Rebranding Trend – Wrinkles are erased, the soul remains

The momentum of rebranding has affected many global brands and some companies in the last year: they are changing names, appearances, and logos. Everything is in line with corporate culture and new social values, but in some cases, it is also a consequence of public pressure increasingly prone to so-called cancel culture. Fortunately, domestic companies do not have problems with racially motivated brand names like foreign ones, but they do it for market reasons.

Long-term perspective

Jelena Slade-Šilović, head of the beverage category development strategy at Atlantic Group, claims that it is wise to invest in brands with a long-term perspective and explains this with the example of the successfully rebranded Cockta, which made a significant visual and communication leap. In 2018, it completely transformed, which is unusual for brands with such a long tradition and recognition, but its distinguishing quality in relation to the overall category was a strong enough argument in favor of that decision.

– In accordance with Cockta’s authentic and unique character, we defined a bold platform to remain relevant for future generations. The task was all the more difficult because we wanted to be retro at the same time, respecting tradition and loyal long-time consumers of the brand for whom Cockta was the drink of their youth. We already have enough research to say that we are particularly pleased that it shows consumers are extremely satisfied and intrigued by the communication that was an integral part of the rebranding story presented by authentic people, those who are primarily and uncompromisingly – their own – says Slade-Šilović, emphasizing that Cockta promotes the universal right to love and freedom of choice and that its goal is to encourage us and stimulate thinking to create a better society tolerant of all kinds of diversity.

A fragile straw of salvation

Slade-Šilović emphasizes that one should not always seek salvation in rebranding when products are not competitive enough, current, relevant, and sought after, and this is because shelf space in stores is limited and is a resource that brings results, and the basic challenge for a manufacturing company is defining the best portfolio.

– It is necessary to invest in brands that will support the growth of market position in the long term. It is a wise managerial decision that, if a detailed analysis determines that certain brands are not aligned with the company’s strategy or current consumer expectations, to engage the company’s human and production capacities in other offers that are attractive to the consumer relevant to them – says Slade-Šilović.

According to Drago Žulj, senior brand manager at Franck, all rebranded products of that company have performed very well among customers. Among the latest projects currently in the market introduction phase is the redesign of one of the largest categories of that company –​ Franck’s teas. With the new design, they wanted to refresh and modernize the appearance of the product, further emphasize flavors, and introduce a new classification of the assortment.

– Due to Franck’s position as a leader in the tea category and the size and importance of that category in the assortment, we conducted research among consumers about the new packaging before the redesign. Thanks to their guidelines, we made the final decision on how Franck’s teas will look in the coming years – says Žulj.

Life cycle

He emphasizes that every product has a life cycle during which it goes through certain phases. The phases last differently depending on the type and category of the product, and this also determines the overall lifespan of the product.

– New trends and changes in consumer habits and behavior require constant adaptation of products and assortments so that brands and categories remain relevant. If a product or brand cannot adapt to new market demands, it becomes irrelevant to consumers and thus enters the final phase of its life cycle. That is why at Franck we regularly conduct detailed analyses to optimize the existing assortment to open the way and space for launching new products and brands that will best meet the demands of consumers and the market – explains Žulj.

What are the experiences with changing the company name, explains Ivana Plemenčić, director of Pevex’s Marketing and Corporate Communications Sector.

Raising contours

– When it comes to our company and the name change, we would rather call that cosmetic change a facelift than rebranding, although it is indeed a significant positive change and transformation of the entire business in recent years. Changing just one letter has brought positive changes in the perception of our brand. We managed to retain known attributes such as good trading tradition, affordable prices, a wide assortment, but also to be recognized as a brand that looks to the future and innovations – says Plemenčić, adding that one of the goals of the facelift was to get closer to the younger population, which they succeeded in thanks to the digital transformation they embarked on after changing the name Pevec by adjusting the tone and opening some new communication channels. The company’s first image campaign ‘Masters of Friendship’ also contributed to positive attributes. The goal was to connect with the warm values of friendship, community, and closeness, strengthen the position in the dynamic retail market, and refresh communication, which is not exclusively sales-oriented.

