The challenges and implications of corporate re-branding : a case study of amalgamated beverage industries (ABI).

Abstract

This thesis aims to address the issues of corporate re-branding in the context of marketing strategy and general strategic management. The research for the thesis was conducted in Pietermaritzburg and the surrounding areas where the Amalgamated Beverage Industries (ABI) depot distributes the Coca-Cola brands and other alternative beverages. ABI distributes non-alcoholic beverages that are produced under the trademark of Coca-Cola to the wholesalers and retailers in the Pietermaritzburg Central Business District (CBD) and the surrounding townships and settlements. ABI embarked on a re-branding campaign that resulted in the redesigning of the company logo. From a strategic management point of view, new business strategies that are formulated aim at finding ways that will keep a company trading profitably for a long time. The re-branding process of ABI has resulted in a change of attitudes of both employees and management towards its customers. The overall aim of the thesis was to investigate the impact of re-branding on the profitability of the company ABI. The results of the thesis reveal that other variables play a role in promoting the profitability of a company. The investigation, through a comprehensive field and secondary survey, used both qualitative and qantitative methods in its data collection. Finally, the thesis has examined the implications of re-branding on the purchasing trends of ABI' s customers after having been exposed to the new ABI image and new culture of conducting business. It has been established after analysing both the primary and secondary data that it is not demonstrably obvious that when a company re-brands its logo or image, that customers will purchase more products, hence increasing the financial value of the company. It is the final conclusion and recommendation of this thesis that before engaging in a costly re-branding exercise, senior management should conduct proper market research as to whether the exercise will add financial value to the company.