SlideShare a Scribd company logo
1 of 18
 Brand Revitalization:- A brand would always have a market
angle to it. Its success lies in its connection with customers, its
value, & its favorability.
 The market forces like competitive advancements, shifts in
consumer tastes & liking, technological & legal development
impact the brand’s fitment to the market.
 Brands which have lost their glory suffer from this drawback. Brands
like Dalda, Ambassador and Bajaj Chetak have lost their hold on the
market.
 These brands neither suffered from fuzzy or inconsistent
knowledge structures, nor, there is any ambiguity as to what
these brands signify, but they were unable to create positive
brand equity with the advancement of time.
 The apparent loss of relevance of these brands is due to shifts
in consumer, competitive & technological environment.
 Dalda:- Once the choice of every Dadimas, and a symbol of love, the
preferred Vanaspati has fallen by the wayside. The new emerging
health conscious customers do not identify with properties such as
stickiness, ghee–like character and higher cholesterol.
There has been a general shift in favour of refined oils and
customers of present look for de-waxed, refined, cholesterol free
solutions.
 Ambassador:- This erstwhile king of Indian roads, once the symbol
of power, durability & safety is facing oblivion. On the consistency
front, Ambassador is perhaps the only global brand which has defied
the winds of change.
So consistent has been the product that Ambassadors of the
‘sixties’, ‘seventies’, ‘eighties’, ‘nineties’, and even today look more or
less the same, and the brand represents the same value which it did
in the ‘seventies’.
But consistency is not a virtue in this case, as car technology has
evolved radically. Moreover, with the liberalization of the economy,
the nature of the Indian car market has changed from a highly
protected one to a whole battalion of foreign cars grappling for
market share.
The customer’s definition of a car has also changed over time, but
the Ambassador brand has not. It appears to a new customer as a
living fossil, a vintage car still in circulation, a bullock cart on
steroids, And people don’t use vintage cars for daily use, they are
kept for participation in rallies & displays in museums.
 Bajaj Chetak:- Chetak had been the reigning king of the two-
wheeler market in India for over four decades. Known for its trouble-
free service, easy maintenance & durability, it was the most
cherished possession of the Indian Middle class society.
The brand enjoyed best of the times, which no other brand would
perhaps be able to see ever again. After booking, people waited for
years (in some cases decade) before their turn came.
One could even sell a Chetak in the black market & procure
double or triple the official price. The masses saw Chetak as an non-
depreciating brand.
But, over the years, it has witnessed vanishing premiums and few
takers in-spite of easy finance, showroom availability, and improved
looks & technology.
The sales dipped to such levels that the company decided to stop
manufacturing.
 The brands mentioned above (and many others, like Rajdoot and
Yezdi) have witnessed erosion in their equity.
 All those brands enjoyed clear & concrete meanings, but there
image is becoming a burden on them in changed
circumstances.
 The challenge for the brand stewards is how these brands can
be revitalized? – This task involves studying the associations
and executing appropriate changes therein, in order to re-
establish their relevance in the served market.
Ex:- Hero Moto Corp., Maruti etc.
 One point is for sure that all the brands can not be revitalized.
Similarly, it may not be possible to achieve the same height at
which the brand once was and vise versa.
 The revitalization effort could move in two directions:
First, The brand may be adjusted or modified to appeal to
the market, or a brand’s market may be adjusted.
 Which rout a brand should take is influenced by a variety of factors.
The brands, which have relevant values, but somehow which
have become dormant are true candidates for revitalization.
 There are a number of ways a firm can work to revitalize its brands.
Ex:- Harley-Davidson (Rugged American individuality &
personal freedom Vs. Japanese Bikes) went back and re-established
its image which had taken a beating due to the companies moves
that ignored the brand’s essence.
 The following Brand Revitalization measures can be taken:-
A. Increasing Usage:-
i. Make the brand more convenient to use – easy to cook (Maggi),
Instant Breakfast (Kellog’s).
ii. Reduce doubts associated with more or frequent use – no
harmful chemicals (Vatika).
iii. Provide incentive to use frequently – frequent flier benefits
(Airways), Privilege Cards.
iv. Consumers use more quantity – more toothpaste per application
(Colgate).
v. New uses – Smoke free mosquito coils (Good Knight).
B. New Markets:-
i. Reach to new markets, not targeted so far – Rush to Asian
Countries (McDonald’s), Rural Areas (HUL).
ii. New Segments – Cover un-attacked segments (Line extensions of
Shampoo products).
C. Image Change:-
i. Add new associations when existing associations become
