The power of rebranding in 2024

Last year and the beginning of 2024 saw several major rebrandings and image changes on the Romanian market. These are complex processes that require a lot of work, specialist input, and clear strategy. BR takes a closer look at what a rebranding process should look like and why.

By Romanita Oprea

A recent study from Bynder investigated the challenges facing marketers navigating a rebrand in 2023. Good branding can have a significant impact on all aspects of a business, with reports suggesting that brand consistency can increase revenue by 10-20%. It can reflect societal, socio-cultural, competitive, and geopolitical changes, as well as consumer sentiment and trends. However, rebranding does not come without its difficulties. Bynder surveyed 1,002 marketers, of which the majority (82%) had worked on a rebrand, to find out more.

The data showed that a typical rebrand involves updating an average of 215 assets and lasts seven months from initial talks to rollout. However, 8% of marketers reported working on a rebrand which lasted between one and two years. They also ranked the most challenging elements of a rebrand, which are: updating marketing assets (47%), communicating the rebranding to the audience (42%), creative alignment (36%), managing the budget (36%), and gaining internal buy-in (26%).

Interestingly, online marketing materials were found to be the most difficult to update in a rebrand, followed by printed materials and e-commerce sites.

The most common reason for a rebrand is to update brand identity, with 57% of marketers citing this as the purpose of their rebranding project. The next most popular reasons are: to reposition themselves on the market (45%), to reflect a change in target audience (41%), and to address negative perceptions about the brand (26%).

What to know before starting

What are the most important aspects one should have in mind when thinking about a rebranding process in 2024?

“Imagine you are the captain of the brand mothership, navigating the unsteady waters of the business world. One day, you decide it’s time for a course correction—a rebranding. Yet before you set sail, you need to start with the big WHY: Why is this rebranding necessary? Is it to align it with a new brand strategy, maybe a new business strategy? Or would a simple brand refresh suffice? To make sure this rebrand is future-proof, it needs to align with your long-term business strategy, to keep you on track for years to come. Know your brand as you would an old friend. Brands are as complex as human personalities and deserve your empathy and respect. The brand voice is therefore essential in defining how you communicate with customers and how they interpret your messaging,” said Andreea Gavrila, Co-founder, Creative Partner, and Creative Strategist at New Moon Agency.

The natural shift in your brand image must be grounded in your original mission, revisiting the core values upon which the initial brand was built. These values are your compass, guiding you through the rebranding process. Moreover, according to Gavrila, keeping your brand personality is as important as updating your visual elements. So, if changing the logo is the main aspect of the rebranding process, one should consider this as a risky move. Update the logo to refresh the brand image while maintaining recognisable elements, to avoid confusing loyal customers.

“It’s ideal to keep as much of the brand’s colour palette as possible. Many companies rebrand without changing their brand colours. For example, when Dunkin’ Donuts rebranded to Dunkin’, it kept its bright palette to stand out from other coffee brands. Finally, your brand guidelines set the ground rules for how your brand looks and sounds across all media. These guidelines should be implemented throughout all your rebranding changes. Once updated, make sure all stakeholders, both in-house and external, have access to the latest version of your guidelines and follow them through, so your new brand guidelines are not overlooked,” said the New Moon representative.

At the same time, according to Anca Rarau, Managing Partner at brandocracy, before diving into the specific aspects to consider for a rebranding in 2024, it’s essential to establish a clear understanding of what a brand represents, and what the role of branding or rebranding is for a company, product or service. After over 20 years of working with Romanian and international brands, Rarau can confidently say that a brand is the sum of perceptions, expectations, and reactions that a company, a product, or even a person (in personal branding) generates in connection with its promises and actions. Brand objectives are directly tied to market positioning, company culture, and, of course, sales figures and business goals. And when building a brand or re-establishing one on the market, there are a few key steps to consider.

First, understand your “why.” Why are you going through the branding or rebranding process? Is it to stay relevant, target a new demographic or rectify past missteps? It is crucial to be clear about the purpose.

“Next, understand the market and treat the customers as the centre of your brand-universe. In 2024, there will be an increased focus on a customer-centric approach. A closer look at the market is important because the market landscape constantly evolves due to technological advancements, shifting consumer preferences, and economic changes. The brand needs to align with these dynamics, to stay relevant. Moreover, customers today demand personalised experiences and value authenticity. A rebrand should resonate as closely as possible with the target audience’s needs and desires,” Anca Rarau explains.

Relevance. Consistency. Authenticity

After that, consider brand consistency. As brandocracy’s representative points out, messaging should be cohesive across all platforms. Many brands fail because they prompt confusion. One should take digital transformation very seriously. It is a good opportunity to ensure alignment and a consistent presence in all the consumer touch points. The increasing digitalization of consumer behaviour forces brands to ensure a strong online presence, leveraging social media, e-commerce, and digital marketing strategies. There is no going around this. Not anymore.

