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Marketing Viewpoint by Ruth Winett

Is Rebranding a Panacea or a Problem?

Rebranding won’t solve all business problems.

To increase growth, Cracker Barrel Country Store recently updated its logo and its menu. The old logo features the founder’s Uncle Herschel, a cracker barrel, and a cracker with "Cracker Barrel Old Country Store." Now, a smaller "Cracker Barrel" is centered on a plain background without a cracker and wit?hout a barrel. Although the colors and font are the same in the two logos, the new logo is boring and lacking in context or meaning. Instead of increasing sales, the change angered loyal customers. Some even had objections to the new logo’s implied politics!

Brands have an emotional impact. Organizations that rebrand without exploring what their audiences feel about their existing logos may baffle or anger their audiences. Massachusetts is discovering this as it seeks input on new designs for its controversial flag and its motto. Of the three flag finalists, two designs lack obvious significance.

Do you have a good reason to rebrand?

Some companies rebrand to seek a change. Other reasons are:

To boost sales by attracting new customers and exciting old customers.
To generate excitement and draw attention to the company and its offerings.
To more accurately represent the company after an acquisition or merger. Northwest Airlines became Delta Airlines, requiring a rebranding.
To mark the addition of a new strategy, product, service, or new market. Dunkin’ represents a broader menu than Dunkin’ Donuts.
To recover from a failure or to improve a reputation. The Phillip Morris Companies became the Altria Group to turn attention towards its non-tobacco businesses.
To replace a controversial logo that reflects outdated values. Aunt Jemima Pancake Mix became Pearl Milling Company to better reflect Pepsico’s values.

However, companies rebrand at their peril. Rebranding can use up 5%-10% of a company’s marketing budget, reports Jason Vaught of SmashBrand. And, despite the cost, rebranding may not have a positive effect. Andrea Surnit writing for DesignRush recommends that you start with an understanding of your customers and what your brand means to them. She then recommends taking three steps:

First, test your new brand on existing customers before launching the new brand.
Second, "transition, don’t shock." Roll out the new brand in phases and involve your audience.
Third, explain in words the reasons or "the story" behind the rebranding. Surnit adds that although an organization may be looking for a change, rebranding is about the audience, not the organization.

Rebranding is expensive, and it must be done thoughtfully. It requires a rationale, a budget, an involved audience, and careful planning. Although an organization may initiate a change, rebranding is about the audience, not the organization, according to Surnit. "Audiences don’t reject change because they hate new ideas; they reject [them] when it’s sudden, unexplained, and emotionally jarring," Surnit says. Finally, the time and resources spent on a failed rebranding could have been spent more productively.

Sources:

"Going Crackers," Devra First, The Boston Globe, 8/27/25.

"Massachusetts decides on finalists for new state flag, seal and motto to replace controversial ones"

inkdotdesign.com

“Gap’s $100M Logo Disaster Is Still a Branding Case Study 15 Years Later,”

“Breaking Down the Cost of Rebranding,” Jason Vaught,

Altria Group | Moving Beyond Smoking

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