Rebranding A Strategy Whose Time Has Come

Rebranding:
A Strategy Whose Time Has Come
“I love writing not fighting because the pen is mightier than the sword”
Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Presentation design
by Michael Gyensare
Learning Objectives
By the end of this lecture, students should be able to:
1. Define the concepts of branding and why it is relevant
2. List and explain the steps involve in the branding process
3. Explain the concept of rebranding and why it is imperative
4. Outline and explain the stages in the rebranding process.
5. Outline and explain the three (3) levels of rebranding.
6. Explain the drivers of rebranding and rebranding strategies.
7. Identify the rebranding strategies proposed by Muzellec and
Lambkin (2005) as well as Kaikati and Kaikati (2004).

1–2
Introduction
• The power of a brand exists in the minds of end

users or consumers.
• The value that consumers perceive in a brand
creates brand equity (i.e., long-term loyalty)
which contributes to its sustainable competitive
advantage.
• For instance, the undisputed best brands in the
global market today include:
– McDonalds, Nike, Gucci, Rolex and Apple.

1–3
Introduction Cont’d

1–4
Brand Equity
• Brand equity is defined as the value of a brand

in the minds of consumers or end users.
– Brand equity typically derives from wide recognition,
and customer loyalty.
Brand
Equity
Brand Perceived Brand Brand

Awareness Quality Association Loyalty

1–5
What is Branding?
• Branding is define as;

– The process of giving a product, service or a firm
an identity which allows the creation of a new or
differentiated position in the competitive market
as well as in the mind of stakeholders .
• Branding enables a company to communicate the

values and benefits that a product or service offers
which later forms the company’s very identity.
• Thus, it defines a firm’s core values and key beliefs

1–6
The Branding Process
• There are different elements in the branding

process.
Step 4
Step 1 Step 2 Step 3 Step 5
Brand
Brand Brand Brand Brand
Positionin
Identity Image Personality Awareness
g
Source: Author (2016)

1–7
Step 1: Brand Identity
• Brand identity;
– Is made up of the core values, visions and beliefs
of a brand (Kapferer, 2008).
– Represents what the brand stands for and also
communicates the purpose, principles, the related
background issues and ambitions of the brand.
• Brand identity is how a company wants a brand

to be perceived by customers or end-users.

1–8
Step 2: Brand Image
• Brand image refers to;

– Consumer perceptions and encompasses a set of
beliefs that consumers have about a brand.
– The way in which a brand is perceived and also
decoded as a result of communication sent by that
brand to consumers (Kapferer, 2008).
• The brand image is concerned with how a brand

is now perceived by customers or end-users.

1–9
Step 3: Brand Personality
• Brand personality is define as;

– A set of human attributes associated with a brand
– It reflects how consumers feel about a brand as a
result of what they think the brand is or does and
the manner in which the brand is marketed.
• Research shows that brand personality can be

shown in terms of 5 dimensions:
– Sincerity, excitement, competence, sophistication
and ruggedness.

1–10
Brand Personality Framework
Brand
Personality
1. 2. 3. 4. 5.
Sincerity Excitement Competence Sophistication Ruggedness
1. Down-to-earth 1. Daring 1. Reliable 1. Up class 1. Outdoorsy

2. Honest 2. Spirited 2. Successful 2. Charming 2. Tough
Source: Aaker (1997)
Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW1–11

Step 4: Brand Positioning
• Brand positioning is define as;

– The act of identifying the best location of a brand in
the minds of consumers and stakeholders so that
they think about the product or service in the right
or desired way.
– A firm’s competitive strategy to grow its market
share in the long term.
• Positioning is competitive and as such…

– When it comes to brands, customers make a choice,
but with products they make a comparison.

1–12
Step 5: Brand Awareness
• Brand awareness;
– Refers to the strength of a brand’s presence in the
consumer’s mind.
– Consists of brand recognition and brand recall.
• Brand recognition is essential when the product is

present whereas brand recall is important when the
product is absent.
• Companies create brand awareness to help increase
consumers’ familiarity with the brand.

1–13
What is Rebranding?
• Rebranding is defined as;
– “The creation of a new name, term, symbol, design
or a combination of them for an established brand
with the intention of developing a differentiated or
new position in the mind of stakeholders and
competitors” (Muzellec & Lambkin, 2005, p.805).
• Note that whereas branding is about creating

brand identity, rebranding is about recreating
that identity in the minds of customers.

1–14
The Rebranding Process
Stage 1 Stage 2 Stage 3

Repositionin Renaming Redesigning Stage 4
g Relaunching
Source: Muzellec, Doogan & Lambkin (2003)

1–15
The Rebranding Process (Cont’d)
• Stage 1: Repositioning
– It is required when there is a decision to create a
new position in the minds of customers and other
key stakeholders.
• Stage 2: Renaming
– It is considered in order to send a strong signal to
all stakeholders that the company is refocusing its
activity, changing its strategy or ownership.

1–16
The Rebranding Process (Cont’d)
• Stage 3: Redesigning
– It is concerned with brand aesthetics and tangible
elements, such as logo, offices and advertisement.
• Stage 4: Relaunching
– It determines how both internal and external
stakeholders perceive the new name & new brand.

1–17
Drivers of Rebranding
• The rationale for rebranding can be summed up in

terms of four categories:
Change in ownership structure Change in corporate strategy
1. Mergers and acquisitions 1. Diversification and divestment
2. Spin-offs and demergers 2. Internationalization and localization
3. Private to public ownership
Change in competitive position Change in the external environment

1. Outdated image 1. Legal regulation
2. Erosion of market position 2. Crises/catastrophes
3. Reputation problems

1–18
Rebranding Strategies
• Muzellec and Lambkin’s (2005) categorization of
rebranding strategies;
– Evolutionary: It involves a minor change in
positioning and aesthetics (i.e., changes in the
slogan or logo only)
– Revolutionary: It involves a major change in
positioning and aesthetics (i.e., changes in the
slogan and logo as well as the name)
• Rebranding is seen as a two-dimensional change

according to the degree of changes in aesthetics and
positioning .

1–19
Rebranding Strategies (Cont’d)
• Kaikati and Kaikati (2004) suggest the following
rebranding strategies;
– Proactive strategy: This is a firm-initiated
strategy for rebranding. It include a need to
consolidate the brand globally, to create appeal to
a broader target market or to create a more
recognizable master brand.
– Reactive strategy : It represents a firm’s response

and adaptation to changes caused by the external
environment. It occurs as a result of changes in
ownership structure or competitive position.

1–20
3-Level Rebranding Hierarchy
• Rebranding can take place at three distinct levels;

– Corporate level: It concerns itself with the whole
corporate entity.
– Business unit level: Concerned with a subsidiary

or division within a larger company.
– Product level: Concerns with individual products

and often relates to a name change.

1–21
Rebranding Hierarchy
Corpo
rate Corporate-level
rebra rebranding
nding
Business unit
rebranding
Product rebranding

1–22
Objectives of Rebranding
• Regardless of the reasons leading to rebranding,

the goals of rebranding are the same. They are:
– To communicate a change to internal stakeholders.
– To communicate a change to external stakeholders.

1–23
Case Study 1: Capital Bank
Before After
Rebranding Rebranding

1–24
Case Study 1: Capital Bank (Cont’d)
• The rebranding was a result of a restructuring

process in order to compete more effectively in
the financial market.
• Why the need for a distinctive rebrand?
– The vision is to become the bank of excellence and
expand into other African markets.
– To play a leading role in the retail banking sector
and not to focus only on SMEs

1–25
Case Study 1: Capital Bank (Cont’d)

1–26
Case Study 2: Ghana Commercial Bank
Before After

1–27
Case Study 2: GCB (Cont’d)
• As one of the largest banks in Ghana, GCB chose

to rebrand
– To be competitive in the overcrowded financial sector
– To reposition itself as a national premier bank which
provides world class banking services.
• As a result of the rebrand, GCB has

– Built new ultra-modern retail branches to fit the refreshed
brand.
– Introduced new products and services like internet banking
for both business and personal segment.

