Rebranding: what it is in simple words, examples of rebranding in Russia and in the world. What is rebranding: why is it needed, what benefits does it bring to a business and when should it be carried out? Examples of failed rebranding

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What is rebranding, why is it needed and how does it help business?

Rebranding is a marketing tool for changing a company's brand: logo, slogan, corporate identity, packaging design, market positioning and brand name or the entire brand. This approach allows you to change the impressions of your target audience for the better and increase profits.

One of the main reasons for rebranding: restyling and repositioning of the brand.

“Restyling is a process of change at the level of the logo or brand name while maintaining the company’s ideology.

Brand repositioning is the addition of new quality characteristics to a product or the launch of new products. This also includes changing the market segment and brand image.”

But rebranding does not always have a positive effect. Sometimes such a tool leads to failure. This happens because the marketing strategy was poorly thought out. With the right approach, the results are always positive.

Successful and failed rebranding campaigns will be listed at the end of the article. But before that, you need to understand the main essence and main tasks that it solves. And also how it helps business.

Why is rebranding needed and what are its objectives?

Rebranding as a marketing tool is needed:

to announce changes within the company and a new attitude towards customers, improving the quality of services, products or goods;
to move to a new price segment: budget or premium;
when changes occurred in the management team: the management or owner of the company changed;
to re-draw attention to your brand;
to breathe new life into the business and increase loyalty of the target audience;
to unite the team, generate new ideas, increase attractiveness for new employees in order to eliminate staff turnover;
before changing the target audience.

Rebranding is suitable for various situations. But just changing the name, logo and slogan is not enough. Serious changes must really occur within the company: improving the quality of the product or services, improving customer service, changes in customer service, etc.

Rebranding should really change something, and not offer the target audience the same products, services with the same quality and prices that were before the rebranding.

A striking example of Russian Railways. They changed the logo, but did not change the approach to the quality of service. The target audience did not notice the difference.

To clearly understand why rebranding is needed, here is an expert’s commentary.

“Every company has its own motivations for rebranding. I can highlight the key factors that are usually present. As a rule, there are several of them.

The company is reaching a new level of development. There are fast-growing companies that have already outgrown their baby pants and have grown out of their formative stage. That is, they need to develop, expand their product portfolio and customer base. Then, of course, we can talk about rebranding.

There is a point that is connected with the target audience. As the brand matures, the target audience matures, and any brand aims to collect as much profit as possible from its products. Accordingly, if the audience is already older and begins to bring in less money, then, as a rule, the brand shifts to a younger target audience. This is also a reason for rebranding.

There is a market change. Markets are now changing at breakneck speed and, of course, the company must comply.

There is penetration of new competitors. Especially if these are large international companies that dictate their terms, their own style, which will be acceptable on the market in the near future. Of course, a merger and acquisition is a factor that leads to major rebranding.

IPO, undoubtedly. Pre-sale preparation is a very common request. We want to sell the company and remember that there is a brand value and we want to increase it as quickly as possible in order to sell the brand with more value than it is currently worth.

Exclusively on the Russian market there is another purely emotional factor, which is called “I want it too.” That is, this is an unmotivated moment, which may still occur quite often, when suddenly the owner or top manager of a company realizes that they need some kind of updates.”

Svetlana Yurova - General DirectorKomandor Brains& Brands

How rebranding can help a business

To understand how rebranding affects a business, we need to look at an example.

In 2009, Sberbank rebranded. Changes were made to the corporate style (the logo became modern and dynamic) and to the organization of the bank’s work:

The departments began to work without lunches or breaks.
Electronic queues appeared, which increased the speed of customer service.
In the common rooms there are managers for consultations and areas for express services.
Clients had the opportunity to carry out all transactions through Internet banking without leaving their home or office.
The list of services has expanded and the quality of their provision has improved.
Sberbank managed to attract the attention of solvent young people and get rid of the negative attitude that was noticed before 2009.
The approach to marketing and advertising has changed - now campaigns have become brighter and more attractive.

Thanks to such changes, already in 2010, Sberbank’s net profit amounted to more than 160 billion rubles, and the number of plastic card holders doubled. In 2017, Sberbank is one of the most influential and popular banks in Russia, offering a wide range of high quality services. Customer attitudes towards the brand have changed for the better compared to 2009.

Thus, rebranding can help a business reach a new level, increase target audience loyalty, expand its customer base and increase profits.

Below is a video about how Orange Bank took a unique approach to rebranding.

Any company in the service sector can follow the path of Orange Bank. Rebranding was created in order to be able to reconsider the existing concept and make changes and improvements to it.

When to rebrand: 10 reasons to rebrand

Rebranding is appropriate in the following situations:

The brand begins to lose its popularity and position in the market, and the level of loyalty of the target audience decreases. The consumer loses interest in the brand and its packaging, which indicates that the brand is becoming obsolete, leading to a decrease in sales and a decrease in the company’s profits. All this signals that it is necessary to resort to rebranding and appear before the consumer in a new, more attractive image.
A new strong competitor has appeared on the market with a brand that is more interesting and attractive to the target audience. In order not to lose your position in the market and not lose it to a competitor, you need to rebrand, having previously analyzed how the competing brand attracts and interests the target audience.
Changing market conditions: new products, product models, services, packaging, etc. have appeared. If the company does not correspond to changes in market trends, then rebranding will help correct this situation.
Changes in the tastes, preferences, needs or purchasing power of the target audience. This happens quite often. The target audience is fickle in its preferences, and you never know when a consumer will lose interest in one brand and show sympathy for another. To always please your customers, you need to change your approach to service, product packaging, its composition and characteristics, advertising and brand positioning as a whole. And again, rebranding comes to the rescue.
Change of company activity and entry into another market. For example, the company was previously engaged only in the sale of building materials, but now will be engaged in construction and finishing work. Such changes can only be communicated through competent rebranding.
Transition to a new price segment. If previously the company sold only expensive products, but decided to expand the range with budget options, then it is best to announce this not only through advertising, but also through rebranding.
Ideological changes in the company and employee motivation. This item includes: changing the values and goals of the company, creating a new system for working with consumers, appointing a new manager, etc. Also attracting the attention of company employees, refreshing ideas and increasing the efficiency of the team.
Refocusing is changing the old target audience to a new one.
Reformulation is a change in the quality, composition or other characteristics of a product.
Information drive - reminding the target audience about yourself and attracting their attention to the brand.

