Reasons to rebrand: 2 – To challenge a new competitor
Sometimes the reason to rebrand comes from outside your organisation. The need to challenge a new competitor that has moved into your sector is one example. In this series of posts I’m going to consider ten reasons to rebrand. The need to challenge a new competitor is number two.
If you’re considering a rebrand, it’s important to be really clear about what you want to achieve as a result of the work. Without that clarity it’s easy to waste time and money making the wrong changes.
Competition is nothing new, for any business. It’s rare to have a genuinely unique product or service that your customers won’t be able to buy elsewhere. But a new competitor can unsettle a market. They bring new ideas, new products and new services, which can seem like a breath of fresh air to your customers. However, “new” doesn’t mean “better”, it just means “new”. Often “new” just means “different”.
How to compete with a new challenger
When a new competitor moves in to your sector, the obvious response it to compete – to look at what they’re doing, and try to do it better. Do it faster or do it cheaper. The risk is, that by trying to compete with the new arrival, you can move away from what you’re really good at, and focus on what they’re really good at. That can be a difficult contest to win.
If you’re being challenged by a national competitor, they will probably have far greater resources than you have: more products, more people, a bigger budget… it’s a long list. A smaller competitor that moves into your market maybe more competitive on price, or more flexible in their approach. The reality is that you can’t – necessarily – compete on the same terms as a new challenger. So don’t try and be something you’re not. Be what you are. But be the very best version of what you are.
This is why, when you need to challenge a new competitor, a rebrand can be a powerful step to take. It’s the opportunity to consider what the best version of your business should look and sound like, and then create it.
Focus on what you do
The first step is to consider what you do; the products or services your customers buy from you. This is where you consider the size, quantity, variety, quality, availability and price of your products and services. What’s “better” about what you have to offer? Remember, there’s no rule about what defines “better” or “best”. Having a greater variety of products on the shelf hasn’t helped Tesco compete with Aldi and Lidl. Selling the most expensive mobile phone hasn’t hampered Apple’s growth.
Focus on how you do it
The next step to consider is how you do it. How do you create your products or deliver your service to your customers? This is the point where you consider the raw materials, technology, skill and experience that goes into the products and services that your customers buy. What’s “better” about your approach? You may be using the newest piece of technology available. Or you may follow a process that hasn’t changed for decades. Depending on the circumstances, it’s possible to argue that either approach is “better”.
Focus on why you do it
The final step is to consider why you do it. What is the motivation behind your organization? What is it that drives you? At this point you want to consider the purpose and values that lie at the heart of your business. How do they make you “better”? When it comes to developing a strong proposition, a clear purpose provides a firm foundation to build it on, and your values will bring that proposition to life.
In order to challenge a new competitor you need to consider each of these factors, and the opportunity they offer you to demonstrate how you are “better”. A rebrand allows you to update, improve or reimagine your identity, so that it is an accurate reflection of the qualities that are fundamental to your business. In this way a rebrand will give you the competitive advantage you need to challenge a new competitor.
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Read more in our Reasons To Rebrand series
1: To reach new customers