Rebranding: When and Why Should You Refresh Your Brand

Branding is more than just a logo or a catchy slogan—it’s the face, voice, and identity of your business. In today’s fast-paced market, staying relevant requires more than just great products; it demands a brand that resonates with consumers. A study by Reboot found that consistent brand presentation can increase revenue by up to 23%. But when should a company consider rebranding? And why is it necessary?

1. Market Evolution and Changing Consumer Preferences

• Consumer trends change over time. What was successful for a brand ten years ago may no longer appeal to contemporary audiences today. This can be brought about by new habits of living, shifting social norms, or innovations in technology. If a brand does not adjust, it may lose its popularity and market share to competitors that are more in tune with present consumer demands.

• For instance, health-conscious consumers increasingly look for fresh, natural, and healthy alternatives. Classic fast-food chains that used to prosper in excess now have to appeal to a more health-conscious consumer base. In the same way, younger generations care about sustainability, ethical sourcing, and online convenience, all of which impact brand perception.

• Example: Dunkin' Donuts saw the change in consumer behavior and rebranded as Dunkin' in 2018. The move was strategic—Dunkin' needed to establish itself as something beyond a donut store and ride the surging coffee culture. Studies indicated that drinks, particularly coffee, were emerging as the biggest sales driver, contributing more than 60% of their revenue. By removing 'Donuts' from its title, the company announced its transformation into a larger beverage-centric firm, more directly competing with Starbucks and other coffee store chains. After rebranding, Dunkin' enjoyed a 5% boost in foot traffic and an enhanced brand image.

  
  

2. Technological Advancements

• The digital era has rewritten the rules of engagement between brands and customers. Consumers no longer want anything but smooth digital experiences, personalized messaging, and instant access to services. Brands not adopting digital disruption are at risk of becoming irrelevant. Consumers in the finance and insurance industries, for instance, increasingly want to engage with mobile apps, AI-driven chatbots, and self-service portals as opposed to traditional face-to-face contact. The brand identity needs to mirror this change through a contemporary, technology-oriented look and feel.

• Example: Scottish Widows, one of the most established life insurance brands, revamped its identity in 2018 by sending to retirement its long-established 'widow' model. The move away from its long-standing branding was sparked by the need to attract a digitally-literate new generation of customers. As financial services are more and more over the internet, Scottish Widows had to have a new, modern-thinking identity that would appeal to contemporary consumers. Its rebranding included a streamlined logo, a more sophisticated color scheme, and an emphasis on online services. The firm overhauled its site and added interactive online tools to make financial planning simpler and more convenient for clients.

  
  

3. Mergers and Acquisitions

• When two firms merge, rebranding can assist in harmonizing their identity and avoiding customer confusion. Brand mergers typically possess varying reputations, clienteles, and market strategies that can lead to inconsistencies if left unaddressed. A good rebrand consolidates operations, simplifies messaging, and makes for a seamless brand experience.

• Since the merger of Standard Life and Aberdeen Asset Management, the company itself rebranded as Abrdn in 2021. This was to reflect a contemporary, digital-friendly persona. Although at first glance, the name proved unpopular due to its unfamiliar spelling, the justification for the rebrand was intentional—it sought to indicate a leaner, more forward-thinking methodology of asset management. The renaming mirrored the increased focus on financial services' accessibility online. Despite the initial criticism, the rebranding efforts enabled the company to differentiate itself in a crowded finance market and adopt shifting digital trends.

  
  

4. Globalization and Market Expansion

• International expansion offers opportunities and challenges for companies. A brand that is successful in one nation may not appeal to another nation's consumers because of differences in culture, language, and consumer behavior. Rebranding or repositioning a brand image can enable companies to engage with local consumers, establish trust, and project themselves as culturally sensitive.

• McDonald's is a classic case of a global brand which, with great success, adapts its branding and product offerings to local market environments. When it expanded into India, McDonald's needed to navigate both religious and cultural dietary limits—beef, a centerpiece of many of its dishes, is forbidden for Hindus, and pork is excluded by Muslims. Rather than imposing a Westernized menu, McDonald's went local by substituting beef products with chicken and vegetarian options. The localization attempt went beyond the menu—McDonald's own branding in India focused on family dining and low prices, aligning with what local consumers sought. The revamp enabled McDonald's to capture a strong market presence in India, where today it operates over 300 locations.

