High Street Rebranding
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High Street Rebranding
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introduction
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Inthisdiscussionwillinvestigatehoweffectivetherebrandingofacompanyis.Iwilldothisbylookingatthewayinwhichthepublic,consumersingeneralandthebrand’scustomers,reactedtothenewbrandimage.Bylookingatbothsuccessfulandfailedrebrandingventures,todiscoverwhatstrategiesmakeasuccessfulrebrandandwhatcompaniescandotoavoidfailure.Toinvestigatethisdiscussionwilllookintorebrandingwhichhadtakenplacebetween2000andthepresent,2012includingwellknownhighstreetbrandsasthesecompaniesaremostlyinthepubliceyeandcausemoreofareactionfromalargerrangeofpeople.
Thereasonforchoosingthisparticularsubjecttoinvestigateisakeeninterestinbrandingandhowthepublicreacttobrands.Chapterone‘WhatisBranding?’Givesabriefhistoryofbrandingandhowandwhyitwasusedinhistoryandwhythathasaffectedustoday.Chaptertwo‘SuccessesinRebranding’looksatsuccessfulrebranding,VirginMedia,Marks&Spencer
andITV,andwhytheserebrandsweresuccessfulandwhatkepttheconsumerinterestedinthem.Chapterthree‘FailuresinRebranding’,willlookatthreecompanyrebrandswhichwerenotsuccessful,howthepublicreactedandwhy,andhowthecompanymanagedtheunsuccessfulrebrand.
Weliveinthe21stcentury,atimewherethemarketissaturatedwithdifferentcompaniescompetingwithoneanothertoselltheirproducts.Oneofthemajorfactorsinthisfightforincreasedmarketshareishowthecompanyisseen,theirbrandandbrandvalues.Eachcompanywantstobethebest,theywanttobedifferent,andsotheywanttheirbrandtobesignificant.Thebrandneedstohaveauniquesellingpointtostayinthecompetition,itneedstogaincustomerloyaltyandenticenewcustomersintothebrand.Thefollowingisaninvestigationexamininghowtherebrandofcertaincompanieseitherhelpedordamagedtheirbrandimage.
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what is branding?
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TheOxfordDictionarydescribesbrandingas‘thepromotionofaparticularproductorcompanybymeansofadvertisinganddistinctivedesign’(OxfordDictionary,nodate.).Thisdefinitionseemstounderstatethevalueofbranding.Brandingisahugemarket,abrandiscancreatepositiveornegativefeelingstowardsaproduct;itmakesthecompanymorerecognisable.Brandingreliesheavilyoncommunicatingbrandvalues,theseare
‘Howthevisionandpromisesaredeliveredtotheconsumer.Thesmallnumberofdescriptivebehaviorsthatthebrandistoexemplify.Thesearetorepresentthecompany,brandandemployees.Examplesincludepassion,inventiveness,respect,honesty,collaboration.’(Branson,B.nodate.)
Althoughbrandingisseenasquiteamodernthing,especiallyduringthelate1900sand¬early2000,whereitwasusednotonlyforcompaniesandproducts,butalsouniversities,charitiesandevenpeople,brandinghasbeenusedthroughouthistorytoidentifyproductsfromdifferentcraftsmanandtoclaimownership.
‘Inthe1200sEnglandrequiredbreadmakers,goldsmithsandsilversmithstoputtheirmarksongoods,primarilytoinsurehonestyinmeasurement.’(Fusco,C.nodate.)
‘Betweenthe1600sand1800s,criminalswerebranded(againliterally)asaformofpunishmentandidentification.Forinstance,inEngland,theybrandedanSonaperson’scheek,whileinFrance;theybrandedafleurdelisontheshoulder.Asrepugnantasitmaybetoustoday,slaveswerealsobrandedroughlyduringthesametimeperiodtoconnoteownership.’(Daye,D.2006.)
Surprisinglybrandingcanbedatedbackevenfurtherto1300BC,givingbrandingahistoryofover5000years.
‘Asfarbackas1300BC,potter’smarkswereusedonpotteryandporcelaininChina,Greece,RomeandIndia.Brandingofcattleandlivestockgobackasfaras2000BC.’(Fusco,C.nodate.)
Althoughinhistorybrandingwasusedtodifferentiatebetweendifferentcraftsmanandtoinsurehonestyinmeasurement,youcanseehowbrandingstillincorporatestheseaspectsbuthasalsomovedonagrownsincethen.Brandingisnowusedtoattractnewcustomers,communicatethebrandsvaluesandcreatecustomerloyalty.Brandinginnowhighlycompetitiveandisaconstantgameofon-uppingthebrandscompetitorstogainthelargestmarketshare.
‘Butatsomepointinthetwentiethcenturybrandingbecamepervasive.Themaintenanceofbrandimageandvaluewasthedrivingforceforproducersandbrandownersandnational–evenglobal–brandnamescametodominatelocalmarkets.InthepostwarWestagainstthebackdropoftheColdWar,tobeanactiveparticipantinaconsumersocietybecameincreasinglyregardedasabasichumanright.Theideaofcitizenshipbecomesframedaroundtheideaofconsumershipandthis‘redefinitionofrightsandobligationsarticulateditselfintheseeminglyinnocuouslanguageofsoftdrinks,carsandhouseholdappliances.’(Pavitt,J.2002.P32)
Brandingreallytookagreatimportanceinacompany’sstrategyduringtheindustrialrevolutionwhereproductswereabletobemassproduced.Withtheeffectofthedepression(1930s)andWWII(1939to1945),consumersdidnotwanttospendmoney,socompaniesinthe1950screatedmoderndaybrandingawaythatwouldidentifytheirproductstothemassesusingposters,radioandeventuallytelevision,makingtoproductsappealmoretocustomersbycreatingthingssuchasbrandvaluestoenticecustomerstobeloyalandbuyonlytheirproducts.
‘Thebrandbecamethenewexpressionofassurance.Itlaidthefoundationforthemodernconfidenceofthepurchaserwhenbuyingcommodities,whichhecouldneithertrynortestbeforeuse.Thisappliesinparticulartoarticlesforwhichaguaranteeisgiven;thebrandedarticlemeans,moreorless,adirectrelationshipbetweentheconsumerandtheproducer.’(Pavitt,J.2002.P33)
Thisnewassurancebetweencustomerandproducer,createdthestartofcompaniesestablishingtheirbrandvalues.Whetheritbequality,swiftnessorevenjustalwaysbeinghelpfulandmakingthecustomerfeelvalued,brandshadtodecidewhattheywanttocommunicatewiththeircustomerbase,andmakesurethattheircustomersheardwhatwasbeingsaid.
