Logitech Rebranding Case Study

Prepared by Kevin HuangJuly 12, 2016

Page 2

Logitech is based in Lausanne, Switzerland, with headquarters in Newark, California, as well, and employs over 7,000 people.

Established in 1981, Logitech is, in their words, “a world leader in products that connect people to the digital experiences they care about” - they simply make pretty good computer peripheral devices like mice and keyboards with typically good-behaving software.

Page 3

(click to watch the video)

1981 ~ 2011

Page 4

Logitech’s core business has been evaporated since 2010, because traditional computers are increasingly being replaced by laptops, tablets and phones – meaning fewer consumers are buying the accompanying accessories.

Under the new CEO Bracken Darrell’s watch, Logitech has begun producing tablet accessories (like detachable keyboards), mobile speakers and expanded to enterprise communications. This hasn’t been enough to make up for the slow death of PCs, but sales in these new categories are going up.

Logitech has an urgent need to stay relevant and profitable in the shifting global marketplace and changing consumer behavior.

Logitech’s Business Challenges

Page 5

The decision to rebrand is not an easy one, and it’s a significant effort for any organization.

Reinventing the Logitech brand

Page 6

Since 2013, Logitech has been working behind the scenes on reinventing the company, shaking things up culturally and through its product innovation. Logitech wanted to bring new life to its brand identity. The result is the biggest transformation in the brand’s history.

Not Your Father’s Logitech

Page 7

They had big aspirations; to redefine who they were as a brand and a business, a major transitional shift to put design thinking at the heart of everything.

Page 8

The new brand needed to be flexible, with an identity that worked across the existing product range, yet

also embraced a whole new range of products.– from connected home and mobile devices, to products that are

still a spark of an idea at Logitech’s development labs.

Page 9

Logitech Logo Evolution

Logitech revealed its biggest brand transformation since its founding onJuly 8, 2015.

Page 10

“The word tech on products in the future will be irrelevant. In the future every brand from tires to jeans will have some kind of technology in it.”- Logitech CEO Bracken Darrell

Technology has become so ubiquitous that brands don’t even need to mention it anymore. Logitech is transitioning to only using the “Logi” part of its name on new products going forward as it is now “crafting a portfolio of products that go beyond PC peripherals, to products that have a place in every aspect of your daily life,” according to a press release.

Page 11

“simple, confident and iconic”With a colorful and bold new look, the Logi label will appear on their newest product categories. They are not changing their name–at least not yet–but the new sub-brand could lead to a complete company name-change in the near future.

Page 12(click to watch the video)

Logitech Brand Video

Page 13(click to watch the animation)

Logitech Video Animation

Page 14

Color Palette

Page 15

Transformation Through InnovationLogitech's products have traditionally been known more for their function than their aesthetics, but that is changing. The company saw consumers shift away from laptops and desktops, and has sought to invest in categories it thinks it can carve a sizable niche in.To help drive this push, Logitech hired its first-ever Chief Design Officer , Alastair Curtis, charged with helping to reinvent the Logitech brand with bold colors and a more distinctive look-and-feel.Curtis is shifting the brand’s focus to the design part of his title: “Design for living, for working, for playing,” with colorful new products and a more modern look and feel.

Page 16

Logitech is taking an aggressive approach on design, and clearly positioning the brand as an innovator.They are not going to reinvent the wheel, but instead invent what Logitech-design means. By taking a unique, but massively attractive, approach to the design of tech products they have the opportunity to become outstanding leaders in their industry.

Page 17

Over the next five years Logitech hopes to change people's perceptions of what Logi is — products and brand identity — and put Logi in the same elite class as Apple, Nike, Netflix and others whose commitment to innovation has led to transformation.

Logitech is seeking to become a lifestyles brand

Page 18

Logi, which spent only $95,000 in 2014 on U.S. measured media according to Kantar Media, has no plans for an advertising campaign to introduce the rebranding to consumers, besides an amplification of social media. But the company will invest in point-of-sale displays with retail partners like Walmart and Best Buy.

Even without an ad campaign, the company hopes the design-led approach will boost

Logi's image and market share.

