Brands Who Change Identity Many Times Lose Consumers
I want to start off by saying, this isn’t always the norm, but many times becomes the reality. Supplement companies are always trying to stay ahead of the curve and market their products to the demographics they feel will produce the most revenue for the brand. However, this can come back to bite them in the butt if they change identity and no one really identifies with them anymore. I’ve seen it happen, and it isn’t a pretty sight.
In this article, we will dive a little deeper into why a brand may change identity and how they can lose consumers if they fail in doing so.
Why Would a Brand Want to Change Identity?
There are various reasons why a brand might want to change identity. Some common reasons to change identity include:
- Rebranding: A company may undergo rebranding to refresh its image, update its values, or adapt to changing market trends. This could involve changes to the brand name, logo, color scheme, and overall visual identity.
- Mergers and Acquisitions: In cases of mergers or acquisitions, companies may choose to create a new brand identity that reflects the combined entity. This helps in presenting a unified image and signaling the integration of the two entities.
- Market Repositioning: Brands may change identity to reposition themselves in the market. This could involve targeting a different audience, changing the perceived value of their products or services, or entering new markets.
- Outdated Image: If a brand’s identity becomes outdated or no longer resonates with its target audience, they may want to change identity to stay relevant and competitive.
- Legal Issues: Legal challenges, such as trademark disputes or the need to distance from a negative association, may prompt a brand to change its identity.
- Global Expansion: When expanding globally, brands may need to adapt and change identity to suit different cultural preferences and avoid potential misunderstandings.
- Strategic Shift: A change in the company’s strategic direction, business model, or core values may necessitate a rebrand to reflect these changes accurately.
- Negative Public Perception: If a brand faces negative publicity or a damaged reputation, a new identity can be a way to distance itself from past issues and start afresh.
- Digital Transformation: In the era of digitalization, brands may change identity to better align with online platforms, social media, and digital communication channels.
- Stay Competitive: To stay competitive in a dynamic market, brands may change their identity to differentiate themselves and capture the attention of consumers.
It’s important for brands to carefully consider the implications and potential impact if they want to change identity, as it can influence customer perception, loyalty, and overall market positioning.
Brands That Change Identity = Lose Consumers Quickly
When brands change identity, many people no longer know who they are. Maybe they were in the bodybuilding scene and decided to go mainstream. Well, the mainstream people knew they were a hardcore supplement company and the hardcore supplement users are now seeing them softening up and going mainstream.
So, where does that leave you when you change identity? Unfortunately, somewhere in the middle—also known as no-man’s land.
What now happens is, a brand is going to end up dumping millions of dollars into restructuring their entire brand, marketing to appeal to a new demographic, new labels, new products, maybe even new employees. Will it be worth it in the end to change identity? It not always will.
The worst-case scenario here is that they pour a ton of money into rebranding and it doesn’t produce the sales they were looking for, and they either need to restructure and rebrand AGAIN (change identity) or they could even go out of business if they blew all of their money (or sell the entire business of course).
How Would I Solve This Problem So Brands Don’t Lose Consumer?
I’m probably going to make this sound way easier than it is, but it’s the concept that I think should be implemented when a brand wants to change identity. To me, it’s a simple business model and strategy for growth. So, here goes.
As a business owner, you never walk away from one revenue stream that is bringing in money. Why cut off your nose to spite your face? Keep that steam of income coming through the door and start building a new revenue stream.
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