Your Brand Exists to Solve a Problem

When a leader says they want to rebrand their company, or they want to evolve their brand, it’s because the brand in its current state isn’t performing the way they need it to.

Maybe the original issue the brand was created to address—such as market differentiation or initial product awareness—has been successfully resolved.

Or perhaps the competitive landscape has shifted, demanding new strategies and fresh positioning.

Regardless, leaders will find that if they ask themselves why they want to rebrand enough times (five, usually), they’ll eventually land on a clear business challenge they’re currently facing.

But rather than immediately asking, “What should we change our brand into?” leaders should first clearly define the specific problem they need the new or evolved brand to solve.

This clarity can dramatically shape the direction of the rebrand.

Case in point: If your primary challenge is acquiring new customers, the rebranding effort should begin with research to verify whether your target audience perceives your current brand as outdated, irrelevant, or misaligned with their expectations.

If your research doesn’t support these perceptions, rebranding might not solve your issue.

Instead, it might become an expensive distraction.

Conversely, if your primary business goal is preparing for a liquidity event, strategic rebranding has proven to significantly enhance business valuation by clearly communicating future growth potential, clear market differentiation, and competitive positioning. (For more on that, see this piece.)

Research underscores this point as well: according to Interbrand, clearly differentiated brands consistently outperform competitors, delivering up to 28% higher shareholder returns.

Additionally, industry studies show that strong branding can represent between 20%-30% of total company valuation in merger and acquisition scenarios, often significantly increasing the sale multiple during an exit.

The reality is that high-performing brands all share a common characteristic—they clearly articulate what business problem they solve, whether that’s simplifying complexity for customers, creating distinct market differentiation, or directly contributing to higher valuations.

So before initiating a rebrand, clearly define the measurable outcome your brand must achieve.

Identify the precise business challenge you aim to address.

With this clarity, your brand becomes a strategic lever for sustained competitive advantage.