This strategy is not specific to McDonald's. Most international brands, ranging from Coca-Cola to KFC, undergo adjustment of their products and marketing to suit new markets' cultural and economic context.

5. Outdated Visual Identity

• The visual identity of a brand—its logo, color palette, typography, and overall appearance—is central to influencing how consumers think about it. With the rise of the digital age, where customers interact with brands on the web before deciding to buy, a contemporary, well-designed visual identity is critical to remaining relevant. An outdated or messy logo can make a company appear old-fashioned, disconnected, or even untrustworthy.

• Rebranding through a new visual identity enables businesses to showcase their growth, remain competitive, and make a lasting impact on their target market. Modernization is not merely about looks; it's about conveying a business's values, innovation, and timeliness in an evolving marketplace.

• Example: SanDisk, a popular digital storage company, recently rebranded, modifying its name from SanDisk to Sandisk and redesigning its logo for a sleeker, more contemporary appearance. This was part of a broader plan to highlight the company's digital storage expertise and future technology advancements. The new logo took on a minimalist and modern look, which is in line with the latest trends in the technology sector, where simple and clean branding is the order of the day. Even Apple, Google, and Microsoft have all gone for minimalist logos to convey a sense of innovation and modernity.

  
  

6. Differentiation from Competitors

• In a busy market, being different matters. If a firm's branding resembles that of its competitors too much, it can risk disappearing among them. A robust, distinctive brand identity allows firms to create a differentiated position in customers' minds, affirming their value proposition and making them more memorable. Firms that take bold, distinctive branding usually stand out and develop greater customer loyalty since people are drawn to brands that seem original, interesting, and genuine.

• Example: Mailchimp, a favorite among email marketers, knew that it needed to differentiate itself from the more corporate and professional-looking competitors such as HubSpot, Constant Contact, and Salesforce. As others went for clean, serious, and technology-driven branding, Mailchimp did the exact opposite—developing a brand that was playfully quirky in a way that appealed to its artistic user base. It launched a rebrand that encompassed A hand-drawn, imperfect look,A return to its mascot, Freddie the Chimp and a bold, yellow-based color scheme. This rebrand succeeded because it appealed directly to Mailchimp's target demographic—small businesses, entrepreneurs, and creatives who needed an easy yet efficient marketing tool. 

7. Targeting a New Audience

• Consumer demographics change over time, and brands that don't keep pace will become obsolete. Whether it's securing the next generation, resonating with a new geographic market, or evolving to a new customer base, rebranding allows companies to bring their identity back in sync with shifting consumer perceptions. A planned brand refresh can update perceptions, establish relevance, and establish new engagement with a new audience.

• Example: Burberry, a brand that had become synonymous with quintessential British luxury, experienced a severe image crisis during the late 1990s and early 2000s. The iconic checkered print pattern of the brand had been overused and was commonly placed on counterfeit items as well as associated with an unintended demographic—working-class UK street style, commonly linked with "chav culture." This diluted Burberry's status of exclusivity, alienating it from its initial high-end consumers. The company renewed its product lineup while retaining its heritage items, including the timeless trench coat.  Burberry was an early adopter of digital marketing through live fashion show streaming, click-through online advertising, and powerful social media influence. This contributed to a staggering comeback for Burberry's high-end allure, doubling its turnover in ten years and making it a premium player once more.

  
  

In conclusion, rebranding is not just a cosmetic change; it is a strategic imperative driven by shifting consumer preferences, technology, mergers, globalization, a need to differentiate, and the pursuit of new markets. Whether adjusting to change in the market, riding waves of digital disruption, becoming culturally relevant, or merely updating visual identity, effective rebranding refreshes a company's image, solidifies market positioning, and finds long-term relevance in a congested market. By being flexible and reacting to change, companies can navigate through change and ride new waves of opportunity to long-term success and customer loyalty.

Looking to rebrand your business and make a lasting impact? At BEING, we specialize in crafting powerful brand identities that stand out in the digital age. Whether it’s a visual refresh, a complete repositioning, or a strategy to connect with a new audience, we’ve got you covered. Let’s create something unforgettable—visit our website to get started today!