It might not come to mind when operating a successful business, but rebranding can significantly impact any other business or franchise revamp. When you complete a rebrand, it can inject energy into a franchise, assisting in its growth and longevity over time. Most big brands we know today undergo some form of revamp, so don’t sleep on this vital part of running a business. This blog post delves into the reasons behind rebranding for a franchise business and some tips to consider whether you’re a student studying the online master of business administration or a current business owner.
Understanding Rebranding in Business
Many of us might think that rebranding is simply altering logos, taglines, or the visual aspect of an organisation. But it goes much further beyond that and even deeper into a brand’s identity, which might include a deeper customer experience. What branding is the mental association that your customers have with who you are, what you do, and what you can offer to the world?
If you’re a franchise, this might involve harmonising the brand’s image, values, and messaging across all locations to maintain an experience that attracts old and new clients. It could be anything from the copywriting text on your website to the way staff greet your customers or even the packaging of products. The main thing with branding is to ensure consistency throughout so the brand message is clear to consumers.
When we consider rebranding, it often serves as a maneuver to tackle business challenges, breathe new life into a company, or simply express the will for a change of direction. Many businesses undergo rebrands; some are successful, and some are not, but they are an important part of a business or franchise.
Indications That Rebranding Might Be Required
If you’re wondering if it is time for a rebrand, there are some signs that could point to the need to change your image. It may not always be crystal clear at first because businesses have so many moving parts, but in some cases, the brand is an issue. These are some signs that you might need rebranding.
Decrease in Sales or Customer Loyalty
The first indication that your business could benefit from a rebrand is a noticeable drop in sales or customer loyalty. If your successful business is experiencing customers or declining sales numbers, it’s a sign that something isn’t working with your audience. Getting that new and updated identity brings in fresh customers and even retains interest from old or existing customers. Remember that you should rule out other options first and ensure that your business is operating effectively because decreasing sales could be an array of issues.
Changes in Competition
The competitive landscape is constantly changing, and for your brand to stay competitive, it needs to evolve. If new competitors enter the market and attract your customer base, it might be time to reconsider your brand positioning. Things never remain the same, and the business world is full of competition, so make sure that you’re always ahead of the pack. Look at what others are doing and how they are gaining traction, and consistently evolve to outperform your competitors.
Shifts in Customer Preferences or Demographics
The marketplace constantly changes customer preferences, demographics and trends over time. If the tastes and preferences of your target audience have changed and your brand no longer aligns with these shifts, you risk becoming outdated. This clearly indicates that a rebrand is required, and before you’re out of fashion, it’s necessary to adapt. It could mean changing messaging, changing your visuals or even improving products.
Challenges of Rebranding
While there are many advantages, rebranding comes with its set of challenges that need consideration before taking action. It involves a range of processes across multiple parts of your business and, if done wrong, can spell disaster. Here are some of the common challenges involved in rebranding.
Cost Implications and Budgeting for a Rebrand
If you’re a franchisor in particular, it can be quite an endeavour for franchises operating across multiple locations. It’s crucial to allocate a budget for all aspects of the rebranding process, such as market research, design work, marketing materials and implementation expenses. While the initial investment required for a rebranding effort may seem substantial, the lasting advantages of a rebrand can surpass the costs.
Possible Negative Effects on the Current Customer Base
Rebranding has the potential to distance existing customers who are loyal to the brand, so you will need to ensure that you handle the transition with care. It’s vital to clearly communicate the reasons behind the rebrand for everyone involved and make the transition applicable. You will need to do appropriate research beforehand to ensure that you’re making the correct shift because many brands have gone under due to unsuccessful rebrands.
Final Thoughts
Rebranding is a tool for franchise businesses seeking to rejuvenate and enhance their brand identity. By recognising the signals that suggest a necessity for rebranding, we can make the right moves for expansion. Just ensure you take enough time to prepare for the rebrand because it can have major implications. Good luck.