The impact of a logo change on brand equity: Analysis and comparison of Spa and Contrex, two bottled water brands.

Details

Supervisors

meunier, baudouin

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

The purpose of this research is to understand the impact of a logo change on brand equity. To do so, two water brands having experienced a logo change recently will be examined: Spa and Contrex. To perform this research, 125 respondents were surveyed on the logo change of Spa and Contrex. They were asked to evaluate their affinities with the old and new logos, their perception of the change as well as various questions on the brand equity. The conclusions observed from the statistical analyses of their responses show a decrease in brand value in evaluation of Spa’s new logo. On the contrary, Contrex’s new logo seems to have improved the evaluation of the brand thanks to the change. The main item that has improved is the interest of the brand. Consequently, Spa's brand equity was affected regarding the brand awareness, the brand perceived quality and the brand associations; while Contrex's brand equity was only impacted on its brand awareness. On a managerial level, those conclusions should help brand managers to realize the importance of a thorough examination of the brand equity on a regular basis. That way, the impact of the logo release can be effectively measured. Also, companies shouldn’t underestimate the consumers’ perception in their rebranding decision. The case of Spa demonstrates that customers should be included in the decision process through a logo pre-test. This ensures the company to lower the risks, to empower their customers’ loyalty and to avoid harmful consequences on the brand equity. Finally, the case of Contrex shows that logo redesigns for updating purpose have only a very limited impact on the brand equity, which represents a waste of investment for companies.