Triggers for change

Various reasons indicating the need for rebranding are described by Petra Despot Domljanović, senior brand consultant at Fabular Branding.

– The first is a market decline if a company or product continuously loses customers and market share, and the second is often indicated by poor brand perception, for example, when consumers perceive it as outdated, non-transparent, or insufficiently understandable – says Domljanović.

According to her, companies often decide to rebrand due to expansion into other segments or foreign markets.

–​ Then a new name is often needed that better projects the new strategy and functions in different markets. We often have companies that have developed strongly and expanded their business, but their image, visual identity, and communication have not kept pace with the quality of the product or service. This is often the case with IT companies that are very successful and have fantastic products and services – says Despot Domljanović.

She emphasizes companies from the ICT industry such as Algebra, Bornfight, Infobip, Nanobit, and Q, which lacked a relevant unique story that would further distinguish them among foreign competition, and on which they worked on rebranding.

Erasing history

Most brands in the domestic market seem to undergo only cosmetic changes. National heroes from World War II in the names of popular brands have not been completely erased nor will they fall due to the trendy culture of erasure. Unlike them, faced with the so-called cancel culture movement, many well-known global brands have changed their names, some even after existing for over a century.

Global companies are removing any hint from their brands that could connect them with racism and disrespect for minorities. The pressure from loud and violent activist groups that introduce new social rules is a sufficient motivator for them. Some of them have been pursued by activists for years, but they only yielded to the onslaught of the culture of erasure and the Black Lives Matter movement and have begun to discard old names and create new identities in the last year. One example is the brand Uncle Ben’s from Mars Inc. This is a world-famous rice brand that will now be called Ben’s Original instead of Uncle Ben, and the old image on the packaging will no longer exist.

The word ‘uncle’ was removed from the brand name because in the past, whites in the American South derogatorily referred to blacks in this way. The old image of the elderly black man on the Uncle Ben’s rice packaging dressed like a servant was also no longer appropriate as it conveyed the myth of happy slavery, which is why both the name and the image of the brand with racist elements have been banished from the public.

The brand name Aunt Jemima, a pancake mix from PepsiCo, has also undergone a renovation because the use of the word ‘aunt’, mammy, is a racist stereotype. However, not everyone is happy about this, especially Lillian Richard and Anna Short Harrington, descendants of the model ‘Aunt Jemima’, who opposed the rebranding. PepsiCo explained that the Aunt Jemima brand has existed for one hundred thirty years and that its name is built on a racial stereotype and that starting in June of this year, this product will be sold under a new name – Pearl Milling Company.

Activists have long been bothered by Coon, the name of an Australian cheese, which some claim was accepted ninety years ago as a ‘racist joke’, while others remind that it was named after American cheese maker Edward William Coon. The management of the Canadian company Saputo, which currently owns this cheese, has decided that starting in July of this year, this brand will be called Cheer. Sports clubs are also undergoing social catharsis.

The Cleveland Indians baseball team has committed to changing the name and logo of the club to show respect for American Indians. Under public pressure, as well as from sponsors FedEx, Nike, and PepsiCo, the Washington Redskins club also had to change its name – it is now called the Washington Football Team. The sauce Zigeuner Sauce (Gypsy sauce) will no longer be called that either, as the German company Knorr decided in June of last year to rename it Paprikasauce Ungarische Art (Hungarian paprika sauce), and in November of last year, Nestlé announced that the name of its brand Red Skins in Australia ‘does not keep pace’ with the times, so it now sells that delicacy under the name Red Ripper.

So far, a number of brands have changed their names for similar reasons, but this is just the beginning of ‘cleaning’ and totalitarian interference in creativity with the exclusion of any local mental connotation in products intended for a global world that promotes diversity but only approves what is ideologically acceptable.