Question

Topic: Strategy

Pros And Cons Of Rebranding

Posted by Anonymous on 6/21/2008 at 3:50 AM ET 250 Points
Hi.

I am marketing a medium-sized enterprize selling investment goods of a pretty new technology to a rather small (because specialized) B2B target group positioned all around the world. The market is not yet developed, the technology in its entry phase. We could describe ourselves as technology leader, in a way first mover (there are competitors, but with less efficient technology).

Though, the company had been working on this task for several years yet and I would think the important customers know the name. They just started up with PROFESSIONAL marketing last year. Since then quite a bit has been achieved with international pr, trade fair contacts, etc. Money is not an overflowing good for the marketing department.

Unfortunately in the past, there had been another crew acting under the actual name and doing many mistakes - especially the sales person. customers (in the small target group!!) still remember the mistakes and mistrust the companies name. i even heard of the sales persons name being put on a "black list" together with the companies name... regaining trust is tough work of course and some doors seem to be closed forever. On the other hand some equity has been built up so far.

Now my CEO came up with the idea to rebrand.

I am uncertain whether or not this is a good idea! On one hand: yes, we could get rid of old mistrust and its easier to establish a new image than change an old one, but on the other: Eh! It's easy to trace back to the old name... and we would loose everything good we built as there are still many people, who say: I've read about them. They offer good quality.

The problem is: There won't be a chance to do a real check (study) how big the damage is resp. whether good or bad weighs more... Costs would be too high, target group is spread all around the world...

What would you think about a Re-Start in such a situation? Could you give me Pros & Cons to put on my list?

Thanx a lot,

nordia
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RESPONSES

  • Posted on 6/21/2008 at 12:27 PM Author
    @BusinessCardArmy.com

    Yess! Right you are! That is exactly what I thought aswell.
    The possibility to be caught is too high! There are only few competitors and all in different countries. so already the company would make clear, who we are. not talking about the technology specials which are obviously leading to us...

    But... What about an official rebranding? In terms of: Everything has changed (and indeed it has. all new staff, all new engineering/machine) so it is only fair to have a new name (though the old one was really best choice!) for a new product and service. I would combine that with a "major quality offensive". One could put that on pr telling about all the changes leading to the rebranding?!?

    Or would it be better only to put the money in a pure quality campaign - but would that be "message enough" to receive pr?

    Thanx & best,

    nordia
  • Posted on 6/21/2008 at 12:39 PM Author
    @thinkmor

    Thank you very much for your long response.

    I feel, I need to add, that the company itself has been changed a lot since those mistakes were done. There is no one left from then. The machines have been completely redone. It is just the old stories that left a bad taste with the regarding customers.

    I completely agree, that a short term action would not help. That is what I just told my CEO when he first confronted me with the idea. I just search for good reasons pro and con to really think it over.

    And at least: IF such a dramatic change was done to the companies outer appearance, it should be done pretty soon, since as I mentioned, the professional marketing has just begun and the change management process (regarding engineering and service etc) was just completed shortly. But I am fully aware, what we would loose. This is one of the reasons, why I would go for an official rebranding - to keep the positive and strengthen the changes, that had been done...

    What do you think about it?

    Best,

    nordia
  • Posted by Pollywog on 6/23/2008 at 1:32 AM Accepted
    You can get over the PR issues with time and a concerted effort to communicate the changes within your company.

    However, you might take this opportunity to consider just how strong your current brand name is. Does it convey the brand promise to your intended audience? Does it differentiate you from your competitors? Is it memorable? Is it trademarked? Does it fit your company's competitive positioning?

    If not, then rebrand. In the short term, it will signal to your target market that there has been a change in your company. In the long term, a strong name will remain a valuable asset that will help propel your brand.
  • Posted by Tracey on 6/23/2008 at 12:46 PM Member
    Re-branding is not just about changing the name and your collateral. A brand is a collection of experiences and associations attached to your company -- it is your company's promise to its customers and prospects, to all stakeholders. Branding, IMO, is a measure of how deeply and consistently your company carries out its vision/mission. E.g., look at the way your reps answer the phone, they way employee actions are rewarded, your customer service policies, your sales processes -- do all these things reflect your innermost values?

    Now, to your question. Before you think about changing the name, ask yourself, does your company's brand need to be aligned? If the answer is yes, then you need to re-brand.

    Re-branding does not necessitate changing a name, although people often do. You can change the way your company is perceived without changing the name. The main question to me is -- does your company name reflect your brand? That is what should help you decide whether or not to change the name.

    I would recommend the book "Kellogg on Branding" which provides some helpful guidance on creating branding plans.

    At the least, it sounds like you need to incorporate a PR campaign to manage your reputation and restore trust.
  • Posted on 6/29/2008 at 12:17 PM Author
    Hi all.

    I am sorry, I couldn't answer yet, but my CEO was busy all week so we didn't even discuss the topic yet. But as far as I can read from his statements within the last days, I would say, he realised, what he would loose with a complete re-branding and I will certainly advise him to take all the money he would have invested in a re-branding and put it into an offensive quality campaign.

    Thanks to everybody.

    Nordia
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