Advantages, disadvantages and examples of unsuccessful rebranding

Pros and cons of rebranding

The benefits of rebranding are that clients or customers can take a fresh look at the company or its specific product. Accordingly, the attitude of the target audience will change, their loyalty will increase, the base of regular customers will expand and an army of loyal fans of the brand will appear.

Rebranding allows companies with a lost reputation in the market to regain it by: introducing a new pricing policy, improving the quality of customer service, increasing product reliability, automating some processes, and much more.

Properly carried out rebranding always leads to increased profits.

There are only two shortcomings:

Rebranding requires large financial costs.
An amateurish approach to rebranding can ruin your business.

The last point is worth considering using living examples of famous brands.

Unsuccessful rebranding of global brands

Not all well-known brands have always been successful. Some of them made mistakes that negatively affected sales and popularity of products.

Here are 3 famous brands that did not benefit from rebranding.

Pepsi

The world-famous Pepsi company for its drinks decided to rebrand and make changes to the logo. They cost $1 million, but in fact nothing has changed in it - only the tilt of the strip, which was supposed to symbolize a smile, but no one understood this. Management later admitted that it was a waste of money. And the consumer reacted to the new logo as in the image below.

Tropicana

Everyone at least once drank Tropicana juice, which was distinguished by the image of an orange with a straw sticking out of it. But the company got tired of this image and decided to replace it with a glass of freshly squeezed orange juice. The idea turned out to be a failure, as the drink was lost on store shelves among similar juices from other manufacturers.

Kraft

But the Kraft company got bored with their old logo and decided to replace it with a new one - with many colored elements. The target audience remembered and recognized the previous logo immediately. The new one became too big, due to the fact that everything was added to it: a logo, a slogan, some kind of multi-colored explosion and a smile. A striking example of the harm of creativity.

Rebranding is a complex marketing tool that will benefit if it is in the hands of a professional. Amateurism will only harm the future affairs of the company. And rash actions and throwing away money, as in the case of Pepsi, can lead to decreased sales or bankruptcy.

And you need to remember that rebranding is not limited to just the logo and corporate identity. This is a deeper challenge that affects all aspects of the business.

The market, especially the Russian one, is a place where everything changes rapidly. What was relevant yesterday is outdated today. A company that wants to stay on the crest of the wave must change in accordance with existing trends. To achieve this, the rebranding method is often used.

What is rebranding?

Rebranding is a single name for the activities that are required to change the brand as a whole or its elements. In essence, this is an update of the corporate identity in order to return it to relevance. Typically used by companies with a long history. The main feature of rebranding is updating while maintaining the main symbols by which the brand is recognized. This is not a radical change in the “face” of the company. The goal of the event is to change consumer associations in the perception of the brand.

IMPORTANT! Rebranding should not be confused with restaling. The first means a complete change in the corporate identity, the second means an update of only some of the elements. For example, changing the brand design will not be considered a rebranding.

In what cases is it necessary to rebrand?

Changing your corporate identity makes sense under the following circumstances:

The brand stopped solving its problems. If a TM has lost its previous positions in a competitive environment, loyalty (TA), sales figures are falling, all this means a loss of brand relevance.
A strong competitor has appeared. If a company has a competitor who is winning over the target audience, it needs to take action at an accelerated pace. Lack of rebranding can lead to TM becoming an outsider.
Internal changes in the company. The corporate identity reflects the ideology of the organization, its main product. If significant changes begin in the company, then the brand must change. Otherwise, the outer shell will not reflect the internal content.
Either the target audience or the needs of its representatives have changed. The wishes of the target audience depend on the financial situation in the country and existing trends. For example, at the moment, consumers are in demand for natural products. Ecological trends are popular. Therefore, when selling products, manufacturers focus on the absence of chemical elements in them.
The company changed its activities. Changes can be complete or partial (for example, a company begins to provide new services, but the old ones also remain).
Market conditions have changed. Changes may depend on existing trends, the invention of new products that affect the market situation. For example, the approach to packaging design is now changing.
Reformulation. This is relevant if there have been qualitative changes in the goods produced by the company. For example, unique recipes began to be used in the production of toothpaste. This is an important competitive advantage that makes sense to reflect in the corporate identity.
The company began operating in a different price segment. For example, a fashion house has developed a collection of clothes at budget prices. Another example is that an alcohol manufacturer began to produce elite drinks. All this needs to be reflected through the brand to attract the target audience.
Informational occasion. Let's look at an example. The company has been on the market for a very long time, but has long lost its previous position. You need to remind consumers about the brand. Rebranding is an effective news feed.
Motivation of company employees. With the help of rebranding, you can attract the attention of not only consumers, but also the employees themselves, who have lost their former enthusiasm.
Changing the target audience. Sometimes a company needs to change its target audience. For example, a manufacturer previously produced clothes for pregnant women, and has now developed a collection of children's clothing.
Mistakes when creating the previous corporate identity. If the company initially positioned itself incorrectly, it needs to correct its mistakes.
The company has been given more ambitious goals. If a company wants to reach a new level, it definitely needs to change its positioning. This is how intentions are indicated, and a new target audience is also attracted.

Rebranding cannot be done frequently. Consumers must become accustomed to a company's particular style.

Rebranding tasks

The tasks of updating the corporate identity are determined on an individual basis. First, specialists must study the strengths and weaknesses of the company. Let's consider typical rebranding tasks:

Update in accordance with existing trends.
Increasing target audience loyalty.
Strengthening competitiveness.
Increasing the attractiveness of products.
Increasing brand awareness, distinguishing it from competitors.
Expanding the target audience.

The main goal of updating the style is to increase the company’s commercial profit. A side task is to create a specific TM image.

Rebranding stages

The corporate identity update is carried out in accordance with the following stages:

TM audit. In the process, the state of the company, loyalty indicators of the target audience are studied, and strengths and weaknesses are identified. It is also necessary to analyze the optimal depth of rebranding. The update is also carried out based on the financial condition of the company.
Definition of strategy. You need to decide what exactly will be changed. In particular, the specific elements that will be updated are determined. This could be a logo, packaging, way of presenting the product.
Direct rebranding. The planned strategy is being translated into reality.
Bringing the updated corporate identity to the direct consumer. The main goal of the brand is to create certain associations with the product and the company. Therefore, the target audience needs to be familiarized with the updated elements. Buyers should soon become familiar with all the elements of the style. The media is usually used for this.

