Increasing Sales Through A Well-Engineered Product Rebranding: The How-To For businesses with great products that haven't yet made their mark, brand repositioning can be transformative.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.
When we talk about brand repositioning, it's often linked to a new or modified product. However, what happens when the product is essentially unchanged, but you decide to present it to the world in a different way? Can that lead to increased sales?
To my mind, if you have a great product that hasn't yet gained the recognition it deserves, there is a strategy to help you. It involves a comprehensive overhaul of the product's identity and market position to potentially breathe new life into the offering. The strategy isn't without its risks, and I'll detail those, too.
So, in this article, we'll be looking at how brand repositioning can lead to increased sales, how to recognize that your product does indeed need rebranding, and how can you then execute a successful re-branding strategy.
Let's get started.
UNDERSTANDING BRAND REPOSITIONING
Brand repositioning isn't merely about a cosmetic makeover; it's a strategic shift that redefines how a company's products are perceived in the marketplace. This process can vary significantly in terms of investment and time required, depending on the type of rebranding approach taken.
A cosmetic rebrand involves minor changes to visual elements like fonts and color schemes, without altering the core identity, positioning, or offerings. This approach is relatively low-cost, and it focuses on updating the brand's look, while keeping its foundational aspects intact.
A partial rebrand goes beyond visual updates to include changes in brand messaging and storytelling, while retaining the core mission and values. This approach aims to refresh the brand's narrative, and engage with customers on a deeper level, without a complete overhaul of the brand's essence. The strategy can be extremely effective, as I'll show later with the example of Old Spice, the American brand of male grooming products.
We're not going to focus on a complete rebrand (essentially a comprehensive transformation of all business touchpoints, potentially including the company name, visual identity, brand philosophy, and business strategy, etc.), because what we're interested in here is focusing on product rebranding alone.
Related: Every Brand Has A Story. But It's How You Choose To Craft It That Ensures Its Impact.
WHY DO A PRODUCT REBRAND?
A rebrand should be driven by more than just a gut feeling that it's time for a change. It requires a deep understanding of how this strategy will impact everything from product packaging to social media presence.
Rebranding offers several benefits that can significantly enhance a company's market presence and performance by differentiating your brand from competitors, helping it stand out in a crowded market, and maintaining relevance by aligning with current market trends and consumer preferences. The goal of this improved brand loyalty is to increase revenue and sales through a better market fit and wider audience.
Let's look at an example. Old Spice's cologne and aftershave tended to appeal to an older demographic, and it was about as far from "cool" as it's possible to be. Then, in 2010, the company launched a somewhat ridiculous yet entertaining series of commercials that went viral. The campaign featured an actor who was funny but also embodied the modern brand personality of not taking things too seriously—and it also targeted women, understanding that they were often the decision-makers for these kinds of purchases.
The result was that Old Spice's product was transformed into one that was seen as youthful, athletic, and humorous. It became a truly contemporary brand.
Related: The How-To: Building An Eatery Brand In The Middle East
HOW TO CARRY OUT A SUCCESSFUL PRODUCT REBRANDING
Creating a successful product rebranding strategy requires careful planning and execution. Let's break down the steps:
Conduct thorough research to understand your market and industry trends, identify gaps and opportunities, and validate the effectiveness of your product branding. Understand current customers' perceptions and what potential new customers want.
Develop a detailed budget to ensure sufficient resources and team time are allocated to the rebranding effort, preventing issues around underfunding.
Create a clear, compelling narrative/story that communicates the brand's new direction. This involves updating brand messaging, which plays a significant role in the rebranding's success.
Overhaul elements such as the logo, website, packaging, and other visual assets to reflect the new positioning and enhance overall brand communication. Maintain consistency across all marketing channels and customer interactions to reinforce the new brand identity.
Continuously test throughout the development process to validate the impact of the rebrand, and make necessary adjustments. Is it still in line with industry trends? Actively engage with customers to gather feedback, and refine the positioning if necessary.
Ensure that all employees understand and embrace the new brand direction, fostering internal cohesion and support.
Track sales, market share, customer acquisition, and other key metrics to gauge the success of the rebranding effort.
THE RISKS INVOLVED IN REBRANDING
When it comes to rebranding, there are some notable success stories. Range Rover was long seen as an old-fashioned British brand with little appeal to younger demographics. Once their vehicles became a favorite in the hip-hop world (through no effort on the part of Range Rover; this was entirely consumer-led), things changed dramatically.
But this kind of brand turnaround would be impossible to replicate. We do see examples like the clothing brand Burberry who were successful in changing their image, bringing supermodel Kate Moss into their marketing, and selling only slightly modified products to a much larger audience. This is product rebranding done correctly.
But there are risks. You could face consumer resistance, with your existing customers not responding well to the new brand identity. Trying to appeal to a broader audience often alienates your existing one. These negative perceptions can occur if the rebrand is seen as unnecessary or deviating from a well-loved identity. So, there is a potential loss of brand equity to consider here, with a poorly executed rebrand eroding what the brand has built up over the years.
There are also significant costs associated with rebranding (new marketing materials, website updates, and so on), which can strain resources if you have not adequately budgeted. Additional marketing efforts may be needed to educate customers about the new brand, adding to the overall costs and complexity of the process. Also, changing domain names, website structures, or page content can impact search engine optimization (SEO) rankings; so, this needs to be mitigated as much as possible.
You may also face internal resistance as employees might not buy into the new brand identity. This in turn can affect internal cohesion and morale. Ensuring clear communication with internal teams is paramount, and it's important to ask yourself whether the new identity still truly aligns with your corporate values.
THE LAST WORD
As we have seen, there are real risks and real benefits to rebranding. A well-engineered product rebranding can dramatically increase sales by aligning the product with the evolving preferences of the market. This process begins with research to understand current market trends, consumer behavior, and competitive dynamics. With these insights, you can craft a compelling new product brand that resonates with your target audiences.
In the end, it's all about execution and mitigating risks, from a well-planned rollout that maintains consistency across all touchpoints, to updated marketing materials and customer service interactions, as well as internal buy-in. By effectively communicating the new product brand identity, companies can build stronger connections with customers, fostering loyalty, and encouraging repeat business.
For businesses with great products that haven't yet made their mark, brand repositioning can be transformative. So, a cautious approach, testing the waters as you go along is, in my view, the best strategy.
Related: Beyond The Basics: Six Branding Lessons No One Will Teach You
