Rebranding Process And Strategies To Success Marketing Essay

However, the function of rebranding is normally misunderstood and undervalued that many think it is merely a simple alteration in trade name name and logo. Besides, Balmer and Greyser ( 2003 ) note that faculty members identify that directors on a regular basis fail to grok the necessity of corporate rebranding, and often merely concentrate on PR scheme to rapidly shift their corporate trade names ( ibid ) . Besides, rebranding ( Muzellec et al. , 2003 ) is judged to be a time-consuming, really dearly-won and bad scheme that more frequently leads to failures. Its hazard menaces possible of marketing power in trade name equity ( Dunham, 2002 ; Stuart and Muzelec, 2004 ) , loss of picks, loyal clients, and market portion. Furthermore, Hatch and Schultz ( 2003 ) emphasis that corporate rebranding can be a ambitious process. This paper will analyze that rebranding is non merely altering trade name name and logo or PR-focused. It involves in many stigmatization procedure and schemes to promote clients to reconsider about the trade name. Furthermore, illustration of successfully rebranding of LEGO will be given to demo that rebranding is a suited pick to drive better house in long tally.

Role of rebranding

To understand an existent function of rebranding, the definition of it should be given. The word rebrand is a combination of two footings: rhenium and trade name. Re is defined as the prefix used to organize an ordinary verb that means an action of making over or making something for a 2nd clip ( ibid ) . The American Marketing Association offers a description of trade name as ‘a name, term, symbol, design or a combination of them intended to place goods or services of one marketer or group of Sellerss and to distinguish them from those of rivals ‘ ( ibid ) . De Chernatony and Dall’Olmo Riley ( 1998 ) note that this significance emphases on the distinction of corporation ‘s activity by name and seeable individuality schemes. Therefore, A feature of rebranding is an reestablishment of a name, term, symbol, design or a mixture of them with the purpose of raising a differentiated or new place in the head of both stakeholders and rivals. It can be elucidated that rebranding is a scheme that altering more than a trade name name. From the first portion of, it indicates to converts in marketing aesthetics, by evolutionary accommodation of the Son and motto to the radical formation of a new name ( Stuart and Muzellec, 2004 ) . Apart from name alteration, the 2nd portion to be reformed is the placement of the trade name.

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Reason to make rebranding

In the face of altering environments and forceful competition, a trade name needs come oning regeneration to attest continued relevancy and non vanishing from the market that benefit for long term direction ( Feder 1998 ; Knox & A ; Macklan, 1998, Beus and Matanda ) . Regenerating the trade name besides strengthen trade name significance and trade name equity Muzellec and Lambkin ‘s ( 2006 ) . With a relevant, digesting, and believable promise of value, rebranding open an chance to reinvent clear alone favourable trade name individuality and strong trade name image, which help the trade name can be seen as an pioneer and thought leader among industry. Subsequently, it easy to capture a place in the consumer ‘s head and create consciousness. Then, There is a opportunity to change over clients ‘ perceptual experience and attitude to acquire trade name satisfaction that enhance or recover the corporate trade name equity. Furthermore, Ghodeswar ( 2008 ) references that a robust trade name individuality that is good comprehended and experienced by the clients can convey separating the trade name from race, rise clients ‘ trust and trueness, and attain growing. Schmitt and Simonson ( 1997 ) besides outline that unique and compatible trade name individuality can add value to concern merchandises and services, and may able to bear down a monetary value premium.

Rebranding Process and schemes to success

As already mentioned, rebranding has its hazards. When a new name is launched, the old name has to be abandoned. Horsky and Swyngedouw ( 1987 ) province that this might invalidate old ages accumulated of good will in the signifier of name recognition, positive trade name images, and routinized purchasing behaviour. However, there are procedures and schemes lead a corporate to bring forth a well-established and strong clear image pattern, which, with slowness, will able to carry through in rebranding that worth an attempt.

In respect to the rebranding method, Muzellec and Lambkin ( 2006 ) design a theoretical account of rebranding. As seen in the figure below, it includes two ends that are to make new trade name image and to reflect new trade name individuality. There are two accentuated engagements in this theoretical account ; internal employees, affecting in making the cultural image, and external stakeholders, affecting in making the image.

