11 Jun 2015

REBRANDING TRADE MARK: REBIRTH OR REGRET?


A trade mark is the forefront of a business and consumers’ purchasing decisions are continuously influenced by these trade marks, which distinguish goods and services from one another and also indicate a degree of reliability and even quality of these products or services. So, it goes without saying, that any decision to rebrand, or in fact make any changes to the brand, should not be taken lightly. Any bad decisions or wrong moves could spell disaster for the brand, and consequently even the business. Most rebranding is permanent, some only for a limited time or for a specific reason. Many people have their own nicknames for certain brands. What is McDonalds to most and “Mickey D’s” to Americans is popularly referred to as “Maccas” to more than half of the Australian population. In fact, in recognition of Australia’s embrace of the brand, thirteen restaurants throughout Australia were rebranded to “Maccas” for a month earlier this year in celebration of Australia Day. Whether or not this was a clandestine attempt to gauge the reaction to a possible permanent rebranding or adaptation of the McDonalds brand in Australia or elsewhere in the world, or merely a marketing exercise to further entrench the brand, it signals a shift in traditional rebranding thinking. As with all market, South African brands have seen their fair share of revamps and remodelling, generally giving the brands a cleaner, trendier look and feel – think Mr Price, Woolworths and Ackermans. Before embarking on an expensive and potentially risky rebranding exercise, it is important to establish clear reasons for the project. Factors such as new business markets, new target audiences or predicted growth often spur companies into rebranding and revamping an existing brand. Other times, a business may rebrand as a reaction to significant factors which impact on an existing brand, such as negative publicity, competition or mergers. Rebranding can be a minefield as it is quintessentially a shift in a brand’s identity. The greatest concern is that a rebranding exercise could alienate existing customers or damage the goodwill that that the brand has established over time. As we all know too well, to rebrand well is a monumental and costly effort. Every sign, advertisement, brochure, website and email address has to be changed, everywhere. Chances are that it will cost way more than you anticipated and will demand organisational stamina to see the process to finality and to reap the rewards. When contemplating rebranding, it is imperative that the necessary clearance searches are conducted first, before announcing brand to the world. It would be an expensive and serious career-limiting move to adopt a new brand name, tagline or secondary brand that is in conflict with another party. These searches should extend to the relevant domain names, Twitter handles and Facebook pages, as there are few worse things than discovering, too late, that yournewbrand.com is already in use by a less than savoury crowd. Equally important is to consider the various interpretations that may be possible of your trade mark. Never create a brand name without first running it by some slang-savvy target market representatives – a tough lesson learned by Panasonic when it introduced its contribution to the PC market. Paired with the well known cartoon character “Woody Woodpecker”, the device was marketed and sold under the name “The Woody”, with a touch screen feature promoted under the tagline “touch woody”.....er, say no more. Once the decision is made to rebrand, then rebrand! Introducing your new brand in a piecemeal fashion may be doing more harm than good, as running with two brands at the same time could well be causing confusion amongst your customers, both as to the brand itself and what it represents. Telkom is apparently in the process of rebranding its 8.ta mobile service to Telkom Mobile – I hadn’t noticed. Its approach is to rebrand over a period of time, in phases. As such, this rebranding will be without much fanfare or impact. Compare this with Vodacom’s recent rebranding, which was so effective, we need to be reminded of its days of being blue. Use proper trade mark (TM) notices to show the world that the word or logo is your trade mark, not merely a descriptor or some throw-away line. If financial feasible, trade marks should be registered as soon as possible, so as to prevent their registration by third parties and endless legal battles. Once the trade mark has been registered, always use the ® symbol as a warning to the public at large of its protection. Sometimes it's better to leave well enough alone, the trick is to know when this may be. However, rebranding, when done well, can invigorate and renew a brand's image and quite possibly lead to better customer loyalty and sales increases. Consider it wisely. Publication Name: Rebranding Date: June, 2013 Practice Area: Trade Marks

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