Rebranding is the strategic process of changing a company’s corporate image, identity, or market positioning through modifications to visual elements, messaging, or overall brand strategy.
What is Rebranding?
Rebranding encompasses fundamental changes to how a company presents itself to consumers. The changes range from minor visual updates to complete corporate overhauls. The process typically involves modifying logos, color schemes, typography, messaging, product names, or company names to better align with evolving business goals or market conditions.
Companies pursue rebranding for various reasons:
- Market repositioning
- Mergers and acquisitions
- Reputation management
- Target audience shifts
- Competitive differentiation
The scope varies significantly. Partial rebrands update specific elements while maintaining core brand equity. Complete transformations establish entirely new brand identities.
The Economics of Rebranding
The financial investment in rebranding varies dramatically based on scope and company size. A comprehensive rebrand for a Fortune 500 company can cost between $1 million and $10 million. Smaller businesses might invest $50,000 to $500,000.
The rebranding ROI formula considers both direct costs and potential revenue impact:
Rebranding ROI = (Revenue Increase + Cost Savings – Rebranding Investment) / Rebranding Investment × 100
For example, if a company invests $2 million in rebranding and subsequently generates $3 million in additional revenue while saving $500,000 in marketing efficiency, the ROI would be 75%: ($3M + $0.5M – $2M) / $2M × 100 = 75%.
Rebranding in Practice
Dunkin’: Dropping the “Donuts”
Dunkin’ executed a successful partial rebrand in 2018 when it dropped “Donuts” from its name, investing approximately $100 million in the transition. The change reflected the company’s strategic shift toward beverage sales, which comprised 60% of revenue. The rebrand included new store designs, updated packaging, and refreshed marketing campaigns while maintaining the iconic orange and pink color scheme.
Airbnb’s Belonging Symbol
Airbnb underwent a complete visual rebrand in 2014, introducing the “Bélo” symbol and spending an estimated $20 million on the transformation. The company moved from a simple wordmark to a distinctive logo representing “belonging.” This coincided with its expansion from 600,000 listings to over 1 million within 18 months of the rebrand launch.
Target’s Bullseye Modernization
Target’s 2018 rebrand cost approximately $7 million and focused on modernizing its bullseye logo while maintaining brand recognition. The company updated typography, simplified the logo design, and created a more flexible visual system. Sales increased 5.1% in the following quarter, demonstrating positive market response to the refreshed identity.
Old Spice’s Cultural Revolution
Old Spice transformed from a declining brand targeting older men to a cultural phenomenon appealing to younger demographics through a comprehensive rebrand starting in 2008. The campaign investment exceeded $50 million over three years. The result? 107% sales growth and Old Spice became the top-selling body wash brand in America by 2012.
Why Rebranding Matters for Marketers
Marketers recognize rebranding as a powerful tool for addressing market challenges and capitalizing on growth opportunities. Successful rebrands can increase brand equity, expand target audiences, and differentiate products in competitive markets. The process forces organizations to clarify their value proposition and align internal teams around unified messaging.
Rebranding directly impacts marketing effectiveness by providing fresh creative assets, renewed media attention, and opportunities for campaign innovation. Companies often experience increased social media engagement, press coverage, and consumer interest during rebrand launches, creating valuable marketing momentum.
The strategic timing of rebrands can maximize marketing impact. Many companies coordinate launches around product releases, market expansions, or industry events. Marketers must carefully manage the transition period, maintaining brand consistency while introducing new elements to avoid consumer confusion and protect existing brand loyalty.
Related Terms
- Brand Identity – The visual and conceptual elements that represent a brand’s personality and values
- Brand Positioning – How a brand differentiates itself in consumers’ minds relative to competitors
- Brand Equity – The commercial value derived from consumer perception of a brand name
- Corporate Identity – The visual presentation of a company across all touchpoints and communications
- Brand Architecture – The organizational structure of brands within a company’s portfolio
- Brand Refresh – Minor updates to brand elements without fundamental changes to core identity
FAQ
How long does a typical rebranding process take?
Complete rebranding projects typically require 6 to 18 months, depending on company size and scope. The process includes research, strategy development, design creation, stakeholder approval, and implementation across all touchpoints. Large corporations may extend timelines to 24 months for comprehensive overhauls involving multiple product lines or international markets.
What’s the difference between rebranding and brand refresh?
Rebranding involves fundamental changes to brand strategy, positioning, or major visual elements, while a brand refresh updates existing elements without altering core brand identity. Rebranding might change company names, logos, or target markets. Brand refreshing typically modernizes colors, typography, or imagery while maintaining brand recognition and equity.
How do companies measure rebranding success?
Companies evaluate rebranding success through metrics including brand awareness surveys, sales performance, market share changes, customer acquisition costs, and social media engagement rates. Baseline measurements taken before the rebrand provide comparison points. Success is typically assessed over 12 to 24 months post-launch to account for market adaptation periods.
When should companies avoid rebranding?
Companies should avoid rebranding during financial instability, major market disruptions, or when existing brands maintain strong positive recognition. Rebranding risks alienating loyal customers and requires significant investment in new marketing materials, making timing crucial for success. Strong-performing brands with high customer satisfaction rarely benefit from major rebranding initiatives.