The quality of direct work on brand change is largely determined by how thoroughly the analysis was carried out and how accurately the goals of the entire event were defined.

Methods

First, specialists engage in a full audit. It is needed to determine:

the real state of the organization and its prospects;
weaknesses and strengths;
analysis of research into the company's target audience;
analysis of the financial capabilities of the organization.

It is also necessary to predict the possible effect of rebranding and determine its objectives.

Based on the audit, a corporate identity renewal program is drawn up. A strategy is developed and optimal methods are selected. The following tools are commonly used:

Restyling. Represents a design update. For example, this could be a change in the logo, TM elements, or the dominant color scheme.
Viral marketing. This is one of the guerrilla marketing methods that is quite difficult to execute. Its essence is the creation of an information product that will gain viral popularity among consumers.
Positioning the company using social networks. Representatives of the target audience will learn about all changes through social networks. New design elements can also be used there.
Sampling. Represents the introduction of consumers to a new product. Samples are distributed in public places and tastings are held. The buyer gets to know the products directly.

The specific method is selected depending on the tasks.

What is a deep rebranding?

Some compare rebranding to renovation. The work can be either major or cosmetic. In the first case, a full-fledged approach to updating is practiced, that is, deep rebranding. Based on existing trends, the presentation of the product, its packaging, and the color scheme used may change. Even the properties of the product themselves change.

As already mentioned, natural products that comply with the principles of a healthy diet are currently popular. An enterprise that previously produced ordinary goods can focus on their environmental friendliness and naturalness. That is, not only external signs are subject to renewal, but also internal processes. Radical changes are especially needed for companies that have been in the market for a long time and lag behind leading trends.

Rebranding is an active marketing strategy; includes a set of measures to change the brand (both the company and the product it produces), or its components: name, logo, slogan, visual design, with a change in positioning. Carried out in line with changes in the conceptual ideology of the brand. This implies that the company (product) has undergone quite significant changes. Restyling and brand repositioning are integral parts of the rebranding process.

In what situation is rebranding needed?

There are many reasons for updating the brand:

The brand is outdated.

The most important thing is that the image of the company is a thing of the past, the brand is no longer relevant and does not work as it should. This means the company needs a rebrand. When an old brand stops fulfilling its tasks and becomes boring, it is sent for “repair”.

A competitor has appeared with a more interesting brand.

The general state of affairs on the market also has an impact. Brand renewal is necessary if a new strong competitor has appeared in the business arena.

The brand must perform new tasks.

Another important reason for rebranding is the new goals set for your business, for example, increasing sales. In this case, a reorientation to a new audience with greater consumer potential is necessary.

The company changes or enters a new area of activity.

It happens that a company expands into a new area of activity. For example, your company now produces not only spare parts, but also cars. In this case, rebranding is also needed.

Rebranding tasks

Rebranding isn't just about proving that you've reached the next level. Another fact is more significant. In any business, it is important not to lose existing customers and adapt to the needs of the target audience, so rebranding is primarily aimed at increasing the loyalty of your consumers. In this situation, a brand update will strengthen your company's position in the market. As a result, authority increases.

Also, in the modern world, where consumers are offered a wide choice of diverse companies, it is important not to lose their uniqueness. Similarity in corporate colors and logo with another company will reflect poorly on your business. This will be a circumstance that will lead to undesirable consequences. A company that does not have a unique brand quickly becomes overgrown with jokes and parodies.

It is also impossible not to notice that a brand is the company’s attitude towards its consumer. Through the brand, the company shows how important it is to connect with its client; with the help of the brand, the organization itself decides what impression should be created on the consumer.

Rebranding objectives:

strengthening the brand (that is, increasing consumer loyalty);
brand differentiation (strengthening its uniqueness);
increasing the target audience of the brand (attracting new consumers).

Rebranding: stages and features

Setting goals and objectives for rebranding, drawing up technical specifications. At this stage, the project manager and the client discuss the goals of the rebranding and the results they want to achieve. Based on this information, a technical specification is drawn up. All further work will be carried out in accordance with the ToR document.
Market analysis, consumer and competitor research, SWOT and internal audit of the company and brand. The analytical stage involves collecting all the information about the company’s field of activity and the market in which it operates.
Development of basic elements of corporate identity. Based on technical specifications and analytics, designers, marketers and copywriters develop corporate style options: color scheme, fonts, textures, logo textures, etc.
Visualization of 3 design concepts brand elements on main media for greater visibility. The customer has 3 options for a new logo to choose from.
Presentation of concepts and selection by the customer of one of the options, its revision. Minor adjustments to the logo are also possible.
Brand promotion strategy for 1 year for the selected finalist option.

Rebranding concept

Rebranding can be carried out comprehensively and be relevant for all elements of the brand. Individual components of the brand may also undergo transformation. Rebranding may include such items.

Repositioning. Change or change of positioning concept.
Restyling of corporate identity. Changing corporate fonts, colors, or improving an old version.
Packaging redesign. Promotion of a long-familiar product in new attractive, interesting, or unusual packaging; or adding new details to an already well-known brand that do not change, but refresh the already familiar image of the product - specifically for a planned advertising campaign.
Restructuring the brand communications system– development of a brand promotion strategy based on a new brand positioning concept.
Logo rebranding(update, revision or complete redesign of the logo).
Name change – brand name rebranding, firm, trademark, store, enterprise or company (partial renaming of an old name or a completely new name).

Difference from restyling and repositioning

Rebranding differs from restyling in that restyling is unable to permanently improve a brand’s position in the product market and maintain a competitive niche.

And rebranding differs from repositioning in that during the repositioning process it occurs only when it is necessary to analyze competitors and choose more advantageous niches, while other aspects of the company are not transformed.

