Deloitte Digital announced on July 15 that it would be rebranding for the first time in 13 years. The term rebranding comes with a lot of mixed reviews. Over the last ten years there have been a variety of horror stories surrounding companies attempting to ‘modernize’ their image and the disasters that resulted. But, there have also been quite a few success stories- where companies have completely changed their image and turned impressive profits.
So what should Deloitte, or any company considering rebranding, keep in mind to ensure that modernizing their brand ends in success instead of failure?
1. Do not rebrand just for the sake of rebranding
Companies should only rebrand if there is a need for it. Rebranding simply because ‘it has been awhile’ can come back to bite you and have a devastating effect on customer brand loyalty.
PepsiCo ran into this problem in 2010, when it rebranded its Tropicana orange juice. They ditched the straw-in-orange container design most Americans have known and loved since childhood for a sleeker, more modernized look. Needless to say, it did not go over well. Sales dropped by 20 percent before PepsiCo reconsidered and brought back the original logo.
However, if your company is not reaching the appropriate target markets anymore, or has become a brand of the past, a revamp can do wonders for bringing the company into a new light.
For decades, Old Spice was considered ‘your grandfather’s deodorant’, but in 2010 Old Spice launched an ad campaign starring former NFL player Isaiah Mustafa with the opening line “Look at your man, now back to me.” Old Spice was able to reposition their products in the market after the ad went viral and the grandfather connotation was forgotten, spiking sales by 11 percent in 12 months.
2. Brand identity is important
This is especially important for well-known brands. As a marketing or PR professional, you have to understand how your company is perceived by consumers. If your company is well-established in its market and known for reliability, changing a timeless logo or other prominent parts of the brand can cause a huge customer upset
Take Gap, for example. In 2010, Gap was part of one of the fastest branding turnarounds, and disasters, of all time. They launched a new logo that was supposed to be the start of a companywide reinvention. The logo was so hated by the public that they reverted back to the original design just six days later and stopped the company rebranding until further notice. The strong relationship between the Gap logo and Gap’s overall brand identity was overlooked when planning for the rebranding.
What Gap could have done is rebranded without changing the logo by focusing on changing the way the company is viewed. Repositioning a company is often more effective for established brands than changing prominent logos.
Avis Car Rental provides a striking example. After years of being second to Hertz, in 1962 Avis decided to try a new direction, and in a stroke of genius, rebranded the entire company under the slogan “When you’re only No. 2, you try harder. Or else.” Changing their slogan and positioning their company as humble and hardworking caused the market-share gap between Avis and Hertz to go from 61-29 to 49-36 and tripled revenue.
3. Do not rebrand the company as something it is not
Attempting to pull the wool over consumers eyes and convince them that your company’s values are different than they are will, first, probably will not work, and second, will cause a lot of negative feedback.
BP made this exact mistake. In 2000, BP changed its logo of 70 years to the current Helios logo it has today. The logo was supposed to be a reflection of BP’s green initiative. The problem is that BP is an oil drilling company, and there is nothing green about drilling for oil. It did not help that ten years later BP was responsible for the largest marine oil spill in history, which prompted Greenpeace to start Beyond the Logo, a competition that challenged artists to create a BP logo that ‘truly reflected the company’.
In contrast, reminding consumers of what your brand values can have a positive impact. If public perception of your company has strayed from the company’s ideals, then rebranding can be as simple as trying to return the brand to its original message.
Burberry provides a good example of this. As a luxury brand that is world renowned, it ran into an image problem when their signature tan, black and red plaid became affiliated with British gangs. To fight this issue, Burberry simply reminded consumers that they were, in fact, a luxury brand by revamping their old designs in a sleek and stylish way and enlisting the help of well-known celebrities for their ad campaigns. Sales skyrocketed and the rumors of gang affiliation completely disappeared once the rebranding campaign was complete
Rebranding can have a huge impact on a company, positive or negative. Keeping the tips above in mind can help make the transition easier, though there is never a guarantee rebranding will go over well. Deloitte’s rebranding campaign will be something to watch over the next few weeks as they have decided to implement their changes slowly. Whether or not it is a success, only time will tell.
Check out our other posts on building a trusted brand and increasing brand awareness.