‘Sohowisbrandvalueestablished?Theinventionofanewbrandovernightwithsubsequentrapidmarketingisunlikelytobeasuccess.Brandswithstrongimagesaretheproductofsuccessfulnurturingoftherelationshipbetweenproducerandconsumer.Theyalsorequireeconomicinvestment,marketingandcorporatenurturing.Themostrecognisablebrandstendtomaintaintheirpositionbyestablishingloyaltyandubiquity,bybecomingthemarketstandard.’(Pavitt,J.2002.P23)
Assaidinthequoteabovebrandsneedstrongimagesandvaluestocreatethatimportantrelationshipbetweenproducerandconsumer.Expressingthesestrongimagesandbrandvaluesinaneffectivewayisacorereasonwhycertainbrandssucceed.‘YourBrandistheultimatecollectionofviewsandopinionspeopleholdaboutyouintheirmind.Itencompasseseverything:qualityofexperience,lookandfeel,customercare,retailandwebenvironmentsandcreativeexecutionacrossalltouch-points.’(Lemley,D.nodate.)
‘Insomecases,thebrandnamebecomesthegenericnameforthatproduct,suchasHoover,Coke,WalkmanorRollerblade.Forcertainproducts,whatstartedoutasabrandnamehasbecomesogenericthatitcannotbeprotectedbyatrademark:aspirin,yo-yo,thermosandescalatorarealltermsthatbeganlifeasbrandnames.Thefamiliarityofnamessuchasthesedemonstratestherisetoprominenceofthebrandinthelastcentury.Brandsareapartofthetwentiethcenturymythology.’(Pavitt,J.2002.P23)
UseofBrandnamestodescribehouseholditemssuchas‘Hoover’insteadofvacuumcleanerand‘Brillo’insteadofwirewoolgoestoshowjusthowmuchbrandinghasbeenintegratedwithourdaytodaylivesandalsohowbrandawareweareinthe21stcentury.
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OneofthegreatestexamplesofjusthowsuccessfulabrandcanbeisApple,peoplequeueforhoursjusttogetthelatestiPhoneorMacbook,buyingtheproductswithouteventryingthembecausetheconsumerissurethattheproductwillbeofhighqualityandgreattechnicalspecification.Apple’sadvancesintechnologyareasurereasonwhytheirproductsaresopopularbutthebrandalsohasamassiveimpactonthepopularity,showingeachnewproductashipandcoolandthemusthaveitemoftheyear.Eventhoughthereissuretobereleaseabettermodelin6months(e.g.iPhone4s)peoplestillwanttoupgradestraightawaysothattheydonotgetleftbehind.
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ArecentphenomenonsurroundtheApplebrandwastheamountoftweetspostedfrompeoplecomplainingthattheydidnotreceiveaniPhoneforChristmas,therewerecommentscomplainingthattheyhadreceivedthewrongcolouriPod,andevenaphewfurioustweetsstatingthattheyhadreceivedacarforChristmasbutnotaniPhone.
‘Angry:MostofthecomplaintswerefromentitledindividualssayingtheywereupsetafternotreceivinganAppleiPhone,iPadorcaronChristmasDay.’(Duell,M.2011.)
Itishardtobelievethatsomeonewouldbeangrythattheyhadreceivedacarandnotaphone,butitdoesprovethatAppleissuchasoughtafterbrandthatteenagersarepreferringtoreceiveiPhonesinsteadofcars.SometeenagerswereevenangrybecausetheygotaniPhone,justnotintherightcolour,thewhitecolourediPhonewasonlyslightlynewerthantheexistingblackiPhone,butbecauseitwasApple,anditwasthenewerversioneveryonewantedthewhiteone.
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Reasonwhycompaniesmayneedtorebrandcouldbeamixtureofdifferentreasons.Theymayneedtocreateauniquesellingpointtogainanadvantageonthecompetition.Thecompanymayalsobeoldanddatedandneedtocreateanewlooktocapturetheattentionofayoungeraudience.Somecompaniesneedtorefreshtheirimageafteralargeramountofbadpresstodissociatedthemselvesfromtheirexistingbrandandstartonanewcleanslatewithnewimprovedbrandvaluessothattheyarenotseennegativelyinthemediaandbyconsumersanymore.
‘Inthecommercialworld,consumerproductsaregenerallyrebrandedforoneormoreofthefollowingreasons:
•Theproducthasfailed•Theproducthasgrowntired•Theproduct’sreputationhasbeenseverelydamaged•Theworldhaschangedbuttheproducthasn’t•Consumertasteshavechangeddramatically•Thecompanyhasbeentakenoverbyanother•Thecompanyhaslostitsway•Thereisanewmanagingdirectororchairman.’(Buncle,T.2009)
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Asshowninthebrandlifecycleabove,onceabrandhashitmaturity,it’ssalewillstarttodecline,awayinwhichtocombatthisdeclineininnovation,thiscanbereleasinganewproducttoupgradethebrandsimage,oritcanbetorebrandsothatthebrandisfresh,newanduptodate.
Somecompanies,revamptheirlogos,whereasotherscompletelyrebrandthecompanychangingthenamelogoandsometimesevenbrandvalues,thishoweverisextremelyrisky,thenewbrandvaluescouldattractahugenewrangeofconsumersbutmayalienatetheexistingloyalcustomersandifthenewvaluesarenotsuccessfulthecompanyhaslostmostofit’snewandexistingmarket.
Changingjustthelookofthebrand,forexamplethelogocanhaveahugeeffectinthewayinwhichthepublicseethebrand‘Thelogoisthepointofentrytothebrand.’(Glazer,M.1995.P21.)
Themaintargetsinmostbusinessistosurviveandtomakeaprofit,wheneitherofthesetwoareinjeopardy,itcanbetimetothinkaboutrebrandingthecompany,torefreshtheimageandattractnewcustomersandprofits.Thenextchapterwilllookathowsuccessfulabrandcanbeifexecutedcorrectly.
