The Pros and Cons of Rebranding
Owning a small business or start-up is a business venture that takes a lot of time and effort. When you decide to debut your business, as an entrepreneur you should understand that you’re stepping into your business for the long haul. No business is guaranteed success immediately after their debut, and it’s important to understand that it takes a lot of time to build up your empire as you understand trends and the market. Rebranding is a strategy commonly used along the journey of most small businesses as it provides a number of different tactics that increasingly help your profits as a business for both your brand and marketing, as well as your finances. Mako Design asked our in-office Toronto product design specialist for more information on rebranding and listed the pros and cons of that you should consider before using rebranding as a measure for your business.
Our Toronto product design specialist defines rebranding as the strategy of accessing where your current brand and marketing stands as a business and redesigning the whole outlook, aesthetic, logo, or slogan of your business or company. The main goals that come along with rebranding include re-inventing your brand or company image in order to keep up with the latest marketing trends, design trends, or pushing your business or company towards a new audience who might need different stimulating images or symbols to catch their attention to your product. Re-branding is a strong and powerful strategy taken by businesses, but because of how reformative it is towards a company brand and image, it should only be taken under an affirmative measure that ensures that it will be successful in your business goals as it can be a costly measure.
A Fresh Look to Stand Out
An undeniable fact about today’s market is that it is an extremely competitive place. A lot of businesses struggle with getting their product out in and the eyes of consumers because there is so much over-saturation in other competing products and businesses. The benefits of re-branding your business is having the attempt at a brand “do-over.” This means that by rebranding, you can access what some of the most popular strategies are in the marketing for your targeted field and apply them to a new brand image to help your business stand out amongst the existing competition. This will help attract new audiences or consumers to your brand you may have overlooked your business at first.
Stay Up to Date with Trends to Appeal to Audiences
Design trends are a huge factor within image, brands, and marketing. Our Toronto product design specialist recommends taking the time to understand what trends are currently appealing to audiences as a great way to incorporate and change the way your business approaches its design aesthetic. In this way, its marketing will be able to catch the eyes of your target audiences. If you notice a color or style trends (even including the fonts of your brand image), it is important to incorporate those in a timely manner to any marketing or branding efforts in order to not fall behind your competitors and to push continuously stimulating content to your audiences.
Show Your Audiences You Care About Their Feedback
A great way to show that you are a reputable business and gain a positive image is to always put your audiences first. Feedback is an important tool that can help you both understand how your company or business is being perceived, and what ways you can further improve your brand and marketing. From the words of our Toronto product design specialist, by taking the feedback that your audiences give you on your business, not only do you follow suite in helping to appeal to your target audiences, but you show that you care about their opinion. Audiences and consumers take strong note on how businesses respond to feedback, so making sure that you take your audience’s feedback seriously is a great way to uplift a positive image towards your brand and businesses as a whole.
Although our Toronto product design specialist explains that rebranding is a great method to help stimulate and gain appeal for new audiences, the timing for any important decision pertaining to your business must take into consideration where you currently stand in your business journey. Rebranding is a huge change that deeply affects your business and can change the perception of your business that might have taken a lot of time patience to build. Only consider rebranding under the circumstances that you know will provide a positive change to your business’s perception from your audience, or if you know your new target audience is bound to be appealed to your new look. The cost is changing too soon can confuse your current audiences or destroy building brand recognition that is vital to acquiring a loyal consumer and audience base.
Know What is Important to Change from Your Brand
One common mistake in rebranding that our Toronto product design specialist reveals is that new businesses usually think that they must reform the whole look of their brand for successful rebranding. However, rebranding can be as simple as a font, color, or size change of your logo. What matters the most in rebranding is understanding what goals you are trying to accomplish with your new look. For example, keeping the same images and symbols but changing the color of your branding is a smart way to keep your audiences familiar with your business or product, but incite a different mood. Small changes can have a bigger impact on your brand than huge ones and its important to understand what are the most vital changes that should be made to our brand before choosing to apply more drastic changes.
Risking the Costs
Rebranding and branding are never an easy change. Along with factoring new goals, targets, and understanding your audience, rebranding is one of the most expensive costs that a business can take. Branding and marketing are already expensive efforts that not only cost money but valuable time, therefore one of the biggest cons of rebranding is simply the amount it can cost you if it perhaps doesn’t go in your favor or achieves the goals you set out. For example, in 2009 popular juice brand, Tropicana, was known for its iconic straw-in-orange image for years. In an attempt to modernize their brand to comply with new design trends, they lost over 50 million dollars (in total from the cost of rebranding, new packing, and 20% of sales revenue lost) because their audience could not identify their iconic straw-in-orange image on store shelves. Eventually, the brand reverted back to their iconic image, but only after their huge loss in profit that cost from both the redesigning and production of their rebranding efforts and the loss in their audiences buying another brand of orange juice because they couldn’t recognize their own. Our Toronto product design specialist explains that the lesson in this scenario is understanding and recognizing that your audiences build an emotional bond to your brand image and appearance and that if rebranding is to be planned out it should be done in small changes, rather than all at once.
Tropicana rebranding that cost the company millions
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Article Author: MAKO Design + Invent
MAKO Design + Invent is the original firm in North America for providing world-class consumer product development services tailored to startups, inventors, and small manufacturers. Simply put, we are the leading one-stop-shop for developing your physical product from idea to store shelves, all in a high-quality, cost-effective, and timely manner. We operate as one powerhouse 30-person product design team spread across 4 offices from coast-to-coast to serve you (Austin, Miami, San Francisco, & Toronto). We have full-stack in-house industrial design, mechanical engineering, electrical engineering, patent referral, prototyping, and manufacturing services. To assist our startup and inventor clients, in addition to above, we help with business strategy, product strategy, marketing, and sales/distribution for all consumer product categories.
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