Benefits of rebranding. How to make iconic branding work for a new competitive advantage?
Many established brands with a long tradition and trusted brand equity face increasing competition from new entrants, startups and challengers extending their product ranges. Armed withiconic branding, trademarks, and intellectual property, established brands often feel they can’t opt for a completely new image as part of their marketing strategy. But what could be the benefits of a re-design for competitive advantage?
Rebranding and new brand positioning
Quite often established brands face the issue of either too narrow target groups, or changing consumer habits and preferences within their previously safe and secure markets, or even struggle to incorporate new acquisitions into their positioning. Losing ground in once dominated segments can of course be averted and even turned around by using iconic branding andbrand equity for new brand positioning and opening up for new consumer groups. Benefitting from a trusted brand with a dash of re-design and a rebranded offering enables marketers to enter segments confidently and with more success in sight. New brand positioning through re-design can also help shape the perception of the brand in the eyes of existing consumers.
Rebranding for reinvigorated marketing strategy
In some cases, working with iconic branding and established brand identity can restrict creativity and opportunities, or even lead to certain weariness in how the brand is perceived. Logo re-design, pack remakes, and a new, rebranded image, if handled well, can inject excitement into the company and its customers alike. A new image with strong brand equity makes for an excellent starting point for an exciting marketing strategy aimed at novelty-seeking customers. Rebranding in itself can be a good marketing opportunity, as established, well-known brands often prefer to stick to their guns, making each small tweak an unexpected move.
Rebranding for better brand architecture and portfolio segmentation
With increasing competition, consumers are spoiled for choice more than ever. On the other hand, they’re often attracted to what’s new and exciting, so newcomers in general benefit from acompetitive advantage. Consumers used to seeing the same, old, trusted brand may stop appreciating its benefits which, even if the product is in fact better than the competition, pale in comparison to the enticing novelty of new market entrants. Rebranding can help fight this effect. Better product differentiation can be achieved through logo re-design and pack remakes, as well as rebranded visual equity. Combining trust in iconic branding with excitement around the new image helps with differentiation and wins customers making decisions at the shelf.
Rebranding an iconic brand isn’t easy. On one hand, marketers have to keep in mind the trust and familiarity of regular consumers, but on the other hand they have to think of sustaining theircompetitive advantage. Logo re-design, new visual equity, or pack remakes are interesting options, but ultimately the sales before and after the re-design have to justify the changes. This is why here at SiebertHead we would advise against rebranding just for the sake of it – a decision to rebrand the icon has to be holistic.