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November, 2024
Rebranding:
When It’s Necessary and When It’s Not
Let's look at examples of successful and unsuccessful rebrands,
as well as alternatives for companies that are not ready for change
as well as alternatives for companies that are not ready for change
Rebranding is the process of fundamentally updating a brand, including changes to its name, visual elements, values, and positioning. Its purpose is to refresh the brand’s image, adapt to changing market conditions, and stand out from competitors. However, this process requires careful analysis and significant resources, and is not always justified. Let’s explore when rebranding is truly necessary, and when it might be best to avoid it.
When Is Rebranding Necessary?
1
Outdated Image
When a brand is seen as outdated and no longer resonates with consumers, rebranding helps restore its appeal.
Burger King
In 2021 Burger King underwent a global rebranding to refresh its visual identity and make it more relevant to today’s audience. The old logo, used since 1999, had a bright and modern look at the time but became associated with the early 2000s style, which was no longer appealing. As consumer preferences shifted toward natural food and sustainability, the brand decided to rebrand.
The new logo drew inspiration from retro 1970s aesthetics, symbolizing a return to simpler, more natural ingredients. The logo became flatter, with simplified shapes and a more natural color palette reflecting the brand’s focus on using wholesome ingredients. The fonts also changed to rounder and “tastier” styles, reinforcing the connection to food and comfort.
Visual changes extended beyond the logo, affecting packaging, restaurant design, and employee uniforms, creating a unified, contemporary brand style. This rebranding helped Burger King stay relevant to a new audience while maintaining nostalgic elements to retain loyal customers.
In 2021 Burger King underwent a global rebranding to refresh its visual identity and make it more relevant to today’s audience. The old logo, used since 1999, had a bright and modern look at the time but became associated with the early 2000s style, which was no longer appealing. As consumer preferences shifted toward natural food and sustainability, the brand decided to rebrand.
The new logo drew inspiration from retro 1970s aesthetics, symbolizing a return to simpler, more natural ingredients. The logo became flatter, with simplified shapes and a more natural color palette reflecting the brand’s focus on using wholesome ingredients. The fonts also changed to rounder and “tastier” styles, reinforcing the connection to food and comfort.
Visual changes extended beyond the logo, affecting packaging, restaurant design, and employee uniforms, creating a unified, contemporary brand style. This rebranding helped Burger King stay relevant to a new audience while maintaining nostalgic elements to retain loyal customers.
1955-1968
2
Strategic Shift and Product Line Expansion
Rebranding is often necessary when a company is expanding its product offerings or changing direction.
Lego
In the late 1990s and early 2000s, Lego faced a crisis. The brand was synonymous with traditional plastic building blocks, but as video games and digital entertainment grew in popularity, Lego’s products began losing relevance with children and teens. Sales dropped, and the company teetered on the brink of bankruptcy.
To revive interest in its products, Lego rebranded and expanded its strategy, focusing on modern technologies and pop culture. As part of its rebranding, Lego began releasing themed building sets based on popular franchises like Star Wars, Harry Potter and Marvel, which attracted a new audience. Lego also launched video games, animated films, and TV shows, creating an entire universe around the Lego brand.
This rebranding not only rekindled interest among younger audiences but also significantly expanded Lego’s customer base to include adults and collectors. As a result, Lego regained its position as one of the world’s most successful brands by adapting to new consumer expectations.
In the late 1990s and early 2000s, Lego faced a crisis. The brand was synonymous with traditional plastic building blocks, but as video games and digital entertainment grew in popularity, Lego’s products began losing relevance with children and teens. Sales dropped, and the company teetered on the brink of bankruptcy.
To revive interest in its products, Lego rebranded and expanded its strategy, focusing on modern technologies and pop culture. As part of its rebranding, Lego began releasing themed building sets based on popular franchises like Star Wars, Harry Potter and Marvel, which attracted a new audience. Lego also launched video games, animated films, and TV shows, creating an entire universe around the Lego brand.
This rebranding not only rekindled interest among younger audiences but also significantly expanded Lego’s customer base to include adults and collectors. As a result, Lego regained its position as one of the world’s most successful brands by adapting to new consumer expectations.
3
Target Audience Shift
Rebranding may be needed when a company wants to enter new markets or target a different audience.
Dunkin'
In 2018 Dunkin' updated its visual identity to focus more on its broad range of coffee and beverage products rather than just donuts. The brand aimed to attract a wider audience, including younger consumers and those who didn’t associate the company solely with donuts.
The visual changes included simplifying the logo. The word “Donuts” was removed from the name to emphasize the beverages, reflecting the brand’s strategic shift. The new logo was cleaner, with bright, bold lines that worked better on packaging, advertising materials, and digital platforms. Packaging was also redesigned to appeal more to mobile and digital channels, making the brand more attractive to a younger demographic.
These visual changes helped Dunkin’ expand its audience and strengthen its position in the market, reaching not just traditional donut lovers but also a broader group of coffee enthusiasts and beverage consumers.
In 2018 Dunkin' updated its visual identity to focus more on its broad range of coffee and beverage products rather than just donuts. The brand aimed to attract a wider audience, including younger consumers and those who didn’t associate the company solely with donuts.
