Every once in a while every company needs a renovation of its image. Rebranding is a complete overhaul of the corporate image of a company. By rebranding, marketers aim to change people’s perception about the company. Like everything else, brands have an expiry date in terms of customer hype and expectations.
Rebranding is more than just changing a company name or logo. It means you are adopting a new way of doing business. Rebranding is a very risky process. Not only does it burn time, effort and money but also poses possibilities of backfiring. What if your customers don’t take it well?
There are numerous reasons why companies rebrand. Rebranding happens in virtually every firm each decade, whether subtly or in plain sight. Some of the major Telecom companies in our country has rebranded, for exam, Sheba to Banglalink, Aktel to Robi, and Warid to Airtel. Their rebranding has shown that the model works in Bangladesh.
Here are some of the most common reasons why companies need to rebrand every once in a while:
To update an outdated image
It’s a lot like wearing a brand new suit to a party. While it may be a different party, or a same party, or a same party with different people in it. With time, societies change, cultures change, people’s perceptions change. And a company needs its image to keep in pace with the change. Rebranding may also be carried out to modify the image to fit a market. For example, Aktel’s rebranding and choosing the new name ‘Robi’ was partly to create an image that celebrates Bengali culture. The same was done recently by Cellbazaar when they rebranded as Ekhanei.com, to create a more ‘local’ image for the company.
Oftentimes Rebranding is necessary when a business expands into newer markets. Ekhanei.com is the most recent example. Formerly known as cellbazaar, with their services having been expanded with increased internet penetration and a greater number of users.
Change of Ownership
It is common for business to tweak their branding as their ownership changes hands. For instance, when Telenor gained the majority share of Grameenphone, the logo of Grameenphone was changed to the international Telenor symbol to reflect this. While this is seen often in the mobile industry, it is also happening in other fields; in 2011, BOC Bangladesh Ltd was rebranded as Linde Bangladesh Ltd, following the German Linde Group’s acquisition of UK-based competitor BOC Group.
Change in Strategy
In today’s competitive environment, rebranding can be an important tool in helping a firm to stay ahead of the curve. In the early 2000s, Grameenphone enjoyed a huge first mover advantage as they quickly established a country-wide market for mobile networks. However, as new competitors gained ground in later years, it was essential for Grameenphone to come up with a new positioning that would help it stand out in the long run. It’s “KacheThakun” campaign has since then focused on its stable, wide-reaching network, helping the mobile operator to differentiate itself from others who competed on low call rates and a variety of offers and bonuses.
Repairing Bad Image:
Brands often go through a makeover in order to get a clean slate. In 2010 Bangladesh Biman attempted to do this in an effort to shake off a past plagued by long-running financial losses and a history of bad service and decades old aircrafts. The airlines unveiled a new logo and livery, designed by Teague, which was to be used for its next generation airplanes such as Boeing 777-300ERs and Boeing 787-8 Dreamliners. The campaign also included new uniform designs to be worn by the Biman employees engaged in the flight service and customer point units on the ground.
The new logo was ultimately scrapped, however, when a new government came to power in 2011 and restored the previous logo, albeit with some modifications.