A brand is forever- Framework for revitalising declining and dead brands

A BRAND IS FOREVER

A framework for revitalising dead and declining brands

Branding has been used since time immemorial to distinguish between products and services

A few strong brands....

Few others that faded away into oblivion...

Numerous brands have met with gradual decline and death

Managers must foresee the signs of Brand Decline and adopt approaches to revive the brand

• Popular post World War II for unique designs and engineering• Tough competition from smaller Japanese motorcycles in the 1970s• Countered this by introducing smaller vehicles • These were perceived to be of low quality

The case of Harley Davidson

Recognising its weaknesses, Harley Davidson invested in quality and styling

And Voila! Today, it is one of the most recognised brands worldwide

Recognising its weaknesses, Harley Davidson invested in quality and styling

Brand decline is reversible

Brand decline is reversible

Reviving brands is more profitable and less risky than launching a new brand

(PLC)

PEC

Generative force -

Managerial activities

Mediative forces -

Competitors’ response to marketing initiatives

Selective forces -Market

Environment

Product Evolutionary Cycle (PEC)

CAUSES OF BRAND DECLINE

Managerial actions

Environmental factors

Competitive actions

Managerial actions

Product QualityPrice increasePrice CutsBrand NeglectInability to stay with target market

I. Product Quality

Cadillac’s steady decline over two decades was due to compromises in product quality

II. Price Increase

Tata Sierra: Too steeply priced at 5 Lakhs

III. Price Cuts

Lacoste’s price cuts in response to falling demand proved to be disastrous

Lower prices

Cheaper Quality

Material

Lower Brand Image

IV. Brand Neglect

Nutritional product Ovaltine acquired by Sandoz in 1992

Neglected as it was not seen as a core brand of Sandoz

V. Inability to stay with target market

GAP’s shift of focus to the younger audience alienated its core customers, in the 1990s

CAUSES OF BRAND DECLINE

Managerial actions Environmental

factors Competitive

actions

Environmental Factors

Polaroid went bankruptwith the advent of digital imaging

CAUSES OF BRAND DECLINE

Managerial actions Environmental

factors Competitive

actions

Competitive actions

Adidas declined in the face of intense competition from Nike

HOW TO DECONSTRUCT BRAND DECLINE

Brand Equity is defined as “the differential effect that consumer brand knowledge has on the customers’ response to marketing activity”

Three key elements of brand equity Differential effect Decline in brand knowledge Customer response

Change in one or more of these can signal

a brand’s impending decline

Differential effect

Provide consumers with a compelling argument on why they should choose a particular brand

What makes the brand DIFFERENT from the rest?

Brand Knowledge

Brand Awareness

Brand Image

Customer Response

Decline is preceded by consumer brand switching behaviour

Revitalising brands

With proper diagnosis, strategy and execution, a brand can be revived

Is the brand worth reviving?

This entails examining all three elements of brand equity

While most brands can be revived, some may not be worth the effort

Pan Am was driven to death as a result of negative image in the aftermath of the Lockerbie bombing incident

Brand revitalization can be kick-started by addressing:

The causes of the decline Understanding the brand’s

promise and why it may have failed to deliver

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

Rebuild

Resist temptation to milk the brand

Apple introduced the iPod at just the right time, launching itself to the forefront after a lull

Pursue a carefully defined target market

Levis leveraged its brand name to promote its new line of business clothing. Once established, Levis removed its name and Dockers became a stand-alone brand.

• Managers need to identify signs of brand decline

• Managerial actions, environmental factors and competitive actions contribute to brand decline

• Brand decline is reversible• Brand revitalisation entails careful

repositioning of the brand, investment and educating the market

RECAP

Disclaimer:

These slides were created by Anju Joseph, MEC Kochi, as part of an internship done under the guidance of Prof. Sameer Mathur, IIM Lucknow

(www.IIMInternship.com)