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successes in rebranding
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Rebranding,ifdonesuccessfully,canbeaninnovativewayinwhichtorevampadatedimageandattractalargerclientele.Thelaunchofarebrandcanthrustthecompanyintothemediaagain;gettingthepublictotalkaboutthebusinesscanincreaseinterest,andthereforeincreasesales,whichisanexcellentresultandisessentiallywhyrebrandisdone.
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InFebruary2007,VirginMobileandNTLTelewestrebrandedfollowinga£962millionmergertocreateVirginMedia(BBCNews.2006.);amultichannelbusinessincludingtelephone,mobile,cabletelevisionandbroadbandInternet.
‘NTLneverreallyhadabrandculture,althoughitdiddosomeadvertising.Sowe’vehadtocreatethiscultureacrossthewholeorganisation.’(Billings,S.2007.)
VirginMedia’smaincompetitorsareSky,BTandTalkTalk,alreadybigestablishedbrandnames,soVirginMediahadtocreateanewinnovativebrandimagetomoveonfromthedatedlookofNTLTelewestandtoattractcustomerswhohadpreviouslyusedtheservicesofitscompetitors.
Virgin,asabrandname,hadalreadygroundeditselfasa‘cool’wellknownbrandwithit’sotherbusinessventuressuchasVirginAtlanticandVirginMegastores,thelatterunfortunatelyclosedstoresintheUK,Ireland,Spain,US,Canada,AustraliaandJapanbutstillhasstoresopeninFrance,Greece,Australiaandthemiddleeastandgulfcountries.(Virgin.nodate.)
However,althoughtheeventualclosureofVirginMegastoresdidmakeadentinthebrandsimage,thebrandVirginstillremaineda‘cool’brand,andpeopleweresadtoseethestoresgo.ThishelpconsiderablywhenrebrandingintoVirginMedia,themainvaluescommunicatedbythebrandingwastosaythatVirginMediaisthenewest,mostmodernandinnovativebroadbandandcableTVprovider,thelogoproducedforthecompanyreallyshowsthemodernityofthecompanyespeciallycomparedtothedatedlooksofBTandTalkTalk.
‘Whenmovingintoareasofbusinesswhereithasnopreviousexperience,VirginisrelyingupontheimageofBransonas‘theconsumer’sfriend’whobringspersonalitytofacelessindustriesandbusinesspractices.ThesuccessoftheVirginbrandisfirmlytiedtothecultofpersonality.WhatBransonoffersisaspecificcharacterofserviceandareputationforchallengingauthorativebrands(forinstance,hispublicbattleswithBritishAirways).Virginmakesironicuseofthe‘rules’ofbrandingaspartofitsbrandimage;whenVirgincolawasfirstlaunched,thecompanyparodiedthemyththatthefamous1930’sCoca-Colabottlewas
basedonthevoluptuouscurvesofMaeWest.Virginproducedasimilarcurvedplasticbottle,colouredred,andchristeneditthe‘Pammy”aftersurgicallyenhancedBaywatchstarPamelaAnderson.’(Pavitt,J.2002.P32)
MyfamilyandIhaverecentlyswitchedfromBTBroadbandtoVirginMedia.OurreasonforchoosingVirginMediaoverTalkTalkorcontinuingwithBTwasbecauseVirginMediaseemedtobemoreinnovativeandmostuptodate,especiallybecausetheyownandoperatetheirownfibreopticnetworkforfasterbroadbandspeeds,andalsobecauseourneighboursrecommendedVirginMediatous,theirloyaltytothebranddefinitelyswayedourdecisiontochooseVirginMedia.
‘VirginTelevisionhascurrentlyaround3.4Msubscribers.VirginBroadbandistheUK’s3rdlargestbroadbandsupplier,behindTalkTalkandBTwith4Msubscribers’(KGBAnswers.2012)
ThisisanincrediblefeetconsideringthebrandVirginMediahasonlybeenaroundfor5yearswhen‘BTwasprivatisedin1984.’(BBCNews.2001.)AlreadyVirginMediahasestablisheditselfwithinthemarket,createdbrandvaluesandgainedagreatamountofcustomerloyalty,whichiskeyforsuccess.
VirginMediahavejuststartedanadvertisingcampaigningboastingthattheywillbedoublingtheircustomer’sbroadbandspeeds,thisenforcestheirbrandvaluesthattheyareconstantlyupdatingandimprovingtheirservicesothattheircustomersmaybenefitcontinuedgreatserviceandthereforewillstayloyaltothebrand.
EspeciallywiththeexperienceIhavehadwithVirginMedia,Ifeelitisahugerebrandingsuccessstory,andshowsthatrebrandingwhendoneinthecorrectwaycanpushanexistingbrandtotriumph.
virgin media
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ThefirstMarks&Spencerstorewasopenedin1893byMichaelMarks,(Marks&Spencer.nodate)sincethenthebrandhasgrownintooneofthelargestbrandintheUK&Irelandwithaprofitof£598.6million(aftertax)inMay2011.(Marks&Spencer.2011.)
Howeveroneofthekeyelementtoitssuccessincurrentthehardeconomicalclimateisit’srebranding.In2006Marks&Spencerproducedastrongadvertisingcampaign,totrytoimproveonit’sslumpedsalesfromtheprevioustwoyears.Thebrandwasseenastooexpensiveandquiteaboringoldfashionedcompany.Theadvertisingcampaignin2006usedTwiggyasthefaceofthewomanswear,‘aperfectmetaphorforastylishnationaltreasuremakingaspectacularcomeback.’(Sweney,M.2006.)
‘Advertisingwasjustoneofthemechanismsthathelpedbrandstosucceedinestablishingtheassociationofphysicalandsocialideaswithparticularbrands.’(Pavitt,J.2002.P30)
Attheheartofthecampaignwastheslogan‘YourM&S’.Thecampaignwasahugesuccessbringinginanadditional1.4millionpeopleintothestores(Sweney,M.2006.),itbroughtMarks&Spencerbackintothelimelight,anditchangeditsimage,madeitmorestylishandmoremodern.ThecampaignwassosuccessfulforMarks&Spencerthat‘YourM&S’becametheprimarybrandforadvertisingandinstoreandonlinemerchandising.