The visual changes included simplifying the logo. The word “Donuts” was removed from the name to emphasize the beverages, reflecting the brand’s strategic shift. The new logo was cleaner, with bright, bold lines that worked better on packaging, advertising materials, and digital platforms. Packaging was also redesigned to appeal more to mobile and digital channels, making the brand more attractive to a younger demographic.
These visual changes helped Dunkin’ expand its audience and strengthen its position in the market, reaching not just traditional donut lovers but also a broader group of coffee enthusiasts and beverage consumers.
4
4. Addressing Negative Image
If a brand faces reputational issues, rebranding can help eliminate negative associations and refresh its image.
Facebook
Facebook’s rebrand to Meta is one of the most well-known examples of rebranding aimed at overcoming negative perceptions. In 2021, after multiple scandals regarding data privacy, mental health issues, and the spread of misinformation, the company changed its name to Meta. This move symbolized a shift toward new technologies like the metaverse and emphasized the company’s goal of positioning itself as a leader in the development of virtual worlds and future communication technologies.
Facebook’s rebrand to Meta is one of the most well-known examples of rebranding aimed at overcoming negative perceptions. In 2021, after multiple scandals regarding data privacy, mental health issues, and the spread of misinformation, the company changed its name to Meta. This move symbolized a shift toward new technologies like the metaverse and emphasized the company’s goal of positioning itself as a leader in the development of virtual worlds and future communication technologies.
When Is Rebranding Not Recommended?
- Strong Brand Recognition and Positive Reputation
When a brand is already associated with quality and has strong customer loyalty, drastic changes may harm consumer perception.
Pepsi
In 2008, Pepsi attempted to update its logo and visual identity, but the response was mixed. Despite investing significant resources into the new design, many consumers didn’t understand the changes and didn’t view them positively. The simplified logo didn’t bring anything new to the brand and was perceived as a trivial update that failed to meet expectations.
2003-2008
Logo used from August 1, 2003 to May 18-19, 2008, which used a selection suggesting an irregular three-dimensional shape.
2008-2009
The logo, used from May 19, 2008 through mid-2009, complemented the existing design with water droplets and ice fragments. However, the old logo was still in use in U.S. stores, even though the 2008 logo had been released.
2009-2023
Logo used from June 1, 2009 to June 1, 2014, which restored the flat coloring and introduced a new shape resembling the letter "P" or smile.
2023 по настоящее время
Current Pepsi logo in use as of August 23, 2023
2. High costs
Rebranding can be costly if a company lacks the resources to implement and promote the changes effectively.
Tropicana
Tropicana conducted a rebranding, changing its juice packaging, which led to a flood of negative feedback. Customers couldn’t find their favorite products on store shelves due to the new design, which was too similar to packaging from other brands. As a result, Tropicana lost about $30 million in the first few weeks after the rebrand and was forced to revert to its old packaging design.
3. Poor Readiness for Change
Sometimes, changes in visual identity won’t address deeper issues within the business, such as poor product quality or service. If a company is dealing with systemic issues, rebranding may only mask the problems instead of solving them. This can lead to customer disappointment if they don’t see tangible improvements in the product despite the brand’s new look.
Yahoo!
In 2013 Yahoo! updated its logo in an attempt to create a more modern image. However, the company continued to struggle with issues in technology, innovation, and the quality of its services. Consumers didn’t see any real changes in the products, despite the updated style, which reinforced the idea that the rebrand was superficial and didn’t address deeper issues within the company.
2009-2013
2013-2019
2019 to present
If Rebranding Isn’t Recommended, What Can Be Done?
Brand Refresh
A refresh involves minor updates to visual elements or messaging to keep the brand current without changing its core associations. For instance, Google regularly updates its logo to make it more modern and legible in digital spaces while retaining brand recognition.
Marketing Optimization
If the brand suffers from low recognition, it may make sense to revisit marketing strategy, communication channels, or messaging, which may yield results without the need for a full rebranding.
Product or Service Quality Improvement
Sometimes, enhancing the product or improving service quality brings better results than a logo redesign. Consumers are often more loyal to brands that show real improvements than to those that “dress up” without addressing the core offering.
Pros and Cons of Rebranding
Advantages:
-
Increased competitiveness
A refreshed brand helps differentiate a company and attract new customers. -
Access to new segments
Rebranding can open doors to new audiences if the company expands its services or product offerings. -
Reputation improvement
Rebranding can change consumer perception and increase brand loyalty.
Disadvantages:
High costs
Rebranding requires significant investment in creating and implementing new elements and marketing strategies
Risk of alienating loyal customers
Drastic changes may result in negative reactions from existing customers
Time investment
A full brand overhaul requires time and effort to implement across all company levels
Rebranding is a powerful tool, but its effectiveness depends on the company’s maturity and specific objectives. When changes are superficial, they may not address the business’s deeper problems but only mask them. It’s important to understand that rebranding isn’t always the solution to all challenges, and its success is closely linked to internal changes, quality improvements, and a long-term development strategy. If a company is ready for real transformation, rebranding can be a powerful tool for maintaining competitiveness and attracting new customers.