Review on Models and Reasons of Rebranding

2011 International Conference on Social Science and Humanity IPEDR vol.5 (2011) © (2011) IACSIT Press, Singapore Review on Models and Reasons of Rebranding Chai-Lee Goi Mei-Teh Goi School of Business School of Business Infrastructure Curtin University Kuala Lumpur Infrastructure University College CDT 250, 98009 Miri, Sarawak, Malaysia Corporate Block, IKRAM Park, Jalan Serdang - Kajang, [email protected] 43000 Kajang, Selangor, Malaysia [email protected] Abstract— The objectives of this paper are to review the current rebranding concepts and rebranding models, as well as II. OBJECTIVES the main reasons of the marketer goes for rebranding. Earlier The main objectives of this paper are to review the studies of rebranding phenomenon investigated the effect of current concepts of rebranding and rebranding models. The rebranding toward the performance of the corporation [10, 12]. second objective of the paper is to identify the reasons of the Boyle [16], Causon [8], Daly and Moloney [3], Kaikati [14], marketer goes for rebranding. Lomax et al. [15], Muzellec et al. [2], and Stuart and Muzellec [9] discussed in depth the reasons behind the rebranding III. REBRANDING practice and process based on specific organisation experiences. Melewar et al.’s [13] study focused on the process of Rebranding is costly and time-consuming and as the rebranding and the impact of rebranding toward preferences number of corporate rebranding practice increases, the of the new image, and sales and share price. Another study by failure rate is high compared to the successes [8] [9]. Muzellec and Lambkin [7] on rebranding phenomenon was Kapferer [4] also agreed that transfers of a brand would developed to investigate the impact of rebranding on brand cause danger such as loss of choices, loyal customers, and equity. Kaikati and Kaikati [17] has also highlighted strategic market share. However, this strategy is still practised widely options for implementing a rebranding campaign. This paper by firms to modify the brand, and better corporate rebranding also highlighted 3 models related to rebranding: A Model of examples can be found [9]. Unfortunately, very few brand the Rebranding Process [9], Integrating Conceptual Model of researchers have investigated service rebranding in depth. the Rebranding Process [15], and Evoiving Conceptualisation Koku’s [10] study was the earliest study that is closely of Brand Evolution [18]. Number of literatures (examples [7], related to rebranding, but the study only emphasised a [8], [9], [11], [15], [16], [17], [19], [20], [21]) have been change in the corporate name. identified related to the reasons for rebranding. Rebranding is still under-researched in the academic field Keywords- Rebranding [3] [7]. Table 1 shows the recently published and unpublished rebranding related studies. Some of the studies refer to this phenomenon as repositioning or revitalising the I. INTRODUCTION brand. Muzellec et al. [2] and Rosenthal [11] claimed that Rebranding can occur at three distinct levels in an this phenomenon should cover wider areas; therefore, they organisation: (1) corporate, (2) strategic business unit, and (3) introduced the term ‘rebranding.’ Koku [12] explained that product level [1]. Muzellec et al. [2] defined rebranding as while a firm decides to change its name, not only would it “the practice of building a new a name representative of a change the firm’s performance but also the communication differentiated position in the mindset of stakeholders and a between a firm and its consumers. distinctive identity from competitors”. Daly and Moloney [3] explained that rebranding consists of changing some or all of TABLE I. SUMMARY OF LITERATURE ON REBRANDING the tangible (the physical expression of the brand) and References Purpose of study Finding intangible (value, image, and feelings) elements of a brand. [5] To evaluate the effects of Rebranding has positive Kapferer [4] agreed that brand transfer is made up of many rebranding in large UK impact on knowledge and components. Hankinson and Lomax [5] agreed with the charities on staff attitudes of employees, but knowledge, attitudes and effect on the behaviour of explanation that rebranding involves change not only in the behaviour. employees less. visual identity of the organisation but it also leads to real [7] To understand the drivers Rebranding factors: change within the organisation. Rebranding is also about of the corporate Change in Ownership changing image and it is a long-term goal [6]. In order to rebranding phenomenon structure refine the definition of rebranding, Muzellec and Lambkin [7] and to analyse the impact Change in Corporate of such strategies on strategy defined rebranding as a change in an organisations self- corporate brand equity. Change