ConsumershavebeencallingMarks&Spencer‘Marks&Sparks’,‘Marks’and‘M&S’foryearsbeforethisrebrand,sothedecisiontochangesomestoresto‘YourM&S’didn’tgetanegativereactionfromthepublic,itmadethestillrecognisablebutalsomadeitmore
accessibletoawiderrangeofcustomersandpulledthebrandimageintothe21stcentury.Thebrandvaluesstillexisted,especiallythatofhighqualityproducts,butthebrandnowlookeduptodate,fashionable,andalsoopeneditselfuptotheyoungergenerationwhopreviouslysawMarks&Spencerasunfashionableandjustforolderwomen.
Thebrandingof‘YourM&S’continuedwhenMarks&Spencerlauncheditsnewcampaign‘Thisisnotjustfood,thisisM&Sfood.’TheseseriesoftelevisionadvertisementsdepictedtheMarks&Spencerreadymealrangeinslowmotion;theimagesweremouthwateringtowatch,somecalledit‘foodporn’becausethevoiceoverdescribingthefoodwasslowandsultryandthewayinwhichthefoodwasportrayedwasalmost‘sexy’.ThiswasariskymoveforMarks&Spencerwhoarenotusuallyassociatedwithbeingsexy,butsexsells,andtheriskreallypaidoff.
‘Thisisnotjustfood,thisisM&Sfood’hasbecomesowellknownthatmanyparodieshavebeenmadeofitincluding‘It’snotjustanadvertisingcampaign,it’sanM&Sadvertisingcampaign...’(CreativematchGraduateRecruitment.2006.)ItsdepictionoftheluxuriousnatureofitsreadymealrangealsohelpedboostprofitsandhashelpedMarks&Spencergetthroughthecreditcrunchandkeepit’splaceamongthehighstreetnames.
AlthoughMarks&SpencerwillnotbeasbigassimilarstoressuchasTescoorSainsbury’s,IbelieveconsumerswillcontinuetoshopatM&S,itsnewbrandvaluesofbeingmorefashionable,luxuriousandmodernandit’sexistingbrandvaluesofloyaltyandqualitywillalwaysbringcustomersthroughtheirdoors.Asitissaid,‘IdomybigshopatTesco,butIgetmybitsinM&S’.
marks & spencer
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‘Themostimmediatelyvisibleshiftinthenewbrandingisthedepartureoftheblueandyellowcolour’(Billings,S.2006.P8.)
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InJanuary2006,ITVlaunchedatotalrebrandacrossallitsfourchannelsgivingeachchannelanewidentity.ITVisconstantlybattlingforviewingfigures,asisallotherchannels,butwiththeaccesstocableandfreeviewchannelsmadeeasier,thefightforviewingfiguresbecametougher,andwithITV’sratingslumping,theyneededabrandrefresh,anewimagetoattractmoreviewerstotheirchannel.
‘ThecreativeworkofRedBeeMedia,formerlyBBCBroadcast,willsweepacrossITV’sfourchannels,introducingreworkedidentsandlogosatatimewhenthebroadcasterfacesagrindingerosionofadvertisingrevenuesandaudienceshare.’(Billings,S.2006.P8.)
‘“Wehavetriedtoidentifyafutureproofbrandposition,creatingbrandingforeachchannel,targetingdifferentgroupsandthencrosspromotingintoshowsonotherchannels,”saysSalmon.’(Billings,S.2006.P8.)
TheidentitythatITVlaunchedwasabigstepawayfromtheexistingfeeltothechannel,theoriginalblocksofcolourwereveryrigidandoutdated.Therebrand,incorporatednewcolours,whichgaveeachchanneladifferentfeel,buttheyalsointeractedwellwitheachother,givingITVtheoptiontoadvertisetheirdifferentchannels,forexampletheycouldadvertiseaprogrammeshownonITV2,onITV1.ThisrebrandwasalsohelpbythewayinwhichITVstartedtoreallycompetewithBBCandChannel4byshowingprogrammeslikeX-FactorandI’mACelebrityGetMeOutOfHere,allhavinggreat
viewingfigures,andwouldhavebeenwatchedanywayiftherewasnorebrand,butbecauseviewerssawtherebrandwhilewatchingtheseshows,theybegantoseeITVinanewlight,inamoremodernandexcitingway,communicatingthatITVweregoingtoshowmoremodernandexcitingshowsaswellasexistingfavourites.
TableShowingViewingFiguresofITVChannelsinthelastweekofSeptemberbetween2005and2009. 2005 2006 2007 2008 2009ITV1 19.9 18.9 19.7 17.7 17.9ITV2 2.5 2.2 2.2 2.0 2.3ITV3 1.1 1.5 1.2 1.7 1.6(Broadcasters’AudienceResearchBoard.2009.)
AboveisthepercentageshareofviewingfigurestheITVchannelsreceivedforthelastweekinSeptemberbetween2005and2009,Ichosetolookatthisparticulartimeoftheyearastherearenoschoolholidayswhichwouldalwaysincreaseviewingfiguresduetopeoplebeingathomemore.Althoughtheviewingsharehasnotincreased,ithasdefinitelystayedconstant,whichisasuccessconsideringmoreandmorechannelsareavailableinthepastcoupleofyears,meaningITV’srebrandhelpeditstaystrongduringthesetimes.
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failures in rebranding
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Howeversometimesarebranddoesnotresultinsuchasuccessasthethreecompaniespreviouslymentioned.Arebrandcangohorriblywrongifdoneinthewrongwayandcanevencauseapublicoutcryforthebrandtorevertbacktoitsoriginalways.
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‘ThebiggestblunderinrecenttimeshastobeConsignia[ashortlivedrebrandoftheRoyalMail]butthepopularoutragewasnotjustaboutthename,butalsoaboutthetreatmentofit.Ifyouworkforanorganizationwith300yearsofheritage,youcantsimplyreplaceitwithagenericswoosh.It’sjustwronganditwon’tstick.ItwillbeinterestingtoseewhathappenstoBritishAirwayswhensomeonedecidestochangethename.HowdoyouretaintheheartandsoulofawellknownbrandlikethisifyouremovethewordBritish?CrossmypalmwithsilverandI’lltellyou.’(Adamson,M.2010.P11.)
