Top Ten Mistakes Marketers Make When Rebranding

1. Over Promise and Under Delivery

Kingfisher Red

One should understand that Brand is not only about name, logo and color it is all about perceptions and expectations market holds toward a specific marketer. Success always lies in promising less and delivering more. Some time, marketer promises so much and deliver far less than expected.

In the second half of 2008, After Kingfisher acquired Air Deccan; it was rebranded as Kingfisher Red. Kingfisher, since long time is known for its quality service and unmatched experience. Customers on board had similar expectations from Kingfisher Red and Kingfisher Red failed to offer the same.

2. Short Sightedness

Shopper Stop

In early 2008, one of India oldest retail chains, Shopper Stop, unveiled its new logo as part of rebranding exercise aimed at repositioning the store as a bridge to luxury store to attract youngsters and also to increase its market value. The tagline was also changed from ‘Shopping and Beyond’ to ‘Start Something New’ which implied that customers should try out something new and different, and upgrade themselves according to the demands of the changing world. It failed to keep track of changing preferences of customers. The rebranding was quite effective in short run as they could not predict change in the way people shop.

3. Bypassing the basics

CEAT Tyres

Marketers often bypass the fundamentals and give more importance to unimportant perspectives while rebranding.

CEAT Tyres is one of the oldest tyre manufacturing companies in India. I still remember old Rhino Mascot of CEAT Tyres with its golden tagline “Born Tough”. The Rhino often signifies toughness, inbuilt characteristic of Tyre. In the name of Rebranding, CEAT has done away with its Mascot and tagline and argues that the reason for changing the mascot is that there is a general perception that Rhinos are getting extinct and is a sloth. Hence the brand needs makeover. In my view, it is highly unconvincing argument for changing such a blockbuster logo with anything else in the name of rebranding.

4. Assuming that aggressive advertising will make rebranding effective Star Plus

Star Plus

In 2010, Star Plus undertook rebranding initiatives and brought a brand new ruby red star with new tagline: ‘Rishta wahi, soch nayi’ (same relationship, new thinking). Rebranding ‘Star Plus’ was undertaken after experiencing very tough competition with new channel like ‘Colors’. They went for aggressive advertising across the media; I still feel it’s like filling old wine in a new bottle. Rebranding is not about advertising; it’s all about justifying new and fresh market philosophy.

5. Equating rebranding with logo change

Canara Bank

In December 2007, one of the oldest banks in India – Canara Bank, undertook a major rebranding exercise. The rebranding involved a change in the logo, the slogan, and the house color and, most importantly, a change in what the bank stood for. The bank adopted a new credo – “It’s easy to change for those you love.” Canara Bank just changed the logo and equated it with Rebranding. Any rebranding should be supported by a paradigm change in the service of the bank. If the bank’s internal operations do not reflect the new positioning, more damage will be done.

6. Rebranding without understanding customers’ perception

Tropicana

In the beginning of 2009, Tropicana tried rebranding itself and showed the actual orange juice and redesigned the cap to look like the outside of an orange. After less than two months and a 20% drop in sales, Tropicana switched back to its original design of fresh orange pierced with a straw. While designing new logo and package, Tropicana failed to understand the perception of Customers towards Tropicana. Customers always associated Tropicana with ‘Fresh Orange Juice’. After a month of launching the new logo the company was severely criticized and it promptly rolled back to its old logo design.

7. Inability to leverage on existing brand equity

Bing

Microsoft officially launched Bing worldwide in 2009, a rebranding of their Live Search Engine. With a new identity and features that promise to make searching easier. Bing failed to beat ‘Google’ as it could not leverage the existing brand equity of Microsoft.

8. Rebranding without understanding positioning & repositioning

Hero Moto Corps

In order rebrand itself effectively, Hero Moto Corp Ltd. Unveiled new brand identity and logo (designed by Wolff Olins, a London based brand consulting firm) on August 09, 2011 and launched its integrated marketing communication across the media. ‘Hum Mein Hai Hero’ by Music Legend AR Rehman is the theme song for the latest TVC of Hero Moto Corp. Ltd.

In India, Hero is known for Bicycles for years and Hero Honda was known from sleek and fuel efficient bikes. It’s not easy for Hero to replace the position Hero occupy in the mind of customers with new association with Bike.

9. Lack of Proper Planning & Alignment

Accenture

Rebranding ‘Anderson Consulting’ to ‘Accenture’ is regarded as one of the worst rebranding in corporate history.  When Anderson Consulting cut ties with Arthur Anderson, they did the worst thing a company could do – they let a marketing consultant choose the new brand name on the cost of 100 million$. Although the new name is inspired by the phrase “accent on the future”, it tells the customer nothing.

10. Rebranding for superficial facelift

Indian Airlines to Indian

On 7 December 2005, Indian Airlines was rebranded as Indian or इंडियन for advertising purposed as a part of program to revamp its image in preparation for an Initial Public Offering (IPO). This rebranding did not fetch any positive result because of the lack of credibility. In 2007 again it was rebranded as Air India after merger between Air India and Indian.