Top 5 mistakes when rebranding a supermarket or store

Creativity instead of solutions. New brand designs are not born from the designer’s head. All developed elements must correspond to the new philosophy and mission of the company. If the design of a corporate identity or store interior is just a designer’s fantasy, then such a brand will not be remembered, and the resources spent on rebranding will be wasted.
The desire to get by with little blood. Of course, there is always a temptation to save money and entrust rebranding to inexperienced companies or even freelancers. This should not be allowed under any circumstances. Branding agencies differ from freelancers precisely in that they use an integrated approach to work and assemble a team individually for each project. Sometimes it costs a lot of money, but in the end you don’t have to worry about the result.
Lack of launch and promotion plan. They say that a good product sells itself. Experience says that this is just a utopia. A well-thought-out promotion campaign is the key to success. And if it is absent, rebranding will have no effect.
Lack of constant communication with performers. It is impossible to carry out rebranding on your own, but this does not mean that all responsibility should be transferred to a branding agency and wait for a miracle. Even the most experienced professionals need constant guidance because... It is the company that is the main carrier of the brand and understands its essence best of all.
The Road to Calvary. The team to work on the project should only consist of great professionals who are interested in rebranding. Otherwise, the whole process of rebranding a store will be like walking through agony. Agreements will be delayed, misunderstandings will develop into conflicts, and meetings will be constantly postponed and postponed.

Rebranding examples

There are many examples of rebranding in world history. And in Russia in recent years, many companies have rebranded. Airlines "Siberia" and "Aeroflot", mobile operators "Beeline" and "MTS", retail chains "Econika" and "Old Man Hottabych", etc.

The media also does not forget about this important marketing tool. So in 2010, the digital television family of Channel One completed the first stage of rebranding. A restyling of the visual part was carried out, which was supposed to strengthen the associativity of the digital television family with its founder - Channel One, and emphasize the continuity of the channels and their unity within the framework of a powerful brand. The changes primarily affected logos and channel design. As the basis for new laconic logos of Time, Music,

At the House of Cinema and TV Cafe, a unit was taken - the symbol of Channel One and typography: the names of the channels will be spelled out. As before, color remained the main identification element. For the Time channel - blue, for Music First - lilac, for the House of Cinema - red, for Telecafe - burgundy.

The logo of the Digital TV Family itself has also undergone changes. He logically combined the elements of the five channels into a single whole. Thus, the channels received a clearer identification, which was the task of the management of Channel One CJSC. World Wide Web."

Old Spice: deodorant for real men

Problem: Strictly speaking, Old Spice deodorants are no different from any other. But for a number of reasons - perhaps because of the name itself - the young audience considered Old Spice products to be age-old and were in no hurry to buy them. They found the smell sexually unattractive.

Rebranding: Old Spice relied on the charismatic basketball player Isaiah Mustafa. The female audience liked it. In the wake of the popularity of the new hero, the company even released a series of shower gels.

On the plus side, Old Spice didn’t have to change the logo, it was enough to change people’s perception. A young, active and sexually attractive hero and a humorous, reckless delivery were what the brand needed to get rid of the image of “deodorant for old men.”+

Sometimes it is enough to show the target audience a familiar product from a different perspective to revive interest in yourself and increase conversion. Think about what sauce to serve what you do.

Apple as an example of the perfect rebranding

A list of examples of the best logos cannot be complete without biting into an apple. Today we think of the Apple logo as “simple, yet stunningly elegant.” But this is not the first version of the Apple logo. What was the logo for this campaign? The logo originally featured Sir Isaac Newton sitting under an apple tree. A little later, the logo was an apple painted in “7 colors of the rainbow.” And finally, the logo evolved into the simple emblem we know and love today.

The experience of redesigning the Apple logo clearly demonstrates what a symbol of any company should be: the logo should be simple, understandable and beautiful. (The history of logo changes, as well as all the ups and downs of this unique company, is described in the biography of Steve Jobs).

Google: a successful rebellion against conventional wisdom

Surprisingly, the Google logo actually openly violates several standard rules of branding and lightweight logo design. He uses colors that seem to "contradict" each other. The letters that make up the brand name cast small shadows, which also goes against all the rules of creating a modern logo. The use of a serif font is also very rare in the graphic embodiments of relatively new and recognizable brands.

However, almost all offers from Google have fantastic branding, and the unusual design of the brand logo only emphasizes its difference from competitors. In addition, the best logo designers have worked to ensure that the logos of different Google products look very similar to each other, which

helps to consolidate in the minds of the consumer the information that all these – sometimes very different in purpose and functionality – products are produced by the same brand.

Pixar: 'Jumped out of the box' to equal the best

In 1986, one of the first opuses of the Pixar studio, the short film “Luxo, Jr.”, was released. It was this animated film that inspired the creators of the studio's logo: the letter "I" in the word Pixar looks exactly like the cute character of this cartoon - a "living" table lamp named Luxo Jr. An animated version of the logo appears at the beginning and end of most Pixar films, and Pixar fans absolutely adore it. The most important lesson any marketer can learn from reviewing the Pixar logo is that if you first create and then market something that people love and admire, you will be remembered.

Failed examples of rebranding

Animal Planet

The Animal Planet channel has existed with its permanent logo, which depicts an elephant and a globe, since 1996. And this is understandable, after all, this logo immediately shows how and why the channel is called that. But in 2010, Discovery, the channel's owner, decided to abandon its previous friendly and family-friendly image in favor of a brighter, more impressive design.

And, apparently, there was something so impressive in the new image that it knocked the letter “M” on its side. Why is all this? An illegible but “impressive” logo does not at all reflect the true essence and focus of the channel.

Tropicana

Tropicana is known for its logo, which features an orange with a straw. It looked juicy and fresh (in the literal sense of the word). The company exchanged its old logo for a new one, which is very difficult to recognize among others on store shelves. Tropicana replaced the brand image with an unremarkable glass of orange juice and placed the name on the side. This is very difficult to read and perceive positively. It would be great if Tropicana kept the idea of satiety and thirst in its new image. The new look of the packaging will not make anyone dream of orange juice. The only original and successful idea in the changed packaging design is the round cap stylized as an orange. It's really witty and resourceful.

Starbucks – embarrassment with the logo

The Starbucks logo has always featured the words “Starbucks Coffee” around an image of a two-tailed mermaid. The inscription helped those who see the company logo for the first time to understand the meaning of Starbucks' activities.

However, in 2011, Starbucks updated their logo - they got rid of the words and left only the mermaid design, apparently hoping that their brand recognition was already strong enough.