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ThemaninchargeofthenewnameandimagebyDragonBrands,wasKeithWells.Thereasonbehindtheneedofanewnamewas,
‘“PostOffice-thatwastoogeneric.Lotsofothercountrieshadtheirownpostoffices,soitwouldhavebeenadifficultnametoprotectabroad,”MrWellssays.“RoyalMail-thathasproblemswhenoperatingincountrieswhichhavetheirownroyalfamily,orhavechoppedtheheadsofftheirroyals.”Theunifyingbannerwouldhavetobefashionedtoafreshdesign.’(Verdin,M.2002.)
‘ThenameConsigniawasdecidedonbecause“It’sgotconsigninit.It’sgotalinkwithinsignia,sothereisthiskindofroyalty-ishthinginthebackofone’smind.
“Andthere’sthislovelydictionarydefinitionofconsignwhichis‘toentrusttothecareof’.Thatgoesrightbacktosustainingtrust,whichwasvery,veryimportant.”‘(Verdin,M.2002.)
Itmadesensetochangethenametosomethinglessgenericifthecompanywantedtoexpandtheirpresencetooverseastrading.Thereasoningbehindthenameisaniceidea,althoughitisobviouslyamadeupwordthemeaningsbehinditdomakesense,theideaoftrustandroyalty,whichisfittingforRoyalMail.Howeverthemessagewasnotcommunicatedtothepublic,thenewnamesoundedforeignandstrippedthecompanyofitsBritishnessanditsheritage.
Therebrandalsocameatatimewhenthegroupwashaemorrhagingmoneyandcuttingjobs,sowhenthenewnamecame,people,thepublicandthecompaniesemployees,associatedthenewidentitywiththedishonestyanddisloyaltytowardsitsemployeesanditsfailingsasacompanytoproduceprofits.
‘PostOffice/Consigniaoperationsbledthroughanobsceneamountofmoney,£1.5millionadaybysomecountsandforthesixmonthsprecedingNovember2001,£281million(US$2.2M,418M).Theorganization,whichoperateswithannualsalesof£8billion(US$12B)andemploys220,000people,quicklyfounditselfbetweenacash-flowproblemandavocallaborforcewisetolaborcuttingquickfixes.Duringonepointofthreatenedstrikesinthelastyear,Consignia’sownworkers’unionboycottedtheuseof“Consignia,”andcalledforareturnto“PostOffice.”‘(Sauer,A.D.2002.)
AyearaftertherebrandtoConsignia,thechairmanAllanLeightonrevealedthatthenameConsigniawouldbedropped“probablyinlessthantwoyears.”(Sauer,A.D.2002.)Thenamewasditchedon13thJune2002,soonerthanpredictedasthepublic’sviewofthegroupwasfartoodamagedwhentradingunderthenameConsignia.
AtatimewhenThePostOfficeneededtokeepitsbrandvaluesofheritage,trustandhonour,tokeeptheloyaltyofit’scustomerduringahardtimeforthecompany,therebrandwasdoneinthewrongway.Byintroducinganewnamewhichwascreatedtobemoreavailableandmoremoderntotradingoverseas,thebrandneglectedtoseethewayinwhichtheUKwouldreacttothenewbrand,loosingit’simageofheritageandBritishnesswaspossiblyoneofitsworstmistakesthecompanydidduringitsdifficulttime.ThepublicdonotlikeitwhenanestablishedBritishinstitutionischangedtomakeitlessBritish.Insteadofrefreshingthebrandtogiveitabetterimageduringslumpsinprofits,itdamageditscommunicationofitsbrandvalues.Thechangebacktotheoldnamewasthebestthingthatthegroupdid,theproof,isthatThePostOfficeisstillawidelyusedcompany,whichhasgrown,notonlytodelivermail,butnowoffersinsurance,financeandevenphoneandbroadband.
post office
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pepsi
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Pepsialwaysseemstobetryingtorefreshtheirimage,perhapsduetobeingconstantlyrunneruptoCocaCola,but11newlogosinitshistory,5ofthembeinginthepast25yearsseemsalittleextremedoesn’tit?
Pepsi’sChiefMarketingOfficersaidthisaboutthe2008rebrand,‘“Wefeltlike,aswemoveoutofthistraditionalmassmarketingandmassdistributioneraintotoday’sculture,there’sanopportunitytobringhumanityback,bothintermsofthedesignbutalsointhewayweengageconsumers,”hesaid.“Bymakingthelogomoredynamicandmorealive…[Itis]absolutelyahugestepintherightdirection.”‘(Zmunda,N.2008.)
Althoughthisrebrandhasn’tcausedahugelynegativereactionfromthepublic,ithasn’treallycausedthatmuchofareactionatall.Somearesurprisedatthecostofthenewlogo,butoverallIthinkbecausePepsihasrebrandedsomuchinthepast,peopledon’treallyseemtocare.
‘Poorrebrandingeffortsarethosethatevokea‘sowhat’or‘whatdoesthatmean?’response,whichsuggeststhelogoanditscommunicationhavefailedtoconnect.Recently,theglobalPepsirebrandevokedalargelynegativeresponse,butitisnowherenearasbadaswhenCocaColalaunchedNewCokein1980sandthenpromptlywithdrewitandinsteadCocaColaClassic.Totamperwithafavouriteindesignandproductformulaisarecipefordisaster.’(Nurko,C.2010.Voxpop.DesignWeek.24(42),p11.)
Thequestionreallyis,wasitworthit?Surethenewrevampandlogoisn’thorrible,itstillhastherecognizablecharacteristicoftheexistingPepsilogo,andthenewlightsansseriftypefacehasamoremodernfeelcomparedtothepreviousboldfont,butconsideringthemoneyspentonthisventure,Idon’tthinkthereactiontotherebrandwaswhatPepsiwashopingfor.
‘Pepsiwouldnotdiscusswhatit’spayingfortherevamp,butexpertsestimatethecostforatopfirmtoworkfivemonthsatnorthof$1million.Butthat’sjustthe
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beginning.Therealcost,saidanexpert,isinremovingtheoldlogoeverywhereitappearsandputtingnewmaterialup.ForCokeorPepsi,whenyouaddupallthetrucks,vendingmachines,stadiumsignage,pointofsalematerialsandmorearoundtheworld,itcouldeasilytallseveralhundredmilliondollars,theexpertsaid.’(Zmunda,N.2008.)
