Rebrand: Definition, Strategy, and Benefits
Technological developments make trends change faster. On top of that, this progress also pushes new business owners to carry out rebranding on a regular basis. What is it? Read the explanation below because we will cover business rebranding thoroughly!
What Is Rebranding?
Rebranding is the process of changing a business's image by changing its concept, name, logo, and even design. The goal, of course, is to keep the company stable or even grow rapidly compared with its competitors. However, make no mistake, the process of creating a new image can also draw criticism from former customers. So, there is still a chance consumers will not like it.
Types of Rebranding
Changing a business's image comes in two types, proactive and reactive. With proactive rebranding, the business changes its image because it recognizes an opportunity to grow and develop through this process. In fact, there are many more reasons a business chooses to refresh its image, including wanting to maintain relationships with customers, expand the target market, or simply wanting to change its image.
Meanwhile, reactive rebranding means the company changes its image entirely for various reasons. Three of them are that the business has faced a legal issue that gave it a negative image, a merger or acquisition, and the business's desire to change its target market altogether.
Read also: Google's Rebranding of Its Advertising Products: What Does It Mean for Your Business?
Why Is Rebranding Needed?
Because changing a business's image is very complex, a company will certainly not do it without reason. Some possible reasons include that brand perception internally and externally has begun to differ, the business wants to gain a new target market, the business image is too similar to another company's, a change of CEO, a change in vision and mission, and undergoing an acquisition or merger.
Advantages and Disadvantages of Rebranding
Rebranding naturally has its own advantages and disadvantages. When a business succeeds in this effort, the company can certainly reach the goals set at the outset, such as expanding the target market or increasing brand loyalty. However, changing a business's image can also fail. This triggers several risks, such as losing customer loyalty. So, to avoid such bad outcomes, it is best to do thorough research first.
Example of a Rebranding Strategy
In 1990, Apple was a company experiencing an identity crisis and financial difficulties. However, after Apple released computers whose colors buyers could customize themselves and changed its logo, Apple became one of the most famous companies in the world. In fact, many other brands now try to follow its lead. This proves that Apple successfully used a rebranding strategy to expand its target market.
Read also: 6 Tactics to Make Your Customers Buy from Your Store Again
Tips for Rebranding
Changing a company's image is certainly not easy. Therefore, you need to follow the tips below to avoid the risk of failure.
Set a clear vision and mission
Before changing your image, you must define a clear vision and mission. This gives the company new goals that can bring about change in a more measurable way. Once this point is settled, you will know whether the rebranding will be done entirely or only in part.
Observe the competitors around you
Observing nearby competitors is also important because it keeps you from having the same persona, even after the business has gone through an image refresh. If necessary, offer advantages that competing companies do not have, for example by providing the Midtrans payment gateway that can accept cashless or online payments.
The payment gateway from Midtrans is a complete payment solution from Midtrans that can be implemented in early businesses because its integration is fairly easy. It is also flexible to use, as you can create a payment link or use a website when the transaction takes place.
In addition, the dashboard can be accessed by several people at once, which makes coordination easier when a business has more than one owner. This payment solution also has a security system that can prevent the suspicious transactions that often occur in small businesses.
Rebranding is an important process because it changes the business concept, either partially or entirely. There are two possible outcomes of this process, success and failure. So, prepare well, one way being to implement the payment gateway from Midtrans, which can accept payments from various sources more easily.
