The Price of Change
Change is an inevitable part of any business journey. The ability to adapt and reinvent is often the key to survival and success. This is where the concept of rebranding steps into the spotlight. Rebranding is a powerful tool that allows businesses to tap into new markets, revitalize their image, and capture fresh audiences. However, the decision to rebrand is not to be taken lightly, as it often comes with a significant price tag. In this blog post, we'll explore what rebranding is, its associated costs, and the role trademarks play in the journey. Join us as we delve into the intricate process of transformation and the compelling reasons businesses undertake this journey.
What is Rebranding?
Rebranding is the strategic process of reshaping a company's image, which can include its name, logo, design elements, and even its mission and values. It can range from a subtle change in branding elements to a complete overhaul of a company's identity. The primary goal is to revitalize the brand’s image. Which can directly communicate to the consumers the new direction your business is taking.
Why Rebrand?
There are a variety of reasons why a business might want to rebrand:
Staying Relevant: As markets change and customer preferences evolve, a brand may need to adapt to remain relevant.
Expanding or Diversifying: A company may rebrand to accommodate its expansion into new markets or to reflect a broader range of products or services.
Overcoming a Negative Image: Rebranding can help mitigate a negative reputation. It can help with starting fresh, away from associations from past mishaps.
Mergers and Acquisitions: When companies merge or are acquired, rebranding can unite their identities under a single banner.
How Much Does Rebranding Cost?
The cost of rebranding varies based on the scope of the changes and the size of the company. Generally speaking, larger businesses spend more on rebranding than smaller businesses do. Research shows that the average B2B company spends about 5% of its revenues on marketing. Considering that, the average rebranding could cost anywhere between 10% - 20% of the marketing budget. This can include expenses from redesigning a new logo, launching a new website, updating marketing materials and advertising in general, and trademark registrations. A successful rebranding campaign can cost anywhere from tens of thousands to millions of dollars.
Companies Who’ve Done It Right
Dunkin’
The rebranding of Dunkin' Donuts to Dunkin' was a bold move in the world of iconic brands. By removing "Donuts" from its name, the company aimed to signal a broader menu and a focus on beverages while retaining its original offerings. While the name changed, the commitment to providing delicious donuts has remained the same. Dunkin' proved that rebranding isn't just about what you lose but also about what you gain — the opportunity to continue serving loyal customers while attracting new ones. Keeping America running, one cup of coffee at a time.
LEGO
The journey of LEGO serves as a testament to the power that rebranding holds. LEGO has evolved far beyond the plastic brick, extending into movies, video games, and educational ventures. Through this rebranding, LEGO successfully adapted to the digital age while holding onto its values. This transition not only revitalized the brand but also sparked an exponential growth in revenue and popularity. The story of LEGO's rebranding highlights the importance of staying true to core values and staying open to new opportunities in a rapidly changing world.
In the ever-evolving business landscape, rebranding is a crucial tool for staying relevant and capturing new markets. While the costs can be substantial, the investment often pays off in the form of increased brand engagement and customer loyalty. Additionally, when a rebrand involves elements like logo changes or name changes, trademark considerations are also to be expected. By securing your trademarks, you not only protect your investment in the rebranding process but also your new brand identity. In essence, the costs associated with rebranding represent an investment in the future of your brand. However, pulling all of this off can be challenging. That’s why we’re here. Let's get your rebrand strategy started. Schedule a consultation now and secure a seamless brand transformation.