obsolete – (Dalda Vanaspati to Dalda Active).
ii. When associations wear out because of frequent use – Claim
that a detergent washes whitest or it has dirt blasters.
iii. Commodization – Brand needs differentiation. (Xerox is not
photocopying).
D. Brand Enhancement:-
i. Add new valued differentiations – Service (Electrolux), Features
(Sony), Availability (HUL).
ii. Value Discipline – Innovation (Sony), Intimacy (Marriott),
Operational Excellence (Southwest Airlines).
 Second, A brand’s association may not become burdensome
because of explicit un-favorability by the market. Less damage
may occur when consumers become indifferent or do not attach any
importance to the brands.
For instance, A lemon drink positioned as tasty may loose its
command once competitors catch upon taste.
The differentiation is made at part & the positioning is hollowed
out.
Similarly, most scooters were on the same boat.
 In such a situation, brand can revitalize itself by acquiring new
associations & branch off into related customer markets.
 In many cases, brands loose their distinction, and they
degenerate from being brands to the status of commodities.
Ex:- Xerox, Sunmica, Surf etc.
In such a case, there is no perceived differentiation between
the brand & the product and the commoditized brand is
actually a looser.
 This is another case where the brand needs to be repositioned
from being a commodity to a brand. i.e., make the customer
perceive the difference between the Product and the Brand,
which it represents, because, only when a brand is registered as
different, it can figure on the consumer’s shopping list.
 Brand Enhancement:- The greatest menace that bothers brand
managers is Product Parity. Brands which begin with strong,
favorable & unique associations get cloned very fast, due to
which brand switching becomes the norm and the brands loose hold
over the market.
 For maintaining brand success, creation of brand distinction
on favored dimensions is crucial.
 There are routes to combat the parity challenge: A brand can
compete by doing things differently …. and doing them better.
Ex:- In the computer hardware industry two kinds of moves are
in practice: Some companies seem to pack more & more
‘performance’ into their brands without focusing on price; while
others seem to be outdoing each other on the price dimension.
 Product Augmentation provides a different route to revitalize
a brand. The brand can offer something different or extra to
keep its customer base intact.
Ex:- Express Check-ins or mobile check-ins by airlines.
Personalized accessories provided by hotels.
Maruti outsmart the competition by developing the unique
concept of MASS (Maruti Authorized Service Stations) & Maruti
True Value.
 Companies can choose from three value disciplines to deliver
superior value to customers. These are: Operational Excellence,
Product Leadership, and Customer Intimacy.
i. Operational Excellence:- Dell computers, G.E., McDonald’s.
Southwest Airlines, Wal-Mart etc. These companies combine
quality, price & ease of purchase that no one can match. The key
concept driving their delivery is low price and / or hassle free
service.
ii. Product Leadership:- Microsoft, Mercedes Benz, Sony, H.P., Apple
etc. These companies keep on expanding the performance
boundaries. They outsmart their own products and services by
pushing them into higher level of performance.
iii. Customer Intimacy:- Johnson & Johnson, IBM, Four Seasons Hotel
etc. These companies deliver value to customers by building
bonds as close as those enjoyed by neighbors. They market the
wants of the customers, and their products & services are based
on an intimate understanding & knowledge of customer needs.
Their hallmark is taking care of customer needs at a
reasonable cost.
 The implication of value disciplines is that brand managers
must make a conscious decision about the path to be chosen
for enhancing the brand by carefully scrutinizing the market
conditions.
 Brand Elimination:- Sometimes the methods of brand
revitalization may not prove to be sufficient & effective to
change the brand’s fortunes. This may happen due to:
i. A brand’s existing associations may be so firmly entrenched
that it becomes difficult to change them so as to make the brand
relevant in new conditions.
ii. New usage & new user opportunities do not show up.
iii. A brand’s current customer franchise may be declining, making
the continuance of the brand unviable.
 When brands get cornered from all directions, the only solution left
is to work out a plan for the brand’s elimination.
 The Brand Elimination process vary in its forms & shades.
Some brands are milked over time, i.e., Selectively supported over
time to exploit its potential, Some are left without any support to
fade away gradually.
 Some companies even resort to brand consolidation, i.e., two or
more declining brands are merged into a consolidated brand,
or the brand portfolio is pruned (number of variations & pack
sizes) so that costs are reduced & profitability is maintained.
 Brand consolidation can considerably reduce costs and
improve marketing efficiencies.
 Finally, the most painful of all actions is to discontinue the
