Imagine finishing an article and you aren’t happy with it, you would rewrite it to improve it right? Similarly, companies often rebrand themselves to become better than their competitors. Rebranding is a strategic move that enables them to change their image, adapt to evolving market trends and better connect with their audience.
However, rebranding can fail if it doesn’t align with customer expectations or lacks genuine improvements. Poorly executed rebranding confuses customers, weakens their trust and harms the brand’s reputation. This article looks into some of the Indian brands that have tried to rebrand themselves and have failed. Additionally, we will also look into what lessons you can learn from these failed attempts at rebranding.
The Importance Of Rebranding
As companies expand and evolve, they often need to rebrand themselves to stay competitive. This need for rebranding can be for the following reasons:
-
Outdated Logo
In time, a company’s logo or overall brand image becomes outdated and does not match its current values, product or audience. What used to work well in the past might no longer fit the company’s new direction, so rebranding is needed to update and represent its new identity.
-
Market Expansion
As companies expand into new areas or markets, their current brand name or image might seem too narrow or outdated. Rebranding helps them develop a broader, more flexible identity that connects with new audiences and fits a wider range of products and services.
-
Lack of Differentiation
There are so many businesses and startups in India. It has indeed become a competitive marketplace. Hence, companies need to stand out from the rest of their competitors to help them retain customers. Rebranding can help create a unique and memorable image, making it easier to gain an advantage in the market.
Now that we understand the importance of rebranding, let’s examine some Indian companies that attempted rebranding but fell short. Furthermore, we will explore what went wrong and the valuable lessons we can learn from their failures.
-
Kingfisher Airlines
Kingfisher Airlines, founded in 2003 by the well-known businessman Vijay Mallya, quickly became famous for its luxurious service and comfort. It drew the attention of travellers and industry experts alike, positioning itself as the top choice for those seeking a high-end flying experience. It launched its first flight in 2005 and set a new benchmark for luxury in Indian skies.
The airline provided various luxury features, including in-flight entertainment, gourmet meals and excellent customer service. Its focus on quality attracted several customers and helped the airline earn many awards. Furthermore, the airline had a wide network, covering both domestic and international routes. By 2008, Kingfisher Airlines had become the second-largest airline in India for numerous passengers.
Why did the airline decide to rebrand itself?
Kingfisher Airlines decided to rebrand itself because it was struggling with financial issues, including heavy debts and ongoing losses. Its once glamorous image was hurt by inconsistent service and operational problems.
With increased competition in the airline industry, the company needed to refresh its image to help improve its reputation and help tackle various problems. However, the company struggled to meet its customer expectations and deliver constant service, which led to its closure in 2012.
What lessons can be learnt from this rebranding failure?
The key lesson here is that a rebrand must be backed up by real improvements in the company’s products and services. It is very important that the rebranding matches what the company can provide. Ultimately, promising more than you can deliver hurts the company’s reputation and weakens customer trust.
-
Tata Nano
Tata Motors came up with the revolutionary ‘Tata Nano’ in 2008, it was deemed as ‘The People’s Car.’ Tata Nano was marketed as a car costing just 1 lakh rupees. It offered a compact design with enough space for four people. The company’s marketing strategy targeted the middle and lower-middle class by promoting the car as the “One Lakh Rupees Car.” It was the brand’s most ambitious project, designed to be cost-effective with its steel frame, compact size and lack of luxury features. Furthermore, the company’s marketing strategy aimed to position it as an affordable option for Indian families of four and was touted as a safer alternative to bikes or scooters in India.
Why did Tata Nano end up failing?
Tata Nano failed because it was promoted as the “World’s cheapest car,” which made people think it was not a good quality car. Additionally, there were incidents such as initial models catching fire or bursting into flames on the road. Being lightweight affected the car’s stability on the highways and the engine installed in the car was not that powerful. Furthermore, Tata Nano received a Zero-star adult protection rating in a crash test. All these issues led to Tata Nano’s failure to succeed in the market.
What lesson can be learned from this failure?
As a company, when you are launching a new product be careful with messaging to avoid negative associations. For instance, Tata Nano’s tagline the ‘World’s Cheapest Car’ led to a perception of low quality. Instead of focusing solely on the low price, which attracted negative attention, Tata Motors could have highlighted the car’s value, innovative design and practical benefits. Positive messaging about reliability and smart features might have helped the Nano succeed.
-
Air India
Air India initially, known as Tata Airlines was founded in 1932. It was a small airline providing mail services, but it grew over the years into a major airline with international routes. In 1953, the Indian government took over the airline and renamed it Air India. Despite its historical significance, the airline has faced many challenges such as financial difficulties and operational issues.
Why did Air India try to rebrand so many times?
As one of the oldest airlines in India, Air India has rebranded multiple times to address problems such as operational inefficiencies and service issues. Additionally, Air India also struggled with money problems and poor management. Ultimately, these rebranding efforts aimed to rebuild its image and customer trust. But these rebranding efforts didn’t have a lasting impact.
What can we learn from Air India’s rebranding failures?
As a company, rebranding doesn’t mean just changing the logo. It also incorporates working on bigger problems such as service quality, how the business is run and how the customers feel about the brand. Air India needs to do an overhaul of its service and take continuous feedback from customers so that they can improve their services and win customer trust.
Summary
Rebranding is an important strategy for companies to stay competitive and keep up with changes in the market. However, as seen with Kingfisher Airlines, Tata Nano, and Air India, rebranding by itself can’t fix deeper problems within a company. These businesses faced issues like money troubles, negative public image, and poor service, which stopped their rebranding efforts from succeeding. The key takeaway is that rebranding needs to be paired with real improvements in service, communication and operations.
Do you think rebranding alone can help a struggling company succeed?
