Key Reasons Why Businesses Choose to Rename and Rebrand

For decades, companies have been renaming and rebranding themselves for a variety of reasons. This process involves developing a new name and legally registering the entire business under that new name, commonly known as "rebranding." Different companies have different reasons for renaming or rebranding. Some companies change their corporate branding, others update their products, and some even do both. For example, the well-known company Facebook changed its brand name to Meta, stating that it had changed its corporate brand but not the product brand.

In this article, we will explore the various reasons why brands rename.

Examples of Successful Companies That Rebranded
Reasons Why Businesses Choose to Rename

Examples of Successful Companies That Rebranded

The following are some examples of popular brands that have successfully renamed themselves:

Facebook (now Meta)

In the year 2021, Facebook announced that it has changed its company name to Meta. The reason for this change is that Mark Zuckerberg declared the new name as he uncovered plans to create a "metaverse"—an online environment where people can play games, work, and interact in a virtual atmosphere, often using VR headsets. He even stated: The word "meta" comes from the Greek term meaning "beyond". To an outsider, a metaverse may look like an upgrade of VR, but some people believe it could be the internet of tomorrow.

Grofers (now Blinkit)

Grofers, a grocery startup founded in 2013, changed its name to Blinkit in response to increased competition in the q-commerce space. It promised its customers a 10-minute delivery.  This was the main reason for the brand to change its name.

UrbanClap (now Urban Company)

The company, formerly known as UrbanClap, changed its name to Urban Company. The company was established in November 2014. It offers different subcategories, including urban beauty, urban spa, and urban grooming. The company rebranded itself with the motive of creating a global footprint with a globally acceptable name.

Even in the past, giants like Google and KFC changed their brand names. In 1996, Larry Page and Sergey Brin called their initial search engine "BackRub" (now Google), and KFC was previously called Kentucky Fried Chicken.

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Reasons Why Businesses Choose to Rename

Here are some common reasons why brands rename:

Rebranding

Rebranding is the process of changing the name, logo, or overall image of a company or product to create a new and updated brand identity. It is done to better connect with customers, differentiate from competitors, or address changes in the market. Sometimes, a company may feel that its existing brand identity no longer aligns with its mission, values, or target audience. In this case, they may choose to rename and rebrand their business to better reflect their new direction.

• A shift in values: When a company's values change, it may choose to rename its brand to better reflect its new direction. For example, Weight Watchers rebranded as WW to focus on overall wellness rather than just weight loss.
• Target audience: If a company's target audience shifts, it may choose to rename to better appeal to its new demographic. For example, Dunkin' Donuts rebranded as just Dunkin' to appeal to younger, on-the-go consumers.

Legal Issues

A company may have to change its name due to legal issues, such as trademark infringement or copyright violations.

• Trademark infringement: If a company is found to be infringing on another company's trademark, it may be forced to change its name to avoid legal action.
• Copyright violations: Similarly, a company may have to change its name if they are found to be infringing on another company's copyrighted material.

Merger or Acquisition

When two companies merge or one company acquires another, they may choose to rename the resulting entity to reflect the new ownership structure.

• Combining two names: Sometimes, two companies will combine their names to create a new brand name that reflects their shared ownership. For example, ExxonMobil is the result of a merger between Exxon and Mobil.
• Choosing a new name: Other times, the merged company will choose a completely new name to reflect its new identity. For example, in 2010, UAL Corporation and Continental Airlines completed the merger and changed the name to United Continental Holdings.

Modernization

A brand may choose to rename to modernize its image and appeal to a younger audience, especially if its existing name feels outdated.

• Shorter names: Many brands are choosing to rename themselves with shorter names that are easier to remember and type. For example, Google's parent company Alphabet was originally named Google Inc.
• Catchier names: Brands may also rename themselves to create a catchier, more memorable name that is easy to remember by the customers.

Geographical Expansion

A company may choose to change its name when it expands into new geographical regions, to ensure that the brand name is relevant and recognizable to local consumers. For example, KFC is called PFK in Quebec, Canada.

Conclusion

Hence, there are numerous reasons why brands choose to rename or rebrand themselves. The ultimate goal is to achieve brand growth by reaching more customers and making profits in a highly competitive market. However, any brand looking to change its name or rebrand must be prepared for both the potential benefits and negative consequences. While a successful renaming can lead to increased profits and growth, it can also result in losing loyal customers and decreasing brand valuation. Companies should carefully consider their reasons for renaming and ensure that they are prepared for all possible outcomes before making any major branding decisions.

FAQs

Why do brands rename?

Rebranding, modernization, merger or acquisition, legal issues, and geographical expansion are all common reasons for brand renaming.

Which popular brands have renamed themselves?

Some of the popular brands that have renamed themselves are Facebook (now Meta), Grofers (now Blinkit), UrbanClap (now Urban Company), Kentucky Fried Chicken (now KFC), and more.

What is rebranding?

Rebranding is the process of changing the name, logo, or overall image of a company or product to create a new and updated brand identity. It is done to better connect with customers, differentiate from competitors, or address changes in the market.