When and Why You Should Consider Rebranding Your Business

When a company or a business has been long enough in the industry and gets too comfortable for its own liking, losing sight of one’s true goal or vision is easy. When this happens, it is important to take a step back, look at the brand for what it is and if it’s still on the right track, and if not, rebranding might be the key to getting back on the right track.

Rebranding is more than just the misconception of a mere redesign of a logo or a tagline update as it is a strategic shift in how a business presents itself to its audience. Common knowledge of rebrands often involve the usual–changes to the visual identity, such as logos, color schemes, and packaging. However, rebrands also extend to brand messaging, company values, and customer experience. This process is intended to reflect the evolving goals of a business, align with market trends, or cater to new audiences.

This makes for the perfect way to get out of a funk should a company lose sight of what its goals and views are as time passes by.

However, rebranding isn’t a decision to be taken lightly. It requires meticulous planning, as it impacts every touchpoint of your business, from marketing materials to how your brand is perceived in the marketplace.

This leads us to consider the ramifications—both the opportunities and risks—that come with such a transformative decision.

The Advantages and Risks of Rebranding

On the positive side, rebranding can reinvigorate a stagnant business, making it more appealing to a broader or different demographic. It allows brands to distance themselves from outdated identities or overcome negative perceptions, especially after a crisis. For example, rebranding can modernize your image and align with shifting consumer preferences or cultural trends.

But the risks are also significant. If poorly executed, a rebrand could alienate loyal customers who no longer recognize or resonate with the new identity. There’s also the financial cost of overhauling marketing campaigns, updating physical and digital assets, and retraining employees to embrace the new identity. These risks underline the importance of ensuring a rebrand is done for the right reasons.

With a clearer understanding of the potential upsides and downsides, you’ll be able to ask yourself if you’re okay with change because change can be extremely uncomfortable and lead to uncertainty.

Perhaps you might also want to ask yourself–why do we need to rebrand in the first place?

Why Consider Rebranding?

A business should rebrand when its current identity no longer reflects its vision, mission, or target market. For instance, significant milestones like expansions or entering international markets often call for a new brand identity that reflects the changes. Similarly, a rebrand is essential when the company faces declining market relevance or fails to resonate with younger, more digitally-savvy consumers.

Another compelling reason is negative public perception. We’ve seen this too much in the country. A brand gets itself in a tight situation, backlash comes in, then risk management in the form of statements or press releases.

If a brand’s reputation has been tarnished, rebranding can help it start fresh and regain trust. Each of these reasons ties into the need for a rebrand to be purposeful and strategic, as illustrated by Dunkin’s iconic transformation.

Dunkin’: A Case Study in Rebranding

Good for the keen observers out there, but for those who aren’t, did you know that the Dunkin’ Donuts we all know and love now simply goes by the name Dunkin’?

This serves as a very good example of how rebranding can enhance a company’s relevance and focus. By dropping “Donuts” from its name, Dunkin’ emphasized its broader menu offerings, particularly beverages, which had become its most profitable segment.

Simply put, Dunkin’s coffee is so good, they had to drop the “Donuts” in their name.

The change also signaled modernization, catering to a faster-paced, on-the-go audience.

This rebranding wasn’t limited to the name. Dunkin’ updated its stores with modern aesthetics, optimized its mobile app for younger users, and reinforced its identity as a brand that values convenience. The result? A refreshed, recognizable image that aligned with evolving consumer preferences without alienating its core customer base.

Dunkin’s success underscores how a thoughtful, well-executed rebrand can set the stage for long-term growth and success. However, it also emphasizes the importance of timing, clarity, and alignment with business objectives when embarking on such a journey.

That should serve as the textbook rebranding process that when done right, changes not only how a brand looks, but also their strategy on staying relevant in a world that will never stop in its tracks just to accommodate you, your misaligned views, and your aging brand. (GFB)