Changing the brand name of the product or service sold can help companies survive and even thrive in a tough and changing economy. A strong brand stands as a symbol that customers can easily identify a company by. When considering rebranding, the new brand name should help a company stand out from the competition, be relevant, easily identifiable and allow room for growth as the business changes.
The reasons for a business to consider rebranding are plentiful. A merger or acquisition might warrant a brand change or if the current brand becomes irrelevant coming up with an exciting new brand can invigorate business and possibly even improve the bottom line.
Develop a New Brand When Repositioning
Whether through a merger or acquisition, companies frequently must undergo rebranding to signal change to the market and customers. Rebranding provides an opportunity to combine the traits of the current brand used by the company and combine those historic qualities with the new. For instance, a brand known for quality and reliability can use those brand attributes and incorporate with a new brand attribute like innovation.
Rebrand to Overcome Negative Perceptions
When a company is troubled with financial problems or product quality issues, rebranding is one approach to help overcome the negative perception in the marketplace.
For instance, GMAC Financial Services recently developed a new name for their financially banking arm, Ally Bank. In a press release, Sanjay Gupta, chief marketing officer, stated “The Ally brand is founded on three principles: Talking straight, doing what is right for the customer, and being obviously better than the competition.” He added that the Ally brand was developed following conversations with customers who want a trusted bank partner amidst the recent financial challenges in the marketplace.
Rebranding provides the perfect opportunity for a business to capitalize on a negative and turn it into a positive for the customer, much like GMAC did with their new Ally Bank brand.
Change Brand Name to Incorporate New Mission
Some companies may outgrow their current mission statement and brand identity. If this happens, rebranding provides the perfect opportunity to develop a new brand name that more accurately reflects the brand attributes the company now embraces.
When rebranding to reflect the new core values of the business, take into consideration the personality of the company, positioning of the brand and the expectations customers have of the brand. Develop a list of brand attributes that the new brand should incorporate and use those traits to help develop a new brand name that reflects the new direction of the company.
Brands provide a powerful connection between a company and their customer. When done right, rebranding can strengthen the relationship between a company and their customers while helping the company continue to grow and prosper.
References:
May 15, 2009 Press Release, Ally Bank Challenges Industry with ‘Straight Talk’ for Customers
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