Branding is everywhere. Look around right now and you will likely be faced with a brand, or two or three.
But branding is more than just the name or logo of a given company, product or service. Branding extends to the emotions that spark when you think of the company. That emotion is created by everything a company does, from the visuals to language, tone of voice, packaging and customer service.
When we talk branding at Pesel & Carr, we are referring to the way the consumer perceives a company in their mind.
As you read this, you may be thinking that while it sounds nice, why is it important to the bottom line?
Not only does your brand provide a legal entity to trademark your product or service, but it allows you to differentiate from others in the marketplace and target a specific audience. Other positive advantages of strong brands include:
- Positive recall in the consumers’ mind, leading them to favour your product or service over others
- Brand loyalty which supports repeat business
- Customers prefer to purchase from a brand that is seen as trustworthy and ethical rather than a brand whose image is questionable – 64% of consumers buy or boycott a brand solely based on its position on a social or political issue (Edelman)
- Credible brand reputation – which also provides a layer of “insurance” to your company if a crisis were to happen
- Increased business value – according to The Economist, brands account for more than 30% of the stock market value of companies in the S&P 500 index
Strong brands are created when there is a deep level of brand awareness, called brand resonance. Brand resonance leads consumers to develop a strong sense of attachment to the brand. Consumers can become intrinsically linked and carry a sense of ownership towards a company or product, even building communities around them – think about an Apple vs Samsung smartphone user.
This kind of connection is more than just a repeat customer.
Why rebrand?
A rebrand can be due to a multitude of reasons (and that topic is worth a blog post in itself!).
Companies may need to rebrand to secure, maintain, alter or strengthen their position within the market. Below are a few reasons from an endless list of why some companies choose to rebrand:
Evolving customers
Companies grow and change, much like their consumers. Staying relevant can be a challenge as societies evolve and an update may become a necessity. Customer needs and purchasing behaviours are everchanging and brands need to morph and change to keep up.
Merger or acquisition
Mergers and acquisitions often force the business to create a new face for its new brand.
Repositioning
Growth or market position may also force a rebrand onto a company. A business may be floating but needs to change their style slightly to swim and win the race.
It can help solidify a strong market position or entice a greater slice of market share. For example, companies moving into an international marketplace may need to alter their brand to appeal to different customs and cultures.
Pesel & Carr supported one of our clients, an investment firm, in rebranding to create a more sophisticated and polished look that reflected the expectations of their high net worth clients.
New product offerings
As a brand introduces new product lines, it may need to rethink they way it presents itself to consumers. A new business venture can often mean time for a rebrand or “brand refresh”.
For example, the powerhouse tech giant Apple, was originally known as Apple Computers before it removed the computers from its name when it began selling smartphones and other products.
Crisis
Without the right preparation or team behind you, a crisis can ruin a brand in entirety. Following a crisis, companies may choose to rebrand to restore faith within the consumer.
Following the Volkswagen emissions scandal, the brand removed the company slogan of Das Auto, translating to ‘the car’. They further enhanced their tarnished brand by steering away from investing in diesel to electric vehicles – aiming to restore their brand and appeal to the consumer again, whilst still endeavoring to be ‘green.’
Who is rebranding?
Rebrands are always happening – and sometimes are not so obvious.
Many well-known enterprises have changed or altered their brand including Starbucks, Instagram and Pepsi. To be accurate, Pepsi has done so over 10 times!
The Starbucks rebrand in 2011 saw the coffee house drop the ‘Coffee’ at the end of their name, switching from Starbucks Coffee to simply Starbucks. The change saw a social media meltdown as consumers didn’t understand the change.
However when thinking logistically, the name change has validity.
The chain stores offer more than just coffee, hosting a range of hot and cold cream topped drinks as well as snacks and grab and go meals. It is also a place or “community” for freelancers, students and others to gather. From our perspective, when we think Starbucks, coffee doesn’t exactly come to mind – but maybe that’s our Carlton coffee aficionado talking!
Outcomes of a rebrand
Like Starbucks, the brand evolved as the company grew. The removal of ‘Coffee’ from the Starbucks name allowed the company to open up to broader audiences, more than just a coffee drinker.
Instagram’s rebrand of 2016 saw the removal of their previous old-style polaroid camera in favour for a more seamless design. Today, users probably would not remember the previous logo, although at the time it sent users into an uproar freak. The alteration of the logo symbolised how the social media platform was evolving to more than just a photo sharing platform.
But a rebrand is not just a logo change either.
Iconic British luxury retailer, Burberry, has also altered their brand in the past. For decades the brand was one that appealed to an older demographic – their challenge was their audience. They had the desire to appeal to a new market.
Through the power of storytelling and clever campaigning, they used tones of their iconic British history to tell a new story – this time one that was fashion forward and glamorous but remaining upscale.
The rebrand saw an investment in innovation to bring the company into the digital arena, a space (at the time) very few luxury brands were in. The British fashion house embraced social media through livestreaming of fashion shows and engaging digitally with consumers. Again, playing to their iconic British past, the brand moved fashion shows from Italy to London – placing them in a league of their own, away from the French and Italian powerhouses.
Through the introduction of digital, Burberry better aligned with their new target audience, allowing them to be a 21st century player in the world of luxury retail. The brand’s new modern look made Burberry aspirational and desirable to the consumer. It created an element of exclusivity in a new market sphere which ultimately saved the Burberry brand.
Staying true to your mission
When rebranding, it is important to stay true to the business’ heart. It’s ideal to continue forward with the mission and vision, honouring the past whilst embracing the future.
We executed award-winning work with an inner-west catholic secondary school, to assist with repositioning their brand both internally and externally.
For years the college lived out their Catholic heritage, but as the student community and demographics of prospective enrolments became more diverse, it required a re-focus. Together, we were able to position the brand with a focus on excellence, as well as the values of inclusion and compassion (aligning with their Catholic foundation).
A new motto and visual representation of the brand led to an increased profile in the local community and importantly, an increase in enrolments.
Pesel & Carr values the importance of a brand’s history, it’s what makes each individual organisation unique – big or small.
Our 20-plus year history has seen our own agency evolve, but our core driver has always remained the same – to deliver out of the ordinary outcomes.
We have supported many of our clients to successfully rebrand in more ways than just a logo change.
If you are interested in finding out more, please contact Barbara Pesel at Barbara.pesel@peselandcarr.com.au.
