In with the new, out with the old, it is all about re-branding

06 Apr

Re-branding: (n) changing YOUR image to that of a super-uber-cool YOU…..hahahahahaha!!!! 🙂

This blog article was inspired by a very good friend of mine, Es Ntshu. Check out his blog, he writes about fashion and the like.

Since this article will follow an academic approach, I suggest that you click on this blog post to read more on re-branding.

So what is corporate re-branding? It is an easy term to understand, let me say that take your mum for instance, she just got a bonus cheque and decides to do a kitchen makeover. That is an example of re-branding. So, back to business, corporate re-branding can be defined as the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated (new) position in the mind of stakeholders and competitors.

More recently we have seen one of the companies in the telecommunication sector changing its colour from blue to wait for it, wait for it RED. Vodacom is now red. The reason behind Vodacom changing its image, it wants to have the same image as its parent, Vodafone. The re-branding of a company is not just happening because the marketing manager and his team are boring bunch of people and they have nothing to do in the C-Suite. In fact, its significant goes a long way, and if stakeholders positively welcome it, we can see the company performing more than its competitors in terms of revenue and more customer attraction.

How costly is re-branding?

We might think that Vodacom marketing team just woke up last week and said “We are changing our image”. No it takes a lot of planning and budgeting. Just like you and me, considering Plastic surgery, we will need to save and plan for a new image for a dear life. Re-branding just not happen at a wink of an eye, a lot is happening in the drawing room.

Re-branding comes at a cost. Vodacom used approximately R200 million (just over $3500000) to re-brand and introduce their new image.  When Pick ‘n Pay was rebranding its image, it came at a cost of R110 million (just above $15 700 000). So ya, when marketing team considers rebranding, they definitely take cost into account. The time factor is also another aspect that cannot be discounted when the new re-branding campaign is in mind. It takes a great deal of time to re-brand a product, because you need to do an extensive research and feedback from stakeholders. It can take two years and more to re-brand a product or a firm.

Epic fail!!!!!

As much as re-branding has its distinctive advantages, re-branding could badly harm the product, the profitability of the firm and its ability to attract new clients.

Who else rebranded his firm or his product?

In recent times few firms rebranded their products and some went to the extent with their firms. Do these firms ring a bell, Cell C, PriceWaterHouseCoopers; Pick ‘n Pay and Standard Bank?

Have a look on the picture of the old Vodacom and new Vodacom below, and on the comment box, tell me what you make of the new Vodacom brand.

distinctive feature: The globe

Distinctive feature: The red speech bubble


I write this article as an individual with  deep interest in business matters and I thus not receive advertising revenue from the companies mentioned herein. How I wish I received advertising revenue.


Posted by on April 6, 2011 in Business


5 responses to “In with the new, out with the old, it is all about re-branding

  1. TL4thefuture

    April 7, 2011 at 11:33 am

    The new Vodacom look is barely different from its parent Vodafone. In fact if you replace the text beneath the logo with the vodafone text, you find that there is no difference. in terms of uniqueness I am not impressed. On the other, The way they launched was quite great and I thinks its about time that Vodacom had a complete change of image.

    • Dumi-rocks

      April 7, 2011 at 10:10 pm

      The aim was not to be unique. Since 2009 Vodacom has been the subsidiary to Vodafone. They could have changed the name to Vodafone South Africa, but because of the value of the brand that was not a good idea. They take vodafone image, they keep vodacom name. A good thing, what do you think?

  2. NATHI

    April 10, 2011 at 8:11 pm

    well, i personally think it does matter if the have planned everything in order to cover up the cost that might occur but looking at South Africa as a whole and the benefits of the new Brand, They might earn more subscribers…
    i am actually loving this move because i am already benefeiting.

  3. Student

    April 28, 2011 at 12:17 am

    Vodacom were always the leaders,
    They had to respond to cell c somehow….. Show them how to really re-brand!.
    And besides, now the customers get some cool deals (data especially – Thanks vodacom!!)


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