The intent is laudible. Preparing to launch updated versions of most of its products, "we felt it was a good time to express the newness in the Microsoft logo (see below) as well," said Jeff Hansen, Microsoft's general manager of brand strategy.
Microsoft certainly needs to do something. With the exception of late a spike in 2007 and a dip in 2009, the stock price has hovered between $25 to $30 for a decade.
But merely enhancing its desktop offerings and logo won't solve the deeper problem: declining PC sales, the source of 57% of FY 2012 sales and 90% of operating income (products for PCs, including Windows and Office, adjusting for a large one time charge; without that, PC software accounted for over 100% of OI). And eking out a few extra points of operating margin - already at 64% companywide - is going to be tough, regardless of how well the new offerings sell.
While others critique the logo itself (I actually like it), that misses the point entirely. A brand is the sum total of the entire customer experience; said simply, it is both what you say (think marketing communications, including the logo) plus what you do (all the myriad of interactions buyers have with a company), which in turn requires a change in culture. Thus, a new brand strategy must be part and parcel of a company-wide initiative, touching every part of the organization.
Think of it this way: not many would be fooled by putting a Mercedes logo on a Nissan Versa.
The experience matters.
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Here's the new logo - what do you think?
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