Iftheexpertaboveiscorrect,severalhundredmilliondollarsseemslikeanextortionateamountofmoneytobespendingonarebrandifitdidnotdrivethesalesofsodaanextremeamount.Itseemslikeawasteoftimeandmoney,foralogothatdidnotactuallychangethatmuchandneverreallycausedeitherapositiveornegativereaction.
‘Pepsihasremainedverytruetoits2008redesignandrepositioning.ThePepsiRefreshProject,whichisbringinghundredsofinnovativeideastolife,iscoretoPepsi’soverallpositioningandiswidelyrecognizedandunderstoodbyitstargetconsumer.Somequestionwhetherthiscampaignactuallydrivessodasales.
However,what’scertainlyclearisthatithasbeeneffectiveinincreasingPepsi’sdigitalpresence,whichhashadapositiveimpactonthebrandoverall.Thisyear,expansionininternationalmarketshasledtosignificantgrowth.However,developedmarketsprovedlesspositiveinthishard-foughtcategory.’(Interbrand.2011.P24.)
Althoughthisrebrandwasn’tacompletefailure,thecompanydidnothavetochangebacktotheirexistinglook,therebrandwasn’tasuccesseither.Asmentionedabove,itisquestionablewhetherornottherebrandactuallydrovesales,the‘sowhat?’reactionthatwasgivenmadePepsiabitofalaughingstock,constantlyrefreshingtheirimagetocompetewithCocaColabutneveractuallycatchupwiththeleadingcolacompany.
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GAPusedtobetheiconofhighstreetfashion,offercleanfreshlooksandwearabledesigns,creatingbrandimageofhappiness,hip,andcool,butrecentlyGAPhaslostitsway.GAPhasbecomelessandlessdesirablewithnewclothingstoressuchasHollisterandAbercrombie&Fitchbecomingmoreavailableonthehighstreet.In2010,GAPtriedtocombatprofitfailureswitharebrandtoexpressanewimage.Howeverthenewlogowasnotreceivedwellcausinganoutcryfromthepublic.CustomersandthemediafloodedtotheInternettoexpresstheirdislikeofthenewimageandattacktherebrandonsocialnetworksitessuchasFacebookandotheronlineforums.
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‘Morethan2,000commentswerepostedonthecompany’sFacebookpageontheissue,withmanydemandingthereturnofthetraditionallogo.InastatementreleasedontheGapwebsite,MarkaHansen,presidentofGapBrandNorthAmerica,saidthecompany’scustomersalwayscamefirst.“We’vebeenlisteningtoandwatchingallofthecommentsthispastweek.Weheardthemsayoverandoveragaintheyarepassionateaboutourblueboxlogo,andtheywantitback.“Sowe’vemadethedecisiontodojustthat-wewillbringitbackacrossallchannels.”Sheaddedthatitwascleartheretailer“didnotgoaboutthisintherightway”and“missedtheopportunitytoengagewiththeonlinecommunity”.“Theremaybeatimetoevolveourlogo,butifandwhenthattimecomes,we’llhandleitinadifferentway,”shesaid.(BBCNews.2010)
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Thenewlogowasseenasajokeitlookedlazyandboring,infactsolazythatmembersoftheonlinecommunitystartedmakingparodiesofthenewlogo,‘Crap’insteadof‘Gap’,andtherewasalsoandonlinegeneratormadetomakeyourownGAPlogo,justshowinghoweasythelogowastomake.Thenewlogowasditchedjustoneweekafterit’slaunchandGAPrevertedbacktotheirexistinglogo.
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‘Theconceptofthebrandiscentraltooursociety.Mediainterestinthesubjectsofbranding,marketingandcorporateconcernshasbeensubstantialinrecentyears,andthefortunesofglobalcompaniessuchasMicrosoftmakeforregularnewsfeatures.Thesubjectofbrandsisalsoonethatcrossesoveradiversityofinterests.Recentstudiesinsociology,anthropology,business,marketinganddesignhavechosentofocusontherelationshipbetweenbrandsandconsumerbehaviour.’(Pavitt,J.2000.P16–17)
NeuroFocusisacompanythatusesNeuroSciencetodiscoverhowpeoplereacttoadvertising,branding,productdevelopment,packagingandentertainment.TheyuseEEG(Electroencephalogram,atechniqueforstudyingtheelectricalcurrentwithinthebrain(MedicineNet.2011.))andotherNeuroSciencetoolstodiscoverhowconsumersseeabrand.TheyconductedastudytofindoutwhytheGAP’snewlogocausedsuchnegativereactionsfromthepublic.
‘TheGAP’sexperiencesimplyreinforcesthecriticalimportanceofthetwoquestionsthatbrandmarketersshouldasbeforemovingaheadwithsomethingascentralasalogoredesign.Theyare:doesthenewdesignviolateanyNeurologicalBestPractices?AnddoesthenewdesignbuildupontheexistingbrandattributesthatareidentifiedthroughtheBrandEssenceFramework?Forcompaniesseeingtoavoidcostlyanall-too-publicmistakesthatcanerodeabrandimageandbrandloyaltyandimpactpurchaseInternet,measuringconsumers’responsesatthesubconsciousvelofthebrainIthebestmeanstoensuresuccess.’
NeurologicalBestPracticesareusinginformationfromNeuroSciencetocreatedesignthatwillbebestreadbyourbrainforexample‘PlaceImagesontheleft,textontheright.Thelefthemisphereofthebrainisbetteratprocessingtextandnumbers,andtherighthemisphereisbetteratprocessingimagery.Movingimagestotheleftandtexttotherightwillmakeitmorenaturaloreasierforthebraintoprocessinformation,andwhataconsumerfindseasiertoprocessmaybeviewedasmoreappealing.’(Pohlmann,A.2011.)
BrandEssenceFrameworkis‘ABrandFrameworkisaguidethathelpseveryoneinyourcompanyunderstandtheessenceofwhoyouare,andwhatyoustandfor.’Itexplainsthebrandposition,promise,message,voiceandappearancetoensurethebrandisseeninthecorrectway.’(PointofVision.nodate.)
