A BRAND IS FOREVER!

A framework for revitalizing declining and dead brands

Goodbye Ford’s Taurus

REVIVAL OF A DEAD BRAND

• Less costly and risky than launching a new brand

• Dead brands may still have significant brand equity in terms of high brand awareness & a strong brand image

Revival of a Brand: Harley-Davidson

1.Analysing examples of Brand decline

2.Investigating leading causes of brand decline

3.Identification of signs which are precursors to impending decline

4.Looking at the guidelines to revitalize Brands

EXAMPLES OF BRAND DECLINE

• Pan American World Airways

• Oldsmobile, General Motors

STRONG BRAND EQUITY

CAUSES OF BRAND DECLINE

THEORIES OF BRAND EVOLUTION

Product Life Cycle• Tautological nature for

managers

Product Evolutionary Cycle• Generative Force

• Selective Force

• Meditative Force

MANAGERIAL ACTIONS

Product QualityHuge impact in long runEx. Cadillac

Price IncreasesCustomers abandon brandVolkswagen failed itsRabbit model

Price Cut

Can damage the Brand

Ex. Lacoste

Brand Neglect

Need constant nurturing

Can result when

organizational shake-ups

result in less attention

Ex.DeWalt,KingFisher

Inability to stay

with the target

marketEx. St. John

ENVIRONMENTAL FACTORS

R.J.Reynolds’ CamelLawsuit against the company

PolaroidDigital Imaging became popular

KodakIntroduce first digital cameras

COMPETITIVE ACTIONS

Newer competitors challenge well established brandsThey leverage novel technologiesWalmart used “Everyday Low prices” to drive Kmart out

DECONSTRUCTING BRAND DECLINE

BRAND EQUITY

The Differential effect that the consumer Brand knowledge has on the customer's response to marketing activity

When a Brand has High awareness and consumers hold strong, favourable and unique brand associations, it is considered to have strong equity

DIFFERENTIAL EFFECT

Value Pricedgood quality at low or competitive price

DifferentiationBasis of superior quality, physical

attributes, or intangible benefits

BRAND KNOWLEDGE

Brand AwarenessPopular brand will havehigh aided recall and high top of mind recall

Brand ImageMore challenging and expensive to

track because of its abstract nature

Never milk a weakening brand

CUSTOMER RESPONSE

BRAND SWITCHINGUseful indicator of a brand’s performance

Triggered by variety of reasons such as entry of a new competitor, increase in price, negative news

Brand’s Equity: Most valuable asset Brand may expand coverage, provide protection,extend an image & fulfil a variety of roles for thecompany

Is The Brand worth reviving?

Questions to Ponder!!!

• Can the brand regain some of its former glory?

• Can its old equity be enhanced through new positioning that is relevant and stand out?

• Can the company effectively deal with the logistical issues?

Brands that commanded a premium in the recent past, and had a singular

focus with a well-defined differentiation, can be revitalized.

Taking a Long term Perspective

Branding: An exercise in Patience

Brand revitalization can be started by addressing the causes of the decline, understanding the brand’s promise-and why it may have failed to maintain its relevance; adjusting this and educating the market about it

After Investment:

Subscribers increased from 3 million in

2006 to 4 million in 2007

Online program comprised of 10.4% of

Blockbuster’s total movie revenue in

2007 from 4.9%

Repositioning of Brand

INVESTMENT ON A BRAND

GM invested $4 billion on Cadillac brand in a make or break overhaul, redesigned them for the global market and offered models like CTS, the STS, and the DTS

Correct Mismanagement of the brand

Rebuild QualityHarley-Davidson uses Japanese management principles to improve quality, extended its product line.Hyundai undertook significant financial investment in quality and backed with a 100,000 mile service warranty

Resist temptation to milk

Company made significant investments in MP3 player technology to launch the iPod

Aggressive form of “milking” is a reflection of brand’s weakened position

Pursue a carefully defined target market

A line extension with a sub-brand can be very effective strategy. For example, St. John might introduce “Youth by St. John” to target the growing younger market.

It could use St. John as a bridge to support introduction of the new line and continue to cater its old audience.

LET THE REVITALIZATION BEGIN!!!

3

BRAND LIVES FOREVER

Created by Subhasis Panda, IIT Bombay, during an internship by Prof.Sameer Mathur, IIM Lucknowwww.IIMInternship.com