6 rebranding strategy disasters and how to avoid them

Do you remember when Netflix sent us DVDs by mail? Or when Dunkin’ was just about the donuts?

Brands have to move with the times if they want to survive. Maybe your company needs to reposition to keep up with your customers. Or perhaps your brand identity is feeling a little stagnant. 

A well-executed rebranding strategy can breathe new life into your company (just look at how Burberry went from hooligans to high-fashion).

But rebranding can also pose a big risk if you’re a well-established company that’s worked hard to gain your audience’s trust. It’s a big decision, but hopefully this guide will help. 

1. Uber

Uber’s 2016 rebranding was a bit of a debacle. Obviously, the transportation and logistics giant has weathered the storm, but the rebrand was likely a costly misstep.

Uber decided to update its logo and in-app icons to show just how individual its local markets were. That involved replacing its world-recognized black, gray, and blue brand assets with multi-color ones.

Each of its 65 launch countries received a toolbox packed with bright colors, patterns, illustrations, and photography guidelines. The goal behind the move was to build a more flexible brand that attracts a wider audience. 

What went wrong?

Let’s compare the old logo (on the left) with the new one (on the right). 👇

Source: Medium

A survey revealed that 55% of people ranked Uber’s old logo four stars or higher, and 73% could correctly identify it.

Now, let’s compare that with the new logo.

68% of respondents rated it three stars or lower, and 44% didn’t understand what the new logo represented. 

The general consensus was that Uber’s rebranding strategy missed the mark. But it boiled down to much more than a bad logo design.

At that time, Uber was facing a lot of public scrutiny. Its drivers were complaining about its business practices and taxi drivers were angry about its impact. These factors most definitely marred public perception of Uber, making a successful rebrand much more challenging.

2. Tropicana

Tropicana is one of the most recognized juice brands on the planet. But its 2009 rebranding disaster is what many people know the brand for today.

The idea behind the rebrand was to make Tropicana seem more “down to earth”. So, they stripped back the logo and packaging design to reflect this.

Needless to say, it did not go well.

Source: Creative Bloq

What went wrong?

A lot. 

Tropicana’s rebrand tanked because its customers didn’t recognize the new packaging on the shelves. This quickly translated into real problems for Tropicana, as sales dropped by 20%.

Unsurprisingly, Tropicana announced it would return to its original packaging shortly after the rebrand. 

Its unsuccessful rebranding initiative is said to have cost the company $50 million. Ouch.

The lesson? You risk alienating your customers if your brand’s new visual identity is too different from the original.  

3. GAP

Gap’s logo had been working hard for the brand for 20 years. The dark blue square with ‘Gap’ written in white serif was simple and instantly recognizable. That’s why it came as a surprise to its audience when Gap redesigned the iconic logo in 2010.  

Overnight, it was replaced by a new logo featuring a smaller blue box and a bold Helvetica font. The reason behind this drastic change was to reflect Gap’s transition from “classic, American design” to “modern, sexy, and cool”.

Source: The Branding Journal

What went wrong?

Gap switched back to its old logo less than a week after the rebranding, thanks to backlash from its target audience. 

Social media was flooded with negative comments about Gap’s attempt at a new logo. The general consensus was that the logo was too far removed from the original.

Your logo plays a pivotal role in brand salience, so changing it can damage brand recognition. Plus, your audience has an emotional connection to your brand – they genuinely care when you make big changes.

Gap’s rebranding disaster is a stark reminder of what can go wrong.  There’s a reason the saying, “If it ain’t broke, don’t fix it” is so popular. 

4. X (formerly Twitter)

Did you notice how I wrote “X (formerly Twitter)”? Even though it’s been well over a year since Elon Musk’s questionable rebrand of our ex-favorite social media site?

Yeah, that’s never a good sign.

Twitter was a formidable beast, which is why the 2023 rebrand seemed so surprising to so many. I know, I know, Musk took over the ship and wanted to make his mark. But why mess with such a well-loved and trusted brand?

What went wrong?

It’s reported that the market value of X has dropped by 70% since Musk took the helm. 

But a bad rebrand can’t take all the blame. 

A large part of the issue is that X is now synonymous with Elon Musk’s brand. And that has alienated many former Twitter users.

Musk’s political views and his decision to soften the rules on content moderation have contributed to X’s swift decline. So the only way out is to separate the X brand from Musk’s personal one to regain public trust. 

I miss the old Twitter. And the blue bird.

Source: Creative Bloq

5. Applebee’s

Applebee’s has been a firm favorite among American families since the eighties. The comfort food and warm atmosphere create a familiarity that makes people feel right at home. 

But the restaurant chain made a bold move to attract a younger, millennial audience. It rebranded itself as a modern bar and grill, adding exotic dishes to the menu like chicken wonton tacos.

Source: Applebee’s

What went wrong?

Applebee’s saw a 6% drop in sales following its rebrand. In its attempt to attract a new demographic, it alienated its loyal customers. 