“Finally, pay attention to cultural relevance and sensitivity. Today’s consumers are more informed and opinionated than ever. On this subject, I want to point out another relevant pillar for branding efforts in 2024: sustainability and social responsibility. Lately, we’ve increasingly witnessed modern consumers prioritising brands that are environmentally and socially responsible. Reflecting these values can enhance brand loyalty and reputation. And speaking about values, make sure your own company’s culture is ready to lead the change. Any rebranding starts from home,” Rarau adds.

In turn, Dana Nae Popa, Owner & Managing Director at pastel & Co-Founder of COPERA Branding, believes that no matter what time of year it happens, a rebrand should involve a strategic and well-planned approach. It’s important to understand why we’re doing it. Without the right answer to this question, the chances of doing it right are lower. There are several aspects that a rebrand should generally focus on. Firstly, it should not be done just for the sake of it or because a new marketing director wants to establish themselves and a rebranding project would be useful for this purpose.

Rebranding must take into account the market context, the competition, the trends, and how the market might evolve.

“For consistency and authenticity, a good rebranding will be aligned with the company’s values and mission. The company’s current or potential customers should play an important role in the rebranding process. They should be asked how they perceive the current brand, what would improve it, why, how they see it compared to the competition, etc,” Dana Nae Popa argues.

A rebranding is a major investment for any company, so a good balance must be found between having something new and fresh and keeping the valuable elements of the old brand.

“We must not forget that we are talking about a rebranding, not about a completely new brand. That’s why, ideally, customers should recognise it without a very big investment in communication. Since it is not a simple and inexpensive process, a rebranding should be carried out with a long-term view. We can look at what’s trending in terms of design, but this should not be the reason we choose to rebrand, nor should it be the only element to consider. Design trends change more often than a company should change its brand,” added the COPERA representative.

And if we are talking about rebranding in 2024, according to Dana Nae Popa, it should involve at least three aspects. The first one would be the fact that in a digital age, adapting to new technologies and platforms is essential. We need to think about the user experience across all digital channels and how we want them to interact with the new brand. Second, increasing interest in sustainable practices makes integrating elements of social responsibility into the brand important. And lastly, the fact that it is tempting for a company to use various AI tools for new brand generation. However, the risk is that it ends up looking like many other brands, is not well applied to the company, and does not accurately reflect the brand story.

With all the constraints and, at the same time, the great examples of past rebrandings, can we still say there’s room for creativity in this field as well?

“Creativity should be at the heart of any rebranding process. It plays an essential and more important role than ever, especially when we talk about a market that’s as saturated and competitive as it is today. In a world where consumers are bombarded with information and exposed to thousands of advertising messages every day, a brand that tells a story that is relevant to them in an authentic, creative, and innovative way is more likely to be remembered,” Dana Nae Popa says. For her, creativity is a central pillar in rebranding, as it allows brands to differentiate themselves, create strong emotional connections with audiences, and adapt to an ever-changing business environment. Without creativity, a rebrand risks being flat and ineffective, failing to capture consumer interest and loyalty.

Her view is backed up by Anca Rarau, as she also believes that there is still plenty of room for creativity. Especially since the informational space is jam-packed, brands need to be creative in finding ways to differentiate themselves in a crowded market, while remaining relevant and authentic. Unique storytelling, innovative design, and fresh approaches to customer engagement can have a significant impact.

“Rebranding isn’t about designing a new, dashing logo, to dazzle the public. It’s an opportunity to reinvent your narrative and engage your audience in fresh, innovative ways. The trick isn’t to just think outside the box but to turn the box into an interactive space that invites communication and speaks about the brand’s values and personality. And to do so, the input of your team is valuable. They know the client best and with the right context and encouragement, creativity can spark from within. To be fair, empowering creativity must be a constant practice in any company. Leave room to be amazed,” Anca Rarau added.

If the brand’s legacy is older than yourself, and if its reputation precedes the category (or even helped define the category in its early stages of existence), maybe it would be wise to think twice whether a total rebranding process is what you truly need. Andreea Gavrila notes that it may be a trap that cannot be bypassed even with the Bible of post-rationalisation (remember the Pepsi work in progress document leaked on Reddit in 2008). However, for brands who were born in the digital age and who need to refine their personality and stand out from the clutter, there is always room for creativity. Even within the limits of an established brand, a skilled brand strategist can find creative freedom.

“As long as you respect the brand archetype and the foundational principles set during its early stages and stay true to the value proposition and overall mission, you can explore innovative solutions that resonate with your consumers. Rebrandings are processes where discipline and creativity merge to say stories with potential. Keep in mind the 4Cs—consumer, cultural, category, and company truths—and see that the rebranding strategy balances these elements and the overall brand legacy, while presenting a fresh, yet familiar identity promise in the consumer’s mind,” Andreea Gavrila advises.

But how easy is it to fail in this process? Pretty often and easy, considers Anca Rarau. Without a clear strategy, a deep understanding of your audience, and solid execution, your rebranding can generate confusion, alienate potential customers, and even become “popular” for all the wrong reasons. “Bad publicity is still publicity” is not a slogan companies should rely on in the branding process.

