Time to Rebrand during a Slowdown

 

Is your brand ready for a rebranding exercise?

Most brand managers never want to understand the merits of this exercise. Too much is at stake and too little to gain are the common thinking. In a way maybe they are right. In a world where few people remember which brand they purchased yesterday, would a rebranding exercise really matter? The question arises here – whether any rebranding is meant for the prospective customers or is it for the good of the brand itself?

A brand as we all know is a dynamic entity and it grows over time and even ages with time. As circumstances change and consumers outgrow a brand it becomes mandatory for brands to reconnect with new-gen users as new avatars. Whether this is a consumer-centric or a brand-centric exercise is another debate but users do change, and tech does change lives and the way people live their lives. For e.g. post the pandemic we all have changed our attitudes towards so many things in our lives both knowingly or even unknowingly.

 

When is the best time to rebrand a successful brand?

Few things never change – the emotions connected with any brand and the value a customer is willing to pay, to get a service. Most successful brands over the years and also during changing circumstances and market behaviour never shift from the core value they stand for. Because as we all are aware, that people just don’t buy products but values connected with those products.

Health, safety, well-being, lifestyle, better education, and well-paid employments were and are core to survival always and would remain so for all times to come. Brands that offer some of these would forever remain close to the customers' hearts. These are the successful brands that are honest about what they stand for over generations. They maintain their relevance with every passing generation and never wait for a crisis to hit them to offer a value-driven proposition.

 

Should a brand die or should it be rejuvenated?

Whether a brand should die or whether it can be refurbished is always in the hands of the brand owners and the stakeholders. Every brand, if nurtured well, carry some inner strengths to survive tough times (keeping the brand obsolescence factor in mind). The key is to understand what would make a brand kick and gather momentum and how to harness that factor as well. Most customers inherently feel comfortable going back to their favourite brands they grew up on, e.g., Cadbury’s. But the reason may become different with time!

 

A new brand or a refurbished brand?

Every brand has an ‘objective’ to achieve. The measurement is always on how much of that objective is achieved. Some people confuse this with the ‘potential’ that a brand may have. Potential could be huge but that’s unmeasurable while Objectives are always a measurable entity in terms of volumes achieved or market share. A brand with potential may be a regional brand only but given the support, it may become a national player as has been the case with so many brands in the recent past. Look at how Kalyan Jewelers became a national brand over such a quick span of time, in a category where few brands are national players.

So the success of a brand must be measured through the prism of factors that determine its present state and accordingly the required refurbishment measures must be planned for. Factors may be varied or singular but the context needs to be set right as to what makes a brand creates its appeal – could be its price points, taste, habit, lifestyle, or anything. 

 

Is slowdown a good time for a brand’s relaunch?

It is never easy a call for a brand to decide on a relaunch during times when chips are down whether for the market or the economy. Several factors work parallel to each other in an economic downturn. People must spend on essentials and emergencies only but stay away from capital expenditures or expendables. But the same logic never determines what the rich and affluent want to do. They want to take advantage of situations that are favourable to drive price bargains and even for luxury purchases as most buyers stay away and for sellers, it becomes imperative to gain liquidity once again. For example, the sale of high-end personal vehicles far outstripped the value-for-money models during the tough market situation around the pandemic and post-pandemic times.

Brands can think of taking advantage of the market when activities are low and most other brands are staying away and lying low fearing low offtakes and difficult cash flows. However, attitudes do change soon and people come out to get back to normal lifestyles and attitudes albeit with some modifications. Healthier products would sell more. People are more prone to carefully purchasing ingestible products. Skin care products may go through tough times as buyers are seeing through brands with fewer benefits and look at higher value-driven options. As parties are back at home and clubs are people drinking less of cheaper liquids and opting for selective brands with better value like natural juices and scotches. Binging has definitely shifted from the intake of food to the OTT platforms.

 

So, what should a brand do?

One shouldn’t look at this situation as mixed or confusing signals. Brands do well when they are positioned in the right manner for the desired audience with the right balance of benefits sought. Unfortunately, most brands are unable to do so in the absence of right guidance from the right professionals because any positioning or repositioning exercise for a brand is a technical exercise and must be best left to those who understand how to do it right given the circumstances of the market and the brand values.

 

RnT Communications has been involved with several FMCG brands in the recent past, to help them reposition them as more upbeat and exciting brands with huge successes. We come with deep category understanding, and brand-building experience and even do our own research to arrive at the best solution is working closely with the brand team. This helps both the brand owners and the market get the best out of the entire marketing exercise and get the joy back in the process.