A brand is forever! A framework to revitalizing the declining and dead brand

a BRAND is forever !

A framework for revitalizing declining and dead brands

What is a

Brand is an identity of a product, service or businessto differentiate from others

NAME

LOGO

NAME & LOGO

SLOGAN

COMBINATION

Thus Brand is the power of a product

And

Power of a Brand

lies in its EQUITY

Brand equity is defined as the differential effect that consumer knowledge(i.e. brand awareness and image) about a brand has on the customer’s response to marketing activity.

If a brand has high Awareness and strong, unique and favorable Image It has strong equity

While some once famous Brands declined and Ultimately got extinct

Over the period of timeSome of Brands revived from decline or death

Brands who REVIVED from a decline or death

Ford Motor’s TAURUS

HARLEY DAVIDSON

Brands who DECLINED and got EXTINCT

PAN AMERICAN Airways

General Motor’s

OLDSMOBILE

Why some of the BRAND revive and other could not

Causes of Brand decline

Managerial actions

Managerial actions, strategy and tactics, are main

generative force in brand’s evolutionary growth

Managerial Actions

Product quality

Price increase

Price cuts

Brand neglect

Inability to stay with target market

If compromises quality for cost cutting itmay not effect in short run but harm in long run

Raise price without offering a corresponding benefits may lead to decline

Cut prices to increase sales

To maintain low price have to use cheaper material

When brand becomes popular, inaction creeps in. Successful brand also need continues attention

Reach out to new customer and alienate old loyal customer

Environmental factors

1.Market are dynamic2.Market transforms with

time due to technology3.Change in legal environment



Android overcame SymbianDue to technology advancement and now Symbian is defunct

Polaroid was prominent onceBut went bankruptdue to digital imaging andcameras


Kodak also faced similar environment change problembut company realize and made necessary change, introduced

digital cameras to fight against HP and SONY, and avoided possible death

Competitive actions

Competitive actions

Relentless onslaught from competitor

Merging and acquisition

Cost cutting

Innovative technological advantage

Competitive actions

Nike wiped out Adidas in U.S.With its advertising through Celebrity and more American trend

V/s

Walmart overcame Kmart By its “everyday low prices everyday”Cost cutting science strategy

Kmart was forced to merge withSears Roebuck to fight back Walmart

Competitive actions

Blockbuster, a giant in the video rental businesswas in strong position but began to decline whenNetflix started offering video rentals via postal mail

Deconstructing brand decline

By predicting decline and taking actions accordingly can save brandfrom death

To deconstruct brand declineRevisit the concept brand equity

3 key elements of brand equity

Differential effect

Differential effect

A brand must provide a different image in Its customer mind from other brands.It can be done either by

VALUE PRICED- Good quality at low price

Or

POD (Points of difference)- Superior quality product and benefits

Brand knowledge

Brand knowledge

Brand knowledge has two components

Brand awareness

Brand image

High aided recall and high top of mind recall

Strong & unique brand association

Customer response

Standards for measuring customer responses

Sales figures

Purchase intentionsBrand loyalty

Customer responses

Brand switching triggered by

• Price increase• Entry of new competitor• Negative news about

brand

To avoid decline Brand equity aspects to be considered

&For long run success brand

knowledge and differential effect have to be addressed

Revitalizing brands

Brand’s equity is the most valuable assetfor a company.

Where Introducing a new brand costs tens of millions of dollar,

revitalizing existing brands with

proper diagnosis, strategy and execution is a worthwhile exercise

for Revival of a brand

Is the brand worth reviving?

Can the brand regain some of its former glory?

Can its old equity be enhanced through new positioning?

Can the company effectively deal with logistical issue?

Is the brand worth reviving?

Declining brand can be revived if it has Significant residual value and brand equity Revival cost is not very much Premium value and Singular focus with well define differentiation

In some cases Reviving the brand is notworthy, brands that suffer from low awarenessOr a negative image it is better to kill the brand than to invest in it.

Take a long term perspective


Long term perspective is imperative

Well thought out strategy and execution

Redefine & rebuild


Blockbuster was under attack by Netflix.Blockbuster closed its unprofitable stores that were closely situated and used that to benefit its online rental programWhich has more promising future

Long term perspective not only used to revivethe declining brand but also can be used to phase out own brand


Toyota QUALIS was at the top of market competing with Tata SUMO. QUALIS was launched as family MPV

Toyota never wanted a “Taxi ” Tag on Qualis so Toyota phased out QUALIS brand from India and invest in INNOVA

Maruti Suzuki decided to phase out of Maruti 800.Because it was unable to upgrade to Euro lV.It also became outdated model so it was better toPhase out and benefit this to built in other brand Like Maruti Suzuki ALTO.

Carefully reposition the brand, invest in it and educate the market

Carefully reposition the brand, invest in it and educate the market

Tata Nano hit the high revenues in its first yearBut due to its “Cheap Car” tag its sales decreased in following years.

Thus Tata decided to refresh its image by offering new snazzy colors and features and launchingeco-friendly, bi-fuel variant came up with new tagline“Celebrate awesomeness”

Correct mismanagement of the brand


Rebuild quality

Resist temptation to “milk” the brand

Pursue a carefully defined target market


Harley Davidson almost got killed due tolow price bikes offering the low quality.

Harley Davidson improved quality, extended its product line

and subsequently achieved a complete turn around. It reversed its strategy of cost cutting.

Today it sells its motorcycles to high-end market


Aggressive form of milking entails cutting prices steadily

Apple was losing its top-of-mind awareness after its struggle in the PC market.

It made investment in technology and launched iPod instead of cutting prices in PC market

Apple brand came to fore front once more


St. John decided to reach out to teenagers and young adults because they Represented a growth segment thus by shifting its focus mid-way to a more promising younger audience, thus brand alienated its core customer

In such situation sub-brand can be a effective strategy.St. John introduced “Youth by St. John” to target only younger market.It used St. John as a bridge to build a new brand.

Once the Youth brand established,St. John name withdrawn from it

Let the REVITALIZING begin !

RECAPCauses of brand decline

Managerial actions


Competitive actions

Key elements of brand equity

Differential effect

Brand knowledge

Consumer response

Revitalizing of Brand

Brand worth reviving or not

Long term perspective

Reinvent, Reposition, Revive

Correct the mismanagement

Disclaimer

Created by Khemendra Raj Pingoliya, IIT Kanpur during an internship

by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com

http://www.iiminternship.com/

A brand is forever! A framework to revitalizing the declining and dead brand

Documents

brand awareness

successful brand

death brand equity

deconstructing brand

brand knowledge bra

key elements of brand

competitive actions

strong equity