A brand is forever a framework for revitalizing declining and dead brands

1. A BRAND IS FOREVER!
A FRAMEWORK FOR REVITALIZING DECLINING AND DEAD BRANDS
M.Kannan
ACCET, Karaikudi

2. keywords
Brand Equity: The differential effect that consumer knowledge about
a brand has on the customer’s response to marketing activity.
Brand Decline: Failure of a brand due to many factors like change in
technology, lack of brand awareness etc. It is a reversible process.
Brand Death: Becomes imaginary, have significant brand equity in
terms of high brand awareness and a strong brand image.
Brand Revival: Reviving is not a feasible, as it needs a more attractive
strategy than launching a new brand. Less costly, more risky than new brand.

3. Revival of a dead brand
1

4. “While the ‘‘death’’ of a brand is a complex and sometimes
controversial issue, there is ample evidence to show that neither
the lifespan of a brand nor its ultimate destiny is predetermined.”
“Brand decline is a reversible process.”

6. • Ford’s model Taurus was weakened due to the intense
competition from Honda Accord and Toyota Camry.
• Ford did an about face and reintroduced the Taurus brand.
• The firm reasoned that is was clearly a better option in
comparison to an entirely new and unknown brand.

7. • The brand suffered a huge setback upon the advent of smaller
Japanese motor-bikes.
• The company started facing financial losses.
• Harley decided to make a significant investment in its quality
and distinctive styling.
• As a result, it is now once again a well-known and revered
American brand.

8. Decline and death of brands
2

10. Brand equity is defined as ‘‘the differential effect that consumer
knowledge about a brand has on the customer’s response to
marketing activity,’’ and ‘‘consumer brand knowledge can be
characterized in terms of brand awareness and brand image
dimensions’’ .

11. • Pan Am ,“The World’s Most Experienced Airline” , faced intense
competition which impacted its bottom line.
• It’s brand equity declined when one of its airliners was bombed .
• This was because of the amount of negative publicity
associated with the plane crash.
• Today the brand is extinct.

12. • Oldsmobile was known for its pioneering designs and
innovations.
• Over time its sales declined because it was considered as a
“old brand” among consumers.
• Oldsmobile lost its unique identity as innovator.
• Leading to the death of the brand.

13. causes
Causes of brand decline
3

14. To understand why brands decline, we draw upon theories of
brand evolution
• Product life cycle (PLC)
• Product evolutionary cycle (PEC)

15. Product Life Cycle

17. Product life cycle
It ‘‘uses sales to define the stages of the life cycle,
which in turn are used to predict sales’’

18. Product evolutionary cycle

19. Three forces of PEC
“Managerial and entrepreneurial activities constitute the
generative force, the market environment acts as the selective
force, and competitors’ actions and responses to marketing
initiatives constitute the mediative force.”

20. Managerial actions
• Brands often decline because of “leadership, management, and
employees making excuses rather than acting with integrity”.
• Managerial actions are classified into 5 categories
1.Product quality
2.Price increases
3.Price cuts
4.Brand neglect
5.Inability to stay with the target market
1

21. Product quality

22. “If a company continues to raise prices without offering a
corresponding increase in benefits, sooner or later consumers will
start to abandon the brand.”
Price increases

23. Price cuts
“Conversely, when a company cuts prices in desperation to
increase sales, it can also damage the brand.”

24. Brand neglect
“ When a brand becomes popular, inaction creeps in. Even
successful brands need constant nurturing. However,
management can lose sight of this, start looking at its core
brands as cash cows, and neglect to invest in them.”

25. Inability to stay with target market
“When the target market moves away from the brand, the brand
can move into decline.”

26. Environmental factors
“Markets are dynamic in nature and can undergo major
transformations, which in turn have an impact on the various
companies and their brands.”
2

28. • Polaroid has been a household name since it popularized
instant photography.
• With its unique product offering, polaroid quickly gained
prominence.
• But the company spiraled into decline and went bankrupt as the
environment changed and digital imaging became popular.

29. Competitive actions
• In most markets today, a brand faces relentless onslaught from
its competitors.
• Newer competitors are particularly nimble.
• They are able to use new technologies or marketing
approaches to their advantages to challenge well established
market leaders.
3

31. Deconstructing brand decline
There are 3 key elements of brand’s equity, and a change in one
of these can signal brand decline:
1. Decline in brand knowledge.
2. Blurring of differential effect.
3. Lackluster customer response.
4

32. Differential effect
• Consumers must be provided with a compelling argument as to
why they should choose a particular brand from a wide variety
of alternatives available to them.
• It is also important to ensure that consumers have sufficient
exposure to such a message, so that they are knowledgeable
about the brand’s assertions.
1

33. Brand knowledge
• For a brand to be successful, consumers should be
knowledgeable about it .
• Two components of brand knowledge
1.Brand awareness
2.Brand image
2

34. • Brand awareness is the
most widely used
gauge of brand
knowledge.
• If brand awareness is
falling, this
could be a serious
long-term problem.

35. Brand image
• The image of a brand can change over time.
• It is important for a brand to maintain ‘‘strong, favorable, and
unique brand associations’’

36. Customer response
should be monitored
continuously along
with the three
elements of brand
equity to be successful
in the long-run.
3

37. Revitalizing brands
5

38. Is it worth reviving?
Three critical questions need to be pondered when considering
revitalization of a brand:
(1) Can the brand regain some of its former glory (brand
knowledge)?
(2) (2) Can its old equity be enhanced through new positioning
that is relevant and will stand out (differential effect)?
(3) Can the company effectively deal with logistical issues (put
plans in place that will get an appropriate customer
response)?
1

39. Is it worth reviving?
“In other words, brands that commanded a premium in the recent
past, and had a singular focus with a well-defined differentiation,
can be revitalized.”

40. Take a long-term perspective
• Branding is an exercise in patience.
• Most brands take a long time to build, and a long time to die.
• Reviving a brand is also a long-term initiative, typically taking
more than a year or two.
• This is a challenge in a corporate system which rewards
managers based on short-term performance, often measured
on a quarterly or annual basis.
2

41. Carefully reposition the brand,
invest
in it, and educate the market
• A brand’s promise plays a major role in differentiating the brand
from its competitors.
• If a brand is not viewed as unique as compared to others in the
market, its future growth is questionable.
• Many brands such as Oldsmobile, Pan Am perished because of
intense competition and lack of uniqueness compared to others.
3

42. Correct mismanagement of the
brand
• Three ways to address some consistent themes that have
emerged in declining brands are
1. Rebuild quality
2. Resist temptation to “milk” the brand
3. Pursue a carefully defined target market
4

43. Rebuild quality
• In the short run, compromises on quality may go unnoticed, and
customers may stick to the brand out of fondness or loyalty.
• At some point customers will begin to abandon the brand.

44. Resist temptation to “milk” the
brand
• If a brand is to be revived, management must invest in the
brand.
• An aggressive form of ‘‘milking’’ entails cutting prices steadily, a
reflection of the brand’s weakened position.

45. Pursue a carefully defined target
market

47. • Levi’s successfully used its brand name to launch Dockers and
enter a new market.
• Once Dockers became well-known, Levi’s removed its name.

48. Let the revitalization begin!

49. Recap

50. Disclaimer
These slides were created by M.Kannan, as part of an
internship done under the guidance of prof. Sameer Mathur
(www.IIMInternship.com)”