Rebranding has emerged as a strong global technique to retain consumer confidence especially when business has gone sour or competition threatens to narrow profit margins.

Some companies also rebrand when they expand their business, if the old brand does not fit well with the new portfolio, or where modern trends demand that the company discards obsolete aspects.

Experts say branding is about perception — it defines a business or product from the competition.

“The ultimate purpose of any re-brand is strengthening connections with all stakeholders,” says George Godsal, the managing director of Hill & Knowlton East Africa, a communications agency.

For example, in 2009, Chartis Insurance Company Ltd rebranded from AIG Insurance in an attempt to distance itself from its troubled American parent company which had been hit hard by the global economic crisis.

The regional branches in Kenya and Uganda were not left behind, as the company feared the shadow of “hit by crisis” would hung causing customers to flee to stronger companies.

The company maintained that its brand, associated image and public perception were important factors for its business.

While announcing the rebrand, Chartis Australia chief executive Chris Townsend said: “This is something we have been acutely aware of given the well publicised challenges of our parent company (AIG).”

Case of Chartis

The company survived, managing to convince its customers that there was a distinction between it and the old company.

Last year, India’s Bharti Airtel dropped Bharti retaining only “airtel” with all letters in lower caps in its India market.

The mobile telephone company later rolled out its new brand across its global footprint in Asia and Africa

“The new identity gives us the opportunity to present a single, powerful and unified face to our customers, stakeholders and partners around the world,” said managing director, Sunil Bharti Mittal.

In order to avoid confusion and lessen the risk of losing customers, Olive Gathinji, marketing manager of Deacons, says the ownership should inform the public why the company is donning new colours, look or changing name.

Such a campaign should include advertisements informing customers of the expected rebranding implying “A has changed to B,” as the customers get ready for B.

“It prepares the customer’s mind to embrace the change,” said Ms Gathinji.

Promotions can be anything from simply publishing the changes on your company’s website to launching national advertising campaigns.

An example is Unilever Kenya’s lifebuoy rebranding in 2010 that included a countrywide campaign on washing hands and publicity which cost the company $56,179.

According to Ms Gathinji, when a company’s target audience evolves and starts to source from competitors, it may be because they feel their first preference is no longer relevant.

In such a case, a rebrand to give the company or product a new face becomes necessary.

For example, Tanzania Tourist Board felt its ‘old’ slogans and logos were no longer reflecting the company’s vision hence the need for a fresh creative approach to enhance the country’s competitiveness.

Tanzania Tourist Board

Tanzania then shifted focus from marketing the best known parks and mountains, to lesser known game reserves and national parks, including some of the less explored islands off the mainland.

In April, leading regional brewer, East African Breweries Ltd invested $11.2 million to unveil a new-look Tusker Lager bottle
“We want to take Tusker to another level in keeping with the aspirations of consumers and as part of our quest for growth,” said EABL Group managing director, Seni Adetu when he unveiled the new-look in Nairobi.

The new long neck bottle resembles Tusker malt’s, Guinness one and that of most soft drinks including its own Alvaro plus that of its competitor Cocacola’s Fanta, Cocacola, sprite and Novida soft drinks.

Recently, the Industrial Commercial Development Corporation held a stakeholders meeting and advertised through local media a change of its logo.

The state investment agency said increased competition in the market necessitated the change.

“The Kenyan financial market has never been more competitive or more demanding than it presently is. The expectations of our stakeholders have also never been higher and we must be ready to fit in,” said Peter Kimurwa, ICDC executive director.

The new ICDC logo takes the shape of a modern key, which symbolises conversion of business ideas into tangible businesses as well as unlocking of growth opportunities by providing financial solutions to the industrious entrepreneur.

“We must change the perception of our customers by selling them products that are responsive to market needs so that we attract and retain them,” added Mr Kimurwa.