SERM

Define the concept of rebranding Identify reasons why companies would rebrand Identify the effects of rebranding on emotional associations and loyalty

The creation of a new name, term, symbol, design or a combination of them for an established brand Intended to develop a differentiated, or new, position in the mind of the consumers and competitors. Can be applied to: New products Mature products Products still in development The overall company

Changing more than visual identity Can involve dramatic changes to: Brand Mark Brand Name Image Marketing Strategy Advertising Themes

1.Need to differentiate 2.Shed a negative image 3.Emergent situations 4.Customer base has changed 5.Product line has changed 6.Outdated look

Why do companies differentiate? Stand out from competition Satisfy customers’ unique needs or preferences Can include changing their logo or going green Helps attract more customers Helps attract more desirable employees

Firms will rebrand intentionally to shed negative images of the past Help hide malpractices and avoid/shed negative connotations Example: AIG AIG Financial Advisors  Sagepoint Financial AIG Retirement  VALIC (Variable Annuity Life Insurance Company)

May occur unintentionally from situations such as “Chapter 11 bankruptcy” Chapter 11: allows company to function while they pay off their debt

General Motors Filed for bankruptcy in July of 2009 Decided to rebrand by focusing on certain car lines Sold Saab Automobile and discontinued the Hummer, Pontiac and Saturn brands

May have started out marketing to a certain demographic Companies will notice other demographics, that were untargeted, purchasing their products or visiting their stores Rebranding lets you speak to the audience you need to draw in

Companies may find a product that they do not currently make, but believe to be profitable May require changing the company’s image to reflect the new products being produced

Some companies’ images may not have changed since they began In an ever-evolving world, keeping up-to-date with trends is important Companies want to stand out to all of their targeted consumers

Washington Wizards In May of 2011, the Washington Wizards released new uniform schemes that will be used for the season. They are a reference to their old colors when they were the Bullets. Ted Leonis, who owns the Capitals as well, decided on the change to match the flag colors

Tampa Bay Rays Changed from Devil Rays in 2007 Also changed primary colors and logo The change was described as a “beacon that radiates throughout Tampa Bay and across the entire state of Florida” Wanted to make a change after 10 terrible seasons

Comedy Central Changed their logo on December 10, 2010 Designed to represent the network’s unique brand of comedy Looks like Copyright symbol More universal (can be scaled, used on different platforms, etc.) Lost the cartoonish look of the original

Emotional Associations The brand stands for something important to them. The brand is intense and vibrant. It connects with people on multiple levels across several senses. The brand is unique. The brand is admirable. The brand consistently interacts with them. It never disappoints them. The brand makes them feel good. Rebranding can cause many of these associations to be negatively affected. However, it could strengthen them and create a better connection with consumers.

Brand Loyalty Consists of a consumer’s commitment to repurchase or otherwise continue using the brand and be demonstrated by repeated buying of a product/service, or other positive behaviors such as word of mouth advocacy. These customers are usually willing to pay higher prices for the brand Changing any part of the branding strategy may throw consumers off, and hurt brand loyalty. Gap: