Brand value falling down and what is rebranding

Brand value falling down and what is rebranding

What determines the value of the Brand ?

  •  Price and Quality.
  • Customers satisfaction and loyalty.
  • Subjective perceptions of leadership and popularity of the brand.
  • Specific features of the brand.
  • Association with brand manufacturing company.

The total values of the brand are considered predictable and it generates cash flows at the time of their present value. Despite certain difficulties, modern technologies allow to assess the value of the brand.


At the same time the price of the brand can not only continue to grow, but also to decrease rather quickly due to wrong actions of firms or adverse conditions for its successful development. Brand reputation can be destroyed in a matter of days like Volkswagen emission scandal in September 2015. To destroy consumer confidence is capable of a significant deterioration in the quality of products, force factors and other circumstances.

Regardless of the causes of the critical situation, in most cases, the fate of the brand is still in the hands of the organization and depends on the correctness of the action it has taken. Quite often there is a situation in which the company has created a brand, it is forced to significantly adjust. The reasons for such a step, called re-branding can be a bit:

  • The distinctive features of the brand lost its originality;
  • The brand does not have a strong image;
  •  Company-created brand changes the direction of its activities;
  •  Organization is entering new markets in which the old positioning model is not acceptable.

Repositioning the brand may be expressed as a change in physical factors (creating a new composition, packaging, and so on. D.) And psychological aspects directed to its correct perception. By rebranding, should examine the entire customer the way: from the appearance of the need for the product before making a purchase. One of the common ways to change the brand is the so-called competitive repositioning. It is expressed in the desire to take someone else’s company position in the market, surpassing competitors. Instead, create your own original idea, the adherents of this path are guided in the actions on existing successful projects. Often in the process of rebranding the company resorted to the methods of changing the composition of the product, its target audience or the price. All these methods share a common trait – the high cost and poor predictability of the result. However, in some cases, changing the characteristics of the brand, its place in the market, may be the only possible way to save him.

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