Impact of brand logo re-design on business

Akash Sarkar(13004) Surya Narayana Adiga(13048) Shahab Khan(13044) Nirupam Mandal(13025) Pathan Javed Ali Khan(13026) RupaliVarshney(13040)

Problem Statement
y Our study tries to establish if it is justifiable for a company

(catering to B2C business) to spend huge amount of money in changing their logo.

Objectives
y Does the perception of people get affected with the change of brand

logo?
y Study how companies marketing return on investment are affected

after changing the logo

y Study if the same brand value is maintained after rebranding y Study what factors prompts a company to change its logo

Literature Review
y The literature on aesthetics and brand attitude are combined to show that not all

consumers view changes in brand elements such as logos similarly. Strongly committed consumers react negatively to a logo redesign while weakly committed consumers view them positively (Michael FWalsh, KarenWinterich andVikas Mittal,The Journal of Product and Brand Management.Santa Barbara: 2010)

y Changing a brand name or other trademark can increase or decrease brand equity, but

generally has little effect if the underlying reality stays the same. Accenture is the consultancy formerly known as Andersen Consulting, and AC's (mostly) postive brand equity has been retained (Barwise, Patrick.Financial Times. London (UK): Sep 1, 2001.)

Literature Review cont..

y When an organization revamps its logo, it is rarely a standalone action. The logo is

just one expression for other changes that have been introduced to a brand.(Simon, 2010)
y GAP switched the logo back to original design after the furor which went on blogs ,

facebook, twitter and other online media. (Natalie Zmuda, 2010) y In an interview given to Brandweek on 10/29/2007, (Vol. 48 Issue 39) Mark Snyder, SVP-worldwide manager said We wouldn't keep the same hairstyle for 25 years, [so] why haven't you changed your sign?" The new sign is very contemporary, clean. It has a lot of energy, Customers told us it has much more of a business sense than the current identity

Literature Review

cont..

y According to an online poll conducted on toostep.com on image makeover (logo

change),67% respondents said image makeover helps, and 33% said image makeover doesnt help.
y The top argument for the change says,

people have different liking over time, their lifestyle, perception towards life are also changing; logo change communicates a newness and the image of the company or brand moves with time

e.g.

Literature Review

cont..

The top argument against logo change says: A logo is a fast link to the brand name & product, the human mind is more responsive to shapes & figures, as compared to words. any change in shape, disturbs the brain links; in case a company changes or modifies its' logo, it will end up spending crores, to establish it, which is meaningless spending of hard earned money.

e.g.

Research Design
 Goal : Study the perception of people and revenue impact with the

change of logo
 Preparation of questionnaire for survey  Survey :Brands we are taking into consideration for our study :

Airtel b) Apple c) Videocon d) LG End consumers with a sample size of 50 -100

a)

Research Design


a) b) c)


Method of data collection : Collection of secondary data from Internet, Journal, Company websites(financial reports) and database Floating of the questionnaire on the internet Face to face interaction Data analysis : Interpretation of financial data by showing the percentage increase in the sales Quantifying the primary data collected from consumers Analysis of qualitative data collected

a) b) c)

Importance of the study

y The study will help us to understand relevance of logo as a part of

branding exercise. y We would know if the investment on logo redesign is worth the effort. y Companies can leverage on this study if they are going for a logo redesign. y We can analyze the effect of change in logo on brand loyalty.

Schedule
Date from
26/11/2010 1/12/2010 8/12/2010 16/12/2010 24/12/2010 1/01/2011 8/01/2011

Date to
30/11/2010 7/12/2010 15/12/2010 23/12/2010 31/12/2010 7/01/2011 14/01/2011

Task
Preparation of list of companies and target area of survey. Preparation of questionnaire and testing online. Floating of questionnaire online and collection of secondary data Response period for sample population. Sample data sorting and selection of relevant data. Data sampling, analyzing and interpretation Project report preparation and final tweaks.

THANK YOU