Every business will need to rebrand at some point. This could be as a result of changes happening within and around the business including customers, partnerships or to revive an enterprise.
There are many reasons why a business must rebrand, the major one being the fact that the enterprise has to adapt or die.
Barely four years after Dangote Flour Mills was acquired by a South African company, Africa’s richest man has acquired the company back. Mid last year, the company which operated under the brand- Dangote Flour Mills was renamed to Tiger Brand Consumer Goods. Early this week, the company has gone back to using its former name Dangote Flour Mills after South Africa’s Tiger Brands sold its 65.7 percent stake in Flour Mills back to Dangote at $1 per share in December 2015.
Following a transaction deal between the two companies, Dangote sold off 63.35 percent shareholding in Dangote Flour Mills Plc to Tiger Brands in September 2012. The agreement allowed Dangote to retain a 10 percent interest in the company for a minimum period of five years, and he continued to hold the position of Chairman of Dangote Flour Mills.
Since the acquisition by Tiger Brands, the company has experienced massive losses amounting to $40.5 million in the first year and $34.3 million in 2014. Last year, Peter Matlare, CEO of Tiger Brands acknowledged that his company had failed in the assessment of doing business in Nigeria. The business was also affected by massive competition in the country.
So why did it take Tiger Brands more than two years to rebrand and less than six months for Dangote to rename the company back to its original name?
The answer lies in the reasons for rebranding. The world is constantly changing, and businesses need to keep their brand current and relevant. Sometimes making big, and drastic changes is necessary. If not well implemented and at the right time, it can result in bad business.
Here are four major reasons why businesses rebrand:
This is one is obvious. When two Brands decide to come together, the result is a major branding overhaul. This, however, requires a deep analysis to identify any differences or similarities and decide on the best way forward. For some mergers, a new brand will be required to identify the new union and show customers what it can offer. For others, though, the initial name remains. Whichever the case, the brand should be able to address the needs of the company and that of its customers or clients.
When a business changes its message or strategy, it is advisable that it rebrands. Change of strategy may be brought about by a shift in the marketing campaign in order to be better understood by its customers. It could also mean that a business owner has decided to add new items in the product line.
Sometimes a name can be changed to suit the needs of the audience. As the audience continue to change in the modern world, some businesses realize that they need to adapt to new ways and possibly a new name in order to succeed. This is majorly experienced in startups when they finally get a niche and transform into a more stable business. Although companies maintain their own brands, customers control it through word of mouth which becomes a reputation for the brand.
As customers change, so should the brand. While change is inevitable at this time, customers expect the business to remain relevant and modern to keep them attracted, and to grab the attention of new customers.
Sometimes business stagnation can be revived through some rebranding. This could mean a change of name or color whichever that would work best for the enterprise. Every business experiences staleness at some point in life. Rebranding can help rejuvenate a brand that looks dull, tired and outdated, giving it a new fresh look appreciated by old and new customers.
Image Credit: Ventures Africa
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