The Worst Rebranding Failures From The Biggest Names.

Rebranding can be a powerful tool for businesses looking to revitalize their image, attract new customers, and build more robust brand recognition in a rapidly changing market. Yet, there are risks associated with rebranding efforts.

A poorly executed rebrand strategy can backfire, leading to confusion, customer alienation, and financial losses. There are live examples in the market that one can learn from by analyzing one’s mistakes. This article will explore some of the recent most notable rebranding failures.

On top of that, we will examine the challenges and potential pitfalls associated with rebranding. Whether you’re considering starting the rebranding process for your business or simply interested in the fascinating world of branding and marketing, this article will surely provide valuable insights and lessons learned.

Understanding The Rebranding Process

To better understand all the risks associated with a rebranding campaign, it is essential to understand the whole process first. It changes a company’s main brand elements, including rebranding the logo design, slogan, and image. 

Companies rebrand for various reasons, such as staying relevant in a changing market, shedding negative associations or outdated perceptions, expand into new markets or product lines, or merging with or acquire another company. Companies may develop a whole new brand image to match the needs of the changing market. 

The process typically consists of multiple stages. It starts with detailed market research to learn about the company’s brand image. Furthermore, market research allows businesses to understand their brand positioning. The next step is the development and implementation of a new brand strategy. 

A successful rebrand strategy relies heavily on testing and refining the new brand elements and conveying the new brand identity across all touchpoints. The new branding elements must resonate with the target audience and match the market needs. 

What Causes Rebranding Failures?

A poorly executed rebrand can lead to confusion, loss of brand recognition, and even a decline in sales. Unfortunately, failed rebrands are more common than we’d like to admit, and even the most prominent companies can make mistakes. So, what causes terrible rebrands? Here are some of the most common mistakes to avoid:

Lack of Market Awareness

A rebrand that doesn’t align with the market can seem irrelevant and out of touch. To avoid this mistake, companies must research their industry, niche, and competitors in advance. Understanding the market is crucial to creating a successful rebranding campaign that resonates with customers.

Failing to Research Your Audience

A significant rebrand should always resonate with a specific target audience. Companies that dive into a rebranding campaign without a clear view of their customers and preferences risk alienating their audience. When considering the cost of rebranding, companies must invest to research to understand customers’ needs, preferences, and pain points to avoid this mistake.

Rebranding for the Wrong Reasons

Rebrands are expensive, complex, and time-consuming—companies implementing rebranding to keep up with trends or copy the competition risk missing the mark. A rebrand should follow a clear vision and purpose, not just a desire to be trendy or competitive.

Removing Valuable Brand Elements

Customers build relationships with specific elements of a brand over time. Eliminating the parts of your brand that make you compelling could mean you lose touch with your customers. A rebrand that removes valuable brand elements can lead to confusion and alienation among your existing customers.

Companies must take a thoughtful and strategic approach to rebranding to avoid these common mistakes. A successful rebrand requires careful planning, research, and execution. Companies should be mindful of their market, audience, and brand elements when considering a rebrand. 

Read More: The Ultimate Rebranding Checklist.

Top Rebranding Failures

Now that you have learned how the rebranding process works, you might have learned how a single branding effort can sometimes become a nightmare. Let’s examine recent rebranding failures to understand what went wrong.

Twitter Turning to X

In 2023, Elon Musk purchased Twitter and started making significant changes to the platform almost instantly. These updates resulted in negative responses from users, and the rebranding effort was considered a failure.

Twitter’s original identity was long considered an incredible lesson in branding, with the name, logo, and color all contributing to the brand’s personality and value proposition. The bird icon was friendly and welcoming, while the name made us all think of short conversations and communication, the platform’s core components.

But recently, Musk rebranded the website by changing the bird logo and name to “X,” which seemed to make no sentence to experts and consumers. The new name doesn’t say anything about the platform, and it seems to be trying too hard to be “modern” and edgy. But one thing is sure: the new brand strategy didn’t re-engage or enthuse the audience. 

Lessons learned from this rebranding failure:

• Rebranding efforts must not be only for the sake of being “modern” but should be meaningful and resonate with the target audience.
• Research and data must support rebranding efforts to ensure success.

Facebook Turning to Metaverse

In 2021, Facebook attempted to rebrand itself as Meta to reflect its ambitions of becoming a metaverse company. The new name represents the company’s broader vision and plans beyond its social media platform.

But things didn’t go as planned. Many people mentioned the challenges with pronunciation and readability, and some even felt that the new name was too vague and failed to capture the essence of the company’s core offerings. 

The company’s attempt to pivot to a metaverse-focused company failed to win over investors, with many questioning the viability and profitability of the metaverse concept.

Lessons learned from this rebranding failure:

• The strategy for successful rebranding must align with the brand’s values and vision.
• Rebranding efforts must fully integrate into the product and user experience, not just a surface-level change such as a new logo or typeface.

Read More: 24 Critical Rebranding Questions To Ask.

Petco’s Rebranding Misstep

In 2020, Petco, a well-known pet supply retailer, decided to undergo a significant rebranding transformation. They shifted from their long-standing identity as “Petco Animal Supplies” to “Petco, The Health + Wellness Co.” While rebranding can breathe new life into a business, this particular makeover left many customers scratching their heads.

