Corporate branding refers to the disjunction or change between an initially formulated corporate brand and a new formulation. The change in brand vision is termed brand revision.
The process of implementing the brand revision in the entire organisation will demand a change management process.
While corporate branding places emphasis on assembling all units to consistently follow policies and procedures specifications (such as the use of common colours, letterheads or business cards), corporate rebranding mandates all units to be moved from one mindset/culture to another. Although there are some overlaps between corporate branding and corporate rebranding the virtues of the latter encapsulates:
• Clear focus on how and to what extent the corporate brand should be changed.
• Emphasis on the benefits (and costs) of the brand revision
• Acute awareness as potential internal resistance to the brand change and therefore the need for a well-structured change management programme to ensure brand buy-in; and
• Stressing on the importance of informing all stakeholders to the new brand.
Several factors have been identified in the corporate rebranding literature as underlying reasons for embarking on brand revitalisation.
These include underperformance, the need for brand image improvement, response to competitive pressures, structural factors such as mergers and acquisitions, a change in narrow focus to a more complex focus, among others.
In an attempt to find solutions to these corporate rebranding issues, the current status of corporate rebranding theory is hinged on integration of three dominant themes:
Theme 1: The need to re-vision the brand on the basis of a clear understanding of the consumer to satisfy both existing and anticipated needs.
Theme 2: The application of internal marketing or internal branding to attract the commitment of relevant stakeholders.
Theme 3: Focus on the role of advertising and other marketing mix variables in the implementation phase.
Using these broad thematic areas, six principles can be established to assist corporate branders in the practical execution of the corporate branding process. Principles 1, 2 and 3 is consistent with the brand revision process, Principle 4 refers to internal support or “buy-in” to the new vision; and Principles 5 and 6 are linked to implementing the new corporate brand strategy.
Principle one
The first principle is a paradox. Organisations seeking to design an appropriate brand vision for the corporate rebrand should ensure a balance between the need to satisfy the core ideology of the corporate brand and still make the brand relevant to contemporary times.
In other words, the organisation must combine strong branding (through the core values) and innovation (through investment and change) which will help create a synergistic relationship between the two (i.e. continuity and consistency).
Several studies have identified the danger of strong brands performing exceedingly well to the extent that they develop inertia, resist innovation and unintentionally invite competitions to outmanoeuver the market leader over time. Brand leaders must innovate from time to time hence the need for corporate rebranding. Corporate rebranding therefore ensures corporate sustainability.
Principle two
Effective corporate rebranding demands that at least some core or peripheral brand concepts be retained to serve as a bridge from the current corporate brand to the revised corporate brand. To be fair, organisations will also face pressure to revitalise the brand to ensure contemporary relevance.
Nevertheless, a balance between the existing and the revised corporate brand is always necessary. Brand revision does not mean totally erasing the existing corporate brand memory.
Traces of the existing brand memory provide legitimacy to customers, making it possible for the revised brand to be accepted. This principle means that corporate rebranding should be seen as an incremental change process in contrast to a radical change.
In formulating the new vision therefore, change management considerations are necessary. Effective brand extension emanates from the successful transfer of brand meaning from one context to another.
In rebranding theory, successful rebranding is a transfer of meaning from one time to another.
Principle three
Effective corporate rebranding may necessitate satisfying the needs of new segments of the market compared to the segments patronising the existing brand. In re-visioning the organisation, it may become necessary to enter into new segments or even new markets. An attempt to grow the brand might lead to discovering additional market segments, with separate needs from the original brand customer base. New market segments emergence is usually a reflection of the evolving nature of markets over time and the desire to let the brand maintain a contemporary relevance.
Principle four
An organisation employing a maximum level of brand orientation through communication, internal marketing and training stands a greater chance of marketing and achieving success in its corporate rebranding journey.
Brand orientation occurs when every stakeholder (especially the employee) takes ownership of the brand and lives the brand in their daily affairs. There is the need to actualise the internal branding aspect of corporate rebranding. Leadership is therefore important in this regard.
Organisations must carefully detail the processes and train employees to live the brand. In essence, internal stakeholder buy-in is very vital.
Principle five
Organisations with a high level of co-ordination and integration of the marketing mix elements with all the brand elements of the corporate brand concept in its corporate rebranding strategy implementation has the greater chance to succeed. It is important to implement the corporate rebranding strategy in a methodical way.
Every aspect of the firm’s strategy, including the product or service design, distribution, pricing, customer service and relationship management, requires integration. It is important to operationalise the ‘brand touch points’ by linking each brand element of the market mix to the brand concept.
Principle six
Promotion is critical in creating awareness among stakeholders regarding the revised brand. For large organisations, advertising is the preferred choice in creating awareness among stakeholders. For most firms, however, recent downturn and budgetary considerations require the use of more direct promotional tools especially public relations.
Public relations may be considered the most appropriate tool when the aim is to change attitudes such as changing brands (i.e. rebranding).
Customer involvement in brand building exercises as well as the role of staff in contributing to in-store, cause-related experiences encourage interactivity and contribute to creating a more powerful brand experience.
It is vital to communicate the new brand to stakeholders. Branding should be seen as a two-way dialogue instead of a top down communication exercise. Or rather, branding should be seen as a three-way dialogue involving the top management of the organisation, staff and customers.