Brand recognition is an essential tool for successful marketing; your company brand represents not only a specific product or service but also your reputation. Customers are brand loyal. They are much more likely to try a new item if they are familiar with the brand, even if they know nothing about the new product.
Because brand recognition is so vital to the customer experience, rebranding comes with potential consequences. On the one hand, customers may agree that a new look is needed. This group will embrace the efforts to rebrand. On the other hand, some customers may not like change under any circumstances. This group will resist any changes to your brand image, logo, and marketing techniques.
Create a New Image
Despite the possible drawbacks of rebranding, there are times when a rebrand is simply necessary. The obvious solution to a merger or buyout is to establish a distinct new brand. Another example of when rebranding is necessary involves rebooting a poor public image. Accidents, lawsuits, criminal charges, and poor customer experience reputations can permanently damage a professional image. One concerted effort to rebrand puts distance between the company and its challenges. A new image may also be in order if the logo, color scheme, or tag line is merely outdated and irrelevant.
Reach New Prospects
Another reason to consider a full or partial rebrand is to reach a new audience. Marketing efforts generally include one option that casts a wide net and another that defines a target market. If your business experiences a high level of turnover or sees changes in a specific demographic, such as age or household income, a rebrand may spark new interest. General Motors experienced unsurpassed success by changing the image of their Buick line.
Announce New Product
Any change in a product line should be quickly and repeatedly expressed to customers and potential customers. Strategic marketing techniques create interest in a new product or service well in advance of the debut. An effective teaser campaign creates buzz around a new item and gets people talking about your company. This strategy is especially effective when a new product or line comes into play where a current item is discontinued.