Rebranding is a strategic decision that can significantly impact a company’s image, identity, and market positioning.
But how often do companies rebrand, and why do they do it?
In the fast-paced world of big businesses, a whopping 74% of the top S&P 100 companies have gone through a makeover within just seven years.
A significant portion of businesses recognize the importance of periodically evaluating and refreshing their brand to stay relevant in the marketplace.
But not every makeover story ends happily.
Just ask Gap and Mastercard, who faced major backlash when they changed their logos.
So, if you’re thinking about sprucing up your brand, you’ve got to ask yourself: Is it just a touch-up or a complete overhaul that’s needed?
Because how people see your brand can make or break your success.
Understanding Rebranding
Rebranding refers to the process of altering a company’s brand identity, including its name, logo, visual elements, messaging, or even overall market positioning.
The primary goal of rebranding is to create a fresh image that resonates better with the target audience and aligns with the company’s evolving values, goals, and offerings.
How Often Do Brands Rebrand?
The frequency at which companies rebrand varies widely depending on various factors such as industry, market conditions, company growth, and shifts in consumer preferences.
While some companies undergo major rebranding initiatives every few years, others may go decades without making significant changes to their brand identity.
The average lifespan of a brand’s visual identity is typically 7-10 years, suggesting that rebranding every decade is relatively common.
And speaking of how people see things, did you know that 60% of consumers steer clear of companies with logos they find strange or unattractive?
Even if those companies have great reviews.
It just goes to show that graphic design really does matter when it comes to winning over customers and keeping them coming back.
Statistics for Rebranding
To gain a deeper understanding of rebranding trends, let’s explore some compelling statistics:
Business Growth
Research shows that companies experiencing rapid growth are more likely to rebrand.
According to a study by Deloitte, around 81% of high-growth companies have rebranded at least once.
Mergers and Acquisitions
Mergers and acquisitions often trigger rebranding efforts.
When two companies merge or a company acquires another, they may choose to rebrand to create a unified brand identity.
Approximately 80% of rebrands are a result of mergers or acquisitions. example: SunTrust Bank and BB&T became Truist Financial.
Market Positioning
Companies seeking to reposition themselves in the market may opt for rebranding.
This could involve targeting a new audience, shifting focus to different product offerings, or changing core values.
As per a study by Siegel+Gale, 91% of respondents believe that simplicity is key to successful branding and that rebranding can help achieve that.
Is Rebranding Worth It?
The question of whether rebranding is worth the time and cost depends on several factors, including the company’s goals, resources, and the current state of the brand.
Here are some considerations:
- Brand Perception: If a company’s brand image has become outdated or no longer resonates with its target audience, rebranding can help revitalize the brand and attract new customers.
- Differentiation: In highly competitive industries, rebranding can help a company stand out from the crowd and differentiate itself from competitors. It allows businesses to communicate their unique value proposition effectively.
- Market Expansion: When a company plans to expand into new markets or target a different demographic, rebranding can help create a brand identity that appeals to the new audience.
- Consistency: Rebranding can ensure consistency across a company’s various touchpoints, including digital platforms, packaging, and marketing collateral. This consistency reinforces brand recognition and builds trust with customers.
However, rebranding also comes with risks and costs.
It requires careful planning, research, and execution to avoid alienating existing customers and diluting brand equity.
Therefore, it’s essential to evaluate the potential benefits and drawbacks before embarking on a rebranding journey.
At the End of the Day
While the frequency of rebranding varies across industries, many companies recognize the value of periodically refreshing their brand identity.
With careful planning and execution, rebranding can be a powerful tool to propel a company forward and gain a competitive edge in the market.
So, if your company is contemplating a rebrand, take the time to evaluate your goals, assess market conditions, and seek expert guidance to make an informed decision.
And if you need a little – or a lot – of help with rebranding, give our Atlanta agency a call or an email.
We’ll set up a meeting in person – or over Zoom – to see how we can facilitate your successful rebranding.
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