Companies fiddle with various branding ideas and concepts to establish a positive and affirmative brand image of the company and its products or services. Before understanding why a brand image may need a rigorous change of basic brand elements, we need to understand correlation of certain concepts related to branding.
When the customers think, positive or negative about the company, brand image is involved. A good brand image will give an inducement to the customers to buy the products or services and vice versa is the case. Since it directly impacts the sales, brand image has been the most important of all. Similarly, brand equity also plays important role, especially for mergers and acquisitions. This is the financial yardstick which is value of brand estimated in terms of future profit.
So, if the companies wish to build up a good brand image and raise brand equity, then it is very important thing is to improve customer service and excel at refiguring or totally reconstructing brand image, commonly known as brand overhaul.
Out of control issues
When your brand gets associated to something very bad or to something which would upset the customers or potential customers, the it is the time for brand overhaul. However, in most of the situations, overhauling would be followed by totally withdrawal of the product or services from the market, if such brand elements reconstruction is not cautiously planned.
Life revolving situation or event
If such event is positive, it surely would be welcome since it will build up brand equity. However, if something like a scandal happens, then it is very difficult to join the pieces of broken mirror. For e.g. Volkswagen had to recall its cars since the authorities found out that the company was cheating with respect to carbon emission and this really impacted hard on brand image of the company.
Conglomerate expansion
Sometimes, to expand and earn, the companies enter various product line, mainly due to acquisition of companies which operate in totally different products and services which differ from company’s forte. This would adversely impact if the brand elements are not cautiously built up.
No real-time updates
Real time adaptation of goods and services would require that the company at the same time keeps an eye on external happenings and how it impacts the brand image. If there is void between external environment and company’s products, then it is time to overhaul.
