Download - A brand is forever
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
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
THEORIES OF BRAND EVOLUTION
Product Life Cycle• Tautological nature for
managers
Product Evolutionary Cycle• Generative Force
• Selective Force
• Meditative Force
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
R.J.Reynolds’ CamelLawsuit against the company
PolaroidDigital Imaging became popular
KodakIntroduce first digital cameras
Newer competitors challenge well established brandsThey leverage novel technologiesWalmart used “Everyday Low prices” to drive Kmart out
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
Value Pricedgood quality at low or competitive price
DifferentiationBasis of superior quality, physical
attributes, or intangible benefits
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
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
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.
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%
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
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.