One of the most striking changes was the removal of Petco’s beloved mascots, Ruff and Mews, from their logo. These iconic figures had become synonymous with the brand over the years, and their absence left a void that loyal customers noticed immediately.

The new design disheartened customers accustomed to the old Petco logo, with its illustrated mascots and vibrant color palette. Some described it as “cold and lifeless,” a far cry from the friendly and inviting image the brand had cultivated.

The rebranding decision sparked a backlash among Petco’s customer base. Consumers launched online petitions, urging the company to revert to the old logo. It became clear that the logo held significant sentimental value for many customers, emphasizing the importance of understanding your audience’s emotional attachment to your brand.

Lessons learned from this rebranding failure:

• A brand’s logo is more than just a symbol; it represents the personality and identity of the company. When rebranding, ensure your new logo aligns with your brand’s established personality and values.
• Before making significant changes to your brand’s identity, gauge customer sentiment. Understand the emotional connection your audience has with your logo.
• Even if you’re expanding or evolving your brand, maintain consistency in your identity. 

GAP Rebranding Failure

In 2010, GAP boldly moved to revamp its corporate identity with a new logo. Unfortunately, the rebranding attempt turned into a cautionary tale for businesses worldwide. The $100 million logo fiasco is a stark reminder of how not to approach a rebranding campaign.

The first mistake that the company made was that it rushed into rebranding without a comprehensive strategy or proper groundwork. The lack of planning and preparation led to a design that missed the mark. Consumer preferences and expectations were never adequately considered. 

The new logo bore scant resemblance to the familiar emblem customers had come to love, leaving them bewildered and alienated. GAP’s failure to explain the reasons for the change left customers confused and frustrated. The company did not articulate why the change was necessary, what vision they were pursuing, or the essence behind the rebranding.

Beyond the logo, there was no meaningful change in stores or product offerings. The lack of innovation or fresh product lines left customers feeling short-changed. Overall, the critical errors marred the execution of the rebranding. The choice of the Helvetica font for the new logo was already considered passé by design specialists, and customers did not receive the design itself.

Lessons learned from this rebranding failure:

• Communication is vital in explaining the reasons behind the change and ensuring customer buy-in.
• Follow-up actions, such as product innovation or store redesigns, are critical to rebranding.

Radio Shack as “The Shack”

In 2009, Radio Shack attempted to rebrand itself as “The Shack” to modernize its image and appeal to younger consumers. The rebranding effort faced adverse reactions from consumers and tech reviewers, who saw the new name as unnecessary and confusing. 

Many customers were attached to the Radio Shack brand and saw the new name as a departure from the company’s core values and offerings. Instead of a successful rebranding, it alienated core DIY electronics enthusiasts, who saw the new name as a shift away from the company’s focus on electronic components and towards more mainstream consumer electronics. 

Suddenly, the company lost its visual identity and brand reputation, resulting in a drop in financial performance. Radio Shack filed for bankruptcy in 2015, and many analysts point to the lousy redesign as a contributing factor.

Lessons learned from this rebranding failure:

1. Choosing a new brand name that resonates with the target audience is crucial for a successful rebranding effort.
2. Being mindful of the potential consequences of alienating profitable niches is vital in maintaining brand loyalty and financial stability.

Tropicana’s Rebranding

Tropicana is another rebrand example that nears the top of the list for being the worst rebrand. When the company attempted to rebrand it’s product packaging design and abandon its signature old logo. Although the company aimed to get a modern and minimalistic look, it turned into bad branding. 

The packaging redesign removed the iconic orange with a straw and replaced it with a glass of orange juice, which changed the customer perception. The new design also removed the “Pure Premium” label, an essential part of the brand’s value proposition.

It triggered adverse reactions from customers who found the new graphic design confusing and unappealing. Due to this, the sales declined by 20% within two months of the redesign. 

Lessons learned from this rebranding failure:

• Maintaining a signature look and brand equity cannot be overstated. Consumers often have strong emotional connections to brand elements, such as the original logo and packaging, and changing them can lead to confusion.
• Keeping elements that work for the brand, such as the “Pure Premium” label, is essential in maintaining brand value and customer loyalty.

Standard Life Aberdeen

Standard Life Aberdeen attempted to modernize its image by rebranding, dropping the vowels from its name, and adopting a new logo and visual identity. The new name, Abrdn, was meant to reflect a more “modern, agile, digitally enabled brand.”

The rebranding campaign faced criticism and confusion. Many critics pointed out the challenges with pronunciation and readability, while others felt that the new name looked like a typo. The company’s attempt to modernize its brand image ultimately fell flat, and the new branding failed to resonate with its target audience.

Despite the criticisms of the name, some experts have praised the execution of the rebranding effort itself. The company produced a proper rebranding announcement, communicated it consistently, and marketed it more widely than it had done before.

Lessons learned from this rebranding failure:

• Rebranding strategies must be carefully considered and aligned with the company’s values and vision.
• Companies must select brand elements such as names and logos with the target audience in mind, and they should be easy to pronounce and remember.
• Proper communication and marketing of the rebrand are crucial in gaining acceptance and buy-in from customers and stakeholders.

Data-Driven Brand Development That Can Guarantee Sales Performance.

If you need a rebrand with performance predictability, we can help. SmashBrand is a rebranding agency that researches, designs, and tests all products to ensure peak shelf performance. Book a time to discuss your project with our team.