A logo is necessary for every business. It represents brand identity, impression, and loyalty. It is the reason why businesses invest millions of dollars to design the perfect logo.
For example, the Symantec Brand & Acquisition logo cost was $1.28 billion. Accenture's logo design cost was $100 million.
But when it comes to redesigning a logo, a small mistake can cause massive loss. This happens to the Cracker Barrel.
How does the Cracker Barrel made The $100 Million Logo Mistake?
Cracker Barrel changed its logo and removed “the man and the barrel” from its logo. The new logo design only displays the brand name.
This logo redesign caused a stock plunge, and Cracker Barrel lost $100 million in market value.
Before that, the stock value of Cracker Barrel was $54.80. After the release of the new logo, the Cracker Barrel stock price went to $50.27.
How much does Cracker Barrel lose due to the logo redesign?
- Market value: $100 million in market value.
- Market capitalization: $200 billion in capitalization.
This is one of the biggest logo redesign losses in history. The new logo will soon appear on menus and stores.
Why Did Cracker Barrel Change Its Logo?
Cracker Barrel was established in 1969 in Lebanon, Tennessee, United States. Dan Evins and Tommy Lowe were the founders. It's been 55 years, and the company wants to refresh its image.
Barrels are no longer in mainstream business.
To display the fresh look, new menu, and redecorated stores, the management decided to redesign its logo.
The new Cracker Barrel interior will also meet the needs of modern customers.
The company responded that the values of the business haven’t changed. The heart and the soul are still the same.
What Marketers You Learn?
A logo is as essential as the branding for a business. It is a must to rethink before redesigning the logo.
Redesign your logo when it is completely out of the picture or you are adding something extremely valuable to it.
Unnecessary changes to a brand’s logo create identification problems. Also, you must spend more money on copyright of the new design.
It is best to rethink it before rebranding your business.
Conclusion:
Cracker Barrel’s logo change case study explains that unnecessary change can cause massive damage.
It is necessary to rethink the customer’s connection with the brand image and logo before changing it.
Branding is more about building connections than running A/B tests.
If you are thinking about the logo design, rethink your preferences.
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