brand. This happens when a brand loses its source of brand
equity or the market has completely changed & does not offer
any scope for the brand.
 Nirmalya Kumar’s studies over brand portfolios revealed that firms
earn almost the whole of their profits from a very few brands in
their portfolio.
P&G once had over 250 brands, but its top 10 brands contributed
to over 50% to company’s sales & profits.
Same was the case with HUL. Out of a portfolio of nearly 2000
brands, more than 90% of its profits was contributed by just about
400 brands.
 The implications are very clear. Firms can improve their bottom
lines by eliminating brands. Deletion of loss making brands
would free precious resources and help brands that deserve
support.
 Kumar also suggested a systematic framework to approach brand
elimination decisions:-
i. The First step is to make a case for brand deletion, which
requires calculating the profitability of the brand in the
portfolio.
o Both fixed & shared costs must be allocated to each brand in
this exercise. Further, this data could be supplemented with each
brand’s position classified as : ‘Dominant’, ‘Strong’, ‘Weak’, or ‘Not
Present’ for each region a brand is marketed in.
o In addition, a brand’s profit contribution could be assessed as to
whether a brand is a Cash Generator, Neutral or Cash User.
ii. The Second step for the firm is to decide about the number of
brands to be kept in the portfolio.
o Two models may guide here: Portfolio and Segment approach.
o Under the Portfolio approach, strict criteria are laid down for
brand selection.
For instance, HUL used a three-pronged criteria for this
purpose: Brand Power, Brand Growth Potential and Brand Scale
(Size & Profitability).
o Under the Segment approach, the firm decides about the
brand’s retention or elimination on the basis of segment
requirements.
General criteria like the one used in portfolio approach could be
used to decide, whether the brand should be retained in a segment
or not.
iii. The Last step suggested in the elimination process is about
making sure of the growth of the surviving brands in the
portfolio.
o Brand deletion often results in shrunk sales & to some extent
profits. But, at the same time, it also frees precious resources.
The surviving brands need to be invested with both financial &
non-financial resources to put them into higher orbits.
 Once the elimination candidates are identified, the next issue is to
devise an appropriate strategy to handle their way to the exit,
because though these brands do not fit in the organizational
context, they have some hidden revenue or market potential.
 Four options are available:-
i. Merging Brands:- When a brand to be eliminated enjoys a niche
market following, the brand’s customers could be transferred
to another brand.
• This may be done in a number of ways: If the brand to be
eliminated enjoys customer following & is liked for its
attributes or benefits, the attributes or benefits can be
transferred with an existing brand.
Ex:- If a toilet soap enjoys customer support for say its Sandal
fragrance, but it is to be eliminated, an existing brand could be
launched with Sandal fragrance, & it could woo back its customer
following.
The other migration option is to launch a new brand with
new identity.
Ex:- Sandoz & Ciba-Geigy merged to emerge as Novartis.
Finally, when both the brands are equally strong, a dual
brand could be launched to retain both the camps with one
brand and later the weak brand is dropped.
Ex:- Standard Chartered Grind Lays Bank, where the Grind Lays
brand was dropped after a passage of time.
ii. Selling Brands:- Some brands that do not get with company
priorities may still be profitable. In such a case these brands
could be sold to other firms.
Ex:- Thompson, Kenstar, Kelvinator, Sansui brands have been
sold to Videocon. Pantaloon has been sold to Aditya Birla Group.
iii. Milking:- Some brands, though elimination candidates, may
still have loyal following in some parts of the market. But, due
to some reason or the other they can’t be sold. In such cases, these
brands could be left with no or bare minimum advertising &
marketing support and limited distribution.
Ex:- Godrej’s shaving round continues to hang on without any
active support of the company.
iv. Eliminating Brand:- This is the most drastic of all strategies.
The brand is dropped without any further considerations of its
impact on trade & customers.
Ex:- HUL dropped its Sunlight Laundry Bar.
 Most companies have grown into behemoths with multi-brand
portfolios, with brand extension, new brand launches, line extension
and sub-branding.
But, often, brand portfolios hide brands that, instead of
making positive contribution to business performance, create
a burden. They consume both financial & managerial
resources.
 Under such circumstances, firms stand to gain, if these loss
making brands are identified and eliminated.
 Many companies with big portfolios of brands are beginning to take
a serious look at this unpleasant task, because Brand Creation
along with Brand Elimination is essential for effective brand
management as the cycle of creation and destruction is a natural
process.