However, it seems logical that, no matter how widely known the company is, there will still be people who do not know your brand or brand, and in their minds a two-tailed mermaid is not clearly associated with coffee. The inscription on the Starbucks logo was clearly not out of place.

Brand (eng. brand - trademark, trademark) is a term in marketing that symbolizes a complex of information about a company, product or service; popular, easily recognizable and legally protected symbols of a manufacturer or product. The word "brand" comes from the Old Norse "brandr", which translates as "burn, fire"

The American Marketing Association defines it as company-centric. It understands a brand as a name, signature, symbol, design, or combination thereof, intended to identify a product or service and differentiate it from competitors. This definition has been criticized more than once in connection with the statement in it of visual abilities as differentiating mechanisms, which, at a minimum, gives an incomplete idea of the mechanism of differentiation. And yet, this definition is very often used.

Bennett (1988) modified this definition by adding “and any other feature” to the above list (“title,” “signature,” etc.). This emphasizes the importance of the moment of differentiation for a brand, as opposed to the exact way in which it is achieved. The method can be any. In a competitive market environment, differentiation, that is, highlighting the exclusive features of a company's product, is extremely important.

When defining through the consumer, the emphasis is on the totality of product properties that satisfy the buyer so much that he is willing to pay money for the product. These properties must be reflected by the brand, regardless of whether they are illusory, rational or emotional. Properties often have a deeply subjective origin. Between the two extreme positions indicated, there are many other definitions of a brand, taking into account, to one degree or another, both the moment of differentiation through a trademark and subjective consumer demand. The broadest approach here is demonstrated by Brown, who defines a brand as nothing other than the sum of all the mental connections that are formed between customers and brand owners. The boundaries between definitions of a brand as added value, as a value system, as an image in the individual mind of the buyer, etc. does not exist. Each researcher concentrates on one of the features that interests him. With this approach, however, one develops not so much an understanding of what a brand is, but rather discovers various features and characteristics of brands. This is also, of course, important for strategic planning of brand policy, but does not replace the need to seek a common clear definition.

Steely and Ambler (1995) identified two broad philosophical approaches to defining a brand. The first approach – “product-plus” – considers the brand as an additive to the product. The second is characterized by a holistic perspective, the focus of which is on the brand itself. All elements of marketing are combined into integrity with this approach by the company's trademark.

Brand and added value are synonymous concepts. In fact, in marketing the connection between brand and added value is usually recognized, but the relatedness of the concepts does not imply their identity.

The concept of added value came to marketing from economics. The same term is found in accounting. And although the values of added value in all three disciplines are approximately similar, the marketing interpretation has its own characteristics that are often overlooked, and because of this, confusion arises.

The basic definitions of a brand are given either through the owner or the customer. One-sided approaches cannot be considered a virtue. An overall brand definition should include both perspectives.

A brand is a product that is not overgrown with an invented artificial story, but with very specific marketing communications. The value of a brand (Brand Equity) is determined by various indicators, but in general, the overall weight of the “tangle” of well-built and effectively working communications is important. IMCs should not only promote the promotion of goods and services, but also form the entire complex of value and reputational properties of the company, which ensure the capitalization of this business, and ensure its development. Naturally, a company with a good business reputation and “well-established connections” is easier (cheaper!) to obtain permission (license) for its activities, production space, and product certificates.

A brand is a mechanism for achieving a competitive advantage for firms through the differentiation of the company's product, and the characteristics that differentiate the brand are precisely those characteristics that provide the customer with benefits for which he agrees to pay. Competitive advantage can be defined in terms of revenue, profit, added value (in the marketing sense of the term) or market share. Consumer benefits can be real or illusory, rational or emotional.

There are two approaches to defining a brand:

– mission and also individual attributes: name, logo and other visual elements (fonts, design, color schemes and symbols) that distinguish the company or product from competitors;

– image, image, reputation of a company, product or service in the eyes of clients, partners, and the public.

It is necessary to distinguish between legal and psychological approaches to understanding a brand. From a legal point of view, only a trademark that identifies the manufacturer of a product and is subject to legal protection is considered. From the point of view of consumer psychology, we are talking about the brand as information stored in the memory of consumers.

The most “legitimate” definition of a brand comes from the American Marketing Association: “a name, term, sign, symbol or design, or a combination thereof, intended to identify the goods or services of one seller or group of sellers, and to differentiate the goods or services from competitors' products or services." This is the legal definition adopted in legislation and enforcement in most countries.

It is sometimes believed that other synonyms for such a concept as “brand”

are the concepts of “trademark” or “trademark”. Previously, the term “brand” did not denote any trademark, but only a widely known one. Currently, this term is used in the media as a synonym for the term “trademark”, which, according to patent experts, is not entirely correct. From the point of view of trademark specialists and trademark lawyers, the concepts of "brand" and "branding" are not strictly speaking legal concepts, but terms used in the consumer environment to combine the stages of marketing products. according to these authors, is a certain collection of objects

The goal of brand promotion is to create a monopoly in this market segment. For example, many companies sell sparkling water, but only Coca-Cola can sell Coca-Cola. Thus, the action of antitrust regulators is indirectly circumvented.

A world-famous brand surrounded by a set of expectations associated with a product or service that people typically have

Since 2005, Interbrand has published a list of the most expensive Russian brands. The top three leaders in 2006 (worth more than 1 billion euros) were Beeline, MTS and Baltika. Interestingly, brands such as

Gazprom or Sberbank were rated lower than, for example, the Baltika beer brand. Clearly, these brands do not evoke unique and positive associations among consumers.

After identifying significant differences between the brand and competitive brands, a brand identity is developed - how consumers should perceive the brand. Brand identity refers to a unique set of characteristics by which consumers distinguish a given brand from its competitors.

Key elements of brand identity:

1. Brand positioning. Determining the position of your brand among various brands in the category in the minds of the target audience. Brand positioning is an integral part of the holistic image (brand), which is formed in the consumer consciousness. The main goal of positioning is to achieve a stable image in the minds of buyers of the brand as the best product for specific conditions. The core elements of brand positioning are condensed into a concise positioning concept.

