REBRANDING THE RIGHT WAY DON’T BE ‘STARRY’-EYED ABOUT YOUR STRATEGY In early 2023, Pepsi shocked the public by rebranding its lemon-lime soda Sierra Mist as Starry. Though the move raised eyebrows and spawned jokes, the success of the company’s rebranding strategy remains to be seen. Rebranding is always tricky and opens you up to the wrong kind of attention. So, if you’re considering it for your business, how do you ensure you get the right reactions? Companies rebrand for many reasons. Many do so after flagging sales to revitalize interest or reach a new market. Others rebrand to reflect a significant change in the business, like an acquisition or considerable shift in products or services. Rebranding is also a tried-and-true method for companies to move on from bad publicity. But rebranding is more than renaming your business — in fact, you don’t necessarily need to rename your business at all. Rebranding is more than a new company name, updated logo, or website. It’s about your business’s identity and overall strategy for the future. Since rebranding is not a quick fix, every business owner should evaluate their reasons for wanting to rebrand before making the leap. Simply “feeling” like it’s time for a change is not enough. Ask what you’re hoping to accomplish, then consider whether you need to rebrand to achieve it. Your brand may just need a “facelift” with a tweaked logo, new company colors, or a refreshed social media presence. If you’re committed to rebranding, do it with clear eyes and an awareness of how your efforts could go wrong. One famous example was Tropicana (also owned by PepsiCo) in 2009. The company replaced its instantly recognizable image of a straw in an orange with a generic picture of a glass of orange juice. Consumers felt it cheapened the product — and some even had trouble finding it. Tropicana quickly switched back to its old packaging, but it was a $50 million mistake.
Over the past few years, we have seen claim costs increase in ways nobody anticipated. We often refer to this phenomenon as social inflation. With social inflation on the rise, policyholders are paying more for coverage, and claim payouts are higher than ever. It’s led many to wonder why social inflation has consistently grown over the past few years. Experts have determined that four main factors are to blame for the growth of social inflation.
Desensitization to Large Verdicts
Do you remember the first time you heard a verdict that seemed impossible? It could have been someone who slipped and fell or was in an accident with a drunk driver, resulting in a lawsuit that paid out millions of dollars. Now, we see these lawsuits daily on the local news or social media. It’s not just our imagination, either. From 2015 to 2020, the median cost of jury awards over $10 million increased by 35%, according to Advisen’s loss database.
Public Distrust of Corporations
Americans don’t have the same trust in large corporations they had in the past. According to the DecisionQuest National Juror Attitude Survey, 67% of jurors believe companies choose to sacrifice safety to make more profit. The same survey found that 89% of jurors think companies should do more than the basic government safety standards.
Changes to the Legal Environment
There used to be a monetary limit on awards, but some states have done away with them. Also, longer grace periods exist to file lawsuits, allowing attorneys to take on more cases.
New Attorney Tactics
Another belief is that recent attorney tactics are a driving force behind social inflation. Lawyers are spending more on advertising, which has the potential to influence jury pools and attract more clients. They’re using emotion to drive home results and ignite anger among juries.
It appears that social inflation will continue to rise, as these factors aren’t going away anytime soon.
Rebranding is a balancing act between refreshing your image and retaining the elements that made your company successful in the first place. Business leaders should strongly consider hiring a rebranding expert who understands the risks before beginning an overhaul. It’s essential to understand your current customer base and target market. Otherwise, you could alienate both — and all your money, time, and effort could fall flat.
2 • www.INSURICA.com • Specialized Insurance Programs for Specialized Industries.
Made with FlippingBook Ebook Creator