A Project on Rebranding

Rebranding- Injecting life into dead brands

RE-BRANDING --- INJECTING LIFE IN DEAD BRANDSINJECTING LIFE IN DEAD BRANDS

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CHAPTER 1: INTRODUCTION:

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“Whatever you do, be careful not to undermine the fundamental values and

strengths of your brand and ensure that whatever you do is in sync with your

business rationale and aims.” - Richard Duncan

While this may sound painfully obvious, there are enough examples of

rebranding disasters to prove that common sense may indeed be, uncommon.

Books like ‘Who moved my Cheese?’ prove time and again that change is

almost never well received. Brands, like people, are scared of change, of

growing old and losing their market position. Products as well as corporate

brands begin to panic when they have been in the maturity stage for too

long. This is where rebranding comes to the rescue with glamorous creatives

and brilliant strategies. One of the most common ways of delaying the

ageing process, rebranding, includes changing the name, changing the logo,

modification of the overall look and sometimes overhauling the entire brand

philosophy.

Rebranding is the flavour of the season in the backdrop of Airtel’s

rebranding campaign which was launched on the 18th of this month. As in

Airtel’s case, rebranding may be spurred by sudden growth or the need to fit

into a global identity. Rebranding is no child’s play, and as many disasters

have shown us, must be dealt with very cautiously. Many a times, decisions

have been reversed. A classic example of this is the failure of the new

sweeter Coke that was introduced in the 1980s. Coca Cola finally had to

bring back its original brand and formula. Although the risks are great,

rebranding remains more popular than ever. The need to stay ahead makes

companies gamble their heritage for the promise of better profits in the

future. While it is too early to comment on the success or failure of Airtel’s

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rebranding strategy, here we deal with some major rebranding successes

and failures of the past.

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CHAPTER 2 : BRANDING @ A GLANCE

More than a buzz word – “Branding”

Brand

–noun

1. a. A trademark or distinctive name identifying a

product or a manufacturer.

b. A product line so identified: a popular brand of soap.

c. A distinctive category; a particular kind.

You could drive through any American town without really knowing where

you are, but you would have no problem recognizing the signs, billboards

and storefronts for such companies as Starbucks , Bank of America and

McDonald’s to name just a few. You would know these signs anywhere.

The companies they represent have gone to great lengths to develop, define

and defend the use and application of their names, logos and identities. As a

result, the general public readily associates the companies with specific

products and/or services. If individuals were allowed to arbitrarily apply a

corporate name, there would be no consistency of the identity. This situation

would cause public confusion and ultimately a

disregard of the company itself.

A brand is much more than just a logo or an

advertisement, it is everything about the product or

service. A brand is the promise, the big idea, and the

expectations that reside in each patrons mind about a

product, service or company. People fall in love with

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brands, trust them, develop strong loyalties to them, buy them and believe in

their superiority. The brand is the shorthand. It stands for something.

Ineffective brands undermine success. While being remembered is essential,

it is becoming harder every day. When the consumer feels that a brand

(company) is brand, then they remain loyal and supportive. When the brand

doesn’t back up its promise, the consumer moves on to another brand. “The

best thing to remember... a brand is a promise to the customer. Make sure to

keep your promise.”

The American Marketing Association (AMA) defines a brand as a "name,

term, sign, symbol or design, or a combination of them intended to identify

the goods and services of one seller or group of sellers and to differentiate

them from those of other sellers. Therefore it makes sense to understand that

branding is not about getting your target market to choose you over the

competition, but it is about getting your prospects to see you as the only one

that provides a solution to their problem.

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THE BRAND POOL

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CHAPTER 3: INTRODUCTION TO REBRANDING

Rebranding can be defined as “ the creation of new name, term, symbol,

design or combination of them intended to develop a new differentiated

position in the mind of the

customer.”

Rebranding is the process by

which a service or product

that was developed in one

brand, or company is

marketed in a different brand

name or identity. This

involves essential changes in

the brands name, logo, image,

advertising, and marketing

strategies.

Rebranding is also referred to as repositioning, revitalizing, rejuvenation or

even resulting in the brand being reborn. “Rebranding can be as simple as a

minor logo change or as complex as a name change or refocus of the

company’s core message.”

. Of late, even the Indian rupee has gone for its

rebranding. Re-branding brings in a sense of

freshness for the companys very existence.

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Rebranding @ a GLANCE:

OBJECTIVES OF REBRANDING:

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A company can rebrand for different reasons such as

To create a sound strategy supported by facts related to sales

and profit.

To increase consumer loyalty

To refresh consumers

To enter new market trend and new product direction

To increase share holder value

To refresh design elements or slight naming alteration

To attain competitive differentiations

To re energize a company

CHALLENGES OF REBRANDING:

“To successfully build a brand...is to communicate your key value

proposition to the key customer segment in an integrated and consistent

way."

The three most common catalysts for misguided Rebranding are:

new executives trying to make their mark,

the need for instant gratification Trumping long term

commitment, or

Organizational malaise/boredom.

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THE EMERGENCE OF REBRANDING

‘Beauty lies in the eye of the beholder’, so goes the saying, Like this, a

brand’s acceptance by the consumers, depends on the intangible personal

experience. To start with, a brand was represented by a trademark. This was

primarily to differentiate a particular company, product or a service from

that of competitors’. Later on, a kind of ‘aspiration’ branding evolved in

which the consumers were bewitched through celebrity endorsements.

People experienced a kind of satisfaction by identifying themselves with the

heroes and dignitaries who endorsed the brand. Companies, retailers and

service providers resorted to this kind of marketing tactics to exploit the

gullible consumers.

