Branding. It started with soap.
In 1931, an associate at Proctor & Gamble named Neil McElroy was working on an advertising campaign for Camay soap. Frustrated with not only having to compete with a countless number of soaps outside of the company but also P&G’s flagship product, Ivory, McElroy circulated an internal memo in which he argued that individual teams should be tasked with and devoted to marketing specific brands as if they were each a separate business. This way, the qualities of one brand would be distinguished from the next, and their respective ad campaigns could be directed at different consumer markets.
McElroy’s formula for success was: “Find out what consumers want and give it to them.” In the 1950s and 60s, mass produced goods that had previously been thought of as being cheap and/or low-quality evolved and became standardized amongst competitors so as markets expanded, brand awareness efforts became necessary for manufacturers and sellers to break through the clutter and distinguish their goods from their nearly indistinguishable competitors’.
But outside of marketing and advertising, why do brands exist?
One reason is that because people need help with their buying decisions, brands work as tools for differentiation. Faced with a countless number of choices, making purchase decisions takes both time and energy, two things that are always in short supply. As consumers, what we want is a way to tell the difference between the good from the bad and the better from the best. Brands enable us to do that.
From a marketing standpoint, all too often, branding is thought of in terms of its design elements: a name, a logo, its color, typefaces, maybe a tagline but like an iceberg, the bulk of it goes unseen beneath the surface. More than each of those individual elements, branding is how we prescribe value to a company. This often takes form in the assignment of attributes. For example: Ford, tough, Chevy, dependable and long-lasting and Volvo, safe. And it’s why you and I will pay an additional premium for something we trust and know is good. In short, branding is a promise. The products are the proof.
If you’re thinking of rebranding, you should first ask yourself why. A rebrand affects everything from product development to web design to customer service to marketing and can be both time and cost intensive. If done for the right reasons, it can breathe new life into your business turning embers into a fire; but if done for the wrong ones, can end in disaster with a company eroding its existing brand equity. Listed below are some considerations to keep in mind.
First, if a rebrand is spearheaded solely by a marketing team, therein lies a strong possibility that the initiative is destined to fail. The purpose of a rebrand is to signal change. That starts from the top down and isn’t compartmentalized to one department. Any actual change should be clear throughout the entire organization and obvious at every client interaction. Next, do-overs and second chances are few and rare so use them wisely. That much applies to rebranding and pretty much everything else in life.
Next, half-heartedly undertaking this process is a lot like putting lipstick on a pig. And without action, you will simply confirm the position you already have in their minds. The purpose should be to make it easier for your customers, prospective or otherwise, to decide that your company is the go to one for X, Y and Z reasons and that your competitors are unable to deliver comparable value. Remember: not doing anything is better than making a new promise and not delivering on it.
While there are plenty of reasons to rebrand (e.g., when undergoing a merger or acquisition; in response to growth, particularly into international markets; to improve relevance; to reposition; etc.), there are more reasons not to. Reasons not to rebrand include: (1) doing so out of impatience. Young brands need time to grow and become meaningful to their target audience. (2) Because you need to update marketing collateral and want to knock out two birds with one stone. (3) And finally, just for the sake of doing so. If you haven’t found valid commercial reason to, you’re probably best off staying put.
Rebranding affects a change in how a company, product or service is perceived and, ultimately, aims to make it more successful. Rob Frankel writes, “Branding is not about getting your prospects to choose you over your competition; it’s about getting your prospects to perceive you as the only solution to their problem. If they don’t see you as the only solution, it means they’re still shopping.”
Photo Credit: Underconsideration.com
