Logo Change

Advertising is a vast field to explore, currently my interest goes on Old brands which are going for an image makeover to create new markets.

“A brand is a bundle of associations just like a product is a bundle of features. And, just as it is imperative to upgrade the features in a product over time, it is important to upgrade brand associations. So, a change in logo, or the evolution of a brand’s identity shouldn’t really surprise us”.

Many old Indian Corporate Houses are changing their logos to create new markets, We can take latest examples of Ceat, Godrej, and Shoppers Stop.

Imperatives For A Makeover

• The need to be more youthful.
• To compete with global brands.
• To upgrade within the segment brands operate in.
• Making a shift from one product category to multiple categories.
• In case of a merger or acquisition.

We will have a glance at motives and tribulations for changing the Brand Identity.

Targeting the Youth:
Indian brands that have been around for several decades seem to have suddenly discovered the elixir of youth. “Indian companies find that they are out of sync with their rapidly evolving consumers, and this is compelling them to change”.

In the case of Ceat, while in the 1980s and 1990s, tyres were expected to be tough enough to deal with bad roads, customers no longer consider this as key in a purchase decision. Ceat’s own research indicated that, with several new automobile models in the market and an improvement in road conditions, younger customers are keener on performance. The surveys also found that the consumers felt that the brand values were stagnant. “Ceat don’t want to lose brand relevance with the youth”.

Repositioning:
The second reason why brands seek a new identity has to do with the need to upgrade the segment in which they operate. Take Shoppers Stop’s recent attempt to move up the value chain, for instance. “They’ve been trying to re-position themselves from being perceived as a premium brand to a luxury brand”.

The changes have also extended to Shoppers Stop’s communication strategy. The tag line has changed from ‘Shopping and beyond’ to ‘Start something new’.

The Bottom Line:
Eventually, it’s all about the chase for the wallet, and younger customers have more money now to spend than ever before. “Brands are following the money as the younger population is getting wealthier and companies realise the need to take their brands to where the money is”.

First, and probably the most obvious factor that encourages the change is that Indian brands have to now face more competition, especially from global players and, therefore, the legacy bundle of associations may not be appropriate any more. For example new logo of Godrej Group in Ruby, Green and Blue is representing Energy, Innovation and Growth respectively which is an attempt to rejuvenate the 110-year-old brand.

In same prospect Ceat is trying to capture the imagination of Indian consumer, its new logo is more youthful in deep blue and orange, and with a simple and clutter-free design. There is an emphasis on the letter E, which represents raising the bar and signifies energy. Ceat, on other hand, had built up its image with the Rhino and its tag line ‘Born Tough’. However, the new logo has diluted that image. The new campaign doesn’t tell much either except that the brand is changing.

Tough Task:
Launching a new brand identity is a challenging and time-consuming move that needs to be followed up by delivering on the brand promise. It is also an expensive exercise. It involves research at different levels, including workshops and interviews with senior teams to understand their vision for the future, employee research that gives them a chance to voice their opinion anonymously, consumer research, mystery shopping, retail audits and factoring in global trends and practices. Despite this, sometimes new identities fail to impact sales.

Indian marketers seem to be aware of this. Ceat is considering investments worth Rs 1,000 crore to develop new radial tyres and speciality tyres to appeal to younger customers. Besides appealing to a younger audience by using interactive sites such as Youtube and MySpace to gather feedback.

Godrej who is investing over Rs 100 crore in the rebranding exercise, including Rs 18 crore worth of advertising over six weeks during the Indian Premier League cricket matches to refresh the brand and look for a fresh positioning that appeals to younger customers.”

Phasing out the old brand and bringing in the new needs a streamlined programme that maximises return on investment. Every interface needs to be re-configured and changed. “For large organisations, this is a huge exercise”. But if the effort works, the payback is worth it.

By:
Priyank S Soni - PGDM 1
(Globsyn Business School - Ahmedabad)

Source: Internet