In the present – day marketplace, many companies fall out of the marathon

racetrack of competition as time passes on, as they fail to withstand the

rigors of the stiff competition. We can find many reasons for this fatality

namely, the unwholesome tactics of undercutting by the rivals, the lack of

innovation to provide that extra/different ‘feeling’ to the customers by the

companies, fading quality resulting in losing market share, etc. Also, the

product’ position in the ‘product life cycle’ is very critical as the ‘brand life

cycle’ almost traces the same stages. The four stages of product’s life cycle

consists of the launch/introduction stage, the growth stage, the stable/mature

stage and the declining stage.

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Sales

Profits

Sales

Time


FIGURE-1

As can be seen from the above (figure 1), a company’s sales and

consequently its profit start dwindling from the end of the maturity stage and

in the subsequent declining stage. So, companies start looking for avenues to

stay alive. If a company feels that all other methods to attract consumers

have exhausted, it has to opt for rebranding. The present day mantra is

‘Customer is king’. Customers are well – informed about the products,

compared to earlier times. Hence, the marketplace has become customer –

centric. The evolution of the marketing’s role in a company is well –

elucidated by Philip Kotler, as shown in diagram (figure 2).

Recognizing the importance of the customers in the business structure,

companies have started effecting minor rebranding exercises on a regular

basis due to ever – increasing customer aspirations. The per – unit margins

of products are thinning day – by – day in the competitive environment. The

law of diminishing returns is the order of the day. Companies are searching

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for innovative and creative ideas to attract and retain their customers by

offering value for money.

In such a condition, rebranding has become a useful and effective tool in the

hands of marketers to protect and retain their market share. In certain

specific cases, where the brand equity of a brand has eroded abysmally,

companies resort to rebranding to make a comeback from obscurity. Many

case studies show the successful return of brands from oblivion through

rebranding process.

FIGURE 2: SIGNIFICANCE OF CONSUMER OVER THE YEARS.

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TYPES OF REBRANDING

Rebranding can be divided into two types:

Evolutionary

Revolutionary

Evolutionary rebranding:

Evolutionary rebranding is where the changes are

minimal and less visible to the outside observer .In the evolutionary process,

rebranding takes place in a gradual manner such as change in the colour or

design of the logo, a change in the slogan or some such minor variation

Revolutionary rebranding:

Unlike evolutionary rebranding, revolutionary

rebranding is highly visible and often results in a new brand name. In

revolutionary rebranding, a total revamping of the brand takes place which is

a very costly and risky proposition. So, corporations resort to a total

rebranding only in rare cases (in case of mergers and acquisitions, almost all

visible features of the brand have to be changed to herald a new combined

image and hence a revolutionary type of rebranding results). Of course, the

image value and brand equity of the individual brands, before the mergers

and acquisition, are lost in such cases. This type of brand change is not a

simple action. It has far reaching implications since it can make or mar the

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brand’s image and put the company in jeopardy unless exercised with

utmost care.

EXTENT OF REBRANDING

Partial Rebrand

In situations when a brand has been firmly established yet is simply outdated

or needs to be refreshed due to the addition of new products or services,

tweaking is required, rather than a full-blown rebrand.

Aunt Jemima is a great example of tweaking a well-established brand to

update it. The image used for years on its products--an African-American

"blue collar" woman--was simply out of step with today's mores. Rather than

completely change the brand, Aunt Jemima updated the woman to reflect a

more professional image. In 1989 they removed her headband and gave her

pearl earrings and a lace collar, which reflected the modern times of more

women in the workforce.

Total Rebrand

Corporate mergers will often result in complete rebrands. When

organizations have failed to establish a brand, or have been through any kind

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of scandal, total rebranding may also be in order. In these cases, the intent is

to erase any previous brand identity and replace it with completely new

imagery and messaging.

Sprint is an excellent example of a

total rebrand, necessitated when

Nextel Corporations was

acquired by Sprint

Communications any in 2005 and

Sprint Nextel Corporations was

created. The company eliminated the angular logo (and red corporate

colour) that seemed indicative of inflexibility and replaced it with a

more fluid logo--placed on a cheerful gold background--that reflects

the company's friendliness and flexibility.

Citigroup Inc. is a major

American financial services

company based in New York.

Citigroup was formed from one

of the world’s largest mergers in

history by combining the banking

giant Citicorp and financial conglomerate Travelers Group on April 7,

1998

Price Waterhouse Coopers is

one of the world’s largest

professional services firms and

the largest of the Big Four

auditing firms. It was formed in

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1998 from a merger between Price Waterhouse and Coopers &

Lybrand, both formed in London

PROCESS OF REBRANDING

It is a complex process involving a number of steps. Neglecting some of

these important activities may result in a failure, costing a company a lot of

money. Generally, the following activities are necessary for a successful

implementation of rebranding.

1. Plan Meticulously

2. Conduct a market survey and research

3. Decide whether the process is addressing the internal(employees) or

external customers of the company

4. Take the employees into confidence so that they will be committed to

the success of the process

5. Train the employees updating their information on the

products/services of the company

6. Put in place a contingency plan to take care of any eventualities

7. A comprehensive communication program may be established to

percolate the information flow from the chairman to the doorman

8. Establish a monitoring system to evaluate the progress stage – by –

stage .

Since the process of rebranding is not a frequent activity, external expertise

may be required. If the decision at the top brings about a new identity for the

company, product/service, then a detailed research has to be conducted to

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finalize the aspects of identity and design of brand. The behaviour pattern of

the customer should be thoroughly studied as there can be established

perceptions of the existing brand in the market. A new visual identity has to

be selected after meticulous deliberations among all the stakeholders of the

company that include the management, the financiers, the employees, the

external customers, the media and communication agencies and the

shareholders of the company. A very transparent communications program

should be initiated throughout the organization. The internal stakeholders,

especially employees of the firm from the top to the bottom, should be taken

into confidence as they are the torchbearers of the rebranding exercise. The

employees are the mouthpiece of the organization and they act as the brand

ambassadors to the external world. So, it is vital that the employees have

understood the necessity of rebranding and can deliver the new brand to the

customers. This is all the more very essential in the case of rebranding

initiated by a service provider, as almost all the employees deal with

customers on a one-to-one basis. Hence, it is of paramount importance to

educate the employees well before the launch through various training

programs. During the changeover, in the transition period, proper monitoring

and market research should be initiated to study consumer

behaviour/reaction. For this, the existing distribution channels can be used

along with extensive public relations, advertising and promotion. Planning

the timing of the transition/launch is as important as the execution of the

activities in the process.

The success or failure of rebranding depends on all of the above factors.

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REBRANDING STRATEGIES

Phase in / Phase out: Phase in / Phase out is where the brand is tied with a

new brand in some way for an introductory period. After the transition

period, the old brand is dropped.

Combined rebranding via umbrella brand: Here, two brands are

combined to form a new brand. For example, SONY ERICSSON is the

combination of two brands – SONY and ERICSSON. When

CENTURION BANK and BANK OF PUNJAB merged, the combined

entity was branded as the CENTURION BANK OF PUNJAB.

Sudden eradication strategy: In this strategy, the existing brand is changed

overnight replacing it with a new name. When ADITYA BIRLA group

acquired L&T cement, the challenge was to preserve the equity of L&T

cement at the same time re-branding it to ULTRATECH. The strategy

adopted was sudden eradication strategy. The recent re-branding of HUTCH

TO VODAFONE was also done overnight.

Brand Migration: At times, marketers attempt to migrate existing customer

from one brand to another. This is often done in a planned manner. When

HINDUSTAN LEVER (now HINDUSTAN UNILEVER) adopted the

power brand strategy, it chose to migrate DENIM brand to AXE. The

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migration was done by converting DENIM as a sub-brand of AXE. Now the

DENIM range is available as AXE DENIM.

REASONS FOR REBRANDING:

when they launch new businesses that are significantly different from

the traditional one.

o Examples:

Interbrand (one of the world's leading brand

consultancies) has both created a new online

identity and adopted a generic domain name

(brandchannel.com).

Prudential’s Egg (a bank brand).

when there has been a merger/acquisition

when there has been a de-merger/spin-off

Example: Accenture(Anderson Consulting)

to achieve international harmonization of the brand

Example: Lays by Frito-lays

to rationalize the brand portfolio and concentrate the brand investment

in few, bigger names

Example:

Procter & Gamble

Unilever

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to update the brand image. This typically entails a change to the brand

identity policy rather than a total re-branding, but this can happen too

(for instance when nationalized industries are privatized - BA,

Consignia, Energis, Powergen etc. )

To shed the negative image (Phillip Morris to Altria)

Call Branding (Bud for budweisor)

.CHAPTER 4 : RESAERCH MODEL

Here we have tried to study the impact of rebranding on the companies who

have opted for the same.

(Where i and j =1,2,3…)

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Xi - denotes the company’s brands before the variation factors or rebranding

factors

Where i = name of companies i.e. 1,2,3….

Xj-denotes the company’s brands after variation factors or rebranding

factors

Where j =name of companies i.e.1, 2,3….

CHAPTER 5 : THE ANALYSIS

THE WAYS OF REBRANDING

(i) The brand name

(ii) The logo, trademark, graphics, slogans or imagery

(iii) Company livery, packaging or uniforms

(iv) Advertising

(i) Changes to the brand name

This is perhaps the more obvious and

straightforward way of re branding.. Rebranding

as a means of growing a brand without changing

the product, distribution or pricing.Talking

HUTCH TO VODAFONE

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“Hutch is now Vodafone”. Vodafone is a brand with a very clear identity

across the world. This is simple and clear guideline for framework of

rebranding.

AIR DECCAN TO SIMPLIFY DECCAN

After dumping ‘Air’ from its original name, the company has now added

‘Simplify’ before its brand name ‘Deccan’. The main objective behind the

Rebranding exercise is to build consumer loyalty for Deccan.

UTI To AXIS

For UTI Bank, the re-branding story was slightly different. Making a clean

break from its UTI heritage, Axis was the name chosen to represent its new

global identity. Bringing in a set of twins to build an emotional connect with

the new brand, for UTI Bank it was an attempt to build its image of being a

professionally-run private bank with everything else remaining the same.

Axis is a short name and is easy to remember. Axis, in geometry, represents

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a reference for measurement. It implies techsavvies, equilibrium and has a

global connotation.

The key behind the success of the campaign was the focus on a single

message - "Everything is the same except the name."

BIRLA PLUS TO ULTRATECH

On 23rd October ‘2007 Birla Plus was named as ULTRATECH. Birla plus

changed its name in order to acquire global identity. They wanted their all

operations to be carried on through one name.

HLL TO HUL

On June25’ 2007, India's leading Fast Moving Consumer Goods (FMCG)

Company, Hindustan Lever Ltd. (HLL) announced that it would officially

rebrand itself as 'Hindustan Unilever Ltd.' (HUL) taking on the name of its

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parent company Unilever PLC (Unilever). Through the new corporate

identity, the company expected to benefit from the global brand positioning

of Unilever without compromising on its local heritage.

'Our new identity will help us confidently position ourselves in every

aspect of our business,' said Doug Baillie, chief executive of Hindustan

Unilever, which has some of 25 different icons representing the

organization and its brands.

(ii) The

logo, trademark, graphics, slogans or

imagery

A symbol or logo can be an anchor that keeps a brand seemingly stuck in the

past unless it is updated. Good examples of where this has been addressed

successfully have been the Pillsbury Doughboy and Betty Crocker, whose

images have evolved to keep up with the times. When it comes to slogans,

companies will often change their slogan to keep abreast of the times.

Companies whose slogans have changed regularly over the years are Pepsi

and coke.