‘NeuroFocusconductedneurologicaltestingofGapcustomerstofindoutwhycustomersweren’tattractedbythenewlogoandwhysomeevenhadnegativereactionstoit.NeuroFocusanalyzedtheparticipatingconsumersEEG-basedbrainwaves,theireyemovement,andtheirGalvanicSkinResponse(GSR),ameasureoftheiremotions,asparticipantslookedattheoldandthenewGAPlogos.
‘NeuroFocusfoundthatthenewlogofailedtoregisterasNovelwithconsumers.Previousneuroscienceresearchshowsthatthebraincravesandseeksnovelty,sothe
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factthatthelogodidn’tclickwiththatpartofourbrainexplainswhyitdidn’tattractourattention.’(Psychworld.2011.)
IpersonallydidnotlikethenewGAPlogo,IagreewiththeNeuroFocusstudythatweseeknoveltyandbecauseGAP’soriginallogowassoiconic,thenewlogomadethecompanyunrecognisable.Ialsofeelthatthelogo,inmyopinion,lookedlazy,itlookedasifithadbeendonequicklyonaMicrosoftWordWordArt.ItstillhadtheblueboxthatGAPisknownfor,butbecauseitwasattheendofthename,itlookedasifithadbeenplacedtherelastminute.Ialsofeelthatthetypefaceused,Helvetica,wastoobasicforsuchaniconicbrandimage,andoverallfeltthenewlogomadethewholebrandlookcheaperthanitis.
‘Howmanytimeshaveweheardahighprofilerebrandmetwithapublicoutcry?The‘wispaeffect’hasseenthepublicclaimownershipoftheGAPbrand,raisedawarenessofitslongliveaestheticandencouragescolumniststotickletheirkeyboards.WhatotherPRstuntoradcampaigncouldhavetriggersthesameresponse?Inmyview,Gap’srecentaboutturnshouldn’tbewrittenoffasafailure.Afterall,assalesgoup,theclientsgothappier.’(Azurdia,D.2010.P11.)
Thiscouldshowanothersideoftheargument,thateventhoughtheactualrebrandedGAPlogowasafailure,itbroughtGAPbackintothepubliceye,acompanythat
althoughisnotfailing,isperhapslesspopularthanitwasafewyearsago.ThepublicoutcrytowardsthenewlogomeantGAPwasbackinthemedia,andastheysayallpublicityisgoodpublicity.ItmadeconsumerslookatGAPagain;ahighstreetstorethattheyhadperhapsoverlookedrecentlyandthesalesafterthelogorecallhadrisen.
‘Afteranembarrassinglogomishap,Gapiscomingbackstrong,mainlythroughaggressiveglobalexpansion,averyactivepresenceinsocialmedia,strongerengagementwithconsumers,andcelebrityendorsement.Asof2011,Gapreportsstoresin29countries,includingrecentarrivalsinAsiaandplannedexpansionintoAfrica.GaphasmadeitsfutureplansreadilyavailablethroughGapInc.’sGlobalRunwayreport,projectinginternationalandonlinegrowthinto2014.Evenwithsuchloftygoals,Gaphasbeenconsistentwithitsbrandtouchpoints–adcampaigns,stores,anditswebsiteareallcleanandsimpleasGaphasalwaysbeen.’(Interbrand.2011.P39)
Doesthismeanthatcompaniesthathavereceivedflaggingsalesrecentlyshouldlookintopublicitystuntssuchasthistorevivetheirimage,insteadofspendingmoneyonrebrandingtheycoulduseacontroversialstunttogainmediacoverage,butwouldtheystillbeabletokeeptheirexistingimageandvalues?OrshouldbrandlooktorefreshtheirimagewhenthetimeisrightandwithlotofcustomerresearchtomakesuretheycanavoidfailuressuchasGAP?
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conclusion
FrommyresearchIhavefoundthatrebrandingcanbeextremelyeffectivewhendoneintherightway.Therearemanydifferentfactors,whichcontributetoeitherthesuccessoffailureofarebrand.
‘Anorganizationcanonly‘walkthetalk’whenitsmanagersdeliberatelyshapeitsinternalrealitytoalignwithitsbrandpromise…(thebrand’s)valuesmustbeinternalizedbytheorganization,shapingitsinstinctiveattitudes,behaviors,priorities,etc’(Mitchell,A.1995.P25–42.)
Whendecidingtorebrandacompanyneedstomakesurethattheyarerebrandingatthecorrecttime.ForexamplethefailedrebrandofThePostOfficegroupwas,inpart,duetothefactthattheyhadexistingissueswithinthecompany,theslumpinprofitsandjoblosses,thatwasdamagingtheirbrandimageandtheyhadnotaddressedtheseissues.Thereforethenewbrandimagewasassociatedwiththefailuresofthemasacompanyandresultedinthelossofrespectfromthepublic.IfThePostOfficegrouphadfirstaddressedtheissueswithinthecompany,therebrandmaynothavebeenasmuchasafailure.Althoughthedeclineofthecompanywasonlyonereasontotherebrandfailure,thenewimagefailedtoconnectwiththepublicandfailedtocommunicatetheexistingbrandvaluesthatalonghistoryofcustomerloyaltyhadenforced.Thenewbranddestroyedthestronglinkthattheyhadwiththeircustomers,theirheritageandtheirimageofagreatBritishinstitution.
“Agreatbrandtapsintoemotions.Emotionsdrivemost,ifnotall,ofourdecisions.Abrandreachesoutwithapowerfulconnectingexperience.It’sanemotionalconnectingpointthattranscendstheproduct.”(Bedbury,S.2006.P139.)
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forsomemonthsafterthechange,thestrapline‘ThenewnameforMarathon’wasprintedbelowtheSnickerstrademark,andanotherstrapline‘Allthat’schangedisthename’printedonthepackagingalongthesideofthebar.Alsotheoverall‘lookandfeel’ofthebeforeandafterpackagingwasverysimilar.Marsslightlyincreasedit’sadvertisingforthebrandandmadeitapriorityforthesalesforcesellingtoretailers.Theresultwasthat,farfromlosingsales,thebrandactuallyincreaseditsmarketshare.ChangingthebrandnamefromMarathontoSnickershadnosignificanteffectonconsumers’perceptionsofthebrand:intheirmindsitstillexist,underanewname.’(Pavitt,J.2000.P87.)
