Rebranding business. [Photo/encrypted-tbn0.gstatic.com]
Too often, rebranding is done to cure an illness that might have tarnished a reputation of a business or corporate image. According to BBC’s article: “Can you rebrand a bad memory?” rebranding trick is a hard one to pull off, especially when bad memories are fresh.
Other times companies rebrand as a result of mergers, to reposition themselves or to replace an outdated image among others. Kenya Company Registration Services, an online company, almost 300 companies rebranded by changing their names last year compared to 250 that did so in 2015.
Whatever the reason for rebranding, there need to be real business imperatives behind it because costs involved are very high. A UK research firm Millward Brown says that rebranding leads to an immediate five to 20 percent drop in sales.
Often, companies that change names are looked upon with suspicion by their customers and even potential ones. Your clients will often wonder whether you will give them the same quality of service. According to a 2014 survey by Halmstad University, customer hesitation following rebranding is significant. It is, therefore, prudent to inform your customers of time before you change names.
However, according to Sticky Branding, a strategic branding and business development consultancy, a company’s name are packed with meaning. Imagine if you changed your name. How would those around you react to it? How long would it take for them to adjust to the new name? Sticky Branding says that, however, boring a brand name is, it gains meaning over time.
There are instances, however, that it is absolutely necessary to rebrand. A merger or acquisition will definitely require a name change. It signifies injection of new blood into the original company. Let’s face it, a hyphenated name is less than attractive.