The HIgh Costs of ReBranding

We all know giant multinationals and famous brands invest heavily in their brand identity design. But most of the time costs incurred are kept a secret. Bear in mind that a rebranding cost is entirely different from the cost of a logo redesign. A complete rebranding includes changes to the logo design, package design, marketing campaigns and the cost incurred to expose the rebranding into the market.

As graphic designers, we ought to know how much do famous companies and brands spend on their brand identity design. When a company posts an outrageous figure for its corporate rebranding, people tend to become judgmental over the ridiculous price incurred. But branding is not all about designing a logo, there are other aspects of the branding process that need to be fulfilled in order to deliver a revamped identity. In the field of graphic design, there are various tools that complete the branding process.

* The logo and stationary design
* Package and label design
* Website Design
* Designing the marketing campaign (Advertising, Billboards, Flyers, Girt Items)

Following are the branding costs of 8 famous brands that were rebranded at a fairly excessive cost.
Courtesy http://www.graphicdesignblog.org/famous-brands-rebranding-cost/










Pepsi Rebranding – A comprehensive Analysis:

The Pepsi rebranding was handled by Arnell Group. Its three years strategy involves $1.2 billion, a complete packaging, merchandising and marketing overhaul of its soft drinks. Let me remind my readers that the total brand value of Pepsi is estimate around $ 16 billion as compared to Coca-Cola’s $68 billion. The rebranding amount involves all kinds of promotional and ATL and BTL marketing activities. Now let us analyze the impact of the rebranding. It has been one year since the overhaul took place. There are no figures of ‘out of the blue’ sales jump or consumer liking about the rebranding reported. On the contrary, Pepsi has received far more censure than any other brands for its directionless rebranding. The real question is…the sales that Pepsi is generating now, are they more than what they would have earned without the rebranding?


Which is the right time for Rebranding?
* When your brand equity is deteriorating or stagnant, that indicates you need a thorough rebranding to overhaul the identity of your brand.
* When your customers don’t seem to favor your brand identity anymore, it’s time that you reposition your brand in the minds of your consumers.
* When your brand gets caught up in a controversy, a repositioning is required to improve the tarnished reputation.
* When the rebranding has the muscle to offset the cost it incurs, meaning it has the potential to pay off in the long run.
* When you realize that your current brand positioning isn’t valid for the target market anymore, or your target market changes.


When is Rebranding a mistake?
* When you rebrand just for the sake of it, thinking you feel like rebranding just isn’t sufficient to overhaul the images of your brand.
* When your customers are devoted to your previous brand identity and are more faithful to it, rebranding may lose brand loyal customers.
* When rebranding does not reap proportional benefits and costs more than it pays.
* When you rebrand because your competitor did so, you are making a mistake of rebranding without purpose.
* When you rebrand without adequate research, repositioning the image without studying consumer demographics and psychographics is dangerous.
* When you think that rebranding only means a logo redesign, or altering the stationery and corporate colors. Rebranding entails a whole bundle of intangible items that are needed to be considered as well.