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Some more examples:

UTI has now changed to AXIS with all new logo, color, and graphic .The

bank has retained the burgundy colour, but has changed the logo. The logo

uses the alphabet 'A' from the word Axis. The logo depicts a strong growth

path for the bank supported by a strong base, indicating that the bank is

moving on from a position of strength. Earlier, the bank's logo used the

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letters U, T and I. The bank is likely to spend around Rs50 crore in the re-

branding exercise.

Hutch decided to change colour for two reasons. First, because of the

decision to rebrand Orange as Hutch, and with the colour being such an

integral part of the brand name, a change was required. And secondly, with

Hutch sharpening its peg and penetrating the rural market, it was time to

refresh the brand. "Painting the Town Red” was. Vodafone trademark deep

red speech mark. .

BSNL new logo : Uniform branding for various BSNL products and

services. Bsnl has introduced new logo for its various products and services.

BSNL has decided to have Uniform Branding for various products and

services. New Brand names were used.

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BSNL Broadband Service is no longer DATAONE. Its BSNL Broadband

now!!

BSNL Wireless in Local Loop Service “TARANG” is known as BSNL

WLL

BSNL Basic wired Telephone Service (landline) is known as BSNL

Landline in place of B-fone.

HLLTO HUL-- In June 25, 2007, HLL switched to a new name, a new logo

which was symbolic of the company's mission of 'Adding Vitality to Life'.

The new logo comprises of 25 different icons representing the organization,

its brands and the idea of vitality.".

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Slogans:

When it comes to slogans, companies will often change their slogan to keep

abreast of the times. Perhaps one of the best examples of this has been Coca-

Cola, whose slogans have changed regularly over the years.

Some of Coca-Cola's slogans:

1893: The ideal brain tonic.

1960: Coke refreshes you best.

1976: Coke adds life.

1982: Coke is it.

1988: You can't beat the feeling.

1990: You can't beat the real thing.

1993: Always Coca-Cola.

2000: Coca-Cola enjoy.

Imagery:

Finally, imagery and associations are a powerful means of re-branding. For

example, Levi's use of hip urban imagery in their advertising proved to be a

powerful image changer and an effective way to move them away from the

traditional association with miners and ranchers to reach a younger and

trendier audience.

(iii) Company livery :

Company livery and packaging are powerful mediums to rebrand. Similarly,

staff uniforms can be used as a means of a re-branding as done by

companies.

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Air Deccan : The branding exercise encompassed areas such as changing

the look and feel of the aircraft, including interiors, ticketing and check-in

counters and staff uniforms when the former merged with was acquired by

the UB group. The colors red and white will dominate the changes, with the

aircraft, leather seats, carpet, boarding passes and airport counters painted

red.

Mc Donald’s: Similarly, staff uniforms can be used as a means of a re-

branding as done by companies like McDonald's over the years. McDonald's

has always tried to adapt its uniform to the era. In the late 1970s, it

introduced kick flares and chocolate brown tones. In the 1980s, it changed

the uniform to focus on primary colours and pin stripes, in line with the

tailored feel of the power-suit boom. In the two decades that followed, the

fast food brand tried to bring in a softer look to distance itself from the

1980s power-look. In April 2008, the fast food chain unveiled its latest look

for the U.K MCD. It is designed by celebrity designer Bruce Oldfield, who

has dressed the likes of the late Princess of Wales, Sienna Miller and

Anjelica Huston. His brief was to create a contemporary look that fitted with

McDonald's revamped, modernized retail outlets. Uniforms now incorporate

black and mocha polo shirts, baseball caps, fashion scarves and aprons.

Managers will stand out wearing black suits with white or cappuccino-

coloured shirts.

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The Coca-Cola company has constantly altered their packaging design to

meet the changing tastes of their market.

iv) Advertising—

Advertising is probably one of the

most frequently used vehicles for

rebranding, as it is fairly easy,

flexible and quick to change. It is a powerful way of reaching a broad or

targeted audience quickly and is effective at signaling a change in

positioning, however real or broad that may be. There are many examples of

where advertising has either repositioned or strengthened brands.

VODAFONE is really successful to make consumers forget hutch name

through its advertisement and promotional strategies. Vodafone spent about

Rs 300 crore for the Rebranding exercise in India. Vodafone has booked lots

of TV spots across various Indian TV channels for its Rebranding exercise.

Ogilvy and Mather have created mix of a 60 second film, along with many

10 and 5 second films, which is shown on various channels. The TV

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commercials show the mutt; used for the award winning hutch TV

commercials as well, leave a pink and green colored dog kennel, wandering

everywhere, and returning to find a new red and white coloured home with

more than one opening.

ACCENTURE

Accenture is a unique marketing case study because of two reasons. First, it

is one of the most aggressive corporate brands in the service industry

globally and, second, the rebranding exercise which it undertook in 2001.

Accenture was formerly known as Andersen Consulting and it was the

consulting arm of Anderson Worldwide. Anderson Consulting came into

existence in 1989 when the consulting practice of Arthur Andersen was

hived off to form a separate company. Both Arthur Andersen and Andersen

Consulting were independent business units under Andersen Worldwide.

The consulting boom of the 1990’s helped Andersen Consulting to build a

strong brand equity across various consulting domains. This prompted

Arthur Andersen also to enter the consulting domain, leading to a messy

fight between the two units, which culminated in the arbitrators’ court.

In 2000, the arbitrator ruled that Andersen Consulting was granted

independence from Andersen Worldwide, but had to forgo the brand name

in favour of Andersen Worldwide. This forced the consulting firm to scout

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for a new brand name and identity. It ended with the choice falling on the

name ‘Accenture’. Incidentally, the name was suggested by an employee by

name Kim Peterson.

The new brand name took effect from January 1, 2001. During the first three

months, 6000 TV spots were aired and over 1000 print ads were splashed

across the world. The entire campaign cost the company around $175mn.

