Corporate Rebranding and Its Implications to the Business World

Vincent Braimah

It takes years to build a strong brand; but sometimes the need to change the design of your logo or company name to meet your future business objectives arises. This is where the tasks of rebranding and re-aligning the image of an organization come in, particularly with regard to meeting the unending demand and expectations of today’s dynamic customers.

Rebranding is the process by which a product or service developed with one company or product line affiliation is marketed or distributed with another identity. It also refers to the repositioning, revitalizing or rejuvenating of a brand.

This may involve radical changes to the brand’s logo, brand name, image, marketing strategy, and advertising themes. These changes are typically aimed at the repositioning of the brand/company, usually in an attempt to distance itself from certain negative connotations of the previous branding, or to raise the bar of the brand.

Rebranding has become something of a fad in today’s business community, with some companies rebranding several times. The rebranding exercise of BGL of recent, according to the Managing Director and Chief Executive Officer, Mr. Albert Okunmagba, was done to, among other things, help announce the company’s new identity.

Similarly, Zain Nigeria, a key provider of GSM and Telecommunications services in the country was originally known as Econet Wireless. Apparently due to boardroom and management’s structural imbalances, it was transformed to Vodafone which later metamorphosed to Vmobile, and then to Econet; and thereafter had its identity changed to Celtel. That is rebranding for you!

Due to the tremendous impact that renaming and rebranding a company can have, it is critical to take the client through the process with great sensitivity and care. The new company identity and brand should also be launched in a subtle and methodical manner in order to avoid alienating old customers, while aiming to attract new business prospects. There is no magic formula, however, there is a methodical process which involves careful strategy, memorable visuals and personal interactions, all of which must speak in unison for a customer to place full trust and invest their emotions in what is on offer.

Rationale for Corporate Rebranding

According to Dowling, “the overall rationale for corporate rebranding is to send a signal to the market place, to communicate to stakeholders that something about the organization has changed.” Therefore, it is crucial that the organization really does have something new to say and that it is communicated effectively at the time of the change; otherwise the rebranding will fall into what Dowling called the ‘premature signalling trap’.

Having said this, the rationale for corporate rebranding can be categorized according to the circumstances that led to the decision to rebrand.

One of the persuasive reasons why some companies rebrand are for mergers, acquisitions and divestitures; since the old names, logos and slogans are usually inappropriate. Related reasons for corporate rebranding are a shift in the market place caused by competitors who have merged/acquired/divested, new competitors, and changed economic or legal conditions.

It may also be that there is a need to present a global image to the market place. Another motivation for corporate rebranding is the feeling that the image is outdated.

An apparently compelling reason for corporate rebranding is a new focus or vision for the company, which could be caused by some or all of the factors discussed previously. It may also be due to the appearance of a new CEO who wants to make their mark, since the reputation of the CEO has a significant bearing on the reputation of the company. In doing so, most CEOs make mistakes, as some feel that they are now in charge of the business without recourse to carrying their clients and customers along in the rebranding process. According to Brierley, new CEOs come into businesses determined to make their mark, and this nearly always involves making changes to the outward appearance of the company by rebranding. While these CEOs are focusing on rebranding, more difficult structural problems are never addressed.”

Common Corporate Rebranding Strategies

 Name + Logo

 Name + Logo + Slogan

 Logo only

 Logo + Slogan

 Slogan only

The Name Change

The name of an organization is a primary means by which the organization communicates to its stakeholders (customers, partners etc). Changing the name of a company in a corporate rebranding exercise is the riskiest strategy of all. Margulies wrote that “for a name change to be successful, a company needs to have a clear idea of why it is necessary and what the company expects the results to be”. Therefore, in changing the name it is important to at least strive for something better and not go for a mediocre name change.

Dowling posited that the name should reflect the corporate personality of the organisation. In the case of mergers, it may be difficult to find a satisfactory name since both companies usually want their names left in some form and this can result in a long and un-weighty name.

Most companies need a re-brand after a merger has taken place. A company merger is where two or more commercial companies, with common interests, come together. The newly formed company often goes in for a rename and logo re-designing process that entirely depends on the status of the company before the merger took place. The new name can either be a modification of the old one, which should preferably retain the old font style, or it may even be an entirely new one that could be a collective representation of the companies involved in the merger. Usually, the first name becomes the company name. A typical example is the merger between UBA plc and the defunct Standard Trust Bank during the nation’s bank consolidation era, resulting in UBA plc (with the logos of both banks still intact).

However, a quick and smart solution to the name change is to brainstorm names or generate them via a computer and come up with a name that is a new word. For example, Accenture, a coined name which connotes accent or emphasis on the future, was the result of employees being asked to submit names.

Market Implication of Corporate Rebranding

Trends and markets keep on changing every day. Businesses areas that offer good business can become a losing proposition in the days ahead due to the change in business trends and consumer preferences. Many companies make use of their capital to move to a totally new business area that often focuses on an entirely new range of products or services. This shift needs a new name or identity and/or logo redesign that should project the new face of the company.

Renaming can also be used as an error-rectifying tool. Re-branding with the help of proper company can very well transform the company’s fortune. Renaming is the fastest way to notify the consumer and business world of the positive changes that were made within the company. It gives the company a direction to be re-accepted in a better way.

To this end, some organizations decide to rebrand for the following reasons:

 Communicate their new identity to the public

 Attain global presence and recognition

 New image and reputation

 Brand visibility

 Competitive advantage

 Market leadership and dominance

 Profitability

 Staff/Employee alignment of the new vision and spirit of the new company

Vincent Braimah is an Event Manager with Neo Media & Marketing Ltd, Lagos.

He can be reached on Vincent.braimah@neo2m.com.