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A brand is forever

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Vaishnavi Ketharnathan
Vaishnavi Ketharnathan

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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 Quality Huge impact in long run Ex. Cadillac Price Increases Customers abandon brand Volkswagen failed its Rabbit 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 market Ex. St. John
ENVIRONMENTAL FACTORS
R.J.Reynolds’ Camel Lawsuit against the company Polaroid Digital Imaging became popular Kodak Introduce first digital cameras
COMPETITIVE ACTIONS
Newer competitors challenge well established brands They leverage novel technologies Walmart 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 Priced good quality at low or competitive price Differentiation Basis of superior quality, physical attributes, or intangible benefits
BRAND KNOWLEDGE
Brand Awareness Popular brand will have high aided recall and high top of mind recall Brand Image More challenging and expensive to track because of its abstract nature Never milk a weakening brand
CUSTOMER RESPONSE
BRAND SWITCHING Useful 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 the company
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 Quality Harley-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 Lucknow www.IIMInternship.com

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A brand is forever

  • 1. A BRAND IS FOREVER! A framework for revitalizing declining and dead brands
  • 3. 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
  • 4. Revival of a Brand: Harley-Davidson
  • 5. 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
  • 6. EXAMPLES OF BRAND DECLINE • Pan American World Airways • Oldsmobile, General Motors
  • 8. CAUSES OF BRAND DECLINE
  • 9. THEORIES OF BRAND EVOLUTION Product Life Cycle • Tautological nature for managers Product Evolutionary Cycle • Generative Force • Selective Force • Meditative Force
  • 11. Product Quality Huge impact in long run Ex. Cadillac Price Increases Customers abandon brand Volkswagen failed its Rabbit model
  • 12. 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 market Ex. St. John
  • 14. R.J.Reynolds’ Camel Lawsuit against the company Polaroid Digital Imaging became popular Kodak Introduce first digital cameras
  • 16. Newer competitors challenge well established brands They leverage novel technologies Walmart used “Everyday Low prices” to drive Kmart out
  • 18. 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
  • 20. Value Priced good quality at low or competitive price Differentiation Basis of superior quality, physical attributes, or intangible benefits
  • 22. Brand Awareness Popular brand will have high aided recall and high top of mind recall Brand Image More challenging and expensive to track because of its abstract nature Never milk a weakening brand
  • 24. BRAND SWITCHING Useful indicator of a brand’s performance Triggered by variety of reasons such as entry of a new competitor, increase in price, negative news
  • 25.
  • 26. Brand’s Equity: Most valuable asset Brand may expand coverage, provide protection, extend an image & fulfil a variety of roles for the company
  • 27. Is The Brand worth reviving?
  • 28. 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.
  • 29. Taking a Long term Perspective
  • 30. 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%
  • 32. 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
  • 34. Rebuild Quality Harley-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
  • 35. 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.
  • 38. Created by Subhasis Panda, IIT Bombay, during an internship by Prof.Sameer Mathur, IIM Lucknow www.IIMInternship.com