1.1 Introduction
Re-branding is the process of coming up with a new name that symbolizes a notable place in the eyes of participants and a unique identity that sets it apart from rivals (Muzellec et al, 2003). Re-branding can take various forms in the modern business environment and is not limited to situations where a name change has occurred. The attention and contentment of the consumer were reportedly observed, and the market contexts in which the sales campaign is present were also given careful thought. Although companies changing their brand names are regularly covered by the business news, there hasn't been much scholarly research done on this subject yet. It would appear to go against a century's worth of marketing theory and practice to discard an established brand, which is frequently the result of years of consistent investment, and clumsily replace it with a new one.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
In the last few years, as businesses have realized that their brands are among their most valuable intangible assets, product branding has developed into a key managerial objective. Businesses are realizing how important great branding is for enabling customers to quickly identify their products (Ehikwe, 2005). Customers perceive branding as the process of associating a particular, distinctive image or characteristic with a product that sets it apart from competing offerings (Chen, 2007). According to the definition of branding given above, a brand adds value to a physical product in addition to the core product. These might be aesthetic, emotional, psychological, or philosophical values that consumers hold dear in their minds and hearts. Branding is a broad phrase that refers to the formation of brand names (Juwah, 2011).
Rebranding is the act of reevaluating and altering a company's business practices, customer communications, or product values. Schroeder et al. (2006) provide a more thorough definition of rebranding as the act of giving an established brand a new name, word, symbol, design, or mix of these in an effort to create a unique identity in the eyes of stakeholders and rivals.
The trade press routinely covers corporations that rebrand themselves due to the constantly changing business environment. However, renaming a corporate brand means that all of the qualities connected to the previous name will be lost in a short amount of time; this can reverse years of efforts and seriously damage or even destroy the equity of the brand (Zhang and Sood, 2012). Despite the growing attention from practitioners, the phenomenon has not yet been extensively studied by academics. The phrase "corporate re-branding" seems to have been used in relatively few academic studies that have addressed it to far (Ahonen, 2008).
A brand is a name, word, or symbol, or a combination of these, that is designed to identify and differentiate the goods or services of one seller or group of sellers from those of competitors. A brand, according to the definition, is a product and the value-added that personifies it beyond the primary product. According to Onah and Thomas (2004: 239), there are two categories of brands: manufacturer's brands and private brands. They said that branding aids in the execution of other Marketing Management responsibilities such as New Product Introduction, Advertising and other Promotions, Pricing, and so on. It is often assumed that most of the time, what people buy is a brand name rather than quality, utility, or performance.
According to Donnelly and Linton (2009), the rebranding process may entail bringing variations to the whole physic image of the brand or it can comprise more structural aspects like the marketing behind the brand, advertising or simply a change of policy (Donnelly and Linton, 2009). A product, in broad terms, is anything that can be offered to a market to satisfy a want or need, such as physical goods, services, experiences, events, people, places, properties, organizations, information, and ideals (Onwumere, 2005). A product is a good, service, or idea that consists of a collection of tangible and intangible attributes that satisfy the customer and is received in exchange for money or another unit of value (Adirika, 2007).
The proportional importance of product branding in improving a product's sales performance varies depending on the product and company. Its purpose is to bridge the gap between the manufacturer's promotional program and the final buyer's consumption of sales. The majority of producers are ignorant of the significance of product branding. However, there has been a rising interest in upgrading the company's corporate image as well as its brand. Many items on the market must be branded, and branding is one of the factors of a company's product planning efforts. It is concerned with the efforts made by a company in selecting, developing, projecting, and establishing its own brand(s) of products (Ehikwe, 2005).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of Product Rebranding on Organizational Profitability.
1.3 Statement of Problems
Investigation revealed that there are many problems that affect rebranding during sales promotion era in an organization. Today’s organizations are characterized by complex relationship and a high degree of interdependent tasks that can occur. People also have different values and perceptions towards different product for instance. A production manager might decided to change the method of packaging and still retain its brand name in order to stream line few products which eventually might not be satisfactory and acceptable by the consumers.
- The welfare to the work force inquired by the organization is another vital part to be at due to the process of performing their assigned duties.
- The socio-economic system of the consumers if not observed carefully can also be a problem during sales promotion.
- Another problem that can encounter is during the area of rebranding and packaging under which the market environment can be control.
- Customers' tastes and desires to comply to the company's values and attitudes toward purchasing the goods can also cause problems when they are not properly melted.
Furthermore, most businesses have found that one of their most effective tools for boosting customer loyalty is branding. Branding, or the name of the product, may be the seller's only remaining opportunity to sway consumers and set it apart from other offerings in a highly competitive market. Thus, in order to boost product sales, businesses have turned to branding as a kind of advertising (Juwah, 2011).
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Product Rebranding on Organizational Profitability. In achieving this aim, the following specific objectives were laid out as follows:
- To ascertain the types of product rebranding organizations use;
- To ascertain if product branding leads to profitability in an organization;
- To determine the challenges of product rebranding in an organization;
- To determine the benefits of product rebranding; and
- To proffer possible solutions to the problems.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does product rebranding lead to profitability?
- Is the organization running sales promotion, internally or externally?
- Is the rebranding technique adopted by the organization maintaining high quality?
- Is the organization able to satisfy the needs and wants of the consumers?
- What are the benefits of product rebranding?
- What are the types of product rebranding organizations use?
- What are the challenges of product rebranding organizations face?
- What are the possible solutions to these problems?
1.6 Significance of Study
This study will be of great benefit to managements of organizations as this study will highlight the importance of product branding, and the findings of this study will show the benefits, types, challenges and possible solutions of product branding. It will also be beneficial to the academic world and scholars as this study will serve as a reference and further studies.
1.7 Scope of the Study
The scope of the research is focused on the Impact of Product Rebranding on Organizational Profitability. It will also focus on the benefits, types, profitability, challenges and possible solutions of product rebranding. Selected management and staff of Unilever Nigeria Plc will serve as enrolled participants for this study.
1.8 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research Material: availability of research material is a major setback to the scope of the study.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.9 Definition of Terms
Brand Mark:
A brand mark is that which can be recognized, spoken or pronounced (Fuller R. M., 2006).
Impact:
A marked effect or influence
Business:
Business can simply be defined as the totality of all economic activities that are undertaken in the process of producing and distributing goods and services for the purpose of making profit.