in External identity and/or an attempt to change perceptions of the image environment among external stakeholders. The confusion in the Change in Competitive rebranding definition occurs because rebranding is a position continuing action and involves steps that can be referred to as the process of changing a brand identity and image. V2-445 [13] To explore France The process of rebranding: Earlier studies of rebranding phenomenon by Koku [10, Telecom’s visual Problem recognition 12] investigated the effect of rebranding toward the rebranding program. Development of strategies performance of the corporation. Boyle [16], Causon [8], Execution of action plan Implementation Daly and Moloney [3], Kaikati [14], Lomax et al. [15], Reviewing the impact Muzellec et al. [2], and Stuart and Muzellec [9] discussed in [3] Continues exploration of Corporate rebranding depth the reasons behind the rebranding practice and process Muzellec et al. (2003) framework: based on specific organisation experiences. Melewar et al. study and presents a case Analysis – market analysis, [13] also explained the process of rebranding, the study also history of a company. brand audit, opportunity identification discussed the impact of rebranding toward preferences of the Planning – communicating new image, and sales and share price. Melewar et al.’s [13] to Internal customers, study focused only on corporate visual identity. The latest renaming strategy, the study by Muzellec and Lambkin [7] on rebranding rebranding marketing plan phenomenon was developed to investigate the impact of Evaluation rebranding on brand equity. [9] Introduced the concept Rebranding definition of rebranding, the Kaikati and Kaikati [17] has highlighted six strategic motivations for options for implementing a rebranding campaign. Marketers corporations to rebrand, can select one of the following six strategic options or a and discussed the issues combination: of the name, logo and • Phase-in/phase-out strategy; slogan. • Combined branding strategy via one umbrella brand; [8] The process of managing Three stages: the change programme The education phase • Translucent warning strategy; within the organisation The identification phase • Sudden eradication strategy; as it rebrands and The implementation phase • Counter-takeover strategy; and repositions • Retrobranding strategy. [11] Analyzes the process of Continuous attention to renaming postsecondary marketing and growth is IV. REBRANDING MODELS institution. necessary once an institution does decide to Muzellec et al. [2], Muzellec and Lambkin [7], and Stuart rebrand itself. and Muzellec [9] were the only studies conducted on the [14] Analyzes the re creation New identity: rebranding phenomenon and suggested the term ‘rebranding of a global consulting Communication mix.’ Figure 1 illustrates the rebranding process model giant by pinpointing the Names main lessons of Logo introduced by Muzellec and Lambkin [9], which identifies rebranding, restructuring Strategy: phase-in/phase- three phases in the model: (1) rebranding factors, (2) and repositioning. out rebranding goals, and (3) rebranding process. Two of the [2] Investigated the Rebranding Mix: rebranding goals are image and to create a new identity. In corporate rebranding Repositioning the rebranding process, this model emphasised the phenomenon Renaming involvement of the internal employees in creating the Redesigning Relaunching cultural image and the external stakeholders in creating the [15] Qualitative study Conceptual model of the image. This model has contributed significantly to the examines seven UK- re-branding process: understanding of the basic concept of rebranding. based organisations Trigger which have re-branded in New Brand Development the past five years. Project Management Follow-through [16] Identify the problems of The nature of convenience Shell Retail’s rebranding retailing chain. programme. The task oriented nature. The geographically dispersed location. Never created significantly positive brand equity. Source: [9] [12] Compared the enrolment The name change did not patterns, before and after affect the enrolment. Figure 1. A Model of the Rebranding Process the colleges and universities changed Lomax et al.’s [15] working paper was an early study their names. suggesting a conceptual model of the rebranding process, [10] Investigated the financial Corporate name change is which has not yet been published in any major journal (see performance of an an effective strategy for Figure 2). This model is significantly different from organisation during the firms in the services post name change. industry to communicate Muzellec and Lambkin’s [7] model. The model gives the big improved standards. picture of strategic management issues of

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