Rebranding and Organisational Performance- Some Issues of Relevance

Abstract

Dispensing with an established brand, often the culmination of many years of continuous investment, and perfunctorily replacing it with a new brand would seem to contradict a century of marketing theory and practice. Despite of this fact rebranding has become a popular strategy for co mpanies. The idea of brands as a core asset upon which corporate success depends is deeply ingrained in modern corporate cu lture as well as being a central tenet of the marketing d iscipline. A further premise that underpins marketing education and practice is that strong brands are built through many years of sustained investment which, if well judged, will yield a loyal consumer franchise that will result in large sales, a high market share and a continuing stream of income for the brand owner. Despite this received wisdom, there has been a marked increase in the nu mber of high-profile co mpanies rebranding or renaming their organisations in the past few years. The efforts to discard a long-held brand name and starting again from scratch, apparently attempting to build a new brand overnight, would seem to run counter to the fundamental axio ms of marketing. The question then is: what exactly is driving this spate of rebranding and what are the performance imp lications for the new brands? This question would seem to provide a fertile ground for academic research but, as yet, very little consideration has been given to it in the academic literature. So in the present paper the researchers have tried to explore the rationale of rebranding through data analysis by using SPSS and Excel. For the purpose the data has been collected from CMIE Database (PROW ESS) and statistical tools like t-test has been used. The researchers have found through analysis that though corporate rebranding increases the income (market share), yet it should be done with care. Before rebranding all the factors should be studied thoroughly otherwise it may lead to disasters.