The Issue and Perspectives of Re-Branding

Discipline « Brand Managment»

Topic «The issues and persectives of re-branding»

1. Table of contentes

Introduction        

Chapter 1. Theoretical background        

1.1.  The Concept of re-branding; the main goals and objectives        

1.2.  Reasons for rebranding        

Chapter 2. Rebranding process        

2.1. Key stages of rebranding        

2.2. Ways of implementation the modified brand        

Chapter 3. Analysis of rebranding on the example of Lego        

3.1. History of the brand Lego        

3.2. Problems with the brand        

3.3. Results of rebranding. Prospects and recommendations        

Conclusion        

References        

Introduction

The theme of this course paper is "issues and perspectives of re-branding". As everybody knows re-branding is considered to be one of the most significant ways to change the image in the mind of the consumer. The essence of the re-branding is that the brand, which initially relied on one personal value, suddenly starts to bear another vector which may be important not for all the existing representatives of this target audience. But it is important for those consumers who previously were not included in the number of adherents of the brand, which was aiming to attract. Successful re-branding allows the company to reach a new level of development, attract new customers and increase the loyalty of existing clients. Such changes should affect financial indicators of the company for the better. Therefore, the study of the main features of this process can certainly be seen as relevant and necessary to achieve the scientific objectives in the curriculum master's degree program.

Thus, the aim of this work is comprehensive detailed examination and definition of the current role of re-branding in the formation of a solid, unique and attractive brand image for the customers. Taking into account its purpose, I must perform the following tasks:

To consider the theoretical component of the re-branding, to learn stages of rebranding and ways of implementation the modified brand to the consumer market; to analyze  rebranding on the example of Lego and to identify results of rebranding; to determine prospects and recommendations of rebranding Logo company.

 The object of study is the process of re-branding.

The subject of the research is specific patterns that are characteristic for the process of re-branding.

This work includes three sections, selected according to the set coursework tasks. During the preparation of this work were used such scientific methods as analysis, synthesis, deduction, method of expert estimations.

All the work is done by analyzing different literature works, books, academic articles and journals and drawing conclusions from the facts at hand.  Theoretical and methodological basis of research are the works of domestic and foreign scientists such as Aaker, D., McLoughlin, D., Schroeder, J., E., Salzer-Moerling, M., Askegaard, S., Schultz, D., E., Schultz, H.F., Franzen, G., Moriarty, S., Dahlen, M., Lange, F., Smith, T.

Chapter 1. Theoretical background

1.1.  The Concept of re-branding; the main goals and objectives

Re-branding is a complex of actions for brand change, or its components: names, a logo, visual registration of a brand with positioning change, change complete brand ideology. This implies that the company has undergone quite a dramatic change. Successful re-branding allows the company to reach a new level of development, attract new customers and increase the loyalty of existing ones. Restyling and repositioning is an integral part of the rebranding process

The more saturated a market is, the image component becomes more important and therefore brand plays more important role the in customer loyalty. When there is a struggle for every customer to compete with the prices or consumer properties of commodities is becoming increasingly difficult. Comes the turn of marketing, communication technologies, begins "the battle for the minds", the main weapon which is a brand.^[1]

In the first half of the twentieth century it was considered that trademarks are created once and for all. The experts believed that any changes will have a negative impact on the popularity of the products. Today has changed the minds of consumers, and brands must also change, if you want to be successful. Obsolescence of any brand, even the best of the best, inevitably, over time, the emotional set of ideas about the company and its product becoming obsolete in the minds of potential consumers. Market participants require fast adaptation to new conditions. Correction brand or re-branding is one way to do it.

I want try to define what a "re-branding" is, and achieve what purpose it serves.

If you look at the re-branding from a technical point of view, it is a mechanism of adaptation of the brand to the dynamic market conditions.

In this case, the term "trademark" was used only in order to avoid tautology. The brand is not identical to the trade mark, it is much wider. The brand has a unique and attractive brand image. It reflects exactly the attitude of the consumers, while the trade marks, packaging are the brand attributes, identifiers, anchors for the psyche, causing the desired Association with the object of consumption (product, service). And speaking of re-branding, you need to keep in mind the change in the image, existing in the mind of the consumer. And because your own attitude is influenced by the motivational values inherent in the brand, it makes sense to talk about changing the motives of the target audience of the brand, and possibly switch a brand for a different audience altogether. Re-branding, therefore, implies a very significant, and sometimes fundamental change of essence, identity and core values of the brand, causing a change in the target audiences in practically all attributes and brand communications. The object correction is positioning, translation of a trademark or brand.

A new image is created throughout the communicative activity, which is composed of a restyled logo, interior, etc.^[2] But the basic tools to generate change in the mind of the consumer always will be advertising and PR, and all other changes of attribute is just an adjustment to the motivational value of a new sense of the brand. The fact of re-branding should be reflected in everything: the repositioning means not only the change of external attributes, but appreciable changes in advertising techniques, sales promotion, branding, participation in exhibitions and other events, etc.