Whether you’re a startup or a Fortune 500 company, the time to rebrand inevitably rolls around.

Rebranding is equal parts a risk and an opportunity. On the risk side, you face launching a brand that completely misfires. On the opportunity side, your brand has potential to strengthen its presence, reputation, and image in the eyes of your customers.

Overall, a rebrand conveys a declaration to your company’s overall commitment to growth. And to execute a successful rebrand, you need to ensure you’re honoring your commitment to your new brand without completely abandoning the old.

In this article, we discuss why, when, and how to rebrand your company in order to achieve success in an increasingly competitive marketplace.

The “Why”

Why even rebrand if there’s an inherent risk attached?

Well, the answer is actually quite simple: Change Is Bound To Happen. Conventional marketing wisdom tells us that reimagining our brand is a rite of passage at some point down the road.

Think about it. Technology changes, buying behaviors change, and people change. And just as all these variables change, brands need to make adjustments in order to keep up. 

These are some of the most common reasons you should consider a rebrand:

• To Reposition Your Brand

When you started your business, you most likely established a mission statement, vision, and set of values to provide a foundation for which your company to grow. But as your business grows and as leadership changes, so does your brand. If your logo, messaging, tagline, or website no longer speak to the direction your brand wants to go in, then it’s time to reposition your brand in the marketplace.

• Your Current Brand Is Limiting 

Maybe you’ve expanded your offerings or outgrown your current market. Or maybe, your business is scaling up to a national or global level. Business growth is exciting — and it may just be a signal that your brand needs a facelift or slight refresh. 

• Your Target Demographic Has Changed 

As it grows, a company may want to rebrand to broaden its reach or appeal to a new demographic. Over the past ten years, many established companies have undergone rebrands in order to cater to younger generations. Adidas, for instance, evolved to capture the athleisure segment adored by millennials.

• Mergers, Demergers, and Acquisitions

Changes in business ownership or structure generally call for a rebrand. In the case of a merger, a brand’s name may change and other elements should be reevaluated as well.

• The Brand Is Dated

A big challenge faced by marketers is staying contemporary and fresh, so it's no surprise modernizing is one of the most common reasons for undergoing a rebrand. With fonts, styles, and trends routinely changing, it’s important to reflect these in your brand.

It may seem like there’s a whole slew of reasons to rebrand, and a whole bunch of benefits as well. But on the flip side, there are a couple surefire reasons not to rebrand:

• Don’t Mess With A Sure Thing

If your brand is positioned #1 in its respective industry, generates adequate profits, and can be easily identified by millions of people, this is your sign of a “sure thing.”

• Don’t Consider It Another Marketing Campaign

Rebranding is not just another campaign to generate buzz or raise brand awareness. It’s effect is felt long term, so a rebrand should not be a reaction to low sales or a temporary lull in your revenue. Many rumors claim that Gap underwent a rebrand to bring itself back into the media spotlight. They lost nearly $100 million when its logo relaunch was met with customer backlash in 2010. Its new logo was so poorly received that the brand reverted back to its previous logo in just six days.

The “When”

A company typically rebrands every seven to 10 years, but rebranding is generally not a time-bound decision. 

The most important aspect of a rebrand is whether your company actually needs one. Has your brand evolved beyond its previous identity? If yes, this is a surefire sign that rebranding is your best bet.

So in terms of the “when” factor, consider the rebrand when you want to shake off an old image or tap into a new demographic — much like Dunkin’ did in 2019.

After 68 years of going by Dunkin Donuts, the coffee chain dropped the second half of its name and officially began going by Dunkin’. Now, signs, marketing materials, and product packaging have all taken on this new identity.

So, after 70 years of going by Dunkin’ Donuts, why did the brand suddenly decide it was time to alter its brand name and image?

For Dunkin’, its rebrand was very much a matter of “when.” Dunkin’ came to a point when its focus shifted from beverages over donuts. When its target market expanded to relate to the millennial crowd. When it started ramping off sophistication in its digital channels. Not to mention, the rebranded name was a logical extension of the brand’s long-standing tagline, “America Runs on Dunkin’.”

So rather than thinking of rebranding in terms of frequency, there’s no one-size-fits all equation. Consider factors like when your brand wants to pivot strategies or move in a different direction. 

The “How”

Rebranding is typically not an easy endeavor, or a short one either. From establishing goals, iterating designs, to actually executing your new brand, rebranding is an effort-intensive process that can take years.

• Start With Your Story

Having a clearly spelled-out mission, vision, and core set of values will help guide your rebrand in the right direction. But more importantly, you need to think about how you want to grow your brand going forward.

Not creating a story that resonates with consumers can backfire. Let's consider Uber, for example. 

When the ride-sharing company underwent a rebrand in 2016, it was met with some confusion. One survey found that 44% of people didn’t know what company the new logo represented.

