Rebranding

Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, competitors, and other stakeholders.

The process can occur through a change in marketing strategy or in various other situations such as Chapter 11 corporate restructuring, union busting, or bankruptcy.

Once in a lead position, it is marketing, consistent product or service quality, sensible pricing and effective distribution that will keep the brand ahead of the pack and provide value to its owners (Sinclair, 1999:15).

Companies also utilize rebranding as an effective marketing tool to hide malpractices of the past, thereby shedding negative connotations that could potentially affect profitability.

Companies invest valuable resources into rebranding and third-party vendors because it is a way to protect them from being blackballed by customers in a very competitive market.

Research suggests that "concern over external perceptions of the organisation and its activities" can function as a major driver in rebranding exercises.

[5] In a corporate context, managers can utilize rebranding as an effective marketing strategy to hide malpractices and avoid or shed negative connotations and decreased profitability.

Corporations such as Philip Morris USA, Blackwater and AIG rebranded in order to shed negative images.

General Motors decided to rebrand its entire structure by investing more in Chevrolet, Buick, GMC, and Cadillac automobiles.

General Motors' reinvention commercial also stated that eliminating brands “isn’t about going out of business, but getting down to business.” Companies like Dunkin' Donuts, Joann Fabrics, and Weight Watchers, have removed or abbreviated parts of their company names to suggest a larger product line offering than what their names solely imply.

This could occur when a company's business has changed, for example its strategic direction and industry focus, or its brand no longer fits its (new) customer base.

For example, a company might rebrand so that its name works in new market it enters, for reasons of culture or language, such as to make it easier to pronounce.

Rebranding in this manner allows one set of engineering and QA to be used to create multiple products with minimal modifications and additional expense.

Rather than implementing change gradually, small businesses are sometimes better served by rebranding their image in a short timeframe – especially when existing brand notoriety is low.

[16][better source needed] The ubiquitous nature of a company/product brand across all customer touchpoints makes rebranding a heavy undertaking for companies.