Page 19

Maintain Brand Identity Consistency

(The new website is easy to navigate and mobile device friendly)

(Product page includes key USPs and user benefits)

Page 20

Page 21

Page 22

Page 23

Page 24

Logitech Projects Continued Growth InRevenue And Profitability

“Logitech is poised for growth,” said Bracken Darrell, Logitech president and chief executive officer. “Over the past three years, we have revitalized our ability to grow. We have diversified our portfolio and grown market share to lead almost every category in which we play. We have also demonstrated rigorous cost management that has enabled us to invest more into great new products. We now have a foundation for a successful FY 2017, as we work toward our long-term objective of high single-digit growth and strong profitability.

“Going forward, we will build on this foundation for success with powerful design, revitalized product creation in existing and new categories, a winning global team and outstanding execution. We already participate in big and growing markets including Gaming, Home, Music, Video Collaboration and Productivity & Creativity. Each of these markets is large and offers interesting adjacent categories we could enter in the future. In the long run we have no shortage of growth options."

Source: Logitech press release 03/01/2016

Page 25

Appendix

Page 26

Rebranding is not simply throwing together a novel marketing campaign, designing a slick new logo, or adding a new product to the mix. There are no guarantees in marketing — true rebranding involves time, effort, and corporate risk.

Page 27

Page 28

Questions That Every Rebrand Needs To Ask Why are we doing a rebrand? What problem are we attempting to solve? Has there been a change in the competitive landscape that is impacting our growth potential? Has our customer profile changed? Are we pigeonholed as something that we (and our customers) have outgrown? Does our brand tell the wrong (or outdated) story? What do we want to convey? To whom? Why should anyone care about our brand? Have we isolated exactly who should care about our brand? Have their needs, or the way they define them, changed? Are we asking our customer to care more about our brand — and what it means — than we do? Is our brand associated with something that is no longer meaningful? Is our brand out of step with the current needs and desires of our customers? Are we leading with our brand direction? Are we following with our brand direction? Is the goal of this rebrand a stepping stone (evolutionary) or a milestone (revolutionary) ? Will this solution work in 5, 10 and 15 years from now based on what we can anticipate? Have we assigned some committee to manage the project versus someone (or at most, two

people) who is/are focused, inspired and can lead? If we were starting our business today, would this be the brand solution we would come up with?

Page 29People don’t buy what you do, they buy WHY you do it.- Simon Sinek

Focus on the ‘why’ and understand what the values are of your company and what is your promise to the customer, then look at what your company does, after you understand your promise, and ensure you are communicating that in messaging.

Start With Asking “WHY”

Page 30

Make No Mistakes When Rebranding1. Clinging To HistoryRebranding well means staying relevant. Assumptions made when the brand was established may no longer hold true. Analyze changes in target markets when exploring opportunities for brand expansion, repositioning and revitalization.

2. Thinking The Brand Is The Logo, Stationery Or Corporate ColorsBrands encompass everything from customer perception and experience to quality, look and feel, customer care, retail and web environments, the tone and voice of communications, and more.

3. Navigating Without A PlanEffective rebrands rely on a creative brief to keep everyone focused as the project progresses. Include sections for a situation analysis, objectives, target markets, budget and resources, timeframe, point person, known parameters, approval structure, stakeholders and metrics for assessing results.

Page 31

4. Refusing To Hire A Branding Consultant Without Industry ExperienceIt’s ok to consider an agency that hasn’t worked in your specific industry before. Sometimes it’s ideal – especially if you’re serious about a turnaround. Smart companies recognize the value of a fresh perspective.5. Not Leveraging Existing Brand Equity And GoodwillDismissing brand equity when rebranding alienates established customers, while unnecessary overhauls can irreparably damage a brand’s perception. Consider the needs and mindset of the target market carefully before digging into the process. Sometimes a small evolution – or a new coat of paint – is all that’s needed to rejuvenate and make a brand relevant.

6. Not Trying On Your Customer’s ShoesSimply calling your own 800-number or receptionist may reveal challenges customers face and inform your rebranding strategy. Take the time to navigate your own website, buy your products and return something. Better yet, ask a friend or family member to do so and learn from their experiences.

