Why do firms refuse to change logos?

By Tjipto Ramuni

JAKARTA (JP): A company's logo is, in fact, comparable to someone's face. Meaning that by only a quick glance, people can identify the particular company right away.

It is more or less like looking at a familiar face and only by looking at it will you know to whom the face belongs.

Like a face, a company logo will be taken care of and be well- kept to gain people's recognition. Both the face owner and the company owner to which the logo belongs, will maintain their reputation so as to create a good image in the public eye or among consumers.

The main difference between a logo and a face lies in change itself. Only a few people change their faces (for instance, by plastic surgery), and, as far as possible, people try to keep the faces given to them by God.

An effort made by many people is to beautify themselves through the use of cosmetics. This is common among women, who care very much about their "logos".

Unfortunately, this kind of thing does not happen to a company logo. Innumerable companies have changed their logos already for all kinds of reasons to the extent that the companies to which the logos belonged have indeed "restructured" their faces in such a way as to turn them into totally brand-new companies, leaving the impression that the old logos have been long gone and forgotten in the process.

And, if possible, not to ever be mentioned again, despite the fact that the company's name has not even changed at all. In other words, the company concerned only wishes to change their old image.

Examples of such companies are numerous: Kentucky Fried Chicken has changed both its logos and original brand into the more popularly acronym, KFC, without having to relate it to Kentucky Fried Chicken any longer.

This was done to avoid what the name implied: that Kentucky was identical to fried chicken containing a high cholesterol level, something clearly avoided by a particular segment in society, as well as other deep-fried products.

Examples such as this are innumerable in Indonesia alone. TPI, for instance, has changed its logo to its current one and never again refers to its original appellation as Televisi Pendidikan Indonesia. Even now, it is projecting its image as a family television station, deliberately leaving out its "educational" mission.

The same thing happened to BNI. The logo of this state-owned bank has been changed into a sailboat, without bearing the name of Bank Negara Indonesia anymore, leaving the impression of something outdated.

Three state banks have recently merged into one company and picked up a new name as well as a new logo: Mandiri. Apart from giving the impression that the new bank is distinct in the real sense, it is also supposed to mean that the brand-new bank is totally different and, obviously, a separate entity from the three former banks that were merged under one roof.

However, this is different from the merger of the two giant retailers Continent and Carrefour. While the owners of the brands still maintained their old names, they choose Carrefour to go to the market with, thus deliberately shutting out Continent.

This kind of policy shows that the Carrefour name as well as its logo were still acceptable to the market, unlike the BBD or Bapindo name and logo prior to their merging into Bank Mandiri.

Only recently, Garuda Indonesia successfully changed not only its logo but its corporate image as well. There have been drastic changes from the marketing standpoint, leaving the impression that the state airline company has changed its old negative image into a new positive one within a very short time -- as easy as giving away free candies to children.

PT Excelcomindo Pratama, a cellular operator in Indonesia has also changed its corporate image, including its logo. Now, the company name has been shortened to Excelcom and its corporate colors have also been changed, although company management prefers to call the changes a revitalization.

There are lots of other companies that have changed their logos. Some of them have changed their logos drastically and some others gradually. Smaller parts of the logos have been changed unobtrusively and, so, are unnoticed by the layman's eyes. An example of this is the Tempo weekly magazine. Take a close look at the renowned Indonesian magazine from its first issue until now. It will be seen that it has, indeed, changed slightly though this will not be apparent at a superficial glance.

Needless to say, almost all companies have changed their logos, synchronizing themselves both with the era of globalization and society's perceptions of their new symbols. For instance, environmental companies will adopt green logos and high-tech ones will resort to blue. The logos of new companies depicting new concepts pick silver as the color of the millennium.

Another meaning implied in logos is the perception that a particular company can quickly anticipate the winds of change (which happen in the blink of the eye). This impression is provided by sharp or pointed logos, or logos with some parts facing upwards, often resulting in aerodynamic, moon or oval shapes, etc. In short, they are less rigid, unlike those of the 1960's.

Aside from companies that redefine themselves, we also have companies that remain loyal to their old logos and brands. Whatever happens as regards fashion, the owners of such companies tend to keep their old logos as long as they can.

Normally, "consistency" such as this happens in traditional or family-oriented business.

To name some such companies, for instance, we have cigarette companies in Indonesia such as Gudang Garam, Djie Sam Soe, Minak Djinggo, Bentoel, Djambu Bol and others. It's crystal clear that these companies have made every effort to appear more fashionable. The packages they produce, including the colors, raw materials and shapes -- employ sophisticated designs, giving the impression of modern and global products.

But take a good look at the logos on these packages. Aren't they exactly the same as the old ones? Like the picture of a cluster of houses or warehouses standing beside the railway? Or the type of the needles in the new Djarum or Bentoel packages, are they totally changed?

Still, there are many other examples of both family-oriented and traditional businesses alike showing the high-esteem of the management or owners for the old-fashioned way.

It is not easy to find out why these companies keep their old logos to the present day unless we take a short look at their habitual routines in running their businesses. Thus, we will find that many domestic companies or family-oriented businesses will keep "their maxims" such as traditions or the habits of their ancestors, including those related to mystical beliefs.

For instance, in searching for a good name, color and logo shape, more often than not they will make a snap decision without thinking. Some of them will even visit places considered mystical to look for inspiration, vision and the like. Eventually the spirit will "whisper" the logo and the name of the preconceived company. Consequently, they become convinced that the particular name and logo has been blessed by "something" that they believe conveyed "the truth" to them

Illogical, of course. But one thing is for sure, such and such logo continues to be used right up until the present time and has proved itself successful in the market.

Some local cigarette manufacturers, including manufacturers of traditional clove cigarettes, are even able to snatch a bigger market share without having to renew or change their old-style logos.

At least that was the owners' belief. Even at the present time, they still hold the same belief that changing the logo will not make things any better.

What if a certain product line and the old logo is no longer accepted by the market? Will they survive using the same old logo? The question will remain unanswered.

They can no longer keep on buying time. The company owner can no longer keep a product that has been rejected by the market. Like it or not, they will have to change their management, logo and all the rest to create a new image that will allow them to achieve market penetration.

Such things also happen to modern companies, the only thing that makes them different from the rest is that they have masterly anticipation. Indeed, they will normally have made the necessary changes, including changes to the logo, prior to the dumping of their brands by the market. It is no wonder that nearly all long established major companies have, in fact, changed their logos once or even more than once.

So it is only a matter of time before traditional companies change their logos. Not many brands, logos or product lines can survive more than 100 years. In fact, is there any logo that has survived 100 years? I don't think so.

The writer is a journalist based in Jakarta.