Crain’s features article on Brand written by Viva La Brand’s Laura Sheridan
SMALL BUSINESS
ADVISER: Rebranding is more than spicing things up
Evolve or become extinct. When Darwin realized this phenomenon back in 1859, he had no idea that it applied to brands as well as plant and animal species.
Savvy marketers know that to thrive they have to evolve. Unfortunately, all too often a company thinks rebranding is the answer to its problems, and it fails. Why?
Rebranding is not a facelift. It’s a lot more than a revamped logo or ad campaign.
It’s about inspiring employees, customers and investors to see the company in a new light.
Rebranding is not something you do because you want to, it’s something you do because your business or customers demand it.
Rebranding is the right solution when consumers no longer view a brand as special. It may also apply when an organization has new products, is expanding into new markets or begins marketing to a new target audience.
Rebranding demands exceptional commitment, creativity and resources. It’s more than just a form of “marketing,” it’s a cultural shift that requires the support of the entire organization.
• Case study No. 1: Rebranding for relevance
From 2007 to 2012, RadioShack’s stock lost more than 95% of its value. Customers stopped coming to their stores. In 2012, the board fired the company’s CEO and replaced many senior executives. To survive, RadioShack had to reconnect with its customers.
They learned from research that customers either loved them or hated them. The haters didn’t like RadioShack’s focus on smart phones, which they saw as a shift from being the place where they got to play with weird computers, cool robot kits and random electronic circuitry to a second-rate phone outlet store. Listening to their haters uncovered insights that led to a company-defining rebrand.
RadioShack’s rebranding involves investing heavily in the redesign of its 8,000 retail locations. It’s marrying the RadioShack of the ’80s, where tinkerers and electronic enthusiasts gathered, with the sophisticated experiential store design that today’s consumers expect. Stores appeal to consumers’ need for a place to experience the products they want to purchase before actually buying them.
“Let’s play.” RadioShack’s new tagline expresses its goal for the rebrand — become a destination for play.
• Case study No. 2: Rebranding for vibrancy
There was nothing magical about Old Spice. It was your grandfather’s aftershave. Now, it’s a viral sensation.
The first Old Spice product, Early American Old Spice for women, was introduced in 1937. Old Spice for men quickly followed in 1938. The products were developed around a colonial theme complete with sailing ships and red product packages that continue to be associated with the brand today.
P&G bought the brand in 1990 when it was known mostly for its highly fragrant aftershave and graying customer base. When body wash was introduced in 2003, the product category took off, but so did its competitors’ sales.
P&G strategically repositioned the brand and adapted the product mix to jumpstart sales. It moved its focus to younger men and dramatically upended its message.
Enter former NFL practice-squad player Isaiah Mustafa, who starred in Old Spice’s 2010 ad sensation that launched on YouTube before the Super Bowl. By the Monday after the Super Bowl, the first day the ad was broadcast, views had already climbed to 250,000. Check it out now and you may help the brand hit the 50 million-view mark. The fun continues across social nets, including Facebook, where fans’ likes surpass 2.7 million.
P&G didn’t play with the logo or packaging but rather shifted its focus to a younger demographic and developed advertising that connected on an emotional level. And it worked. Today, Old Spice is anything but stale. Same logo, totally new brand strategy.
• Case study No. 3: Rebranding for differentiation
In the late ’90s, Target was viewed as just another low-end discount retailer along with Walmart and Kmart. While its iconic bull’s-eye and vibrant red were widely recognized, consumers lacked a reason to pick Target over its competitors.
Target astutely rebranded to offer more than just big brands with low prices.
What didn’t change was their logo and value pricing. What did change was the addition of partnerships with high-profile designers and sassy, trendy advertising.
Today, Target is the upscale discount retailer. The brand’s chichi faux French nickname, “Tar’zhay,” is a sure sign of the success of the rebrand.
All three companies went all in on their rebrands because that’s what it takes.
How’s your brand?
Is it relevant? Vibrant? Differentiated?
Is it time for a rebrand?
Sheridan is president of Viva La Brand, a Cleveland-based marketing strategy and ad agency search firm.
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