Rebranding - Product Rebranding

Product Rebranding

As for product offerings, when they are marketed separately to several target markets this is called market segmentation. When part of a market segmentation strategy involves offering significantly different products in each market, this is called product differentiation. This market segmentation/product differentiation process can be thought of as a form of rebranding. What distinguishes it from other forms of rebranding is that the process does not entail the elimination of the original brand image. Dexxa computer mice are rebranded Logitech devices sold at a lower price by Logitech in the low-end market segment without undercutting their mid-range products. Rebranding in this manner allows one set of engineering and QA to be used to create multiple products with minimal modifications and additional expense.

Following a merger or acquisition, companies usually rebrand newly acquired products to keep them consistent with an existing product line. For example, when Symantec acquired Quarterdeck in November 1998, Symantec chose to rename CleanSweep to Norton CleanSweep. Later on, the company chose to reposition its entire product line by grouping products into a bundle known as Norton SystemWorks. Symantec is not the only software company to reposition and rebrand its products. Much of Microsoft's product line consists of rebranded products, including MS-DOS, FoxPro, and Visio. Another example is the rebrands of GeForce 8-series GPU into 9-series by nVidia. The reverse can also happen, as when AlliedSignal acquired Honeywell, Southern Railroad of Long Island acquired Long Island Rail Road, and Chemical Bank acquired Chase Manhattan Bank. In such cases, the acquiring company rebrands itself with the acquired name.

Another form of product rebranding is the sale of a product manufactured by another company under a new name. An original design manufacturer is a company that manufactures a product that is eventually branded by another firm for sale. This is often the case with international trade. A product is manufactured in a place with lower operating costs, and sold under a local brand name.