When is it Time to Rebrand? 5 Reasons for Rebranding

We all know that rebranding is not an easy job to do. However, there are some situations when the business requires a rebranding strategy.
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You might be wondering what kind of businesses require rebranding to survive the competitive market.
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Well, there is no type or kind of business stereotyped for rebranding. According to the survey, around 74% of businessesfrom the S&P 100 have rebranded in their first seven years.
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What compels a business towards rebranding? The business sector is getting more competitive day by day. For businesses to survive, it is important for them to have a strong brand identity so that they can stay afloat among their competitors.
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Rebranding is one of the most successful strategies that businesses use to bring their business back in the game. In fact, around 50% of businesses have rebranded themselves after COVID-19 to change the perception of the customers and to promote them to bring it to the forefront.
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If you are still wondering why businesses need rebranding, feel free to read on as we will give you the 5 exceptional reasons for rebranding that tell you when you should consider this option.

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The 5 Reasons for Rebranding

Do you know what rebranding means for a business and its consumers? If we consider both sides, this business makeover has two perspectives. For the business, rebranding means either a fresh new start or sending a new message. For example, rebranding can be a strategic move for a business that wants to distance itself from past missteps, negative associations, or an outdated image. It allows them to create a clean slate and build a new reputation. If a business has undergone a merger, acquisition, or significant shift in leadership, a rebrand launch will help the company send a message about this new regime to its potential customers.
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For the consumer, a rebranding can signal several things. Consumers might see the rebranding as a sign of a new and improved business, suggesting the company is innovating to better serve its customers. Alternatively, the rebrand could be a signal that the previous brand identity was declining in relevance or quality. This can lead consumers to question whether the rebranding reflects a genuine improvement or simply an attempt to mask underlying issues.

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Meanwhile, a successful rebranding brings benefits for both businesses and their target audiences and creates a strong connection. Let us tell you why a business needs to rebrand.

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Reason 1—To Shift The Business Strategy

Rebranding is not always done when a company is declining in the market. Sometimes, it happens when a company is repositioning itself in the market because its brand strategy has gone through a major shift. This repositioning or shift in the business is done to grow the market share or brand value.

Why is this shift in business strategy important? As far as our experience goes, changing or updating the existing business strategy is important for continuous growth. This is especially true when faced with major changes, such as entering new markets, launching new product lines, modifying services, or implementing a new business model.

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According to research, regularly changing a business strategy will help the brand meet the new expectations of the consumers and this gives them a competitive edge. When this happens, a company’s old brand identity may no longer reflect its new directions or new changes. Therefore, rebranding is the best option for the business to check if its brand message goes with its current business goals.

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Reason 2—To Improve The Customer’s Interest

Do you know what brand image is and why it is important for customers’ interest? Brand image is the major aspect that adds to building a customer’s interest. Brand image, in literal terms, is the perception that a customer will have of your company.

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How is this perception built?
It is not built overnight. In fact, it is shaped gradually by your marketing, advertising, and customer service interactions.

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If your brand image is not up to the mark, then you need to rebrand yourself with something new to serve on the table and gain your customers’ interest. With modern concepts and relevancy, you can gain the lost interest in your business with the help of a rebranding process.

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Reason 3—To Be Back in The Business

Don’t you think you need to update your old ways?
Let's face it, design trends change and sometimes come back around. If your logo, website, or marketing materials lookdated, it can send a negative message about your company. As a matter of fact, you will lose a major portion of your target audience.

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In this circumstance, your competitors will outperform you and leave you behind in the industry. Therefore, your business needs rebranding as a visual refresh. This can be done with a new logo redesign or updated brand guidelines to create a more modern and visually appealing brand identity. This will surely bring you back into the business!

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Reason 4—To Reach The New Audience

Why should your business expand its operations and reach a new audience?
A simple answer for that is to make their name in the bigger picture.

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When a company grows it will need help to increase its customer base and revenue. Therefore, it is important for a business to address a larger audience and get global recognition.

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How would people living abroad know about your brand’s global coverage?
Rebranding is your business’ first step to gaining a deep understanding of your desired audience. What are their needs, preferences, and values? How do they consume information and make purchasing decisions? By conducting thorough market research and audience analysis, you can develop a clear picture of who you're trying to reach.

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Reason 5—Merger or Acquisition

No matter what industry your business belongs to, you will need to update your business operations to grow in the market. To strive in the market, businesses join forces with other companies through the process of merger and acquisition. This can be strategic, but how do you explain it to your audience?

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This means a company merges with another, or if one company acquires another, their different brand identities will get muddled. Therefore, businesses need to have a clear verdict to reflect the brand message or position. If not cleared, it can lead to a loss of brand recognition, customer loyalty, and, ultimately, market share.

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Final Thoughts

Rebranding is a strategic investment for your existing brand. It's a complete brand overhaul with a comprehensive process that involves carefully examining your company values, target audience, and market position. By addressing any disconnect between your brand image and your company's values, your small businesses can create a more relevant and impactful new brand identity with existing customers.

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A successful rebrand requires careful planning for your company's mission, clear communication, and a commitment to building a brand identity that truly reflects your company's essence and aspirations.

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