Figure 1. A Model of the Rebranding Process ( beginning: Muzellec and Lambkin,2006 )

From the procedure of rebranding, in order to be success, the anterior thing to be concerned is to analyse the cause of rebranding to put an expressed aim. Following critical measure, which is a fundamental of new individuality and new image creative activity, is ( Merrilees and Miller, 2008 ) a design re-vision of the trade name centered on apprehension of the client to run into both current and expected desires. The corporate trade name individuality has to be redefined, in answer to important fluctuations in the company ‘s construction, scheme, and public presentation ( ibid ) . Brand individuality is composed of a nucleus and extended individuality ( ibid ) . Core individuality by and large involves merchandise properties, service, shop atmosphere, user profile, and merchandise public presentation. Extended individuality is interlaced over trade name elements controlled into consistent and meaningful sets that deliver trade name composing and trade name personality, relationship, and emblem association. Aaker ( 1996 ) states that one key to construct a successful trade name is to cognize how to beef up a trade name individuality by place what the trade name stands for and magnificently grade that individuality. Furthermore, a trade name place, which is a chief factor in rebranding development, is besides a portion of the trade name individuality and value strategy that is to be conveyed to the mark market. The placement is used to show a trade name benefit compared with rival trade names. Therefore, the repositioning is a method of changing the individuality of a trade name and /or merchandises relatives to the rivals ‘ individuality. However, it should be highlighted that rebranding should equilibrate nucleus belief of the corporate trade name and trade name advancement correlated to modern fortunes. The nucleus trade name constructs and ( Kapferer, 1997:334 ) memory should non be renounced in order to construct a span from the traditional corporate trade name to the improved corporate trade name. In the other word, the trade name must tempt new clients with a fresh, motor experience, whilst, at the same clip, maintain the bing client base. Then, the aesthetic trade name or creative activities of new corporate names, underpinned by anew corporate trade name vision and new corporate trade name values ( ibid ) , have to be strongly rebuilt such as new name, new motto and so on. After a alone placement and aesthetic elements are recreated, they have to be clearly communicates through effectual media usage. The bosom of rebranding is communicating to convert stakeholders about the alteration. Rebranding determinations need to based on valuable research in stakeholders ‘ chances to the new corporate trade name and their position as cardinal to the organisation ‘s individuality ( Gotsi & A ; Andriopoulos, 2007 ) . In add-on, house can show its peculiarity in the connexion with stakeholders by use of holistic model to unite the house ‘s activities and its vision. ( ibid ) . Furthermore, to develop the stakeholders ‘ committedness, the company should pay attending on internal selling. Mitchell ( 2002 ) references that internal stigmatization is important in advancing the new trade name to work forces within an organisation because it generates superior harmoniousness between internal and external trade name messages. Employees are participants who play a major function in the internal communicating of rebranding or called “ inside-out ” attack ( Ind, 2003 ) . They are committed to direct merchandise quality and cognition or fulfill client by in-store experience. The more organisations positively encourage employees, the more clients receive the trade name promise ( Punajaisri, et Al, 2009 ) . Scholars prescribe that houses should put a compelling vision and clear trade name values, plus they should utilize their internal communicating channels to “ populate the trade name ” ( Balmer, 1995 ; de Chernatony, 2001 ; Hatch and Schultz, 2003 ; Van Riel and Balmer, 1997 ) . Therefore, it is indispensable to affect staff in every degree from a really early measure in outlining the trade names and deductions of the new corporate trade name. To efficaciously present a revitalised trade name from employees to clients, organisations need to guarantee the proper of employment, counsel and inducement ( Zeithaml et al. , 2006, cited by Jevons et al. , 2005 ) . The new trade name construct is surely represented through incorporate and coordinated selling mix. Merchandise or service design, client service, distribution, pricing, publicity and relationship direction, must be integrated. Promotion or communicating is a bosom of rebranding to construct consciousness of the alterations to stakeholders. Public dealingss may be used when the intent is to set attitudes. Finally, Lomax et Al. ( 2010 ) adds a concluding measure of rebranding that undertaking direction squad should supervise and command the rebranding consequence.

There are two grades in the procedure of rebranding, which are evolutionary and radical. Evolutionary is a gradual alteration in the company ‘s placement and aesthetics. It is used for a barely perceptible to outside perceivers ‘ instance. This procedure will take clip to conglomerate accommodations and inventions. Kaikati and Kaikati ( 2003 ) suggest two schemes can be adopted in this type of rebranding. First, phase in/phase out scheme, during the phase-in phase or introductory period, the new trade name is tied in some manner to the original trade name. After a passage clip, the old trade name is bit by bit phased out. Second, semitransparent warning scheme, it relies on changing clients before and after the existent trade name name adjustment intensive publicity, in-store show and merchandise packaging. . Revolutionary, in contrast, refers to a head, recognizable transition. Mention to Kaikati ‘s scheme, company can accommodate the Sudden obliteration scheme in radical rebranding. It is another interesting option that involves altering the old trade name name to the new trade name name instantly. This scheme is suited when the corporation wants to disassociate itself because its “ old ” image does non likely have a opportunity to resuscitation. Nevertheless, house have to develop a well-planned policy for behavior the termination and funeral of their aged trade names.

