What are the advantages and disadvantages of a renaming?

A new name: a strategic new start

Renaming a brand, product, or company is a significant step. Whether for repositioning, resolving legal issues, or correcting an image, here are the key opportunities and risks involved.

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Advantages of renaming

• Repositioning and modernization: Outdated or ill-fitting names can be refreshed, such as when "Fiducia & GAD IT AG" became "Atruvia".
• Internationalization: Names like "Boxmark" perform better globally than more regionally specific names like "Schmidt-Feldbach-Lederwerke".
• Stronger differentiation: A unique name helps a brand stand out, as seen with "Allane" replacing "SIXT Neuwagen".
• New image: A new name can overcome negative or irrelevant associations, as "Berliner Immobilien Holding GmbH" did by rebranding to "Berlinovo".

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Challenges of Renaming

• High costs: Updating logos, packaging, and digital assets can be expensive.
• Customer confusion: Poorly communicated renaming can alienate customers and partners.
• Loss of brand value: An established name carries recognition and trust, which may be at risk when changing.
• Resistance: Customers and employees may be reluctant to accept a new name.

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When is renaming worthwhile?

A renaming is beneficial when the existing name no longer fits the brand, legal conflicts arise, international markets need to be addressed, or negative associations impact brand perception.

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Strategic renaming for growth and differentiation

A well-planned and clearly communicated renaming can create excitement and signal a fresh vision. In many cases, renaming strengthens differentiation and helps reposition a brand successfully.

Many risks can be mitigated by ensuring the new brand name seamlessly integrates into the company’s existing or evolving identity. When done strategically, it becomes a core element of the brand’s story.

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Are you considering a rebrand or unsure whether a renaming is necessary? Let’s talk and explore the best approach for your business!