Re-branding 'can help a business recover from a crisis'

Although re-branding a business can be risky - it can also attract new clientele and encourage growth, the Chartered Institute of Marketing (CIM) has claimed.

CIM spokesperson Ray Jones claims there have been both positive and negative examples of re-branding in recent times, such as the painting of British Airway planes, which failed to attract new customers and alienated existing ones from a brand they were familiar with.

However, he commented: "It can create a new market for your product, as Lucozade did when it re-branded from a health drink into an energy drink."

Mr Jones says business owners must carefully consider the impact re-branding could have on company accounts, before they commit themselves to what could be an expensive project.

"It's worth remembering though that re-branding isn't just about designing a new logo – it's a major strategic move," he added.

According to business technology group Mirata, companies investing in new design and image projects see an average return of 75 per cent on their investment.

The group also found that companies who place significance on design and brand recognition do not have to compete on price to the same extent as other businesses.