The rebrand took Applebee’s too far from its Middle-American roots and made it too similar to the competition. The restaurant chain closed 130 restaurants in 2017, shortly after launching its rebranding strategy.

Applebee’s has since ditched its quest to attract millennials and returned to its roots. Although, I’m happy to say chicken wonton tacos are still on the menu (must be the millennial in me).

Hungry for more? These restaurant advertising trends will give you something to chew on.

6. Pepsi

Pepsi’s rebranding journey has been a rollercoaster. We’ve seen several new looks from the brand over the past century, especially compared to its rival Coca-Cola branding.

The particular rebranding fail I’m referring to is when Pepsi forked out $1 million for a logo redesign in 2008.

The idea behind the brand refresh was to signify innovation and the “Gravitational pull of Pepsi”.

The result was Pepsi’s same red, white, and blue color palette, but with a slightly different white stripe.

Source: Pepsico

What went wrong?

Marketers still talk about Pepsi’s 2008 logo redesign. For all the wrong reasons.

One of the main criticisms is that the “why” behind the rebranding strategy simply wasn’t strong enough.

During that time, sales of carbonated beverages were experiencing a downward tick. So, it seems like the brand refresh was a feeble attempt to change this trend. But sales remained low.

Luckily, Pepsi’s 2023 logo redesign has been more successful.

Honorable mention – Jaguar’s rebrand

When Jaguar revealed its new rebrand, everyone jumped in with an opinion. Some loved it, some hated it. But everyone was talking about it.

The truth of the matter is that it’s still too early to tell whether Jaguar’s rebrand was a homerun or a hit and a miss.

I asked Nneka Etoniru, EVP of Global Brand Strategy at Avenue Z, how long it takes to know if your rebranding is actually a success. Here’s her take.

“It’ll take six to 12 months of tracking sentiment, engagement, and revenue to know if it’s truly a success. Early signals like positive media coverage, strong social media buzz, or increased brand searches can hint that it’s resonating. On the flip side, customer confusion, negative sentiment, or flat sales are red flags.”

Nneka Etoniru, EVP of Global Brand Strategy at Avenue Z

Jaguar has faced harsh criticism for the rebrand, with many saying it feels misaligned with the company. And that’s the big lesson – it truly all comes down to authenticity. If Jaguage can ride the buzz and turn it into momentum, it could be a big success. Only time will tell.

Seven ways to avoid rebranding strategy disasters

If you’re feeling rattled after all those not-so-successful stories, don’t worry. With the right rebranding strategy, you can get it right (think Apple).

Source: Tailor Brands 

Here are seven tips to help you get your new rebranding efforts right. 

1. Get clear on your core values and brand differentiator 

Sheena Yap Chan is a Wall Street Journal bestselling author, keynote speaker, strategist, and award-winning podcaster known for her leadership expertise.

From her vast experience, she has noticed a common issue when companies try to rebrand.

“Businesses lose sight of their mission as they grow, so this is a good opportunity to reconnect with your “why.” Focus on how you want your audience to perceive you and make sure the new brand identity aligns with that vision.”

Sheena Yap Chan, Founder and Host at The Tao Of Self Confidence

Sheena coaches her clients on how to keep their audience in mind. Her advice is to think about who your brand is speaking to and how they’ve evolved. This should shape your rebranding strategy.

“Remember, rebranding isn’t just about a new logo or look; it’s about reshaping your narrative in a way that resonates with your audience on a deeper level. This requires consistency across all platforms. So, ensure that your new voice, visuals, and messaging are cohesive.”

2. Involve the right people from the start

It doesn’t matter how solid your brand strategy is. If you don’t involve the right people in the process, the execution will suffer.

I love this analogy by Kraig Kleeman, the Founder and CEO of The New Workforce.

 “Rebranding is like giving your business a fresh haircut—it’s not just about chopping off the old, but styling something new that makes everyone say, ‘Wow, you look amazing!’”

Kraig Kleeman, Founder and CEO at The New Workforce

Kraig’s top advice for avoiding any awkward growth phases during your rebrand? Get everyone involved early on. That means your employees, customers, partners, and even investors.

“I remember working with a mid-sized tech company where we held workshops and feedback sessions. Getting everyone’s input made them feel like they were part of the process, and their ideas really helped shape the new brand identity.”

3. A rebrand isn’t always the answer …

You’ve got to think long and hard about why you want a new rebranding strategy. After all, there are risks involved if you don’t execute it right.

If you’re planning a rebrand because your sales are down or brand awareness remains non-existent, take this as your sign to pause and reflect.

These issues don’t necessarily mean you need to ditch your current branding. There could be simpler fixes like developing a new marketing strategy or getting into some deep market research to diagnose the root cause. 

And an important reminder: rebranding won’t take the heat off your company if you’ve been involved in a scandal like false advertising. 

🌶️ Speaking of scandals, read my takedown of the biggest cosmetics advertising fails of all time.

4. Nail your brand compliance process

28% of medium to large-sized companies calculate that brand dilution costs them between $6 and $10 million. Every year. 

