Rebranding

SERM

SWBAT• Define the concept of rebranding

• Identify reasons why companies would rebrand

• Identify the effects of rebranding on emotional associations and loyalty

What is Rebranding?• The creation of a new name, term, symbol, design

or a combination of them for an established brand

• Intended to develop a differentiated, or new, position in the mind of the consumers and competitors.

• Can be applied to:• New products• Mature products• Products still in development• The overall company

What is Rebranding?• Changing more than visual identity

• Can involve dramatic changes to:• Brand Mark• Brand Name• Image• Marketing Strategy• Advertising Themes

Why Rebrand?

1. Need to differentiate

2. Shed a negative image

3. Emergent situations

4. Customer base has changed

5. Product line has changed

6. Outdated look

Need to Differentiate• Why do companies differentiate?• Stand out from competition• Satisfy customers’ unique needs or preferences

• Can include changing their logo or going green

• Helps attract more customers

• Helps attract more desirable employees

Negative Image• Firms will rebrand intentionally to shed negative

images of the past

• Help hide malpractices and avoid/shed negative connotations• Example: AIG• AIG Financial Advisors Sagepoint Financial• AIG Retirement VALIC (Variable Annuity Life Insurance

Company)

Emergent Situations• May occur unintentionally from situations such as

“Chapter 11 bankruptcy”• Chapter 11: allows company to function while they pay off

their debt

Emergent Situations: GM• General Motors• Filed for bankruptcy in July

of 2009• Decided to rebrand by

focusing on certain car lines• Sold Saab Automobile and

discontinued the Hummer, Pontiac and Saturn brands

Customer-Base Changed• May have started out marketing to a certain

demographic

• Companies will notice other demographics, that were untargeted, purchasing their products or visiting their stores

• Rebranding lets you speak to the audience you need to draw in

Product Line Has Changed• Companies may find a product that they do not

currently make, but believe to be profitable

• May require changing the company’s image to reflect the new products being produced

Outdated Look• Some companies’ images may not have changed

since they began

• In an ever-evolving world, keeping up-to-date with trends is important

• Companies want to stand out to all of their targeted consumers

Rebranding In Sports• Washington Wizards• In May of 2011, the Washington Wizards released new

uniform schemes that will be used for the 2012-2013 season.• They are a reference to their old colors when they were

the Bullets.• Ted Leonis, who owns the Capitals as well, decided on the

change to match the flag colors

Rebranding In Sports• Tampa Bay Rays• Changed from Devil Rays in 2007• Also changed primary colors and logo• The change was described as a “beacon that radiates

throughout Tampa Bay and across the entire state of Florida”• Wanted to make a change after 10 terrible seasons

Rebranding In Entertainment• Comedy Central• Changed their logo on December 10, 2010• Designed to represent the network’s unique brand of

comedy• Looks like Copyright symbol• More universal (can be scaled, used on different

platforms, etc.)• Lost the cartoonish look of the original

How Are Consumers Affected?• Emotional Associations

• The brand stands for something important to them.• The brand is intense and vibrant.  It connects with people on multiple

levels across several senses.• The brand is unique.• The brand is admirable.• The brand consistently interacts with them.  It never disappoints

them.• The brand makes them feel good.

• Rebranding can cause many of these associations to be negatively affected.

• However, it could strengthen them and create a better connection with consumers.

How Are Consumers Affected?• Brand Loyalty• Consists of a consumer’s commitment to repurchase or

otherwise continue using the brand and be demonstrated by repeated buying of a product/service, or other positive behaviors such as word of mouth advocacy.• These customers are usually willing to pay higher prices

for the brand

• Changing any part of the branding strategy may throw consumers off, and hurt brand loyalty.

• Gap:

This change caused a lot of problems with loyal consumers