Have you ever witnessed a brand’s identity crumble before your eyes? Have you ever wondered how a single decision could join the ranks of the worst rebranding failures in corporate history? Rebranding is a risky move. Sometimes, it’s a story of a phoenix rising from the ashes; other times, it’s akin to a butterfly trying to crawl back into its cocoon.
A rebranding project can help companies double their market share when done right. It grows the brand identity and increases the market positioning. But failing to implement the strategy can turn the results around.
In this article, you will learn about different rebranding failures of the last few decades. You will get the opportunity to learn from their mistakes and avoid these pitfalls during your journey. So, let’s begin!
Major Worst Rebranding Examples
There are hundreds, if not thousands, of failed rebrand strategies. Many companies have experienced a significant drop in their sales, market share, and brand identity. Here are some of the significant rebranding examples that have turned into disasters.
Twitter Turning to X
The first and the most recent example of the worst rebrand is Twitter. Elon Musk, owner of SpaceX and Tesla, acquired Twitter in 2022. Soon after acquiring the brand, the new owners decided to rebrand the company, and in July 2023, they implemented the new brand.
During this rebrand, Elon Musk changed its old logo design from a blue bird mascot into an odd letter X. Although the new logo was aimed to be more modern, it didn’t work well. He also changed the company’s name from Twitter to X, making the existing customers unhappy.
Musk’s vision was to transform the social media platform into an “everything app” encompassing social networking, banking, and shopping.
Tropicana’s Packaging Redesign Disaster
Another well-known rebranding example that could have done better is the Tropicana’s rebrand. In 2009, the company hired Arnell’s group for its packaging redesign. The company aimed to squeeze a new look into its brand. But little did they know their efforts would become a classic example of bad branding.
The company released a new visual identity that completely overhauled its graphic design. When rebranding package design, the company replaced familiar imagery with something meant to be modern but ended up unrecognizable to their loyal customers.
The original packaging featured a bold orange with a straw that had become iconic and synonymous with the brand. As a result of this move, the company experienced a 20% drop in sales in just two months. The main mistake that turned the rebranding campaign into a disaster was a lack of knowledge about consumer perceptions.
Verizon Logo Redesign
In 2015, Verizon aimed to simplify and modernize its logo design. The company replaced its iconic logo with a new one. Their primary design plan was to shift the check at the end of the brand name. The new logo was supposed to enhance the brand recognition, but it didn’t work well.
The new logo removed the iconic checkmark symbol from the center and made it smaller. It led to a loss of the logo’s distinctive feature. It also lacked the personality and playfulness of the original logo. These factors made the new graphic design less engaging and recognizable to customers.
It indicates the importance of market research and explains why rebranding strategies need accurate information about consumer perceptions. The main lessons learned from this rebranding disaster include:
- Simplify, but don’t make the logo boring.
- Maintain iconic elements to avoid alienating customers during logo rebranding.
- Ensure that the logo is visually striking, simple, and instantly memorable.
- Incorporate symbolic elements into the logo design to communicate the brand’s values.
- Test the logo’s versatility and adaptability across various mediums and sizes.
The Irrelevant Swoosh of Capital One
The Business Insider published its worst rebranding disaster list, including Capital One as one of the worst branding mistakes. The company tried to relate to consumers at a higher level. The new logo lacked the previous design’s calm, clear, and professional qualities, making it less appealing to customers.
Incorporating a new boomerang “swoosh” in its awful beveled gradient was also a mistake. The rebranding mistake was costly for the company, as it held onto the new logo for a relatively long time despite many people expressing their dislike of it. It wasn’t until much later that the company decided to simplify its logo again. finally
Gap’s Short-Lived Logo Redesign
The Gap’s attempted logo redesign is a prime example of a rebranding process gone wrong. In 2010, as part of an ambitious brand development initiative, Gap released a new logo to signal a modern era for the clothing retailer. However, replacing the classic blue box with a plain sans-serif font was met with immediate and widespread disapproval.
Critics and consumers alike harshly criticized the redesign, lamenting its lack of the distinctive character and simplicity that had long been synonymous with the Gap brand. This hostile reception underscored a significant gap between Gap’s brand strategy and audience expectations.
Swiftly responding to the backlash, the company reversed course within one week. The Gap’s logo fiasco serves as a valuable lesson in effective rebranding. A successful rebranding effort should respect a company’s heritage while propelling the brand forward, ensuring that loyal customers feel included in the brand’s evolution rather than alienated.
