Celebration of Scholars
The Financial Impact of Corporate Identity Redesign
Name:
Lexie Mallary
Major: Graphic Design & Accounting
Hometown: Cordova, IL
Faculty Sponsor:
Other Sponsors:
Type of research: Senior thesis
Abstract
The purpose of this research is to analyze the effects rebranding a company’s visual identity—largely through logo redesign and other identity materials—has on a company’s financial statements—most notably revenues and stock prices—before and after new identity implementation. Several highly analyzed companies are compared to the general market consensus to determine if they follow typical societal trends. Through implementation of a multiple regression analysis, the growth rates of companies with significant results were analyzed to predict if a correlation existed between the redesign and company financials. This research provides a better understanding of how logo and identity materials affect a company’s ultimate success or failure.
Both the qualitative and quantitative analysis took into account the importance of viewer perception and how consumers make purchase decisions. Logo redesigns are rarely a bad decision as long as the new logo effectively communicates their identity. Short-term redesign outcomes may not be viewed as positive; however, long-term benefits can be realized through revenue and stock price increases.
A company should continuously evaluate the relevance of their identity materials. Design impacts consumer purchasing decisions both intentionally and subconsciously. If a company realizes this and incorporates an evolving identity model, they can create powerful graphics causing future revenue and stock price surges. A company’s goal should be generating continuous profit growth, and corporate visual identity redesign will lead them there successfully.