maintain the interest and trust of your target audience.

In 2009, PepsiCo unsuccessfully rebranded Tropicana orange juice, investing over $35 million. However, the new packaging met with negative consumer reviews, leading to numerous complaints. According to some sources, the company suffered losses of $27 million in the six weeks following the rebranding. Ultimately, PepsiCo was forced to return to the old packaging to restore customer trust and stabilize sales.

There is a key rule: the results of changes should be evaluated only after a certain period of time. It is important to focus not on the reaction of the audience or the media, but on real business indicators. This will provide an objective understanding of the impact of changes on business development and its financial results.

When introducing fundamental changes in a business, a negative reaction often occurs from some of the audience. This is a natural process, as people need time to get used to innovations. However, over time, especially when the changes lead to improved product and service quality, consumers begin to perceive them positively. A striking example is the logo changes of famous brands such as Yves Saint Laurent and Burberry. Despite an initial decline in sales after the restyling, demand for their products soon increased significantly. As a result of these changes, these brands' products began selling better than before. This shows that adapting to new conditions can bring significant benefits in the future.

At first, consumers find it difficult to get used to change, especially if it is glaring. Image: Burberry

The 2006 MTS rebranding was a shining example of a successful marketing strategy. Despite media criticism and ridicule on social media, the new "egg" logo attracted the attention of 90% of the Russian population just 10 days after its introduction. As a result, the company's revenue increased by 35.5% within a few months. This case demonstrates how effective branding changes can significantly impact a company's recognition and financial performance.

After a rebranding, if business performance begins to deteriorate, it is important to analyze the causes. Often, the problem lies not in the new name or visual design, but in the quality of the product itself. If the product does not meet consumer expectations, no branding changes will help improve the situation. It is necessary to carefully evaluate the quality of the offer and identify what exactly is causing customer dissatisfaction.

Stages of Rebranding

Stage zero of the work includes continuous monitoring of key indicators of brand "health". Such monitoring is necessary for the timely identification and elimination of potential problems. If there is a sharp drop in sales, new competitors appear, or your product is susceptible to copying by other companies, this indicates accumulated problems. Early identification of such indicators allows you to take action in advance and avoid negative consequences. Effective data analysis and active response to changes in the market environment will help maintain competitiveness and strengthen the position of your brand.

Effective rebranding is carried out proactively, and not in response to losses or crises of the company.

Analysis may indicate the need for changes in the company, which leads to the beginning of the rebranding process. This process includes several stages, which may vary depending on the specific organization. Typically, the classic rebranding process includes the following key steps: analyzing the current brand, defining the target audience, developing a new positioning strategy, creating an updated visual style, and implementing changes to customer communications. Rebranding allows you to not only refresh a company's image but also adapt to changing market conditions, strengthen customer ties, and increase competitiveness.

  • Audit of the current situation. At this stage, triggers that indicate the need for change are identified. For this purpose, qualitative research of the audience and customer experience is conducted - brand loyalty and the needs of potential buyers are assessed. Business metrics are also analyzed: changes in sales volume, customer LTV, distribution channels, and so on.
  • Brand audit. It is conducted to evaluate positioning: what values ​​​​the company conveys, what character the brand has, what rational and emotional advantages it has. Visual style and communication style are assessed - how they are perceived by users. Hypotheses are formed on how the situation can be changed.
  • Market research. Analyze trends, competitors, and consumers to find new niches, identify insights, and confirm previously established hypotheses.
  • Develop tactics. Determine the current and desired brand position and the changes required to achieve this. At this stage, set rebranding goals and may assign metrics to monitor the process's effectiveness.
  • Rebranding. This is a comprehensive process that essentially replicates the process of developing a new brand. During rebranding, the company's values ​​and mission are defined, positioning is formed, and communication formats, visual style, and typography are worked on. As a result, the "new" brand may be radically different from the "old" one.
  • Implementation of changes. Present everything new to the target audience—use a new logo in advertising, send press releases to the media, and release updated packaging. Launch communication campaigns to support the rebranding: explain why the changes were made and what will now happen to the product.
  • Monitoring indicators. Track key performance indicators for the rebranding: sales, brand awareness, customer loyalty, and others. This is done regularly for at least several months. Looking at results a week or two after the changes is not recommended, as this will give a false impression of effectiveness.

Rebranding is a complex process that can be carried out by both in-house specialists and external agencies. If you lack the necessary experts, such as strategists, designers, and type designers, it is advisable to contact a professional agency. It is important to establish a partnership with the contractor, providing them with all the necessary information for the successful implementation of the project. This will ensure effective interaction and help achieve the set goals in the rebranding.

Brand Manager Profession

You will learn how to effectively work with the image and business indicators of the brand. You'll understand how to turn customers into product ambassadors and brands into recognizable ones. You'll be able to work for large companies or build a sustainable brand for your business.

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