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A rebranding initiative will cost a good amount of money, but there can be a huge payoff in the end.
A poor economy can affect just about every business - from the local mom and pop shop to the franchising juggernaut. During a recession, most companies cut budgets and slash prices to accommodate the shifting needs of consumers. While this may help in the short term, this strategy can actually negatively affect both the franchise and its franchisees.
One successful strategy that carried Schlotzsky's through the recession is rebranding. Instead of sitting back and holding on tight, the company decided to completely reinvent its brand in the midst of a recession. After developing a new prototype, service model and signing a co-branding deal with Cinnabon Express, the Schlotzsky's brand is now stronger than ever.
There is a lot that goes into a brand makeover, but it all starts with a strong strategy. When rebranding, remember the "make new friends, but keep the old" rule. Never stray too far from your roots. Remember the product that brought you your original success. While your loyal base of customers will recognize and appreciate that you listened and acted on their needs, a steady stream of new customers will follow.
Three Steps to a Successful Rebrand
Many brands will become causalities of the recession, while the remaining brands will gain a larger authence and attract consumers looking for a change. Rebranding may not seem like the best choice during a recession because...