Before you jump headfirst into a rebrand, it’s important to understand the challenges you may come up against so that you can prepare accordingly.
Rebranding is a complex process that requires meticulous planning, strategy, and a clear understanding of your objectives and target audience.
In this article, we’ll learn more about why businesses rebrand and the challenges they come up against when they do so, equipping you with the insight you need to navigate the process effectively.
WHAT IS REBRANDING?
Rebranding is the process of overhauling a brand’s identity to update, refresh, or improve how it looks, feels, or sounds. A successful rebrand enhances the brand’s appeal and effectively communicates its values and message.
WHEN MAY YOU NEED TO REBRAND?
Businesses choose to rebrand for a variety of reasons; some key catalysts of a rebrand include the following:
- The brand has become outdated
- There is no differentiation between the brand and its competitors
- A merger or acquisition takes place
- The brand’s reputation is damaged
- The brand begins targeting new markets
- The business has changed significantly
- Brand no longer reflects your values or mission
WHAT ARE THE CHALLENGES OF REBRANDING?
When rebranding is successful, it can rescue a floundering business and take it to new heights. However, the rebranding process is complex, with many pitfalls and challenges to navigate.
Some key challenges of rebranding include:
Rebranding is a complex process that will cost your business both time and money. From the research stage through to the implementation and marketing of the new brand, it’s likely that you will need to partner with many different experts during the rebranding process. Carefully planning a budget before you begin can help to ensure that the returns justify the expense.
When you significantly alter your brand identity, there is a risk of confusion in the marketplace and loss of brand recognition. To avoid this, businesses should carefully plan how the rebranding will be effectively communicated to employees, stakeholders, and consumers.
LOSS OF BRAND EQUITY
Companies that have built significant brand equity risk losing some of that value if existing customers reject the new brand. ∙Reception – Change is often met with resistance, and not everyone will like your new branding. Market reception is one of the biggest challenges of rebranding, as it can be very difficult to predict how a rebranding will go down.
INITIAL REVENUE DROP
After rebranding, businesses should be prepared to see an initial drop in sales and revenue. This is common during the transition period as customers adjust to the new branding.
If the rebrand is successful, sales should quickly begin to pick up again.
WHAT ARE THE CONSEQUENCES OF A FAILED REBRAND?
Planning, preparation, careful implementation, and excellent communication are all keys to a successful rebrand.
A failed rebrand can devastate a business when things don’t go as planned. Potential repercussions include:
- Financial loss
- Reputational damage
- Loss of brand equity
- Decreased customer loyalty
- Reduced employee morale
- Market confusion
Proper research and planning can help businesses sidestep the potential pitfalls of a poorly executed rebrand.
Work with iBrand Signs on office signage for your rebrand
At iBrand Signs, we design, manufacture, and install signage for businesses across various industries. We are interior signage experts in Warrington and are equipped to handl
Many businesses use our services to support their rebranding strategies. We can help your business to communicate its new brand identity effectively using impactful office signage and interior signage.
Create an impression that will last
Get a quote for your rebranding needs today