Positioning and Branding
Positioning and Branding
The concept of rebranding is part of the marketing strategy that can be incorporated by an established company or institution that has been in the market for a long duration of time and wishes to develop a new and differentiated identity for the sake of their customers, stakeholders and possible investors. It involves the process of creating a new name, new logos, new symbols and even designs for the company to make it more appealing to the aforementioned persons. In my opinion, the restaurant really needs rebranding. This is because of several reasons as discussed below.
To begin with, the restaurant has been in place for several years moving from one generation to another. This could mean that everything that started with the inception of the restaurant is still as it was. Because of this, there is bound to be an element of monotony within the restaurant. The loyal customers have used the same designs for a very long duration of time and subsequently there is bound to be an element of boredom that has already settled. This can be sorted by the creation of new designs of the table clothes, refreshing of the wall painting, change of design of the furniture among several others. Next, there is a need to change the existing terms and working conditions of the employees.
As depicted by the case study, the company is presently incurring losses since some servers who have been working there for long give their grandchildren pies and soda free of charge. Of note is that these expenses are then incurred by the restaurant’s management. If everyone were to pay for the services they received then the progressive loss noted can be massively curbed. Once profits have started trickling in there will also be need to hire new and younger severs instead of having the elderly serve. This will hasten the process of food delivery and will also incorporate new blood in the restaurant which will be extremely beneficial for the company.
Rebranding also serves to differentiate the initial company from actual and potential competitors. In the recent years several other restaurants have been opened around the same region. These include McDonalds, Subway and Sonic Drive-in restaurants. In order to create a mark and differentiate themselves from the rest, the restaurant needs a series of rebranding to enable them to stand out from all the competition mounted by the other facilities. It already has a trademark cup of coffee. This can be improved in terms of delivery and amount of coffee per cup to the customers’ satisfaction. In the long run, the coffee will bring more customers to the restaurant and thus much more returns.
Another reason for rebranding is to facilitate the elimination of a negative image if this existed. There could be instances where customers would have been dissatisfied and thus left the restaurant never to return. In this cases, rebranding would serve as a mechanism to bring the clientele back to the restaurant. This can be achieved in several ways. To begin with, advertisements can be placed over the internet and through flyers to draw further attention of the potential and the lost customers. At this moment the restaurant doesn’t have any effective advertisement strategy in place. This can be done instantly and may lead to a larger number of customers and thus increasing the total profits for the company.
This can also be achieved through the designing of a new logo. A new logo is the first symbol of change that the customers will identify either in the advertisements or physically. This will then symbolize that there is an element of change in the restaurant which in turn will draw people’s attention thus maximizing the total profits that would have been obtained.