Why is rebranding sometimes the best choice for a company? What are the advantages and disadvantages of changing a company name or logo?
There are many reasons why a company selects this path. Perhaps the demographic of their target audience is changing, or the company founder is slated to retire, necessitating a shift in focus.
Sometimes the need for rebranding is simply a sign that a company is growing and offering new products or services, thus outgrowing their former brand. Maybe the marketplace is shifting and they are looking to attract new customers. Timing also plays a role, with most companies revaluating their branding periodically.
Here are some of the pros and cons to consider when deciding whether or not it’s time for a rebranding strategy:
Pro: Rebranding To Target An Untapped Source of New Projects
In the home building and remodeling industry, the age demographics of clients are shifting. More young professionals are paying to customize their homes for growing families. With fewer houses on the market, many millennials are choosing older starter homes intending to stay indefinitely and make renovations.
In fact, according to Home Builder’s True Cost report, as many as 80% of millennials plan on remaining in their current homes. Although the amount of money millennials currently spend per project is lower on average than their parent’s generation that number will continually increase over time.
Con: With Change There Is Always Risk
Even when the process of rebranding is properly handled and well-executed, there is still a risk that some existing customers will perceive the change as a bad thing. After all, people dislike change and for some clients, it is enough to diminish their brand loyalty. But there are few rewards without risk involved. Some ways to avoid this pitfall include introducing new information gradually and explaining why certain changes are occurring; above all else avoid abrupt changes with no explanation.
Pro: A Fresh New Look May Provide A Competitive Edge
Most companies evaluate their brand at least every 7-10 years. Without acknowledging the fluid nature of the marketplace, your company’s promotional material may stagnate.
The best thing about rebranding is that depending on your company’s needs, a light touch may work better than a total overhaul. Especially when you are working with a logo or motto that is still relevant and meaningful to the company brand.
These periodic revamps help keep companies relevant so their brand never appears outdated or out of touch. An added bonus is turning heads with a bold new look. This could be the differentiator that puts you above competitors and increase engagement with your brand.
Con: When Not Handled Correctly, Your New Company Image Could Fall Flat
There are multiple historical precedents for a company’s rebranding efforts to falling flat. One of the most infamous brand identity failures happened when The Gap redesigned its logo in 2010.
The company chose a new logo—abruptly—after twenty years of using their simple, somewhat iconic, blue box logo. The new logo was so horrible it resulted in what was dubbed as “Gapgate.” After less than a week, the company changed the logo back. The whole endeavor was a waste of money and only resulted in alienating customers.
Pro: Sets The Stage For Shifting Focus
People love supporting family-owned small businesses, especially in an industry like ours that prizes individual attention by expert craftsmen. But all businesses evolve over time.
Whether you have retirement plans, a rising generation of star employees, a desire to shift your focus, or you have decided to merge with another company, a rebranding can be vital during times of transition. Gradually introducing changes and keeping your marketing content consistent across all mediums is a way to ease your clients into whatever change your company needs.
Con: The Process Is Delicate & Can Be Costly
One of the biggest drawbacks of going through a complete rebranding is the time and resources spent making so many changes. From business cards and sales materials to website content and social media, a lot of time and effort is required to do it right. That is why it is helpful to have marketing professionals at your beck and call, with a proven plan and budget, to navigate the delicate transition.
Professional Viewpoint: Consistency & Cohesiveness Make It Work
One of the most important reasons to entrust your rebranding to a marketing professional is for the sake of across-the-board consistency and cohesiveness.
At RT Marketing Inc., we ensure everything you put in front of a customer has a consistent voice. We will update your brand’s look along each digital pathway, including your website, social media, and email lists. All custom content we create also provides the same consistent brand message.
Staying within your company’s marketing budget is another area that is important to us. Rebrands can be costly, but we are completely upfront about what to expect. And, in the event that anything changes within the plan, we will always inform you prior to incurring any additional expenses. So, are you ready to talk about rebranding your company? Fill out our Contact form today and let’s get working!