The brand took the tagline: “High performance Delivered”. By the end of

2001, the brand had achieved the same recall and equity as the earlier name

– ANDERSEN CONSULTING

The brand promotion now revolves round ace golfer Tiger Woods, who is

the brand ambassador. Since 2003, he has been an integral part of

ACCENTURE branding. Tiger Woods is the embodiment of high

performance; so is ACCENTURE. The latest campaign runs on the theme

“We know what it takes to be a Tiger.”

ACCENTURE came to India in 2005. The brand now has substantial

business in country and is running its campaigns aggressively in the Indian

market.

CANARA BANK

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CANARA BANK was established in 1906 as CANARA BANK HINDU

PERMANENT FUND. In 1910, it was renamed as CANARA BANK LTD.

It was nationalized in 1969. CANARA BANK is now one of the latest in the

list of public sector banks that have gone through a bank makeover. Earlier,

STATE BANK OF INDIA, BANK OF BARODA, INDIAN BANK and

SOUTH INDIAN BANK had carried out repositioning exercises.

The new logo consists of two entwined triangles – one blue and one yellow

(as in the logo above). The new logo, designed by Ray + Kesavan WPP, is

aimed at giving this 100 – year – old brand a youthful look. The blue

triangle aims at conveying stability, scale and depth; while the yellow colour

spreads optimism, warmth and energy.

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The brand is also running a series of advertisement campaigns as a part of

its image makeover. The ads now talk about the “Change”. The new

communication is based on the theme that ‘it is easy to change for someone

you care about.’ And the bank has changed for the sake of its customer.

The advertisements depict various instances where people change for the

sake of their loved ones. One advertisement features a husband cooking for

his wife, another one shows a wife learning the basics of cricket so that she

can enjoy the game with her husband. Yet another advertisement shows a

south Indian mother – in – law who learns Punjabi as a gesture for

welcoming her new daughter – in – law. These ads make an effective

connect with the audience and convey the intended message about the

transformation of CANARA BANK.

REBRANDING : HITS AND MISSES

The Hits:

The Godrej Magic

The case of Godrej reinforces our faith in the concept and its success. A 110

year old iconic brand went for a makeover. Godrej, the behemoth present in

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around 27 product categories with close to 100 products ranging from locks

to homes, soaps to animal feeds to mission critical rocket engines got a new

look. The famous Godrej logo which was actually founder Ardeshir Godrej’s

signature was infused with animation and colours to give it a more

contemporary look. Rather than completely changing the image of the brand

—and thus alienating its loyal customer base built over time—Godrej

decided to simply change the colour of its logo to the vibrant hues of green,

blue and ruby.

The company’s old logo which represented the virtues of quality and trust

were given a fresh contemporary look to reflect the new positioning of

“Brighter Living”. Youngsters perceived the company as belonging to their

grandparents’ generation- manufacturing locks and almirahs, but with the

increase in the product portfolio the company needed to create a refreshed

image. Hence this campaign was well placed to convey this message of

change and renewed vitality.

The logo with the jazz and vibrant colours has worked wonders in

establishing a better connect with the younger consumers and yet retain its

loyal customer base. The new logo also helps to address the issue of Godrej

being perceived as a company lacking innovation. The corporate rebranding

strategy adequately portrays the new product development taking place in

Godrej.

In situations similar to Godrej’s where firmly established brands become out

dated, rebranding resembles identity makeovers. Godrej’s rebranding

campaign is proof that we don’t have to lose out the old, in order to gain the

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new. For brands like Godrej heritage is important and it would be foolish to

get rid of it, in order to stay relevant with the times.

With majority of the India’s population under 35 years of age, the company

has timely recognized the need for generating a younger customer base for

staying in the competition. If the brand represents an interface, through

which the consumer interacts with the organization, then the logo is a useful

touch point. However, the rebranding strategy should not be limited to the

mere change of the logo; the change should be inculcated within the function

of the whole organization. Godrej is strengthening its brand by leveraging its

aerospace expertise through advertising to enhance the ‘advanced

technology' perception among consumers. Through Godrej Eon in

refrigerators, air conditioners, washing machines, DVD players, microwave

ovens and colour televisions, Godrej is talking technology which will help it

gaining market shares in various sectors where its new products are being

launched. The company has proved it can understand consumer India well

and cater to its needs by its successful rebranding campaign.

The CCD Story

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) was a name

unheard of till 1996 when the first Café Coffee Day outlet was inaugurated

in Bangalore. Boasting of more than 1000 cafes in 141 cities, CCD, as it is

called, is proof of the increasing purchasing power of today’s youth.The

company was initially perceived as a South Indian coffee joint where serious

business discussions could be carried out. It was CCD’s belief that there was

a latent market segment in teenagers which the company could target.

Realizing this fact, the company went for a complete brand overhaul in

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2002. CCD’s earlier logo was quite simple with a simple red square having

white streak and ‘Coffee day’ written at the bot tom. The new logo

incorporated red, white and green colours with emphasis on the word ‘Café’.

The colour red signified passion while the colours green and white signified

the long heritage of CCD and its purity. CCD had put an emphasis on the

word ‘Café’. It was a place where one could go with a whole bunch of

friends at any time of the day and have a good time, over coffee.

Red square stands for leadership,passion.

White swirl implies purity of purpose, invigorating sense of coffee.

Green stroke depicts 125 years of coffee growing heritage.

The font used for Café is called SLURRY.

After a successful rebranding campaign, the

company is currently in the midst of another

rebranding propaganda. The new logo is a

‘Dialogue Box’, with the words Café Coffee

Day written in a distinct, specially created

font, which symbolizes the company’s motto

of pro viding a perfect place for relaxation

and conversation. 180 new retails outlets will be rolled out by 2015. Out of

the 180 outlets, 65 would be new lounge format. Also other features such as

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new smart menu, take away dining, and comfortable dining would be part of

the rebranding.