Rebranding of Cardiff City
Rebranding failures are not only limited to CPG and FMCG markets. In 2012, the club owners of Cardiff City initiated a rebrand, which turned out to be one of the worst rebranding disasters in sports history. During this rebrand, the owners changed the team’s traditional colors from blue to red. It was a bold move in presentation design as it was catastrophic for the brand value.
This rebrand aimed to appeal to a broader international market, particularly in Asia. But it backfired spectacularly. Loyal fans were uproar over the change, feeling that the club’s identity and heritage had been disregarded.
The bluebird was relegated to the background of the new badge, while a red dragon tool was prominent. This seismic shift in the club’s visual identity was seen as an insult to the community and history that the fans held dear.
Saint Laurent Rebranding
In 2012, Hedi Slimane took the helm at Yves Saint Laurent. His decision to rebrand the iconic fashion house to Saint Laurent was met with controversy. During the rebrand, the company changed its name and visual identity. One of the main drawbacks of the Saint Laurent rebranding was the perceived erasure of the brand’s rich history.
The removal of the founder’s first name, ‘Yves,’ from the brand name was seen as a move that disregarded the legacy of the influential designer. This decision struck a chord with fashion enthusiasts and loyal customers who felt a strong connection to the brand’s original identity.
Sierra Mist to Mist Twist
The rebranding of Sierra Mist to Mist Twist is often cited as a failed rebrand, illustrating a significant branding mistake. The change confused consumers, diluting the established brand recognition and straying from its natural essence—a unique selling proposition. This misstep alienated loyal consumers and muddled the brand’s message, failing to provide a compelling reason for such a radical shift. The result was a weakened brand connection and a negative impact on sales.
Hershey’s Logo Change
In 2014, Hershey introduced its new logo with a more simplistic design. This move was met with mixed reactions. The logo aimed to modernize the brand identity, featuring a flat, simplified version of the iconic Hershye’s kiss. This change sparked considerable debate within the inbound marketing community.
Some consumers praised the cleaner and more versatile look. Others felt that the new design was overly simplistic and lost the distinctive charm of the original logo. Critics argued that the new logo didn’t effectively communicate the rich heritage and emotional connection many associate with Hershey’s products. This reaction underscores the delicate balance between modernization and maintaining the core elements that resonate with consumers.
Best Buy’s Rebranding
Best Buy’s rebranding in 2018, which was intended to signal a new era for the company, can be seen as a failure in terms of customer impact. The rebranding included subtle changes, such as an updated logo where the yellow tag became smaller and was repositioned and a refreshed website design.
These changes were executed to modernize the brand while maintaining the established brand recognition that Best Buy holds in the United States. But, despite these efforts, the rebranding did not make a significant impression on customers. One reason could be that the changes were too minimal to be noticed or to alter consumer perception in a meaningful way.
The rebranding may not have been distinct enough to generate excitement or conversation among consumers, leading to a lack of significant impact. It suggests that while Best Buy’s rebranding maintained consistency, it did not achieve the revitalization or differentiation that can be crucial for a rebranding to succeed.
Conclusion and Key Takeaways
- Understand Your Audience: Many failed rebrands, like Tropicana’s 2009 redesign, ignored consumer attachment to the original branding, leading to a swift backlash and a costly reversal.
- Preserve Brand Equity: Companies like Gap and Cardiff City overlooked the value of their established brand identity, resulting in rebrands that felt alien to loyal customers.
- Communicate the Change: A rebrand like Hershey’s logo update in 2014 can lead to confusion if not accompanied by clear messaging on the reasons and benefits behind the change.
- Avoid Change for Change’s Sake: Rebrands that seem arbitrary, such as the Sci-Fi Channel’s switch to Syfy, can be inauthentic and fail to resonate with the target audience.
- Test Before Launching: Companies should conduct thorough market testing before a full rollout, as exemplified by the New Coke debacle in the 1980s.
- Be Mindful of Cultural Context: Rebrands like the Cardiff City color change did not consider their audience’s cultural and emotional connections, resulting in a loss of fan support.
- Consistency is Key: Inconsistent application of a new brand identity, as seen in some website rebrandings, can dilute brand recognition and confuse consumers.
- Evolution Over Revolution: Gradual changes, rather than radical redesigns, can often be more effective and less jarring, as shown by the subtler approach taken in Best Buy’s rebranding efforts.
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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.
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