We're all human, so of course we all do something stupid every once in a while. Corporations are human too, if US law is to be believed. At the very least, corporations are run by humans, and sometimes that means something terrible happens. But unlike our misadventures, if a corporation does something untoward, it tends to have very real, long-term repercussions to its reputation, and even the bottom line, if not handled well.

Usually, if a business gets embroiled by scandal the first move is to find those responsible and to distance the brand from the individuals. Many try to make amends, where possible. But sometimes a problem runs so deep the only way to truly repair perception is to go all out with a corporate rebrand.

Rebrands are costly and carry their own risks and challenges, so this generally should not be an easy decision. But for some brands, it might be the only thing to save them. We've found five companies for whom a rebrand in 2016 might be the only way to sway the negative headlines.

Subway

Subway hasn't had a good time these last few years. Contrary to most other failing businesses, Subway actually suffered from their market niche – that being healthy(-ish) fast food – becoming too popular, so a market they once dominated suddenly became flooded by a huge amount of competition often offering higher quality.

Then everything came crashing down when their 'poster boy' and brand ambassador Jared Fogle was convicted to over 15 years' imprisonment over child pornography and pedophilia charges. It will be tough for Subway to recover from that blow on top of revamping the brand to regain relevance, so it's no surprise they've already announced a major rebranding to be revealed in 2016.

With such extraordinarily deep-routed problems, a slight change in color or improved kerning won't do. Subway needs to be headed for a complete reboot, changing their logo to something more representative of a healthy lifestyle brand. Dropping the arrows and going for a fresher color identity will likely be in the cards.

With changing their logo, they would have to update elements of their website, social media, and any other brand-relevant components. This will be an enormous job, but will allow the brand to have a fresher and healthier look while also distancing themselves from Fogle's legacy. Only time will tell if it will be enough to save the brand.

Malaysia Airlines

Sometimes the bad headlines a company receives aren't actually that company's fault, but the fallout can still be significant. Malaysia Airlines suffered not one, but two tragic plane crashes in 2014, with infamous Flight 370 seemingly disappearing without a trace in March and Flight 17 being shot down by a missile over Russia four months later. 537 lives were lost, and understandably, Malaysia Airlines suffered a huge blow to its public perception.

To recover, the airline is in the process of undergoing significant structural changes and has announced a complete rebranding, including a new logo, staff uniforms and possibly even name, would be revealed shortly.

With plans to focus on domestic flights over costly international long-hauls, as well as significant staff cuts to reinvent themselves as a smaller, more targeted brand, Malaysia Airlines would do well to turn inward in its design as well, focusing on Malaysian culture and heritage for inspiration. Thanks to the nature of their recent upheavals, focusing campaigns on promoting culture might help to alleviate the unease felt when watching their planes in conventional airline advertising.

Ashley Madison

In August 2015 hackers nearly made the internet implode by releasing the personal information of more than 32 million users of extra-marital affair site Ashley Madison. As the media gleefully discovered the naughty secrets of politicians and celebrities, uncountable marriages and relationships fell apart as scorned spouses learned of their partners' misadventures.

For a company based on discretion and secrecy, this was a disaster, although some marketing pros disagree on whether the fallout from the breech will ultimately outweigh the benefits of the massive boost in brand awareness the episode gave them. Most believe the company has no way of surviving unless a complete brand overhaul, including a name change, will get underway STAT.

The company has two choices – try to distance themselves from the scandal and doubling down on ideas of discretion and secrecy in their design, or embrace their fame and outlaw status and go all out with a new, edgy identity. The first option may be a hard sell, as customers will understandably be wary of trusting renewed vows of confidentiality as they go about their naughty business.

What of the second then? Creating a new, edgy and out there identity would come with lots of opportunities to spread the brand through social media; using humor, quirky design and off-beat campaigns. It would likely alienate some of the target audience Ashley Madison previously sought to reach, but this may well be outweighed by sign-ups by a younger, more adventurous audience. Plus, it would allow those caught red-handed to use the age-old Playboy excuse: "I just come here for the articles, honey."

Lorna Jane

While the controversies bringing Lorna Jane into the headlines are small compared to others on this list, the sportswear company has still suffered from bad press and a steadily sinking reputation over the past year. Serious missteps like listing preferred body measurements of applicants for a position at the company, using artwork and photography without permission, and lashing out at critics through social media, has earned the brand a reputation for promoting unhealthy eating habits and being an online bully.

As of yet the company isn't reporting any negative repercussions to its bottom line, but this is surely only a matter of time if some serious changes are not made soon. Amid plans to double company profits within three years, they would do well to adopt a more inclusive, diverse identity, and think about cleaning up their social media. Competition from the likes of Michelle Bridge's ONE Active brand is already closing in, offering both cheaper price points and a bigger size range.

Lorna Jane's problems are not serious enough to warrant a complete overhaul of all collateral. They should leave their logo and general brand identity alone and instead focus on adopting more body diversity in their staff, models and brand ambassadors. This will instantly allow more women to identify with the brand, and help to create a company which is genuinely supporting women's health.

To support this positive brand identity, moves like supporting healthy living initiatives or anti-bullying campaigns, creating a bigger size range and dropping overly styled and Photoshopped images might do wonders. They should also implement more stringent social media regulations, as the worst thing a company can do in the face of criticism is to lash out publicly.

Tesco

Once Britain's largest supermarket chain, Tesco has been slowly succumbing to its competition for years as Aldi and Lidl continue to gain popularity as more affordable alternatives. Then in 2013 Tesco was hit by the devastating revelation that some of its cheap meat products contained up to 29% horse meat, which saw the retailer lose £300 million (US$436 million) in market value.

As profits continued to dwindle despite efforts to offer competitive prices and cut costs, Tesco found itself amidst scandal once again in 2014, this time over accounting fraud charges which forced Chairman Sir Richard Broadbent to step down. Since January 2016 the company is in hot water yet again over deliberately delaying payments to suppliers. Thus far, all efforts to turn the company's fortunes around have proved ineffective, so it's high time for a total reboot.

Even ignoring the host of issues Tesco needs to address, its brand has become quite stuffy with time. The serif all-cap typeface makes it seem very formal and outdated, which clashes with consumers seeking a friendly, inviting shopping experience. A more approachable identity could be achieved by adopting a modern sans-serif font, and a softer logo with fewer angular elements.

Tesco was once a market leader and trusted brand, so focusing branding on its roots as a family staple and British icon could help repair some of its losses. An updated color scheme and nostalgic logomark might help consumers identify with the chain again.

Want More?

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Written by Jane Murray on Tuesday, February 23, 2016

Jane Murray is a freelance copywriter based in Sydney. Apart from writing up a storm for the DesignCrowd blog on anything from logo design to Michael Jackson's shoes, she enjoys reading literary science fiction and hanging out with most animals except wasps. Get in touch via LinkedIn.