CCD has proved yet again that it understands the youth. The youth tend to

get bored with similar decorations and ambience after a few visits. Keeping

these useful insights in mind, a fresh rebranding campaign was launched.

The earlier rebranding in 2002 proved to be very successful for the company

considering the growth from 14 cafés in 6 cities to around 1000 cafes in

2010. While the full impact of the current rebranding is yet to be seen as

implementation has not been completed, initial consumer reactions are very

positive.

The misses:

The Tropicana Episode

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A recent example of a rebranding exercise that fell flat was PepsiCo’s

Tropicana juice brand. In early 2009, Pepsi relaunched Tropicana with new

packaging and created a new advertisement to promote it. Tropicana’s whole

packaging was overhauled and a rebranding campaign termed as the

“Squeeze Campaign” was launched. The old design of an orange with a

straw in it was replaced with a glass of orange juice. Also, the normal screw

cap was replaced with a squeezable cap which had the appearance of half an

orange.

As Tropicana’s case reinforces, relaunch of a trusted and well established

brand can be tricky. The redesign was done to have a better connect with the

customers and to present a clearer image of what the brand meant to

customers. When the new packaging was introduced, consumers were quick

to register their displeasure. They did not like the new packaging and were

quite vocal about it. It was all over the internet and PepsiCo was bombarded

with emails, letters and phone calls of complaints. People went to the extent

of commenting that the new packaging was too ‘generic’ and resembled a

store brand. The packaging which made Tropicana stand out on the shelf

was lost. In addition, there was criticism over the fact that the same glass of

juice imagery was displayed on all of Tropicana juice varieties. The previous

design had more obvious colour differentiation for each variety.

PepsiCo was forced to respond to the heavy criticism and reinstated the old

packaging imagery, as a means of placating consumers and creating positive

public relations. This case spotlights the importance of assessing the realities

of the marketplace and recognizing what is important in rebranding a

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product. At the end of the day, nothing is more important than consumer

insights.

Tropicana’s packaging story was interesting on many fronts. It was one of

the most blogged topics in February 2009. The consumer’s reaction and the

publicity it generated definitely had one positive for Brand Tropicana. It was

proved beyond doubt that the consumers were attached to the brand, and

Tropicana could not rebrand without the consumer’s approval

Tommy Hilfiger’s Fiasco

Tommy Hilfiger’s logo has always been its key branding strength.

Customers would associate the logo with the symbol of the US flag and

could relate to it as US citizens. However in 1999, Tommy Hilfiger

suggested that the logo be changed to give it a trendier feel. He believed that

the customers wanted rebranding. There was an overhaul in the brand

philosophy and the Tommy Hilfiger tried to become trendier and competed

with chic brands such as Gucci and Prada. The company launched ‘Red

Label’, a sub brand without the Tommy Hilfiger logo, which targeted the

upper segment of the society.

Unfortunately, the strategy backfired as the average customer could not

afford this range. Customers could not relate with this new range as it lacked

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the very logo responsible for Hilfiger’s success. The company’s share price

fell from US $40 per share in 1999 to US $22.62 in 2000 which further

reduced to half by the end of 2000. Sales reduced drastically and several

showrooms were shut down. Also, location strategy of the company was

flawed. Brand Hilfiger was associated with the youth and in locations such

as Rodeo drive where stores were set up, the average age in the

neighbourhood was about 50 years. Obviously, the response was poor.

The solution in this case too was no different from Tropicana. Tommy

Hilfiger reverted back to its original classic and preppy feel which the

customers could relate to. However, Tommy Hilfiger took a significant hit

because of its rebranding campaign. The company lost a lot of customers

and it cost Hilfiger a lot of time and resources to win the customers back.

The lesson to be learnt from this case is that sometimes it is best to let things

be as they like. Maybe that’s the way they are meant to be.

Consignia--A post office by any other name:

When the UK state-owned Post Office Group

decided to change its brand identity, a new name

was the first on the shopping list. The reason for

the brand makeover was partly to do with the fact

that the 300-year-old Post Office Group was no

longer simply a mail-only organization. It had

logistics and customer call centre operations, and

was planning a number of acquisitions abroad.

There was also growing public confusion about

what the purpose of the organization’s three arms – post offices, Parcel

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Force, Royal Mail – actually was. On 9 January 2002, the group’s chief

executive, John Roberts, stood outside his organization’s headquarters and

declared that the name was Consignia.

The reaction from the media and the general public was considerably less

sympathetic. Some thought it sounded like a new brand of aftershave or

deodorant. Others thought it was the name of an electricity company. The

BBC’s Web site referred to ‘the most notorious ever Post Office robbery –

that of the name itself.’ The Web site also asked the British public to e-mail

their opinions of the name. Their responses were almost unanimously critical

of the re-brand.‘Consignia doesn’t sound like the national institution that the

Royal Mail does. Instead, it reminds me of that brand of anti-perspirant,

called Insignia,’ wrote one. Soon it became clear that the name change was

not having a positive effect. Although the Post Office had shifted to become

a plc, the public still felt it belonged to them. If they didn’t like the new

name, they therefore felt it was their right to be angry.

As the Post Office’s corporate performance started to falter, the name was

blamed even more. The news was lost on some people, as the Consignia

brand had failed to become a household name. ‘I didn’t know that the Post

Office wasn’t called the Post Office,’ one member of the public told a radio

news interviewer at the time of the announcement. ‘Everyone I know calls it

the Post Office.’

Lessons from Consignia

Don’t change for the sake of change. The public perception was that the

whole rebranding exercise was pointless. This impression was confirmed by

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a lack of advertising. ‘We thought what would be the point of advertising if

all you would be saying is this name change is happening which is not going

to affect you?’ justifies Dragon Brands’ Keith Wells.

Realize that business realities have an impact. The new brand suffered due to

the fact it coincided with a poor period of corporate performance.

CHAPTER 6: LESSON LEARNT

WHY REBRANDING OFTEN FAILS??

