Should we consider a rebrand as part of our scaleup growth strategy?
In today’s rapidly evolving business landscape, scaling up is a goal pursued by many organisations. As companies grow, they often face the question of whether a rebranding effort should be part of their growth strategy.
Rebranding can be a powerful tool to reshape a company’s image, reach new markets, and solidify its position in the industry. However, it is crucial to evaluate the potential benefits and challenges before embarking on a rebranding journey.
In this article, we will explore the factors that should be considered when deciding whether to undertake a rebrand as part of your growth strategy.
Relevance is key
Sometimes, the brand identity an organisation starts with no longer fits the organisation it develops into. This is not unusual given that most companies naturally evolve and grow over time. Whether that’s in the form of adding new products and services, venturing into new markets, or having to appeal to new customers.
Assessing brand alignment
Before considering a rebrand, it’s essential to assess your current brand and determine its alignment with your current and future goals. Ask yourself whether your brand accurately reflects your company’s values, mission, and long-term vision. If there is a significant misalignment, a rebrand might be necessary to ensure your brand identity resonates with your target audience and market positioning.
Has there been a change in your service or product offering?
If your business adds one or two new products or services that are similar to the current offering, it’s usually not necessary to undergo a rebrand given that the fundamental focus and proposition of your business remains pretty much unchanged.
However, if you introduce an entirely new product line or service offering, then a rebrand may help you communicate this change to customers. Particularly, if those new products or services represent a new direction or major commercial opportunity for your business.
Has there been a shift in your marketplace or audience?
If you have marketed to a specific audience segment for many years before deciding to expand into a new market, a rebrand could help you to reach this new audience.
Adopting a new brand identity, narrative and messaging tailored to appeal to your new customer demographic can often be effective in helping maintain brand loyalty while also improving brand awareness. Rebranding provides an important aid in making any change to your brand positioning visible for all stakeholders.
Staying relevant and competitive
In fast-paced industries, staying relevant and competitive is crucial for sustained growth. Consumer preferences, industry trends, and technological advancements can quickly render a brand outdated. A strategic rebranding effort can revitalise your company’s image and position it as an innovative and forward-thinking player in the market. By refreshing your brand, you can demonstrate your ability to adapt to changing times and maintain a competitive edge.
Have your purpose and values evolved?
An organisation’s brand purpose and values can have a significant impact on sales and brand loyalty.
Understandably, many customers want to buy from brands they share similar values with, so clearly communicating any changes in your brand purpose, mission and values through an updated brand narrative and messaging as part of a rebrand, will go a long way to help ensure marketing success.
An evolution of brand purpose was one of the main drivers behind Freshfield’s recent rebrand which saw the creation of a new logomark to represent our adopted four pillar approach behind using the power of communication to have a positive and meaningful impact on people, organisations and communities.
Mergers, acquisitions and restructuring
During a scale-up phase, mergers, acquisitions, and internal restructuring may become necessary. These transformative changes often warrant a rebrand to unify the newly combined entities, communicate the value proposition of the merged organisation, and alleviate any confusion in the marketplace. A well-executed rebranding effort can consolidate the strengths of the merged entities and create a cohesive brand identity for the future.
Considerations and challenges:
While rebranding offers significant opportunities, it also presents challenges that should be carefully considered:
- Resource allocation: A rebrand can be a resource heavy process. Not only does it need investment in design and communication, it also needs an investment in internal time and head space. Ensure you have the right resources in place.
- Customer perception: If not communicated correctly, rebranding can sometimes confuse existing customers who are familiar with the old brand identity. Effective communication and a gradual transition can help mitigate any potential negative impact on customer loyalty.
- Employee engagement: A successful rebrand requires buy-in and alignment from internal stakeholders. Employees must understand and embrace the new brand vision to become brand ambassadors, ensuring a seamless transition throughout the organisation.
As companies scale up and face new challenges, a strategic rebrand can be a valuable growth strategy. By reassessing brand alignment, expanding into new markets, staying relevant and competitive, or navigating transformative changes, a well-executed rebrand can support your growth. It is however crucial to proceed with caution. When a rebrand goes wrong, it can often have a lasting, negative impact on reputation and sales.
Whatever your growth strategy, any decision you make around whether to rebrand or not will ultimately depend on your circumstances and strategic objectives. Regardless, any decision should be given serious consideration with guidance sought from an experienced branding and marketing specialist.
If you would like to explore how a rebrand can unite, communicate and propel your company forward, please contact Gareth by completing our form or calling 01772 888400.