1–28
Case Study 3: Ghana Oil Company Ltd
Before After

1–29
Case Study 3: Ghana Oil Company Ltd

1–30
Case Study 3: GOIL (Cont’d)
• The rebranding of Ghana Oil Company is…

– A reflection of the company’s commitment to grow
its business by being better positioned in the minds
of all stakeholders and even competitors.
• Results of the rebranding strategy:

– Established more branches in Ghana (169 and still
counting)
– Increased its bottom line (profit margin).
– Number one oil marketing company in Ghana.

1–31
Case Study 4: Vodafone Ghana Ltd
Before After

1–32
Case Study 4: Vodafone Ghana Ltd
• Results of the branding strategy

– Moved from being a provider of fixed land lines to
being a telecom company that provides total
communication solutions and give customers
power through services like: mobile, fixed lines,
internet, voice and data.
– Leader in providing fixed line and internet services
in Ghana.
– Providing state of the art gadgets to reinforce its
corporate objects of being the total
communications solutions provider.

1–33
The Expresso Case: Pleasant or…?
to
Before After

1–34
References
• Aaker, J.L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34(3), 347-
356.
• Kaikati, G.J. & Kaikati, M.A. (2004). Identity crisis – The dos and don’ts of brand rechristening.
Marketing Management, 13(1), 45 – 49.
• Kapferer, J. N. (2008). The new strategic brand management (4 th ed.). London: Kogan Page Ltd.
• Keller, L.K. (1993). Conceptualizing, measuring, and managing customer-based brand equity.
Journal of Marketing, 57(1), 1 – 22.
• Moisescu, O.L. (2011). Aspects regarding rebranding strategies: A conceptual and practical
approach. Munich Personal RePEc Archive. MPRA Paper No. 32016. Retrieved from
http://mpra.ub.uni-muenchen.de/32016.
• Muzellec, L., Doogan, M. & Lambkin, M (2003). Corporate rebranding – an exploratory review.
Irish Marketing Review, 16(2), 31-40.
• Muzellec, L. & Lambkin, M. (2005). Corporate rebranding: Destroying, transferring or creating
brand equity?. European Journal of Marketing, 40(7&8), 803 – 824.
• Muzellec, L. & Lambkin, M. (2008). Corporate rebranding and the implications for brand
architecture management: The case of Guinness (Diageo) Ireland. Journal of Strategic
Marketing, 16(4), 283 – 299.
• Opuni, F.F., Baffoe, M.S., & Adusei, E.P. (2013). The effectiveness of rebranding as a comparative
study of Ghanaian business using the principles of corporate rebranding. Journal of Marketing
and Management, 4(2), 69 – 77.

1–35
END OF LECTURE 04: Any Question(s)?

1–36

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Rebranding:

A Strategy Whose Time Has Come

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• The power of a brand exists in the minds of end

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Brand equity is defined as the value of a brand

Brand Perceived Brand Brand

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Branding is define as;

• Branding enables a company to communicate the

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• There are different elements in the branding

Source: Author (2016)

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Brand identity is how a company wants a brand

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Brand image refers to;

• The brand image is concerned with how a brand

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Brand personality is define as;

• Research shows that brand personality can be

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

1. Down-to-earth 1. Daring 1. Reliable 1. Up class 1. Outdoorsy

Source: Aaker (1997)

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW1–11

• Brand positioning is define as;

• Positioning is competitive and as such…

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Brand recognition is essential when the product is

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Note that whereas branding is about creating

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Stage 1 Stage 2 Stage 3

Source: Muzellec, Doogan & Lambkin (2003)

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• The rationale for rebranding can be summed up in

Change in competitive position Change in the external environment

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Rebranding is seen as a two-dimensional change

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

– Reactive strategy : It represents a firm’s response

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Rebranding can take place at three distinct levels;

– Business unit level: Concerned with a subsidiary

– Product level: Concerns with individual products

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• Regardless of the reasons leading to rebranding,

– To communicate a change to external stakeholders.

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW

• The rebranding was a result of a restructuring

Marketing Strategy – Michael A. Gyensare [magyensare@uew.edu.gh] UEW