As competition heats up and sales start to stagnate, companies often seek to

breathe new life into the brand through rebranding. In all too many cases,

however, those expensive rebranding efforts fail to yield the desired business

results. Here are some of the key reasons rebranding often fails

Lack of True Change

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Sure, sometimes rebranding is done solely to sharpen the image of a

company or brand; after all, periodically things need to be freshened up.

However, unless you operate in the world of packaged goods, don't expect

great things from launching some new designs and fresh copy.

Rebranding signals change. A new image will cause people to take a fresh

look at you—and people's primary motivation in taking a new look is to see

what's changed. If you're the same old place dressed up in new wrapping and

ribbons, you'll merely confirm the existing position you own in their minds.

You'll have wasted a valuable opportunity to change their perceptions.

Making Too Big a Leap

Rebranding should be about truly changing perceptions in the marketplace—

changing the position you own in people's minds. That position, however,

isn't dictated by you. It's based on what others believe about your company;

it's something granted by those in the marketplace. Corporate insiders often

lose touch with reality and begin to believe their visions of market

dominance. Marketers and corporate executives get consumed with what

they would ultimately like the company to be versus the position it can

reasonably attain in the marketplace at the present time: i.e., the next

permissible step in the company's evolution. When rebranding, keep your

primary focus on the achievable, not the aspirational. If you make too big a

leap, your market won't believe you.

Lack of Internal Alignment

If rebranding is an initiative implemented solely by the marketing

department, it's likely to fail. As noted above, rebranding should signal

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change—and that change should be evidenced throughout the organization

and conveyed through every brand touchpoint. That includes sales, finance,

engineering, customer service, manufacturing—basically everyone. Words

and images rarely do—unless they're backed up by actions that support

them. Unless everyone throughout the organization understands and delivers

on the promises implied by your rebranding, not much will change. In fact,

you'll probably do more damage than good. Better to do nothing than imply

a promise and not deliver.

Failure of the CEO to Champion Rebranding

While rebranding may be born in the marketing department, unless the CEO

is the champion of that effort it will likely die there, too. It is not enough for

the CEO to "support" the effort from the corner office. The CEO is the only

one who can drive change in all functional areas of the enterprise.

As the chief branding officer, the CEO needs to set the vision and lead the

charge, ensuring that products, services, people, and resources are aligned to

deliver on the promises implied in the rebranding.

Failure to Clarify Positioning

Rebranding should always clarify and refine your positioning. Your goal in

rebranding should be to make it easier for customers and prospects to

understand exactly why your company should be one of their top choices—

why there are few credible substitutes for your company in the

market.Merely claiming to be the best is meaningless—and using empty

words like "best value" and "exceptional customer service" do nothing but

heighten skepticism.

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Use rebranding as an initiative to force you to focus, to better define and

support your expertise in a clear and compelling manner. Doing so will

require you to draw tighter boundaries around your stated expertise—and

that's likely to scare you. Conventional wisdom is that more generalized

positioning gives a company more opportunities. The reality is generalized

positioning positions a company as, you guessed it, a generalist. To win

business, generalists have to not only win over other generalists but also

have to beat out specialists.

If, when rebranding, you're not scared, that rebranding probably won't create

meaningful change in your organization or in the marketplace.

TOP 20 MISTAKES COMPANYS GET ENGAGED IN DURING

REBRANDING

1. Clinging to history.

Rebranding well means staying relevant. Assumptions made when the

brand was established may No longer hold true. Analyze changes in target

markets when exploring opportunities for brand Expansion, repositioning

and revitalization.

2. Thinking the brand is the logo, stationery or corporate colours.

Brands encompass everything from customer perception and experience

to quality, look and feel, customer care, retail and web environments, the

tone and voice of communications, and more.

3. Navigating without a plan.

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Effective rebrands rely on a creative brief to keep everyone focused as the

project progresses. Include sections for a situation analysis, objectives, target

markets, budget and resources, timeframe, point person, known parameters,

approval structure, stakeholders and metrics for assessing results.

4. Refusing to hire a branding consultant without industry experience.

It’s ok to consider an agency that hasn’t worked in your specific industry

before. Sometimes it’s ideal – especially if you’re serious about a

turnaround. Smart companies recognize the value of a fresh perspective.

5. Not leveraging existing brand equity and goodwill.

Dismissing brand equity when rebranding alienates established customers,

while unnecessary overhauls can irreparably damage a brand’s perception.

Consider the needs and mindset of the target market carefully before digging

into the process. Sometimes a small evolution – or a new coat of paint – is

all that’s needed to rejuvenate and make a brand relevant.

6. Not trying on your customer’s shoes.

Simply calling your own 800-number or receptionist may reveal

challenges customers face and inform your rebranding strategy. Take the

time to navigate your own website, buy your products and return something.

Better yet, ask a friend or family member to do so and learn from their

experiences.

7. The rebrand lacks credibility or is a superficial facelift.

The rebrand’s story must be believable given the existing brand

experience and customer perception. It must also hold credibility internally.

If employees who live the brand day-to-day don’t believe, the target

audience won't either.

8. Limiting the influence of branding partners.

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Good branding consultants are more than graphic designers. The best ones

help develop new products, expand demographic focuses and even

streamline business operations. Rein them in when needed, but don’t limit

their areas of influence.

9. Believing rebranding costs too much.

Good thinking doesn’t have to come with a multi-million dollar payout.

You can get good thinking and solid strategy from small and talented

branding agencies, consultants and in-house talent.

Consider university students or small firms for cost-effective results.

10. Not planning ahead for adaptation.

It’s tempting for team members to walk away after the final

presentation, however this is just the beginning of the final stretch. The

implementation process may require adaptation as the

rebrand rolls out. Acknowledge the need to keep the team and consultants

together throughout implementation.

