Corporate rebranding: destroying, transferring or creating brand equity?

Abstract

PurposeCompanies changing their brand names are frequently reported in the business press but this phenomenon has as yet received little academic attention. This paper sets out to understand the drivers of the corporate rebranding phenomenon and to analyse the impact of such strategies on corporate brand equity.Design/methodology/ approachA cross‐sectional sample of 166 rebranded companies provides descriptive data on the context in which rebranding occurs. Two case studies provide further detail on how the process of rebranding is managed.FindingsThe data show that a decision to rebrand is most often provoked by structural changes, particularly mergers and acquisitions, which have a fundamental effect on the corporation's identity and core strategy. They also suggest that a change in marketing aesthetics affects brand equity less than other factors such as employees' behaviour.Research linitations/implicationsThe paper proposes a conceptual model to integrate various dimensions of corporate rebranding. Analysing the rebranding phenomenon by assessing the leverage of brand equity from one level of the brand hierarchy to the other constitutes an interesting route for further research.Practical implicationsManagers are reminded that corporate rebranding needs to be managed holistically and supported by all stakeholders, with particular attention given to employees' reactions.Originality/valueThis paper is of value to anybody seeking to understand the rebranding phenomenon, including academics and business managers.