2. Brand values. Brand identity defines the values of a given brand. Values that are significant to the target audience are selected. At the same time, the combination of values of the brand being developed is unique, so that the created value system is not similar to competitive ones. We find common values for the brand's target audience that unite these people. In this context, the brand becomes a symbol of such values, and a “club” that unites people who support them.

3. Brand personality. It is a unique set of brand characteristics expressed in terms of a person's individual traits. Simply put, brand personality is the set of human characteristics associated with a brand. A brand, just like a person, can be sincere and old-fashioned; energetic and modern; executive and competent. Brand personality enhances the uniqueness of the brand and sets it apart from its competitors.

4. Brand associations. When interacting with a brand, its advertising,

the name, the visual image, the consumer has various associations. We set and program those images, feelings and ideas that arise in a person when he perceives various elements of the brand. Brand associations include various hints, subtexts, and double meanings. Various levels of brand associations are associated with its content, individual and social qualities, as well as traditions, customs, mores and archetypes, the so-called brand mythology.

5. The essence of the brand. At this stage, we express the basis of the finished brand identity in one very succinct sentence, focusing on the most important thing. This summary is called the brand essence, and along with the positioning concept, it is one of the two most important brief documents that are used as a guide for brand management. The essence of the brand is the semantic core of all messages, the main idea that permeates all brand communications.

Brands are objects of purchase and sale. To determine the fair market value of a brand, a special assessment is carried out - brand valuation.

Many other concepts are also used, such as brand equity, brand strength, etc. It is necessary to distinguish between the psychological value or strength of the brand (this is “capital in the heads”) and the financial value of the brand - this is an assessment of the discounted future cash flows generated by the brand for the enterprise . The brand awareness of companies represented on the Internet and the traffic to their sites (site traffic indicators) are significantly influenced by a well-executed advertising campaign.

A prerequisite for the successful existence and functioning of a brand is adherence to a common corporate style - the visual and semantic unity of the organization’s image. Elements of corporate identity are: product name, logo, trademark, service mark, company name, corporate colors, slogan, style and colors of workwear for company employees, as well as other objects of intellectual property owned by the organization.

Branding in the narrow sense of promoting trademarks to the market is carried out using printing methods, silk-screen printing, embroidery, embossing, advertising, including in the media.

With a complex concept of a brand - as an image associated with a product, service or company - it is important to take into account all aspects of the formation of such an image. In the process of communication between the provider/manufacturer and the consumer/client, all channels of perception are used - visual, auditory, kinesthetic. Therefore, with a full-fledged integrated approach to branding, they also talk about corporate sound design (musical logo, corporate melody), kinesthetic design (aroma signature, aroma marketing, texturing of packaging or small printed products and similar alternative marketing forms).

The highest quality branding – working harmoniously on all channels of communication and perception, with clearly formulated common target associations and consumer reactions.

Increasingly, for effective branding, a character is used that conveys the entire complex of characteristics and associations inherent in the brand. Using a character allows you to work with a brand both on a periodic level (advertising campaign) and on a permanent level (to be included in the brand book along with the logo and name). A character can be a reflection of the brand and its characteristics, or a reflection of the consumer, thereby suggesting desired consumer reactions and associations.

Branding is the process of forming a brand image over a long period through the formation of added value, an emotional or rational “promise” of a brand or a non-branded product, making it more attractive to the end consumer.

Branding is defined as: creating an image of a product in the buyer’s mind; measures to maintain the reputation, quality, fame and attractiveness of the trademark image; the science of “creating long-term consumer preference for a particular product brand.”

Despite the variety of definitions, branding cannot be considered in isolation from the promotion process, since it is a special case of it. The object of promotion in branding is not the product, but the brand.

Since the products on the market are extremely diverse in their characteristics, purpose, scope and needs, the branding methods used for these products are also completely different. First of all, differences in products determine the choice of whether a product or corporate brand should be created. Corporate brands of distributors are most often found in the consumer goods sector - the company gives the goods its own name, which inspires trust - Marks & Spencer, Sainsbury, Carrefour (in Russia - Littlewoods)

It is necessary to distinguish “branding” from “brand management”, which implies the use of marketing techniques with the aim of increasing the value of a brand for the consumer through changing and correcting its rational or emotional characteristics as applied to a product, product line or brand as a whole to increase its competitiveness and growth sales

From the point of view of the brand owner, the level of brand value for the consumer allows the product to be more competitive or even more expensive compared to a product that does not have special qualities for the buyer. A special subtype of a brand is a generic17 - a product that has a certain generalization as a name, for example, the name of a product or varietal category (“Rice” or “Russian Cheese”).

There are two fundamental principles of branding:

– correspondence of market needs to offers provided by market entities - business entities.

– compliance of the quality of products or services offered to the market with the level of expectations and needs of society.

The popularity of a brand consists of two components: correct positioning and effective promotion.

In order for the promotion of a product to be successful, it is necessary to clearly understand the target audience of its consumers, the features of the product and the unique advantages of the brand.

In practice, when developing a brand, companies resort to traditional technologies consisting of successive two or three steps. Brand – platform – visualization, or brand – platform – brand metaphor – visualization.

Despite a fairly clear understanding of the value of the brand, a strategic approach to its marketing is still extremely difficult due to the lack of defined and universally accepted terminology. It is worth saying that there is not even any general definition of what is hidden behind the concept of a trademark. The relationship between marketing and accounting terms as applied to brand policy is extremely confusing.

Brands are defined depending on the perspective from which the person making the definition observes: the consumer's point of view is different from the point of view of the brand owner. Moreover, brands are defined in terms of their purpose or through their characteristics.

One of those concepts that causes ambiguous explanations.

The following aspects of brand assets are highlighted.

1. What is called brand value is the full value of the brand as a separate asset of the enterprise, which can be sold and included in

2. Brand strength is a measure of consumer attraction to a particular brand.

3. The image, or description, of the brand - a description of those associations and beliefs,

which the consumer feels towards the brand of the enterprise.

Brand value explicitly relates to the business transaction, while strength and image focus the attention on the consumer. The relationships between the three interpretations of brand assets form a causal chain: the brand image is tailored to the needs of the market and uses the achievements of marketing the product, price, place, etc. It is the image that determines the degree of strength of the brand. The value of a brand, in turn, is determined through its strength.

