Now that you have got an awesome business idea, have you ever thought “how you would brand your Startup?”
In today’s world of fierce competition, it is of utmost importance to get your brand registered in the customers mind. Many startups neglect spending the necessary time that they must on understanding their brand in this broad sense and the impact it has on their business. This is when they later on need to go for rebranding. Rebranding, however, can be an outcome of many other reasons about which we will discuss in the later part of this article.
Let’s begin by understanding why Branding is important and essential for the aspiring businesses.
- Recognition: Branding helps you position yourself or in other words register yourself in the customer’s or the end user’s mind. This recognition or familiarity is very important because people tend to do business with companies they are familiar with.
- Differentiates you from Competition: In current scenario where startups compete in global economy, branding is what makes you stand out from the crowd. A professional appearance builds credibility and trust. People are more likely to purchase from a business that appears polished and legitimate.
- Highlights your Business DNA: Your full brand experience, from the visual elements like the logo to the way that your phones are answered, tell your customer about the kind of company that you are.
- Direction and Motivation for Staff: A clear brand strategy provides the clarity that your staff needs to be successful. It tells them how to act, how to win, and how to meet the organization’s goals.
- Sets Customer Expectations: A brand image is what helps customers understand what to expect from the company. The products that the company produces are perceived by the customer in terms of the brand value of the company. Not just that, branding helps the customers connect emotionally to the company.
- Enhanced Business Value: A strong brand will provide value to your organization well beyond your physical assets. Proper branding creates a value for the company that far exceeds their physical value.
To sum it all up, Branding is the process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.
Sometimes, however, due to various reasons we need to rebrand ourselves. Rebranding occurs when a business or organization decides to change a significant element of the brand. Such a change could be glaringly obvious like a new brand name or logo, or it might be more subtle such as a slight shift in messaging to better communicate a more relevant brand promise.
Rebranding can be one of the most rewarding and transformational undertakings an established business can make. However, rebranding a business needs to be done for the right reasons, and we have tried to enlist a few of them for you to read through.
- Coming of Age: In the life cycle of the company there comes a time when your corporate identity is no longer up to scratch. Recognising this moment may seem difficult, but in the life of a business various situations arise that lend themselves very well to a change, or even necessitate one.
- Fundamental Changes: One of the most common reasons for undertaking a corporate rebranding project is modernisation. Trends mean that over time brands come across as old-fashioned if they have not been updated. Although in many cases it is not the main reason, a more modern image is often one of the motivations behind a rebranding project.
- Differentiating the business from competitors: One of the most common reasons for undertaking rebranding project is to differentiate your company from the competitors. Over time brands come across as old-fashioned if they have not been updated and this can provide an unwated edge to the competitors in similar line of business. Although in many cases it is not the main reason, a more modern image is often one of the motivations behind a rebranding project. Hence, in order to be differentiated from the crowd, rebranding becomes necessary at times.
- Relevance in changing marketplace: For some companies, changes in the market situation mean that their very existence comes under threat. The globalisation of society in particular is making it necessary for certain sectors to reinvent themselves. Different requirements call for a different product to be offered.
- Launching new products or services: Over the years, an organisation has to deal with the development and acquisition of numerous new brands. In time this results in an extremely diverse and broad brand portfolio that is no longer logical for anyone and is therefore only still understood by a handful of people. Furthermore, carrying many different brands often leads to high costs when it comes to maintaining and promoting the brand. In such cases, rebranding ensures that the entire brand portfolio is brought into line and tells a clear story about the organisation.
- Outdated Image: One of the most common reasons for undertaking a corporate rebranding project is modernisation. If we go by trends, over time brands come across as old-fashioned if they have not been updated. Although in many cases it is not the main reason, a more modern image is often one of the motivations behind a rebranding project.
- Bad Reputation: If a brand has a bad reputation and this is having a serious impact on its operating result, rebranding can ensure that negative associations with the brand are ameliorated or dispelled. It is important here that not only the exterior changes, but that the change is also implemented in all other aspects of the organisation.
- Merger or Acquisition: When companies merge or acquire other companies (and even when they break apart), rebranding are often required. These types of rebranding are very common and often go through multiple iterations.
The ubiquitous nature of a company/product brand across all customer touch points makes rebranding a heavy undertaking for companies. In rebranding the iceberg model holds true, 80% of the impact is hidden. The level of impact of changing a brand depends on the degree to which the brand is changed.
Rebranding can have a rejuvenating effect on the internal culture of your company as it calls for new levels of employee support, knowledge and feedback. It gives staff the chance to get involved in creating a new, positive business culture.
Hence, to conclude, we would say, that whether it is branding or rebranding, what holds importance is to register you brand with utmost care in your customer’s mind, and reap the benefits eventually.