Pitfalls in the corporate rebranding process: Lessons for Ghanaian companies
In the past few years, there have been several reported cases of high profile corporate rebranding cases among Ghanaian companies. This practice is global and happens across all industry sectors.
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The high incidence of corporate rebranding cases indicates that academics and scholars can make a valuable contribution to management practice by assisting in conceptualising this complex decision problem through theories and empirical research.
Findings from theory and research, therefore, serve as a catalyst for this article.
What is corporate rebranding?
The English language uses the prefix “re” to form verbs “denoting action…..done over, often with the implication that the outcome of the original action was in some way impermanent or inadequate”, (Webster’s College Dictionary).
Within the context of corporate branding, this practice might involve changing the company’s name, targeting and positioning with the aim of attaching a new meaning to the corporate brand and propagating new benefits to its stakeholders.
In other words, corporate branding is the initial coherent articulation of the corporate brand and can occur at any time.
Corporate rebranding on the other hand refers to the disjunction or change between an initially corporate brand and a new formulation.
Corporate brands have similarities with organisational brands, service brands, and retailer brands. These terms are sometimes used interchangeably. Corporate brands should, however, be contrasted with product brands.
The difference can be explained as follows: firstly, the organisation features more prominently and explicitly in corporate brands; secondly, corporate brands are likely to be controlled by higher-level management such as the chief executive officer; thirdly, corporate brands are likely to be more abstract, representing higher-order values (for example, purity or freedom) compared to more functionally based product brands.
Fourthly, corporate brands are more complex, with potentially different brand meanings across different stakeholders. Thus, a misconception of what corporate branding is will invariably produce negative consequences for the firm.
An understanding of corporate branding is a prerequisite for successful corporate rebranding.
As a result, prior to discussing the principles for effective corporate rebranding, it is necessary to discuss the pitfalls in the corporate rebranding process. These are the common mistakes that plague firms in the planning and implementation of the corporate rebranding process.
Some pitfalls
A set of critical pitfalls has been identified in the branding literature as posing challenges for the establishment of the new corporate brand in the minds and hearts of internal and external audiences. Four critical pitfalls have been briefly discussed as follows:
Disconnecting with the core
In the rebranding aftermath, stakeholders usually react to the new corporate brand on the basis of their associations with the previous brand name.
It is imperative, therefore, that in choosing an appropriate new corporate brand identity, the expectations of the company’s different stakeholder groups with respect to the new corporate brand is considered.
It appears higher level management of Ghanaian companies do not invest considerable time and effort to appreciate how each stakeholder group perceives their brand, as well as failing to identify the relevance of various firm characteristics to the respective groups. This omission alienates stakeholders from the company.
Stakeholder myopia
The failure of the board to appreciate that the firm has multiple stakeholders who need to be fully briefed regarding the rebranding exercise could spell doom for the campaign.
Firms tend to concentrate mainly on shareholders and the effect of the new corporate brand on the firm’s financial position rather than investing time in a dialogue with employees and customers regarding the rebranding exercise.
Ultimately, it is the positive experience that customers have with the brand that makes it successful. Achieving this favourable brand experience is predicated upon memorable interactions between employees and customers, hence the need for full briefing of these key stakeholders.
Emphasis on labels, not meanings
Without doubt, this particular pitfall is the one Ghanaian companies have either misconceived or plainly used as a tool to deceive their stakeholders. Too much emphasis has been placed on developing new labels for the corporate brand (a new name and logo, new values, change in colours and uniforms, etc.) but not on translating these into new meanings for the employees.
It is not surprising for a firm claim to have a new label like “we are an innovative company” or “we focus on quality and speed” purported to encapsulate the new corporate brand promise and yet failing to translate these new brand promises into meanings that would engage their employees.
Fact is, corporate rebranding is not superficial. It is not peripheral. Employees need to buy into the new identity and image which will require a change of behaviour.
One company, one voice: the challenge of multiple identities.
Brand experts understand that the rebranding efforts should be based on a premise of a unified culture. In reality, the cultural environment in most organisations are chaotic and raises many challenges.
In the aftermath of the rebranding exercise, employees may still reflect on their old identities and cultures which invariably will lead to different expectations.
Employees, therefore, end up projecting very different images of the new corporate brand in their everyday attitudes and behaviours.
Failure to ensure that an integrated and unified culture is shared by internal stakeholders will pose a stumbling block to the successful implementation of the rebranding process.
Conclusion
The identification of these pitfalls provides valuable managerial insights for firms. Corporate rebranding should be seen as a complex process which involves a series of gap reduction.
In the next article, the discussion will focus on principles for effective corporate rebranding process.
The writer is the Dean, Faculty of Management Studies, University of Professional Studies, Accra)