The efforts of brand policy managers can be assessed accordingly by measuring brand strength and brand value. However, they are aimed, first of all, at creating an appropriate image.

Depending on the task at hand, brand assets can be viewed from these three perspectives. With short-term (non-strategic) planning, assets are quite consistent with the brand value. When strategically planning a brand policy, the manager must defer profit. It will be created later based on the established brand strength. Brand assets are thus not so much the value itself, but rather a “warehouse for profits” that will be received later. It is also possible to associate brand assets with the added value that arises from consumers' associations with the brand name, that is, brand assets correspond to the category of brand image.

One of the main manifestations of high brand assets is the expansion of the brand's sphere of influence. At the same time, the most active expansion of a brand can cause an increase in brand assets and greater resilience of the company in relation to competitive pressure, just as non-aggressive expansion causes the collapse of a brand.

Research by the Comcon-Media company shows a decline in the effectiveness of brands in general, and greater buyer sensitivity to price and service than to image. That is, the value of a brand largely depends not on virtual, image characteristics, but on the number of “adherents” of this brand, that is, the number of real and regular channels of interaction with the buyer.

Brand management must be strategic and holistic. It is necessary to focus on creating a brand image, for which all marketing efforts must be combined. In a long-term project, a properly constructed brand image causes an increase in brand strength, which in turn will ensure reliable and stable added value of the product in the future.

Main stages of brand creation and development

1. Goal setting.

– Analysis of the mission of the company or organization

– Determining the place of the brand in the brand architecture of a company or organization

– Determination of the desired state of the brand (qualities, life cycle, competitive advantages)

– Formulation of measurable brand parameters (KPI)

2. Project planning.

– Analysis of available resources (financial, human, knowledge, etc.)

– Determination of the team of customers, participants and performers

– Defining project timelines

– Identifying other conditions or limiting factors

3. Analysis of the current state of the brand (only for existing brands).

– Brand awareness among the target audience

– Knowledge of the target audience brand

– Attitude towards the brand of the target audience

– Level of brand loyalty

– Determining whether the current state of the brand matches the desired one

4. Analysis of the market situation

– Competitor analysis (product range, target audience, positioning, promotion methods, pricing)

– Analysis of the intended target audience (characteristics, preferences).

Models of consumer behavior.

– Sales markets (demand, share, dynamics)

5. Formulating the essence of the brand

– Mission, positioning and usefulness of the brand for the target audience

– Individuality: values, associations, traits, competitive advantages

– Brand attributes (name, logo/brand name, character or hero, font, packaging, etc.)

6. Brand management strategy

– Development of rules for creating marketing materials and description of procedures for brand management (brand book).

– Identification of persons responsible for brand development (brand guardians)

– Development of an action plan for brand promotion (integrated marketing communications)

– Developing a plan and procedures for brand monitoring and performance evaluation

7. Brand promotion - integrated marketing communications

– Comprehensive loyalty programs

8. Brand monitoring and evaluation of the effectiveness of actions

– Monitoring of measured parameters (KPI) of the brand, defined at stage 1

– Comparison of the current state of the brand with the desired one

– Correction of strategy or tactics

Rebranding as a stage of brand management

To rebrand means to revive, update, introduce fresh emotions and ideas into the brand, expand the audience, make it relevant, interesting, and most importantly, effective. It is important to know that as a result of rebranding, the old brand is not completely eliminated. But sometimes rebranding is the creation of a completely new, fresh and emotional brand with updated communication and packaging.

Rebranding is a change in the holistic ideology of a brand, a change in the promise that the brand brings to the consumer. This change entails restyling and repositioning of the brand (change of market positioning, change of name, logo and visual design). This is a large-scale and multi-level process. It is often much easier and less expensive to create a new image for a new brand than to rebrand an old one. Rebranding is necessary in order to:

Strengthen the brand (increase consumer loyalty);

Differentiate the brand (strengthen its uniqueness);

Increase the target audience of the brand (attract new consumers).

If a brand is a unique and attractive brand image for the target audience, based on a certain personal value that is important for this target audience. Accordingly, rebranding is nothing more than a change in image, a change in personal motivating value. And this change must happen in the heads and souls of customers. Of course, a new brand direction based on a new personal value may be foreign to some consumers, but it will attract new ones who were not previously loyal to the brand.

Rebranding does not always require changing brand attributes. But if the attributes contradict or do not correspond to the motivating value embedded in the vector of the new brand, they are also subject to updating (restyling of the logo, interior redesign, revision of the assortment and pricing policy, new advertising strategy).

As a result of rebranding, the brand reaches a new stage of its development: it acquires new qualities and is imbued with new vitality.

This leads to increased loyalty and expansion of the target audience, strengthening the uniqueness or differentiation of the brand, which, as a result, makes the brand more effective.

There are dozens of reasons and factors that result in the need to rebrand a company or a specific product:

– when the existing Brand is outdated, behind the times

– when he stopped performing assigned tasks, or these tasks changed

– when the target audience changes, for example, its geography has expanded or changed

– when market conditions have changed, for example, when the Brand operates in a highly competitive niche and becomes less attractive to consumers against the backdrop of more active competitors

– when the Brand was initially built incorrectly.

The sequence of implementation of the stages of rebranding largely depends on the situation in which the brand itself is at the time of rebranding and on the tasks that are set for the updated brand.

Main stages of rebranding

Stage 1 – brand audit and development potential analysis

Brand analysis can be very extensive or cover only a specific area - it all depends on the reasons and objectives of the rebranding. However, a brand audit may include:

study of the current state of the brand: identification of strengths and competitive advantages, analysis of Brand attributes (name, logo, slogan, corporate identity, packaging, characters, symbols, etc.), analysis of brand loyalty, brand knowledge, etc.

study of the state and the possibility of influencing the consumer: portrait

consumer, analysis of consumer motivation, analysis of consumer properties, analysis of brand demand, etc.

market analysis: prospects, capacity, competitor analysis, etc.

analysis of the resources of the Company – the owner of the Brand.

Tools for the 1st stage of rebranding: expert assessment, in-depth and formalized interviews, field research, analysis of information from open sources, purchasing panel research results, monitoring retail outlets, conducting focus groups.

Stage 2 – choosing a path

Based on the research conducted and the conclusions drawn from them, the most optimal and effective way of rebranding is proposed.

