As for “X”, all we can say is “Y”: Here’s How to Master the Art of Rebranding
Rebranding is risky business, especially if your reputation is already tanking. Take Twitter's change over to "X" last Monday. In embracing its aspirations as “an everything app”, the company’s roll-out of its new logo was a complete flop. When Musk in a now infamous tweet, “bid adieu” to the iconic blue bird logo that defined Twitter's identity for 17 years, users were dumbfounded. The bird was still flying everywhere online except for on Twitter’s homepage. As advertising revenue continues to plummet, and users abandon its platform in search of something more friendly, like Meta’s newly launched Threads, the success of Twitter’s rebranding remains uncertain, potentially turning into a cautionary tale of brand mismanagement.
Here are some tips to ensure a successful rebranding:
Why is Branding so Important for Small Caps?
Branding is often underestimated by management teams, considered at most an image exercise with low organizational priority. However, in financial terms, brand value plays a very critical role in contributing to a company's market capitalization, often surpassing its book value in various financial negotiations like mergers, acquisitions, and licensing. More importantly, strong brands yield a higher return on equity and lead to improved profitability ratios, such as gross profit margin, operating profit margin, net profit margin, and return on equity, indicating overall better performance and efficient asset and liability management.
Tips:
Business Case: Before diving into a rebrand, list the reasons behind it. Is there is a need
for a positioning shift to match with a shift in business strategy?
Team & Plan: Form a diverse team that represents different perspectives and expertise
to lead the rebranding effort. Create a comprehensive plan that outlines deliverables
and a realistic timeline, as timing is crucial for a successful rebrand.
Administration: Handle crucial administrative tasks, such as developing a
comprehensive roll-out plan, updating internal and external documents, and securing necessary legal and regulatory approvals. This includes designing and approving a new logo, typography, color palette, and brand book, as well as choosing new ticker symbol(s) and managing trademark and filing considerations.
Brand Assets and Channels: Ensure a smooth transition by updating all brand assets and channels. This includes changing the domain to a new URL, redirecting from the old URL, transferring tech-related details like meta data, site titles, tags, and favicons. Revamp SEO and keyword strategies for enhanced visibility. Update social media profiles with new handles, hashtags, bios, logos, and taglines.
Positioning & Messaging: Craft a compelling messaging architecture that communicates the rationale behind the rebrand. Make sure to include the new name alongside the former name on web and social pages to avoid confusion during the transition stage.
Strategic Launch: Plan a well-thought-out launch strategy to generate excitement and anticipation. Consider teaser campaigns to build anticipation, and then announce the date, reasons, and where the launch will take place (e.g., at a conference or AGM). Soft launch your website a day before the official roll-out to address any last-minute issues. Issue a news release to announce the name change, trading symbol, and the rationale behind the rebrand.
Rebranding can be a powerful tool to revitalize a company's image and strengthen its market position. By following these steps, businesses can navigate the challenges of rebranding successfully and ensure a stronger future. Remember, a well-executed rebrand can lead to enhanced brand equity, improved financial performance, and long-term success in the ever- evolving business landscape.
As a trusted advisor and advocate of publicly traded companies, we believe a measured approach to any investor relations activity can help forge meaningful connections between investors, shareholders and other stakeholders driving engagement and amplifying visibility for transformative results. Reach out to Graham Farrell (Graham.Farrell@Harbor-Access.com) or Jonathan Paterson (Jonathan.Paterson@Harbor-Acess.com) to start a candid conversation.