11. Bypassing the basics.

The value of perfecting your physical environment, marketing materials,

website, etc., is decreased if your customers languish on hold for inordinate

amounts of time. If your invoices and contracts are written in 7-point legal

jargon, the brand experience declines. Keep all customer touch points in

mind when rebranding.

12. Not calling the call center.

Often ignored in brand strategy sessions, customer service and other

front-line staff can yield valuable information. This is the proverbial buck –

the place where customers are the most honest, no matter what research

indicates.

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13. Forgetting that people don’t do what they say.

Use caution when basing rebranding strategies on focus group-type

research. Unless you’re physically in the customer’s environment observing

them using your product or service, you’re not getting the full story. Actual

observation, while not perfect, will get you a lot closer to the right solution.

14. Getting strong-armed or intimidated by consultants.

It’s the client's responsibility to reel things in when necessary. You still

know the most about your brand and organization, the value of a non-

immersed, fresh perspective notwithstanding.

15. Putting the wrong person in charge.

Assuming you’ve hired capable-to-outstanding branding consultants, the

quality of the work delivered depends on sound, knowledgeable project

management. Make sure your internal point person has the skills, time and

resources to drive the agency to its most effective work yet.

16. Strategy by committee.

Too many opinions delay the rebranding process and diffuse the focus

needed to achieve ROI. Keep those with critical approval authority to an

efficient shortlist, and assemble the smallest, most essential project team

possible. Include a mix of levels – not just executive.

17. Rebranding without research.

There’s a lot of lip service about customers, but in brand strategy

sessions they’re often forgotten. Current and prospective customers should

be front and center when creating solutions. After all, the customer will be

your ultimate test.

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18. Basing a rebrand on advertising.

An ad campaign and a slogan do not equal brand positioning. Brand

strategy should lead advertising – not the other way around. Sometimes the

most effective rebrands don’t include traditional advertising.

19. Tunnel focus.

Focusing solely on your own industry can be limiting. When rebranding,

cross-pollinate your thinking with what leaders in other industries are doing

in regard to customer experience, retail experience and customer care. Pull

in thinking from different industries and encourage your agency to do so.

20. Believing you’re too small to rebrand.

Every brand needs refreshing to stay relevant as markets evolve. Smaller

companies and non-profits are not immune. Like larger brands, they too

have brand positions that need to be enhanced. Define your brand or be

defined

DO’S AND DON’T’S OF REBRANDING

DO’S

A successful rebranding process must take care of the following:

Intensive Strategy: The Company must be

ready to spend a significant amount of

money in advertising, communications, and

promotion. This will enable the brand to get

re-staged.

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Gradual Restage: This can be done with a limited overall marketing

investment. This requires a low budget, but a considerable amount of

time, and should be done on a continuous basis.

DON’TS

Non-looking through the customer's perspective: The needs and

mindset of the consumers should be properly evaluated before any

changes are implemented. Rebranding strategy of the company should

be understood and accepted by the consumers.

Lack of credibility and facelift: The reason for rebranding should be

believable and acceptable by the consumers. It must have a

credibility; internally. If the employees of the company do not believe,

the ultimate consumers would not have faith in the product either.

Inadequate branding process: A brand only becomes successful

when supported with adequate branding. To streamline business

operations, and expand demographic focuses, branding is necessary.

Intimidated by consultants: Notwithstanding consultants being hired

for rebranding, it is the owner who knows more about the brand than

anyone else. The internal point person should be checked for his

skills, time and resources.

Rebranding without research: Every brand needs refreshing to stay

alive in the market. They need to be positioned and enhanced. But

adopting a change without doing proper research may prove to be

disastrous.

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CHAPTER 7: RECOMMENDATIONS

"Rebranding is not just about putting up banners and hoardings to

communicate a new brand name. “The brand needs to deliver its new

identity at every touch point." That means employees have to ensure the

brand is living up to the new promises it is making.

Don't confuse rebranding – which is a comprehensive, frequently expensive

change of strategic direction for a company - with the simple need to update

your look. A simple refresh of design elements or slight naming alteration,

which may be all that is required, is not the definition of rebranding.

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Rebranding should only be undertaken based on a proven need to alter

course (e.g. new market, new trend, new product direction). Given changing

market conditions, it may even be crucial. Rebranding should be based on

sound strategy supported by facts related to sales and profits, not driven by

organizational fatigue. Ideally, everything should be changed at once. For

B2B companies, this starts with all sales tools and the website.

Be prepared to lose some customers. The more dramatic the change of

strategic course, the more customers will probably become alienated and

abandon your product or service. No worries, as long as you embody and

deliver on your new brand promise to the new target audience. Branding is

about using mind share to win market share. Rebranding is not an easier task

and requires lots of investments. Before going for rebranding it must be

analyzed WHY, WHAT, HOW, WHEN should be rebranded so that

investment enforced during rebranding converts into profit for company.

.CHAPTER 8: CONCLUSION

Rebranding is a double edged sword. Used wisely, it could rejuvenate the

brand and widen consumer base. However, there are too many rebranding

mishaps in the history of marketing. Rebranding must be an absolute

necessity; else it ends up diluting the brand equity. The importance of

market research in a rebranding strategy cannot be overemphasized. At the

end of the day, the customer is the king. When he accepts the rebrand and

deems it necessary, it is a success, else a failure.

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BIBLIOGRAPHY

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WEBLIOGRAPHY

www.rebrand.com

www.google.com

www.themarketers.in

iims-markathon.blogspot.com

www.businesszone.co.uk

www.businessweek.com

businessuitemagazine.wordpress.com

www.mudvalley.co.uk

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http://www.mudvalley.co.uk/

http://businessuitemagazine.wordpress.com/

http://www.businessweek.com/

http://www.businesszone.co.uk/

http://iims-markathon.blogspot.com/

http://www.themarketers.in/

http://www.google.com/

http://www.rebrand.com/

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