Rebranding regrets: a deep dive of Abrdn and why it absltly bombed

By Roshika Perera, Capital Markets

Rebrandings have become so common that many of us hardly notice one has happened. But you can be certain the public, and indeed the press, will notice when one goes wrong – and the consequences (especially for B2B firms) can be ghastly.

It was this costly lesson that Abrdn has come to learn in the years following its widely mocked rebrand that hastened its downfall from being Europe’s second largest fund manager to falling into the FTSE 250.[1]

In the following blog, we will perform a postmortem on the branding blunder that recently saw the company’s former CEO, Stephen Bird, take flight.

The Abrdn rebrand: a case study

In April 2021, Standard Life Aberdeen rebranded as “Abrdn” to reflect its evolution as a company and its focus on the future.[1] With its rebrand, the company was keen to simplify its name, modernise its image, improve its digital presence with a unique and easily searchable name, and most importantly, unify its various businesses under a single, cohesive brand.

This effort backfired. The rebrand was widely mocked by the media and the public, with the firm’s chief investment officer Peter Branner going so far as to call the response ‘corporate bullying’.[2]

And yet, there’s no evading the fact that much of the criticism is well-warranted. There were several reasons why the rebrand never took off, chief among them being the confusion around its vowelless name. The unconventional spelling, intended as a modern statement, is awkward to pronounce and remember, appearing more like a typographical error than a deliberate choice.

Ultimately, the rebrand only served to deplete the brand’s equity. Before its £11bn merger in 2017, Standard Life and Aberdeen Asset Management were established names with significant brand equity. In moving away from these names, the company lost the immediate recognition and trust that came with them. While it followed in the footsteps of successful technology startups like Tumblr and Flickr, Abrdn did not quite resonate in the same way within financial circles.

And as is the case with all ill-thought-out rebrands, it appeared to be a distraction from the firm’s more pressing business challenges. After all, it’s no secret that the merger was a disastrous experiment, clearly reflected in the firm’s sharp decline of assets under management from £505bn in 2018 to £366bn by the start of the year.[3]

Indeed, there certainly isn’t much to smile about at Abrdn right now. But at least the company can take some comfort in the fact that it is far from the only notable company to fail so dismally at rebranding itself.

Other infamous rebranding fails

There are countless examples over the years of failed rebranding attempts. Listed below are five prominent examples. Do your best not to add your company’s name to this list of rebranding regrets.

1. Gap (2010): Known for its classic blue square logo with white text, the fashion retailer introduced a new logo featuring a small blue square and plain black text. The redesign was met with immediate backlash from customers and designers, who felt the new logo was uninspired and generic. Within a week, Gap reverted to its original logo.
2. Tropicana (2009): Tropicana’s packaging prominently featured a straw in an orange, which was iconic and easily recognisable. The company changed its packaging to a minimalist design, featuring a glass of orange juice and a new, less prominent logo. The new design confused customers and led to a 20% drop in sales within two months, prompting tropicana to quickly revert to its original packaging.
3. New Coke (1985): Coca-Cola introduced “New Coke,” a sweeter version of the original formula. Despite positive taste test results, loyal customers rejected the new formula, feeling it was a betrayal of the brand’s heritage. Coca-Cola reintroduced the original formula as “Coca-Cola Classic” just 79 days later.
4. Royal Mail (2001): Royal Mail, the UK’s national postal service, rebranded as Consignia, aiming to reflect its diversified services beyond mail delivery. The new name was widely ridiculed, and the rebrand failed to resonate with both employees and the public. Just over a year later, the company reverted to Royal Mail, having spent millions on the failed rebranding effort.
5. RadioShack (2009): RadioShack, a well-known electronics retailer, tried to modernise its image by shortening its name to “The Shack.” The rebrand did not address the core issues facing the company, such as competition from online retailers and outdated store concepts. As a result, the company eventually filed for bankruptcy in 2015.

These examples illustrate how critical it is for companies to thoroughly understand their brand identity and customer base before undertaking a rebranding initiative. So, what steps should firms take to prevent a rebranding failure?

Five key steps to take before rebranding

1. Conduct thorough market research: understand the current market conditions, industry trends, and competitive landscape. Gather feedback from current and potential customers to understand their perceptions, needs, and preferences.

2. Define clear objectives: things will go wrong with a rebrand if the reasons behind it are not properly defined and purposeful. So, whether it be reaching new markets, differentiating from competitors, or updating the brand image, be sure to clarify the reasons behind your rebrand.

3. Develop a rebranding strategy: redefine the brand’s positioning statement, which includes the brand’s mission, vision, values, and unique selling proposition (USP). Identify and refine the target audience to ensure the rebrand resonates with the right demographic.

4. Engage stakeholders: Ensure all employees and internal stakeholders are informed, involved, and supportive of the rebrand. Communicate with key partners, investors, and other external stakeholders to maintain their support and understanding.

5. Listen to the experts: at the company’s AGM in 2022, Abrdn chair Douglas Flint boasted that the firm’s rebrand was an internal creation: “We had it benchmarked by one of the world’s leading brand advisory agencies and they introduced alternatives that certainly were not as good.”[1] In hindsight, it may have served the company better to listen to experts with specialised knowledge in executing successful rebrands.

While Abrdn’s rebrand is a cautionary tale, it should not put firms off from embarking on rebranding themselves when it’s truly needed. With a well-thought-out strategy, a rebrand can be the right move to increasing a company’s fortunes.  

Key Takeaways

Q: Why did Abrdn’s rebranding attempt fail?

A: Abrdn’s rebrand failed due to its confusing name, loss of brand equity, and misalignment with market expectations.

Q: What are some other notable rebranding failures?

A: Notable failures include Gap’s 2010 logo change, Tropicana’s 2009 packaging redesign, Coca Cola’s introduction of New Coke in 1985, Royal Mail’s rebrand to Consignia, and RadioShack’s rebranding to The Shack.

Q: What steps can companies take to ensure a successful rebrand?

A: Companies should conduct thorough market research, define clear objectives, develop a comprehensive rebranding strategy, engage stakeholders, and seek expert advice.

More From the Industry

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The 10 Most Successful Rebranding Campaigns Ever

The lessons you can learn from these rebranding fails

Bibliography

[1] https://www.investmentweek.co.uk/analysis/4326472/abrdn-journey-europes-largest-fund-manager-ftse-250

[1] https://www.abrdn.com/en-gb/corporate/news/all-news/sla-to-become-abrdn

[2] https://www.fnlondon.com/articles/abrdn-name-change-corporate-bullying-stephen-bird-20240408

[3] https://www.investmentweek.co.uk/analysis/4326472/abrdn-journey-europes-largest-fund-manager-ftse-250

[1] https://www.investmentweek.co.uk/analysis/4326472/abrdn-journey-europes-largest-fund-manager-ftse-250