Tricky rebranding!

With the Managing Brands module fast approaching on the CIM Diploma in Marketing course starting in May, my thoughts this week turned to re-branding. This was mainly due to the recent rebrand of the Nationwide, the first in over 40 years. As part of their rebrand, Nationwide made changes to their logo and banks as well as launching an advert to communicate the refresh to their potential and existing customers. Aiming to position itself as a ‘modern and confident challenger to the big banks, the advertising message, ‘a good way to bank’, focused on the benefits of the ‘face to face’ experience for Nationwide customers, compared to other banks automating many of their services. The advert, which was rated as one of the top-performing ads for effectiveness, according to System1, has sadly been banned by the ASA this month as misleading due to the implication that they had not closed their branches – which they had.

Rebranding can be a tricky process and can raise several problems including:
• Costs: Rebranding can be expensive, involving costs associated with market research, design, advertising, signage, and more. This is more of a concern to smaller businesses.
• Loss of Brand Equity: Rebranding runs the risk of diluting or losing the brand equity that a company has built over time. Established brands may find that loyal customers are resistant to change or confused by a new brand identity.
• Negative Feedback: Rebranding can elicit negative feedback from customers, stakeholders, and the public, particularly if they have a strong emotional attachment to the previous brand identity. This negative sentiment can harm the company’s reputation and erode trust.
• Confusion: A poorly executed rebranding effort can lead to confusion among customers, suppliers, and employees, who may struggle to understand the new brand identity or differentiate it from competitors.

The CIM Diploma in Marketing Managing Brands module considers Brand Strategy, helping students to understand how brands are defined and positioned to add value to organisations. In addition, we cover Brand Management which helps students appreciate the factors that drive brand identity and success. Students love this practical module, where they are expected to develop a brand plan for their company, services, or products. To find out more, join us for a LMS Information evening.

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