There is no insurance against mistakes in business – any mistake affects the reputation. And sometimes only rebranding and registration of a new trademark can fix the situation . Using examples of international companies, our colleagues from Online Patent show how rebranding helps a business get out of a crisis and in what cases it will be appropriate.
Rebrand logo due to management mistakes – Papa John’s
The company’s founder, John Schnatter, l the corporation for 30 years and left it against his will.
Schnatter left a peculiar memory of himself among both clients and colleagues: subordinates said that he was a real tyrant in communication. For example, if he didn’t like bak goods, he could easily throw the products off the table, forcing employees to ro the products. This toughness won the love of clients: Papa John’s pizza was consider one of the highest quality in the industry.
In 2018, Schnatter made a number of serious mistakes by making negative comments about African Americans. The businessman was remov from the board of directors, and the company underwent a rebranding. John Schnatter was remov from all advertising materials for pizzerias, and most importantly, from the logo. To emphasize that the company no longer has any connection with John Schnatter, after the rebranding, a trademark was register for the new logo.
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The company came under attack from healthy lifestyle activists. Their main argument against McDonald’s was that certain products on the menu of the largest fast food chain cause obesity. The Corporate Accountability Association, which deals with public health issues, nam the image of the clown Ronald McDonald as one of the main causes of childhood obesity.
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Three CasesPhoto source: Grunge
There was no talk of a total rebranding – too much money had been invest in the signature letter M. However, the company allow some changes. Salads and fruits, low-calorie products (up to 400 kcal) were introduc into the menu. To consolidate the company’s new image, the clown was gradually remov from advertising . New characters and dishes appear, for which the company also register trademarks.
The public react positively to these adjustments. The fast food chain regain its former popularity. And the corporation’s shares soar.
Name Chang to ‘Clean’ Reputation – Comcast
In 2010, the company chang its name to Xfinity. The name change also meant a new positioning – the provider was suppos to become a company that “offers the best experience in the market.”
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Experts say that one of the possible reasons for the rebranding is the corporation’s ambiguous reputation on the market. The quality of customer service has been criticiz more than once.
The logo and name modification did not improve phone number qa the situation. Due to a public incident, the company’s rating dropp again – a recording of a conversation between a client of the company and the support service leak online. The user ask for help, but the operator behav aggressively and rais his voice.
The Comcast case is another proof that rebranding will not help to fundamentally change the public’s perception of the company. It is a tool that helps to convey new meanings and positioning to a wide audience, but without changes in internal processes, the desir effect cannot be achiev.
Rebranding is a lifeline for business
Often, rebranding becomes an attempt to whitewash a reputation. In such cases, the company tries to distance itself from possible critical reviews about what is happening inside the company. Changes in logo, name, new brands demonstrate to society not only the desire for modernization, but also positive internal processes.
However, demonstration does not always mean qualitative changes. If after some time it turns out that the trademark has been chang, but the content remains the same, then the company may not be able to cope with another reputational scandal.
Is it possible to avoid rebranding in case of a reputational scandal?
Each case is individual. The company’s development, with or without rebranding, should always be assess by the board of directors. If top managers come buy phone number list to the conclusion that it is impossible to change the attitude towards the company’s work and, accordingly, the resources invest in reformatting will not improve the attitude of clients, then the company will most likely disappear.
This happen, for example, with the British corporation Cambridge Analytica, which, using the analysis of social network profiles , interfer in the electoral processes. When this information got into the mia, the company’s chairman Julian Wheatland announc the closure of the corporation during a teleconference. He did not even meet with his former employees in person, entrusting security to collect the keys to the rent premises.
Changing a logo or name is a long and thoughtful process that involves serious capital investments both in registering an updat or new trademark and in reformatting the quality of service. In theory, after rebranding, all the main approaches to working with clients should change in the company.