The successful rebranding instance survey: Lego

In 1932, Ole Kirk, a Danish carpenter, found the LEGO trade name. The trade name name, which means ‘play well ‘ , is reasonably important for the house vision, and so has become an icon trade name for coevalss of kids. LEGO plaything has value as it encourages imaginativeness and creativeness. In the beginning, the plaything was made from merely wood with a company construct “ Play and Learn ” ( LEGO Company Profile, 2009 ) . Afterward, it was developed to the ‘stud and tubing matching system ‘ that offering freedom to construct new formations. Over the old ages, LEGO has evolved in physical figure and signifier of the blocks every bit good as trade name personality, image and values. As a consequence, has been considered to be a strong and powerful trade name supported by Fortune Magazine and the British Association of plaything retail merchants named LEGO the “ Toy of the century “

However, There is no rose without a irritant, in the 90s, tendencies in the plaything industry were changed by engineering betterment that kids prefer to play new and advanced picture games. Therefore, the authoritative bricks play became antique. Additionally, at the terminal the 90s decennary, LEGO faced rivals that copied its bricks and sold cheaper which besides decayed LEGO grosss ( Franzen & A ; Moriarty, 2008:234 ) . Besides, both the company and the clients dropped attending on the trade name because the company kept establishing trade name extensions and enlargement into different markets such as subject Parkss, kids fabrics, electronic games and so on that excessively much connected to its core merchandise. Due to all of the grounds, the consequence of Brand Asset Valuator ( BAV ) was shown that the feature of the trade name was melting ( Lauwaert, 2009 ) . Consequently, LEGO attempted to animate its nucleus trade name kernel.

The rebranding procedure, solutions found and execution in phases

First of all, in 2001, LEGO created a undertaking force to analyse the province of trade name and come with corporate rebranding scheme. The undertaking force discussed with owner, workers, and stakeholders to happen organisation ‘s value, trade name heritage, and trade name image. It was found that the company construct was “ building with edifice bricks as assembly ” and, after carefully analyze, the company decided its new trade name individuality to “ excite creativeness “ . The creativeness provided a new image of dynamism eternal possibilities of merriment as figure beneath.

Figure 2. Reinterpreting the LEGO trade name individuality ( beginning: Schultz et al. , 2005, p. 169 )

Similarly, The trade names below the LEGO umbrella were reorganized based on four platforms, revealed through figure 3. ( Taylor, 2004 )

Figure 3.New LEGO Architecture ( beginning: Taylor, 2004, p. 131 )

The LEGO Group declared that the LEGO salvage program had three chief ends: ( 1 ) signifier an expressed manner and radically change the concern theoretical account, ( 2 ) develop more competitory by focus oning on clients and ( 3 ) pare the non-profitable actions and cut down the jeopardy degree ( Annual Report LEGO Group, 2004 ) .

Lego ‘s rebranding procedure took seven old ages, started in 2004 ( Lauwaert, 2009 ) . It was divided into three stages as presented in the given figure.

Figure 4. Rebranding program for seven old ages ( beginning: Annual Group Report, LEGO Group, 2007 )

Harmonizing to the process, LEGO decided to sell the LEGOLAND Parkss in order take some merchandises line of the trade name portfolio. Besides, LEGO tried to link with consumers online in reached LEGO fans. It, finally, built many alterations in trade name image. Consequently, the company has got gross revenues growing and gross growing since so. From the fiscal grounds enclosed in the LEGO Group Annual Reports, it can be said that the house has regained financially.


To sum up, to be successful in rebranding demands more than a recondition logo and name. It involves with alteration a whole company to rearrange perceptual experience along with attitude of clients, investors, employees and others. However, it should be highlight that successfully refurbished have to unite both well combination of modern manners and observing history. Besides, after the rebranding end is accomplished, it is necessary to command and remain on the path or non gets lazy on keeping sustainable growing. Through astuteness selling and a quality control, many houses can exposed advanced techniques to retrieve their trade names and in some instances, created them solider than of all time. As the illustration of LEGO rebranding instance, it survives from the encircled technological and advanced playthings. Therefore, it proves that, in the diminution phase, while the image is outdated and the competition is backbreaking, rebranding is the reply for life.



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