Did you know Adidas purchased Reebok in 2005 for $3.8 billion? I didn’t. Until last week.
I learned this fun fact shortly after discovering Reebok had changed its logo as part of a rebranding effort. Indeed, the Reebok Vector is no more. Say hello to the Reebok delta logo, only Reebok’s third logo in its 121 year history.
The new Reebok delta logo, closely associated with CrossFit, fits Reebok’s new brand focus: fitness. By rebranding, Adidas looks to rejuvenate the Reebok brand, which has operated at a loss for four of the last six years. In 2013, it was estimated that Adidas’s cash flow would have been as much as $193 million higher without the Reebok brand.
It is rare to see a well known entity like Reebok completely change its branding. Why? Because rebranding a known entity is an expensive proposition. For example, when BP changed its logo in 2000, the estimated cost was $211 million. When Holiday Inn rebranded in 2007, it was dubbed “the $1 billion rebrand.” Only time will tell whether the cost of rebranding Reebok is worth it.
We spend a lot of time discussing brand-building on this blog. For those of you that already have an established brand, but are considering rebranding, it is important to understand the expense as well as potential advantages and disadvantages of doing so. We suggest performing due diligence, including contacting professionals with experience in branding. Perhaps a few lawyers that blog about branding!
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