Page 32

7. The Rebrand Lacks Credibility Or Is A Superficial FaceliftThe rebrand’s story must be believable given the existing brand experience and customer perception. It must also hold credibility internally. If employees who live the brand day-to-day don’t believe, the target audience won’t either.

8. Limiting The Influence Of Branding PartnersGood branding consultants are more than graphic designers. The best ones help develop new products, expand demographic focuses and even streamline business operations. Rein them in when needed, but don’t limit their areas of influence.

9. Believing Rebranding Costs Too MuchGood thinking doesn’t have to come with a multi-million dollar payout. You can get good thinking and solid strategy from small and talented branding agencies, consultants and in-house talent. Consider university students or small firms for cost-effective results.

Page 33

10. Not Planning Ahead For AdaptationIt’s tempting for team members to walk away after the final presentation, however this is just the beginning of the final stretch. The implementation process may require adaptation as the rebrand rolls out. Acknowledge the need to keep the team and consultants together throughout implementation.

11. Bypassing The BasicsThe value of perfecting your physical environment, marketing materials, website, etc., is decreased if your customers languish on hold for inordinate amounts of time. If your invoices and contracts are written in 7-point legal jargon, the brand experience declines. Keep all customer touchpoints in mind when rebranding.

12. Not Calling The Call CenterOften ignored in brand strategy sessions, customer service and other front-line staff can yield valuable information. This is the proverbial buck – the place where customers are the most honest, no matter what research indicates.

Page 34

13. Forgetting That People Don’t Do What They SayUse caution when basing rebranding strategies on focus group-type research. Unless you’re physically in the customer ’s environment observing them using your product or service, you’re not getting the full story. Actual observation, while not perfect, will get you a lot closer to the right solution.

14. Getting Strong Armed Or Intimidated By ConsultantsIt’s the client’s responsibility to reel things in when necessary. You still know the most about your brand and organization, the value of a non-immersed, fresh perspective notwithstanding.15. Putting The Wrong Person In ChargeAssuming you’ve hired capable-to-outstanding branding consultants, the quality of the work delivered depends on sound, knowledgeable project management. Make sure your internal point person has the skills, time and resources to drive the agency to its most effective work yet.

Page 35

16. Strategy By CommitteeToo many opinions delay the rebranding process and diffuse the focus needed to achieve ROI. Keep those with critical approval authority to an efficient shortlist, and assemble the smallest, most essential project team possible. Include a mix of levels – not just executive.17. Rebranding Without ResearchThere’s a lot of lip service about customers, but in brand strategy sessions they’re often forgotten. Current and prospective customers should be front and center when creating solutions. After all, the customer will be your ultimate test. Check sites like ReBrand.com for informative case studies.

18. Basing A Rebrand On AdvertisingAn ad campaign and a slogan do not equal brand positioning. Brand strategy should lead advertising – not the other way around. Sometimes the most effective rebrands don’t include traditional advertising.

Page 36

19. Tunnel FocusFocusing solely on your own industry can be limiting. When rebranding, cross-pollinate your thinking with what leaders in other industries are doing in regard to customer experience, retail experience and customer care. Pull in thinking from different industries and encourage your agency to do so.

20. Believing You’re Too Small To RebrandEvery brand needs refreshing to stay relevant as markets evolve. Smaller companies and non-profits are not immune. Like larger brands, they too have brand positions that need to be enhanced. Define your brand or be defined.

Page 37

Learn From Some Of The World’s Most successful Branding Revamps

Page 38

Old Spice

(click to watch the video)

Thanks to former NFL player Isaiah Mustafa who told women to "Look at your man, now back at me," Old Spice is suddenly a new Old Spice. Since the first commercial launched a year ago, the 70-year-old brand's ad campaign generated tens of millions of online views and a new catch-phrase: "I'm on a horse.“Old Spice followed up with 186 related videos in which Mustafa directly responded to digital queries from bloggers and celebrities including Perez Hilton, Ellen DeGeneres, and Alyssa Milano.

The company's efforts worked when sales of Old Spice Body Wash—the line touted in the Wieden + Kennedy-created campaign—rose 11 percent over the past 12 months in 2010, and sales continued to gain momentum, reported BrandWeek.Mustafa returned in the first of three new commercials promoting Old Spice's latest collection of sprays, body washes and deodorants as a "scent vacation" in exotic locales (including a grass skirt).

