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Though corporate re-branding is fraught with the danger of failure, big names in the business world go in for it
Monika Kapur in Dubai

Corporations the world over spend ridiculous amounts of money to have designers tell them that their logo should be a different shade of yellow or peach. They show them how it should be done by re-branding existing corporates with names and logos that better reflect them and their positioning. And, after going through the trials and tribulations of changing the organisational identity, the result may not be as expected.
Failure of re-branding programmes – and there are many examples: Consignia, Aviva, Monday, BearingPoint etc – are a warning that re-branding is complex and costly, and carries high risks. These risks come not only from the new brand not matching the changed organisation, but also from the considerable distraction that comes with it. A classic example is that of British Airways (BA). The airlines was in the midst of its tailfin re-branding programme when it lost sight of the impact that the expense of the exercise had on those within the airline affected by other cost-cutting measures, to the extent that a strike cost it a further £125mn.

Despite all the pitfalls, big companies are going for a brand change, at a micro or macro level. But if the results of corporate branding are such, why are corporations opting for it in droves? There are, of course, sound reasons for re-branding – the most obvious being the need to signal that the organisation has really changed. This may be due to mergers or de-mergers, new strategies and cultures or even share market listings.

John Brash, Creative Director of Landor Associates in Dubai, explains, “We advise the client to go for it (re-branding) if there is a genuine need. If it’s just for a face-lift, then we say ‘no’ to it and explain the uselessness of the entire exercise. But if the brand has to reposition itself, then we recommend to the clients to go for re-branding. Whatever we do is based on valid reasons and I would like to stress here that corporate re-branding is not just about changing the logo. It is about repositioning a brand according to the market needs.”

According to Brash, corporate re-branding should only be done if there are valid reasons for it. “Any re-branding exercise should be based on getting the answers to a number of key questions. The first is what will happen if we do not make this change? The next question is what changes are we signalling? The third is whether the key stakeholders and staff are aware and positive about the change and the last is how the competitors will react?”

The success of corporate re-branding depends on how well it is done. And, as assumed, it need not be expensive. “BA’s failure was not because of any loopholes in the branding exercise. I would say it was fantastic. However, they failed to communicate the changes to their staff. We had advised BA on their re-branding programme in 1983 and it was successful, but this time, the airline changed the planes first and did not communicate it int-ernally or externally.”

“They should have gone for the internal changes first, then their product. In fact, I still hear from people that they preferred the old style of BA to the new ones. BA also failed to do some groundwork. Getting consumer insight is of vital importance and one of the basic tenets of corporate re-branding,” emphasises Brash.

“Sometime back, we had advised an airline company to change their logo. We changed the colour of the lines on the airplanes, which helped in reflecting the sun’s rays. The result was less absorption of heat by the aircraft and less energy was needed to keep the temperature cool inside. This helped the company save money.”

It is very important that a company repositions itself according to circumstances, even if that means just going for a logo change. It is relevant in some cases. The latest case is of Apple, which went in for a logo change. “Big companies like Apple, Nike and Disney, have all gone for a logo change. It is of critical importance that the logos of these companies reflect the brand. If you recall, Apple has moved from being a niche company to a more mass market one. Thus, it changed the logo accordingly. This does affect the business,” believes Brash.

The same is the case with Intel. The new brand identity involved changes to the widely recognised Intel Inside logo that was created in 1991, and the original Intel ‘dropped-e’ logo. “Intel’s new logo combines the essence of both of these powerful symbols, building on Intel’s rich heritage, yet also signaling the new direction the company is headed today. It also includes a new tagline: ‘Intel. Leap ahead.’ This tagline is Intel’s unique brand promise and is designed to communicate what drives Intel as a company, and what Intel makes possible,” says Gordon Graylish, vice-president, sales and marketing of Intel for East Africa and Middle East.

The changes in the logo reflect the larger changes happening within the company. “Intel wants to move from the world of microprocessors to things like digital entertainment and digital health,” added Graylish. Sometimes, like in the case of DMCC, the reasons are borne out of necessity – to avoid confusion – as opposed to doing it purposefully. Significant growth in the commodities sector has led the erstwhile Dubai Metals and Commodities Centre (DMCC) to announce a change of name to the Dubai Multi Commodities Centre (also DMCC). The new name has also been endorsed by an amendm-ent to the decree from the Ruler’s Court, which established the DMCC Authority in 2002.

The change reflects DMCC’s growth and the evolving scope that will see the creation of new products and services in various commodity sectors including energy and agricultural commodities, aside from precious commodities. “The move from ‘metals’ to ‘multi’ reflects DMCC’s increasing scope of activities and its status as a full-fledged multi commodities centre,” says Ahmed bin Sulayem, COO, DMCC. “Our objective is to extend DMCC’s range to other commodities, with the objective of creating a regional hub for these industries.”

“The re-naming of DMCC reflects our business strategy more precisely,” says Gaiti Rabbani, chief marketing officer, DMCC. “The current name, whilst well recognised and respected as an acronym, DMCC, is restricting in its full form with a specific focus on ‘metals’. We anticipate that this change of name will build on DMCC’s successes and open doors to new sectors and markets, strengthening the brand further.”

“DMCC has attracted over 720 registered free zone businesses representing various commodity sectors, mainly gold and precious metals, diamonds and coloured stones, tea and energy. With the new name change and direction in strategy, DMCC will be well positioned to attract international and businesses across a much broader spectrum of commodities’ activities.”

ICDL GCC Foundation, the governing body of the International Computer Driving Licence (ICDL) programme in the Gulf states has announced that it is re-branding its corporate identity in line with the European Computer Driving Licence Foundation’s (ECDL-F) decision to globally re-brand its corporate identity and unify its digital literacy programmes.

Speaking of the change, ECDL-F CEO, David Carpenter, says, “The ECDL/ICDL digital literacy programme is internationally recognised as the global standard for end-user computer skills. As brands operating in a constantly evolving global marketplace, it is vital that the ECDL and ICDL remain unified as the globally accepted standard for digital literacy they are today. This measure is part of an overall strategy of continuous improvement. In addition to strengthening the overall brand, the new logo allows for more fle-xibility as we continue to grow the suite of ECDL and ICDL products.”

To ensure that the re-branding exercise is successful, Brash elaborates on the finer points. “Firstly, define your speciality. How different are you as a brand? You need to have a relevant differentiation. If you have spotted that, then the second step is to go for consumer insight. It may give you ideas that you never even thought of. Thirdly, communicate the whole exercise to the staff and all the changes that it entails. All sta-keholders should also be involved. Finally, go ahead with the changes,” concludes Brash.