Effectiveness of rebranding as a survival strategy: a case study of Powersales, Fort Street (Bulawayo).

Abstract

The aim of the research was to assess the effectiveness of rebranding as a survival strategy and a case study of Powersales Fort Street Bulawayo was used. The research was set on three objectives which are to assess the effects of corporate renaming on competitiveness of an organization, to examine the impact of corporate colours on overall store image and to assess the effect of logo changes on consumer perceptions. The background of the study, research questions and statement of the problem were illustrated in the first chapter. The second chapter reviewed the views of authors pertaining to the effectiveness of rebranding. Petburikul (2009), postulates that a change in corporate name increases the renamed organizations market value. Alva (2006), highlighted that colour is of great importance in creative a positive store image as it acts as a “silent salesperson”. With regards to effects of logo changes on consumer perceptions, Alshebil (2007), cites that logo changes make potential customers excited and interested in knowing more about what the rebranding brings with it. The third chapter reflected the target population and sample size. The target population was two hundred and sixty. A sample size of 38% was used bringing the sample size to one hundred. This was significant for generalizing the findings as it was above the 10% minimum sample size benchmark put forward by Bruce (2001). Questionnaires, interviews and observations were used as research instruments. In the fourth chapter, the findings revealed that majority of the respondents viewed the brand as outdated and were of the opinion that Powersales should consider renaming. Colours currently being used by Powersales which are red and yellow were viewed as welcoming and customer friendly hence have a positive impact on the store image. The findings also revealed that majority of respondents were not familiar with Powersales logo. In the final chapter, summary, conclusions and recommendations were drawn. Powersales needs to consider renaming to PEP as majority of its customers already view it as PEP and are slowly detaching themselves from the name Powersales after it changed its product brands and merchandizing principles to match those of its sister company PEP stores. The clothing retailer should also consider changing its logo shape and colours to make it more attractive and appealing and catch the customers’ eye as majority of customers are clueless about Powersales current logo.