The main reason for this? Uber left consumers utterly confused — many thinking the new logo represented a company like JPMorgan. The rebrand was based on a story of bits and atoms — a concept that was much too abstract for customers to grasp.

• Run Important Tests 

Before bringing its new logo to the international market, Dunkin’ tested it on everything from packaging to exterior signage at Dunkin’ locations. If Gap had tested its failed logo before launching it, it’s likely it would have found that it resonated poorly with its market. For this reason, running tests is important to ensure your rebranded assets resonate with your audience. 

There are many ways to test the potential success of your rebrand, from surveys to rewards-driven focus groups. By running tests with your current audience and prospective audiences, you can help uncover any weak points in your rebranding strategy. Brands can also test the effectiveness of value A/B testing their content.

• Ensure All Parties Are Informed

A rebrand — like any change in life — takes some getting used to. As a brand, it’s your responsibility to help guide your customers, employees, and external partners make the switch gradually and confidently. And although rebranding typically relies on winning over the public, it's equally as important to engage your employees with the updated brand.

• Defend The Brand

While rebranding inevitably alters some aspects of your current brand, there are many elements you should preserve — specifically, your tone and language. Once you build and launch a rebrand, you need to safeguard it at every turn. Let’s look at how Target’s brand has evolved through its history.

Twenty years ago, Target was practically indistinguishable from other discount retailers like K-Mart, JCPenney, and Wal-Mart. It knew it needed a form of differentiation. So in the early 2000s, Target repositioned itself as a mass merchandiser of affordable, chic goods — a move that propelled the retailer beyond K-Mart to be #2 in the category in 2002. 

But over the years, Target started facing stiffer competition. The brand needed to reclaim what made them different in the first place — beyond simply being “cheap and chic.” 

To avoid competing on just the basis of price, Target began forging exclusive contracts with high-profile designers. It phased out its flagship brands — including Merona and Mossimo — and replaced them with brands with distinctive personalities, like A New Day and Goodfellow. The retailer affectionately became known as ”Tar-jay,” an alternate pronunciation of the big-box store emphasizing its adoption of high-end fashion.

Nonetheless, Target defended its core differentiating factor: to be the leader in affordable, chic style. The brand has retained its iconic red bullseye logo and identity throughout its entire history.

• Identify The Level Of Rebrand

Once you’ve made the commitment to rebranding, you need to determine the scale and scope of this effort. Consider which level of branding makes the most sense, given your goals and trajectory of your brand:

1. Partial Rebrand: This process typically includes minor changes to a brand’s look and feel that don’t eliminate a brand’s signature elements. This may mean a marginal change in your logo or product packaging, or rather repositioning your messaging and value proposition.

   To better understand a partial rebrand, consider Old Spice. The deodorant brand appealed to primarily older men, and Axe began to gain the majority of the market share. By invigorating their brand messaging to celebrate the art of manliness, Old Spice extended its appeal to men of all ages. 

   Since its new product positioning hit the market, Old Spice’s brand has grown by double digits each year.

2. Total Rebrand: When an entirely reimagined identity is desired, this the way to go. A total rebrand often occurs when a critical change in your business occurs — whether you’re merging with another company or expanding into an entirely new market. When McDonald’s expanded into European markets, the fast food chain had to reconsider its entire brand strategy — from store decor to menus to more accommodating food options.

• Keep It Simple

Resistance is almost always a guarantee with rebranding. Naturally, people respond more positively to familiarity and stability and can easily be hesitant of change.

Luckily, there’s a surefire way to ensure your current consumers and prospective consumers recognize your brand once you’ve revamped it: keeping it simple. It’s important to ensure your old brand is still mostly intact, and any changes you’ve made are to enhance or improve it.

To demonstrate a simple rebrand, we’re discussing Starbucks’ approach in 2011. 

As the world’s largest retailer and roaster of specialty coffee, Starbucks faces a tremendous amount of pressure to maintain a certain image. So when the brand speculated a rebrand for its 40th anniversary, Starbucks was faced with an important question: How can we pull this off without losing the heart of our brand? Its solution? To keep the rebrand as subtle as possible. 

The brand stripped away the  “Starbucks Coffee” text and green ring surrounding the siren, still retaining the key defining elements of its brand: the siren (FYI — that’s the mermaid-like figure) logo, the iconic green color, and the same typography. CEO Howard Schultz described the brand’s evolution as a “small but meaningful update.”

Are You Ready To Rebrand?

Rebranding isn’t for every company, but it certainly can help your brand meet accelerating consumer needs and desires.

Remember that the key to any rebrand is staying true to the core values on which you built your company’s foundation. Being thoughtful, methodical, and intentional in your approach will ensure a successful rebrand that overall strengthens your company’s reputation. Make sure your rebrand embodies.