ThisexampleofMarschangingthenameofMarathontoSnickersenforcesmyopinionthatconsumerscanacceptthenameofthebrandchangingaslongastheexistingbrandvaluesarestillcommunicated.Marswantedtounifytheirproductssothattheywerethesamenameglobally;theymanagedtodothiswithoutalienatingtheirexistingcustomerbaseintheUK.ThepackagingforMarathonandSnickerswereverysimilar,andtheproductwasstillthesamewhichbothhelpedtocreateaneasypassagewhenchangingnames,butitisthestrongbrandvaluesthatexistedwithinthecustomersmindsthatmeantthechangeofnamedidnotaffecttheloveoftheproduct.
AhugepartofthesuccessoftherebrandofthecompaniesIhavelookedatisbecausetheyhaveconstantlykepttheirbrandvaluesthesameandclear.Changingalogodoesnothavetomeanchangingthewholebrandbutcansometimesmeanthepublicseethebrandinadifferentway,thiscanbegoodandthiscanbebad.VirginMedia,ITVandMarks&Spenceralleitherimprovedonexistingvaluesthatdidnotworkaswellorstrivedtomaketheirexistingvaluesmoreknowtothepublic.Thismeantthatwhentherebrandwaslaunchedconsumersdidnotfeelalienatedfromtoomuchchange.Alittlechangecanbegood,butabigchangecanreallydistortthepublicimageofabrand.Ifacompanyhasexistinggreatbrandvaluestheyshouldsticktothemthiswillkeepthepublichappyastheyfeeltheyaredealingwiththesamegreatcompanyitjusthasanewimagelikemarswithsnickersandmarathon.Overallthewayinwhichacompanycommunicatesitsbrandvaluesiskeytothesuccessorfailureoftherebrand.Rebrandingcanreallyworkaslongasthecompanykeepsinmindthewayinwhichthepublicwillseethem,theyneedtonotonlytakeintoaccountrandomcustomerresearchbutseethebrandasawholeasseenbythewholeoftheircustomerbase.Thecompanyneedstounderstandwhatexistingbrandvaluesthathaveworkedwellinthepastandtheneitherpushthesevaluesmoreintothepubliceyeorimproveonexistingvaluesthathavenotworkedaswell.
‘Thestrongerthedialog,thestrongerthebrand;theweakerthedialog,theweakerthebrand.’(Webber,L.2009.P99.)
ThroughthesuccessesofITV,VirginMediaandMarks&Spencer,itshowsthatrebrandingisextremelyeffectiveinrefreshingacompany’simageandattractingmorecustomerstodrivesale.Ifthecompanyhascleareffectivebrandvaluesandcommunicatesthemtotheirtargetmarkettherebrandwillbehighlyeffectiveandsuccessful.
Asstatedearlier‘inmyview,Gap’srecentaboutturnshouldn’tbewrittenoffasafailure.Afterall,assalesgoup,theclientsgothappier.’(Azurdia,D.2010.P11.),allpublicityisgoodpublicitythereisanargumentthatGAP’srebrandwasinfactapublicitystunt.IdofindthishardtobelieveIthinkGAPdidinfactwanttorefreshtheirbrandimagehoweverwentaboutthisthewrongway,iftheyhadinfactspentmoretimeonthelogo,makingsureitstillhadstronglinkswithitsexistingiconiclogo,therebrandmayhavebeenmoresuccess.GAP’sfailedrebrandcreatedalotofpublicityforthemandputthembackintothemedia(evenifitwasfornegativereasons)anddidinfactincreasesalesduetobeinginthepubliceyeagain,whenithadbecomequiteaforgottenandmundanehighstreetstore.GAPfailedrebrandwasnotanissueofintroducingitatthewrongtime,howeverthenewbrandimagejustwasnotgoodenoughinatimewhenpeopleareveryawareofbrandingandalsoveryawareofhowagoodlogoshouldlook.Consumersarenowveryopinionated,especiallyduetotheInternetgivingthemthefreedomtoexpresstheirfeelingsinapublicway.ThewayinwhichGAPlistenedtothepublic’sopinionandrevertedbacktotheexistinglogo,didhelpthemgainrespectfromconsumersagain,becauseitshowedthatGAPisawareoftheircustomers,andiftheircustomersarenothappy,theywillchangetomakethemselvesbetter.
Althoughthereisevidencethatrebrandingcanbeaterribleideaandineffectiveforanumberofreasons,therearealsorebrandsthathaveshonethroughandbeenextremelysuccessful.Thisisduetothebrandskeepingaclearandconstantbrandvalues.Thesuccessisduetothecompanyknowingwhattheywanttocommunicatetotheircustomersandexecutingitbeautifully.VirginmediadidhavehelpfromtheirexistingbrandimagebutchosetousethattotheiradvantagekeepingtheirbrandvaluesofVirginMediathesameastheexistingvaluesofotherVirgincompanies,quality,modernandinnovative.
‘I’veneverbeenparticularlygoodatnumbers,butIthinI’vedoneareasonablejobwithfeelings.AndI’mconvincethatitisfeelings–andfeelingsalone–thataccountforthesuccessoftheVirginBrandinallofitsmyriadforms.’(Branson,R.2011.)
Marks&Spencermadeagreatsuccessstoryofrebrandingduetothefactthattheymanagedtomoderniseandattractayoungeraudiencewhilestillkeepingtheirexistingbrandvalues,sonottoalienatetheirregularloyalcustomers,theykeptqualityandheritageasavaluebutalsomadethemselvesmodernandfashionableagain.CreatinganimprovedpublicimageandmakingmoremediacoverageandpublicawarenessbyusingTwiggyandothermodelsfortheirclothingcampaignsandalsocausingsomecontroversywiththeirM&Sfoodadverts,whichwerequitesexy.Sexyisn’tawordyouwouldhaveusedtodescribeMarks&Spencer,butsexsells,andMarks&Spencermadeitworkforthem.
‘Alessextremeexampleoccurredinthelate1980swhenMarsstartedapolicyofstandardizingonalimitedportfolioofglobalbrandnames.Inspring1990thewellestablishedMarathontrademarkwasdroppedandreplacedbytheglobalSnickerstrademarkintheUK(atthattimealmostunknownthere.Beforethechange,thestrapline‘InternationallyknownasSnickers’wasprintedinsmallertypebelowtheMarathontrademark.Again,
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byCiaraFarrell