Growing with Our Readers: IG Rebrand and What it Means
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Trading has changed quite a bit over the past year, much less the past ten or twenty. Even just 25 years ago, many markets were based on physical exchanges, operating with little slips of paper that were passed through numerous hands before any actual orders were enacted. The idea sounds ludicrous today but there was even a period when computers and electronic markets were available yet these antiquated execution models remained in-place.
Computers changed the game, and as many markets moved to electronic mediums to assist with making markets or filling an order book, a sea of change took place in-front of retail traders that’s helped to drive costs lower; which could enable an investor or a trader to investigate even more opportunities.
But the arms race amongst brokers hasn’t been relegated to cost only, as many brokers have looked to fill-out their offering with research, education and tools in order to support their customers’ efforts. This is how DailyFX and IG became married in the first place, as the long-established IG Group acquired DailyFX in 2016, with the aim of offering even more support to their customers and traders through DailyFX.
Since that acquisition, the two entities have been getting more and more integrated, and now, IG has implemented a ‘rebrand’ that further ties our two brands together under the IG umbrella. This aligns the goals of both DailyFX and IG to look ahead, focusing on growth and supporting our readers and traders in the effort of continuing our top-of-class performance. This article will further discuss the rebrand; what it is and perhaps more importantly, what it means for our readers.
IG has recently rebranded their corporate image to identify itself by its values, image and future outlook. Rebranding can provide opportunities for a company to stand out by showcasing its uniqueness. The effect can be exponential as many companies have demonstrated in the past. This article will cover the following:
- What is corporate rebranding?
- IG rebrand: Overview
- Effect of rebranding on stock price
- What does this mean for IG?
- IG rebrand: Conclusion
What is corporate rebranding?
Rebranding is a method by which a company/organization changes their image by implementing various adjustments to the previous business model. These include - but are not limited to name, logo and color palette changes. The ultimate goal/aim of a rebrand is to create a different identity for the brand relative to its competitors within the market space.
IG rebrand: Overview
For the past 46 years IG Group has been providing traders with pioneering technology, world class service, new markets and possibilities. During this time IG has adapted to the dynamic market environment, making IG the world’s leading CFD and spread betting provider. This title brings extra incentive to innovate and go above and beyond to maintain their unrivaled reputation.
As the business grows so must individuality, which has led to the IG rebrand. The rebrand echoes the business perspective of a more consistent IG, diversified business strategy as well as highlighting progression along the way.
The rebrand includes a change of logo, color palette and lettering. This has no impact on the underlying company values which will remain rooted within every business function and outlook. The rebrand is there to simply reinforce these IG values and overall business strategy.
The new logo reflects a more distinct and simplified design to express confidence, power and expansion.
A key aspect of the rebrand is to focus on mindset – particularly an entrepreneurial mindset. The entrepreneurially minded enjoy a challenge, which align these individuals to IG and the intellectual challenge that comes with trading.
Along with the new logo, IG has implemented a campaign line of ‘SEE IT, IG IT’. The basis behind this phrase supports the notion of the entrepreneurial mindset. Whilst others see events, intellectual traders see opportunities. When they see these opportunities, they can take them with IG.
“Your idea, executed by IG”
This time last year IG launched a new growth strategy, and the core principle of developing a strong and winning team is the fundamental part of today's new brand proposition. The reason why IG is looking to reinvigorate the brand is linked to the commercial objective of 30% revenue growth in 3 years - and brand has an important role to play in delivering against that objective.
The collaboration manifesting itself across all parts of IG (including DailyFX) is important because there is a need to have a growth mindset to accompany strong commercial essence and innovative character.
Effect of rebranding on stock price
As corporate rebranding choices aim to increase value to the organization, by sending a positive indication to stakeholders, the success and economic rationale of these decisions may be assessed by identifying its impact on firm value (listed companies in this case).
Measuring the statistical significance of a company rebrand on stock price can be tough to accurately calculate due to the large number of determinant variables involved. However, looking at price action of listed companies that have undergone rebranding campaigns can give some potential insight to market sentiment. Much of this can be short-term or the time it takes for the market/public to digest the rebrand.
The examples below show to vastly different rebrand campaigns in two different sectors, under different company circumstances.
McDonald’s Weekly Chart (+13%):
Chart from IG Trading Platform
The McDonald’s rebrand (blue rectangle) shows the enhancement of and already upward trending stock. The reasoning behind the rebrand was to strengthen an already global identity by introducing playfulness and creativity. The chart shows the increase in price over a 3 week period (+13%). As mentioned previously, these gains may not be solely due to the rebrand but it is evidence of an increased support to the surging stock price. Unfortunately, the McDonald’s rebrand effect may have been hindered by the recent coronavirus pandemic as evidence in the drop in share price in early 2020.
AllianceBernstein Weekly Chart (+17%):
Chart from IG Trading Platform
AllianceBernstein is a global asset management firm providing investment management and research services worldwide to institutional, high-net-worth and retail investors. This has some overlap with the IG business model making it a good case study to include. The situation AllianceBernstein found itself in July 2015 was a declining share price and no brand identity to support its innovative offerings. This example gives a more isolated view regarding the effect of a rebrand on share price because during this period the fundamentals and economic activity relating to AllianceBerstein remained much the same. The only major change had been the company rebrand. Highlighted on the chart is a 2 week period showing the effect of the rebrand on the share price. It is evident that the rebrand had a positive (although short-term) impact on firm value by a price increase of approximately +17%.
What does this mean for IG?
The IG rebrand comes at a time when global markets are in turmoil as a result of the coronavirus pandemic. Although the IG business model thrives on market volatility – as suggested by the rising share price, could the rebrand serve as greater upward bias? This will be determined when the rebrand is properly assimilated into the market space.
IG rebrand: Conclusion
IG is committed to the new brand and everything it stands for. Employees under the IG Group banner have already embraced this vision which will surely translate to their clients and prospective clients around the globe.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.