In other words, brand consistency matters.

I have one word for you. Brand governance. The only way to keep your rebrand consistent is by setting up a clear process to approve assets.

Online proofing software is your best bet here.

Let’s take Filestage as an example. You can set up custom workflows to make sure every branded asset is approved by your in-house expert. 

Plus, it provides a central hub for teams to manage feedback, content versions, and approved assets.

Get inspired by these brand consistency examples.

5. Measure your rebranding success

Gut feelings are great, but you’re going to need some more tangible data to evaluate the impact of your rebranding strategy.

The metrics you choose will come down to your goals, but here are some standard KPIs to track:

• Online engagement with your brand
• Sales and profits
• Number of new customers
• Purchase amount per sale

6. You don’t always need to change your brand identity to rebrand

Before you go scrapping your logo and current brand identity, think about what you want the rebrand to do.

It could be that all you need is a new brand awareness campaign. Take the language learning app Duolingo.

It wanted to gain visibility and share the message that language learning can be fun. And free. So, it tweaked its brand voice to lean into a quirkier, more unhinged TikTok persona.

The results were pretty unhinged, too. Duolingo scored over 90 million new video views and a 38% click-through rate. 

Source: tiktok.com

7. If you work agency side, manage your clients’ expectations during a rebrand

A rebrand isn’t a quick fix. So if you’re working with clients, be very clear that it’s a strategic investment. And as a result, it takes time to deliver results.

Nneka Etoniru recommends being very clear on the following three points:

• Results typically unfold over months, not weeks. Changes in perception, audience engagement, or revenue won’t happen overnight.
• A great rebrand does not fix poor product quality, operational inefficiencies, or misaligned internal culture. Sad but true.
• Rebrands, by definition, will not be everyone’s cup of tea. The goal is to resonate with the target audience, not to gain universal approval.

Your 10-step checklist for a successful rebrand

Ready to take the plunge with your rebranding strategy? This checklist will keep you on the right path.

1. Redefine your audience and target market (through extensive research)
2. Carry out a full brand audit and competitor analysis
3. Reevaluate your brand’s core vision, mission, and values
4. Tweak your brand voice to match your new mission and values
5. Overhaul your brand identity (logo, color palette, typography, imagery)
6. Update your brand slogan to align with your new message
7. Create new brand guidelines 
8. Track brand sentiment to see how your audience is reacting throughout the rebranding process
9. Launch your new branding internally
10. Release your rebrand into the wild

FAQs

What is rebranding?

Rebranding involves rethinking your current marketing strategy to create a new, differentiated identity for your company. A rebrand typically involves updating your company name, logo, design, and positioning to reach a different audience or change how your current audience perceives you.

It’s important to remember that updating your brand’s identity can be risky. Your current audience may not recognize new brand elements, which could damage your brand reputation. 

How do I know if it’s time for a rebrand?

Here are some tell-tale signs that you may want to consider rebranding.

• Your brand no longer reflects your company’s mission, values, or vision
• You’re expanding into new markets that may not resonate with your current brand messaging
• You’re repositioning your brand to target a new demographic
• There’s been an overhaul of your core philosophy or brand promise 
• Mergers and acquisitions have made rebranding necessary to align services under a cohesive identity (United is a great example when it merged with Continental Airlines)
• Your current brand isn’t memorable, or brand recognition is low

What’s the difference between a partial vs a total rebrand?

If your business is a large, well-established name, a total rebrand is a bigger risk. After all, you don’t want to lose the loyalty you’ve worked so hard to build. At the same time, you don’t want your audience to think your brand has become stagnant or out of touch.

A partial rebrand (or brand refresh) will tweak elements of your brand’s visual identity to align with your company’s new markets or products. 

Old Spice is a prime example. A clever repositioning strategy propelled it into the cultural zeitgeist while staying true to its product roots.

A full rebranding involves a much bigger overhaul of everything from your name to your brand identity. Most companies only go down this road if they’re making huge changes to their positioning, product, values, or mission. 

If you’re an Old Spice fan, I talk more about its repositioning in this article on brand strategy examples. 

What’s the biggest mistake companies make with their rebranding efforts?

It’s easy to get caught up in the excitement of the rebranding process. But when this happens, you’re more likely to lose sight of the basics, like who your target audience is and why you decided to build a new brand identity.

Here are the most common mistakes:

• Your new visual identity doesn’t resonate with your target audience
• Your audience doesn’t recognize your new brand elements, harming branding recognition
• Your brand guidelines are unclear (or you don’t push teams to follow them)
• You don’t do enough market research, so your brand messaging is off
• You start changing your visual identity without conducting a proper brand positioning exercise

Manage feedback during the rebranding process with Filestage

Rebranding is huge. It involves serious levels of stakeholder collaboration and a strong process to manage it. 

Filestage can help you manage feedback during the rebranding process so everyone’s on the same page. That way, you can launch your new look with the confidence that every asset is on brand. 

Start a free seven-day Filestage trial today.