Page 39

LegoWho would have thought that little plastic blocks would be competing with tablets, video games and 24-hour TV? Yet over a century after Lego was founded, the Danish toymaker saw profits rise to 7bn Danish krone in 2014.However Lego’s rise hasn’t always been smooth. With competition in every corner, the company faced bankruptcy in the late 1990s and was forced to rebuild itself brick by brick. Current Lego chief executive Jørgen Vig Knudstrop ditched hundreds of products to focus on bricks again. And it appears to be working. Lego sold 62 billion Lego elements last year, buoyed by a successful foray into cinema with The Lego Movie.

Ben Botes, associate lecturer of digital marketing and new media at London School of Business and Finance, says Lego succeeded by tapping into the demographic with strong memories of the brand and, through them, reached a younger audience – their offspring.“They use social media a lot,” he says. “They have a massive number of social media followers.” The Lego Group has 280,000 Twitter followers.One thing it is particularly good at, says Botes, is using customers to create content. “Marketing is becoming far more content driven, far more engagement driven. They tapped into that trend and that in part has led to their resurrection.” Lego provides customers with the tools to share what it is all about, he adds.

Page 40

BurberryJust over 10 years ago, Burberry’s famous check design was banned in pubs and clubs from Aberdeen to Leicester for its association with hooliganism. Today, the company boasts brand ambassadors including Emma Watson and Cara Delevingne. What’s behind the transformation?Angela Ahrendts, former chief executive of the fashion label, is credited with steering Burberry from baseball caps to high fashion. After she took over in 2006, she handed creative control to Christopher Bailey and bought back 23 licences Burberry had sold to allow other businesses to use its check on anything and everything. During her time at Burberry, the company value rose from £2 billion to more than £7 billion.

“[Burberry] is a brand that comes up time and time again when promoting good practice. They have been very clever in terms of how they have integrated technology into their brand,” she says.“The Art of the Trench campaign is a really good example of a clever use of social media. Luxury brands are predominantly about heritage, tradition and craftsmanship, so it’s about how you balance that with technology.“In terms of personalization of the product itself, you can order straight from the catwalk and have your initials or name etched into the garment’s labels.”

Claire Ritchie, director of International Fashion Studies at the London College of Contemporary Arts, highlights two strategies that have worked particularly well for Burberry’s renaissance – use of technology and personalization.

Page 41

AppleWith the success of the iPod and then the iPhone, Apple products are the pinnacle of 21st century cool. But it wasn’t always that way. Back in the 90s, Apple products had about as much street cred as shellsuits and Noel’s House Party. Thanks to stiff competition in the computer market from rivals IBM, Dell and HP, the company came dangerously close to bankruptcy in 1997.It was up to chief executive, Steve Jobs, to turn the company’s fortunes around. His most important move in his mission to revamp Apple’s naff image for a new generation of tech lovers, was to launch a clever advertising campaign called “Think Different”. The drive challenged customers to see Apple as a lifestyle choice which reflected their own individuality. And it worked.

“Steve Jobs took a radical step by ruthlessly focusing on what made people care about them and stopped trying to emulate their competitors,” explains Maxwell.He adds: “If they had just carried on making the same computers at that point, it would have just been an ad campaign. But what they were signalling was a completely different change in tack, a really bold step into a new type of computer. It was about making the idea real through what you say, what you do, what you make. It is not just an empty claim.”

Page 42

Harley-DavidsonBack in 1985, the Harley-Davidson motorcycle was at risk of disappearing from highways when it almost went bankrupt. What saved the company, says Richard F. Teerlink, the former CFO turned CEO who championed the change, was a better product to match the well-known brand."In 1982, Harley-Davidson had no money of its own," Teerlink told Harvard MBA students in 2003. "We were $90 million in debt, and bankers weren't willing to loan us a penny. We had a good brand and loyal customers, but we weren't generating a profit because we didn't have a quality product at that point. We had to improve the quality of our product to be fair to the customer. If we hadn't improved the reliability of Harley-Davidson products, the company wouldn't be here today."