Stage 3 – creating brand attributes

Development of new Brand identity attributes, i.e. those signs by which the new Brand will differ from competitive brands, including its visual components: logo, corporate/corporate style, packaging, corporate and advertising materials, etc.

Stage 4 – testing

At this stage, the developed materials are tested in focus groups.

Rebranding: global changes, not just a design change

Today there are many ways to increase customer loyalty, attract new customers to the pharmacy and thereby reach a new level of development. One of these methods goes by the fashionable, but not everyone understands, name of “rebranding.” For many, this means changing the logo or corporate colors. Our article will tell you what it really is and whether a pharmacy needs it.

Let's consider situations for rebranding:

1. The promise to the consumer has changed - if yesterday you were selling health, and today you promise the buyer beauty, then you need to rebrand.

2. Changing target audience - new customers may not understand all the benefits of a given brand.

3. The brand becomes uninteresting and unpopular due to the fact that new brands exceed their promises.

4. The brand is losing (or has already lost) its unique characteristics or qualities.

5. The benefit provided by the brand is not unique or attractive to the target audience.

6. The scope of the brand and/or its consumer group is limited or rapidly narrowing.

7. The benefit provided by the company can be received by the consumer through other channels.

An example of unsuccessful rebranding in Russia is the change in the reputation of inexpensive furniture stores “Shatura”. The French consulting companies Wcie and MLC advised to do this. The changes affected corporate colors, interior decoration of stores and assortment. The network began selling upholstered furniture and related products. However, sales grew by only 5\% - against the expected 20\%. Many potential buyers were simply afraid to enter new beautiful salons, believing that the prices there were prohibitive. What was simply “decent” for a Frenchman was perceived by the Russians as “out of line.” Now Shatura is developing two formats. There are about 20 new salons in Moscow, while in the regions there are mainly shops with the old design.

A typical rebranding mistake is concentrating efforts exclusively on potential customers to the detriment of existing consumers who are loyal to the brand in its old form. A dangerous situation is when rebranding is not carried out out of objective necessity, but is a consequence of a change in management (sale, team renewal, change of advertising agency). As a result, the number of new consumers becomes comparable to the number of lost ones. The invested funds (and they are quite significant during rebranding) do not lead to a proportional increase in sales or cause them to decline.

Often rebranding is carried out when a company is at the peak of its development. In this case, this measure is due to the desire to open up additional opportunities for future development for the brand.

The feasibility of rebranding is difficult to determine even for specialists. It is important to understand the main thing - if the benefits provided by the brand remain and the essence of the promise given by the brand does not change, then it is better to simply make a new good advertising campaign.

Rebranding opportunities:

1. Analysis of the development potential using the internal resources of the enterprise: it is necessary to establish where the consumer’s negative attitude towards the brand lies. Perhaps the low level of sales is due to the poor quality of service that you offer to clients, or your pricing policy is aimed at a completely different target audience. In this case, it is worth fixing these errors and not touching the brand. If the information about the brand that you present is insufficient or contradictory, then the consumer cannot create a coherent image from it and the brand does not turn into a brand.

2. Brand audit: find out what the consumer needs in order for your brand to harmoniously fit into his inner world and become a close, understandable and beloved brand. To do this, you need to find out by what criteria the consumer evaluates your brand, what is especially important to him and what brand attributes do not meet his expectations. Then align the attributes with these expectations to ensure consumer acceptance of the brand.

3. Analysis and segmentation of the target audience by value characteristics, search for a new vector: in the case where the brand’s problems are related to motivating value, it is necessary to find a new brand vector (that is, switch the brand to another value of another target audience). At the same time, it is important to analyze whether the new vector will be provided by a larger number of potential consumers than the existing one.

4. Analysis of the financial resources of the enterprise: like any other business process, rebranding will require serious financial investments. Therefore, it is necessary to adequately assess your own strengths. After all, building a new brand vector means entering a new market segment, which is probably already occupied by other players. You will have to break the stereotypes of the target audience, proving that your brand more than others corresponds to the new value that other market participants are already promoting.

5. Analysis of the negative features of the brand: if you decide to rebrand, it means that the old brand carries too much negativity. But even skillfully carried out rebranding will not immediately erase the negative features of the brand from the consumer’s memory; this will require additional time and financial costs. Think about it, perhaps it would be more advisable to create a new brand, especially if the old one does not contain anything valuable and positive for the target audience.

For example, once the famous mobile phone manufacturer Nokia was a concern that dealt with almost everything: from rubber boots to television devices. In the early 1990s. The company's business strategy changed and rebranded.

For example, in the Russian telecommunications industry, the most successful can be called the rebranding of the Beeline trademark, and the most radical, but not universally understood and accepted, is the rebranding of MTS.

6. Checking the correctness of the collected data: review all the questions listed above again and answer them again. How strong is the confidence that something can be changed for the better? If you still have a vague idea of your consumer, you can only guess about the reasons why he consumes or does not consume your brand, if there is no clear understanding of the situation and goals, then it is too early to think about rebranding.

And only after that you can engage in strategy, tactics, specific

actions and evaluation of results.

Key elements of rebranding

Marketing audit – make a decision on brand repositioning. To do this, it is necessary to analyze the consumer’s awareness of the brand, the consumer’s loyalty to the brand, the reasons that prevent the brand from being correctly perceived, evaluate the brand’s image for various target audiences, identify its strengths and weaknesses, and its competitive advantages;

Brand repositioning is a change in the main characteristics of the brand and consolidating them in the minds of the target audience;

Restyling of the visual attributes of the brand - changing the color of the logo and other visual attributes accompanying the brand, in accordance with the new positioning and new characteristics of the brand;

Internal and external communication - must convey to the audience (company employees, consumers, competitors, etc.) the characteristics of the new brand.

Thus, rebranding carried out by professionals allows a company, product or service to reach a new stage of development, adjust and attract the attention of previously unreached customers and strengthen the loyalty of current ones. Rebranding helps bring the brand into line with the current state of the business and the company's plans. Having decided to rebrand, you need to plan activities to change the brand.

Rebranding: what it is in simple words, examples of rebranding in Russia and in the world. What is rebranding: why is it needed, what benefits does it bring to a business and when should it be carried out? Examples of failed rebranding

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