Rebranding Case Studies

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Rebranding Case Studies

The rebranding of Dunkin Donuts was customer oriented and a part of their new beverage-led, on-the-go strategy, resulting in favorable reception and sales growth. Priceline Group rebranded to reflect the financial success of its major subsidiary and to associate the company with more diverse services, the new brand continues to prosper. Weight Watchers aimed to enter the Wellness industry and attract a younger audience with its rebranding, however poor choices in their marketing strategy produced detrimental results.

DUNKIN'

  • The Name
    • In January 2019, the franchise known globally as Dunkin Donuts officially changed its name to Dunkin'.
    • Dunkin' is the popular moniker fans have used to refer to the chain, and was chosen to acknowledge this customer affection, claiming it is now on a "first name basis" with their customers.
    • This name change was the first step in their "beverage-led, on-the-go" strategy, and was tested in a few locations in the New England area before making the change official.
    • The omission of the "Donuts" in the new name does not reflect a change in the menu, so customers can still expect the same selection and availability of these treats after the rebranding.
    • The omission of the "Donuts" in the new name is a reflection of the brand's new emphasis on serving coffee beverages quickly. Other new initiatives include On-the-Go mobile ordering, promotions for beverages such as Cold Brew and Nitro coffee, and even an eight-headed tap system that allows employees to serve beverages like bartenders in stores.
  • The Logo
    • The new aesthetic was chosen to be able to easily integrate the new-generation stores and the ones not yet remodeled cohesively.
    • The new logo pays homage to Dunkin's roots by keeping the same color scheme and Frankfurter font that research showed made the brand iconic. This logo only consists of the new name and has a variation for each cup size with the smallest being the most abbreviated.
  • Strategy & Rebranding
    • The emphasis on coffee instead of donuts is a longstanding strategy from the launch of the 2006 "America runs on Dunkin" tagline.
    • The name change can be considered a continuation of this strategy, and is believed to provide more opportunity for growth since its predecessor limited the brand to a category.
    • There is also a personal aspect to the design and marketing strategy, along the lines of being on a first-name basis or having a personal relationship with customers. Apparently, the cup design was prioritized over media campaigns because it is considered the most personal asset.
    • Furthermore, many of the new taglines also seem to be inspired by this strategy such as "Our friends call us Dunkin'" and "Just call us Dunkin'".
  • Financial Implications
    • In the second quarter of 2019, Dunkin' reported "double-digit" growth in sales of their new, more expensive espresso drinks.
    • Espresso is considered the most important aspect of the new beverage-led strategy and according to CFO Kate Jaspon, has been their fastest growing category according to sales, which have increased by 40% compared to 2018's second quarter.

BOOKING HOLDINGS

  • The Name
    • Priceline Group became Booking Holdings in 2018 in order to reflect the source of the majority of their business, their subsidiary Booking.com.
    • The new name also emphasizes the fact that all branches of the company have a booking feature.
  • The Logo
    • The new logo consists of a dotted symbolic B on the left of the new brand name, and the top half is black while the bottom is light blue.
  • Strategy & Rebranding
    • The new name not only better reflects the success of Booking.com, but is also more recognizable internationally. This not only benefits their international development goals especially in China, but also increases brand awareness in the US.
    • The rebranding also aimed to reflect the diversity of their services and associate the name with all things booking including booking hotel rooms, booking homes, booking meal reservations, and booking flights.
    • The company increased advertising spending to 507 million US dollars from 435 million in order to promote the new brand.
  • Financial Implications
    • Total revenue increased 17% in 2018 generating 14.5 billion US dollars from the previous year, and travel bookings increased by 14%.
    • In 2018, the addition of alternative booking options such as homes and apartments generated 20% of total revenue.

WW

  • The Name
    • In 2018 Weight Watchers became WW, however the WW does not stand for Weight Watchers and is not associated with the new tagline but is just a marque.
    • Along with the seemingly meaningless name, many mocked the new name for being harder to pronounce than the original name.
    • The new name has not been well-received by marketing experts and consumers, with both considering it confusing and uninspired.
    • To combat the negative perception, the company began referencing their original identity by adding "Weight Watchers Reimagined" to their media sites and logo.
  • The Logo
    • The new logo consists of the vertical spelling of WW in white, centered in a navy blue circle.
  • Strategy & Rebranding
    • The name change is a reflection of a shift from monitoring physiques as the original name suggested to promoting wellness, a more holistic approach to health.
    • The rebranding was intended to be a fresh start that would modernize company perception, attract a younger audience, and remove the associated negative connotations of being a "weight watcher".
    • This choice should not only give them a share of the trillion dollar wellness industry, but also show cultural awareness by not supporting the standards that society tends to force on women.
    • The new tagline "Wellness that works" is consistent with this new philosophy, however other aspects of the campaign including the choice of a slim and fit celebrity ambassador to promote body positivity confused the public and failed to attract the new customers that they were targeting.
  • Financial Implications
    • Less than six months after rebranding, WW released a profit warning for 2019 expecting the year's revenue to be less than half of Wall Street's initial forecast.
    • After rebranding, WW's stock took a dive decreasing by 34% after inadequate results in the fourth quarter of 2018.
    • The company lost 600,000 customers in the latter half of 2018 reflecting some alienation of its original customer base.

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