Prettylittlepixels's Blog

Is it smart to rebrand during a recession?

I have noticed a few new logos out in the concrete jungle, Jack in the box, Union Bank of California and Holiday Inn. It made me wonder what factors cause a company to rebrand during a recession. A logo is a cornerstone to a company’s brand marketing. From a customer perspective a brand adds value and rebranding can jeopardize how your consumers view your product. An example is the recent Tropicana packaging fiasco.

However rebranding during a recession can be beneficial if it’s done to reinforce an already strong brand. Now more than ever it’s crucial for consumers to feel like they are getting value for money. While many brands are slashing prices they don’t realize that it can damage how their brand value is perceived after the recession. Brands that emerge stronger after the recession are ones that have continued to build on their brand even in tough times.  They continue to reinforce their brand while their competition is tightening their marketing budgets. “The process of branding should not magically stop during a downturn. Customers and prospects are still forming opinions and gathering experiences whether you’re proactively managing your brand or not.”

During the recession brand differentiation is a more important than ever before. “Many brands revert back to tried and tested techniques that play on nostalgic sentiment and develop new personas in order to reassert their dominance in an extremely crowded marketplace.”  Consumers will stay committed to the brand if the brand continues to add value and the rebranding hasn’t tarnished their perception of the brand. “Re-branding during a downturn can be seen as a risk in terms of short-term financial loss, but if the campaign is implemented correctly in terms of strengthening and protecting the brand, then the longer-term value-add has the potential to go way beyond the recession.”