Rebranding and its Effects on Profit: A Case Study of Airtel Ghana

Abstract

Rebranding is often necessitated by the desire to create value for a brand that is becoming obsolete or due to a change in ownership of an organization as the new owner seeks to portray the organization differently. This study examined rebranding in Ghana with Airtel Ghana as a case study. In depth interviews were conducted with four informants of Airtel Ghana to understand the rationale behind their decision to rebrand Airtel. The study took a critical look at the process according to the following thematic areas: Rationale for rebranding, Process of Rebranding, Benefits and impact of Rebranding. The research showed that the primary reasons behind Airtel' s decision to rebrand were borne out of the need to synchronize the brand with moving times with the youthful population as a core focus. Also, the desire for a fresh start with a strong brand that is in sync with latest technology played a major role. The study found that branding has enormous influence on brand performance as it increases brand awareness, sales and the firms overall profitability. The research also revealed that there were internal and external processes concerning rebranding which is consistent with best practices which suit a rebranding profile. Some of the recommendations put forward by the study include the fact that research is key in every rebranding process. Also organizations should ensure that the migration from one brand to the other is not abrupt but rather a gradual change over as companies risk losing loyal customers with an abrupt change as it must be well planned and re-planned with the necessary strategies long before implementation or launch time to ensure a smooth process.