“Never underestimate the complexity of rebranding. The most dramatic scenario is when a company lacks a cohesive brand strategy behind its storytelling and market messaging. Unfortunately, there are still cases, though increasingly rare, where business owners view branding or rebranding as merely a new logo and an advertising campaign to unveil their “new face” or brand identity,” said Anca Rarau. At her agency, they avoid engaging in such discussions, as the outcomes are often unpredictable and unsatisfactory. Instead, they prefer collaborating with executives or founders who are open to learning or already possess a clear understanding of branding’s value as an asset on the company’s balance sheet.

On her turn, Dana Nae Popa pointed out that there are several factors that can contribute to this failure, including lack of a clear strategy and the right reasons for rebranding. Without a clear vision and well-defined objectives, rebranding can lead to confusion and loss of brand identity. Underestimating the time and resources required can be another factor in failure. Rebranding requires significant investment of time and resources. Inadequate planning can lead to incomplete or chaotic implementation.

“Neglecting feedback from employees, customer or other parties of interest and importance to the company can lead to lack of acceptance and support. There is a need for effective communication, both internal and external. Without this, the rebranding message may be misunderstood or ignored,” added COPERA Branding’s representative.

According to New Moon’s representative, missteps happen if there’s a lack of clear strategic vision or insufficient understanding of the brand’s core values and audience. Everybody needs to know the brand in and out, the business, the consumer. Communication barriers between the involved parties will lead to confusion and an inauthentic brand story. And whether the story of the brand is about its mission, an ideal, a legend or even its founder – the rebranding should reflect that, especially nowadays, where authenticity works best.

“Failure in the rebranding process is a real possibility and should be approached with discipline, and trustworthy collaboration between the marketing department and those in charge with the strategic thinking. Together, they are not only responsible for the final brand deck, but for how the brand strategy will roll out in the future,” said New Moon’s representative.

For Gavrila, one of the most beautiful brand stories she heard was about the origins of Alfa Romeo car manufacturer: a mixture of innovation, passion, and a bit of spite, particularly towards Ferrari. The story begins in the early 1960s, during a tumultuous period within Ferrari, particularly between Enzo Ferrari and several of his key team members. Discontent with management and looking to challenge their former employer, a group of ex-Ferrari employees decided to create their own company: Automobili Turismo e Sport (ATS). ATS laid the foundation for future developments in the Italian sports car industry, influencing brands like Alfa Romeo, outstanding in its design and Italian roots. The legacy of these efforts is reflected in Alfa Romeo’s continued work of merging performance with design in the luxury sports car market.

Hand in hand with all these, one might wonder what are the biggest mistakes an agency can do and must avoid in the rebranding nowadays?

“For a rebrand to be successful, companies need to team up well with agency teams. Facilitate discussions with customers, employees, key people in the company, company status and future plans etc. There are many mistakes that can be made, and among the most important ones to avoid are: the original brand identity must be correctly understood and carefully preserved so as not to lose the essence that made the brand one until the rebranding; employees of a company should play an important role in the rebranding process. Ignoring their opinion can lead to a lack of motivation and commitment to the company and the new brand,” said Dana Nae Popa.

At the same time, according to COPERA Branding’s representative, there is a need for accurate and consistent communication. Otherwise, without it, the new brand message risks not being understood, appreciated, or taken on board. At least as important is a transition plan from the old brand to the new one, so that customers know that they are talking to the same company and that they have not lost anything, on the contrary. Maybe the new brand will bring more value to them.

“One of the biggest mistakes one can make is failing to involve key stakeholders throughout the process, including or especially from its early stages. This leads to misalignment and resistance to the new brand identity. Rebranding processes can take up to 6 months, a significant period where resources are spent, and salaries are paid,” commented Andreea Gavrila.

She also points out that the brand is not only a story; it breathes through its decision makers, its people, so keeping them close when making such changes is essential. Branding is something personal, for both consumers and the stakeholders.

On top of the list for Anca Rarau is ignoring customer feedback. Another big error is changing too much too fast. Customers need time to get used to changes and embrace the new positioning.

She then continues with the misalignment of core values. Companies may get into a “change fever”, but changing too much can alienate existing customers if the new brand does not align with their expectations and the brand’s original values. Then, as she said before, there is poor market research. Inadequate research can lead to a brand that does not resonate with the target audience (Buyer Personas) or fails to stand out in the market.

“At last, even if the brand creation process was done flawlessly, inconsistent implementation can “ruin the cake”. Failing to uniformly apply the new brand identity across all platforms and communications can dilute the brand’s impact and confuse customers. Additionally, alignment with internal teams and core values is crucial. Rebranding starts internally; only when the team is aligned and prepared can the new brand be effectively communicated externally. And, I can’t stress it enough, rebranding without a clear objective is like going on a road trip without a map,” said Anca Rarau.