More Related Content

What's hot

Message Strategy and Design
Message Strategy and DesignMessage Strategy and Design
Message Strategy and DesignPrachi Ladha
 
BRAND POSITIONING & VALUES
 BRAND POSITIONING & VALUES BRAND POSITIONING & VALUES
BRAND POSITIONING & VALUESAvinash Singh
 
MANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEMANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEAshish Hande
 
Unit 6 designing & sustaining branding strategies - MBA SEM 3rd
Unit 6  designing & sustaining branding strategies - MBA SEM 3rdUnit 6  designing & sustaining branding strategies - MBA SEM 3rd
Unit 6 designing & sustaining branding strategies - MBA SEM 3rdARCHANA KUMARI
 
Brand management Full notes
Brand management Full notesBrand management Full notes
Brand management Full notesversatileBschool
 
Brand positioning
Brand positioning Brand positioning
Brand positioning Er Gupta
 
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSETAvinash Singh
 
CHOOSING BRAND ELEMENTS
CHOOSING BRAND ELEMENTSCHOOSING BRAND ELEMENTS
CHOOSING BRAND ELEMENTSYIGIT ACIKAY
 
Integrated marketing channels
Integrated marketing channelsIntegrated marketing channels
Integrated marketing channelsSagar Gadekar
 
Tri component attitude model
Tri   component attitude modelTri   component attitude model
Tri component attitude modelGowtham Kumar
 
Branding challenges and opportunities
Branding challenges and opportunitiesBranding challenges and opportunities
Branding challenges and opportunitiesManisha Mohapatra
 

What's hot (20)

Message Strategy and Design
Message Strategy and DesignMessage Strategy and Design
Message Strategy and Design
 
Brand ppt
Brand pptBrand ppt
Brand ppt
 
BRAND POSITIONING & VALUES
 BRAND POSITIONING & VALUES BRAND POSITIONING & VALUES
BRAND POSITIONING & VALUES
 
Brand architecture strategy
Brand architecture strategyBrand architecture strategy
Brand architecture strategy
 
MANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIMEMANAGING BRANDS OVER TIME
MANAGING BRANDS OVER TIME
 
Line and brand extension
Line and brand extensionLine and brand extension
Line and brand extension
 
Unit 6 designing & sustaining branding strategies - MBA SEM 3rd
Unit 6  designing & sustaining branding strategies - MBA SEM 3rdUnit 6  designing & sustaining branding strategies - MBA SEM 3rd
Unit 6 designing & sustaining branding strategies - MBA SEM 3rd
 
Brand management Full notes
Brand management Full notesBrand management Full notes
Brand management Full notes
 
Brand positioning
Brand positioning Brand positioning
Brand positioning
 
Brand identity levels
Brand identity levelsBrand identity levels
Brand identity levels
 
Co branding
Co brandingCo branding
Co branding
 
Global branding
Global brandingGlobal branding
Global branding
 
Brand Equity Ppt
Brand Equity PptBrand Equity Ppt
Brand Equity Ppt
 
Brand positioning and identification
Brand positioning and identificationBrand positioning and identification
Brand positioning and identification
 
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
 
CHOOSING BRAND ELEMENTS
CHOOSING BRAND ELEMENTSCHOOSING BRAND ELEMENTS
CHOOSING BRAND ELEMENTS
 
Co branding
Co brandingCo branding
Co branding
 
Integrated marketing channels
Integrated marketing channelsIntegrated marketing channels
Integrated marketing channels
 
Tri component attitude model
Tri   component attitude modelTri   component attitude model
Tri component attitude model
 
Branding challenges and opportunities
Branding challenges and opportunitiesBranding challenges and opportunities
Branding challenges and opportunities
 

Similar to Brand Revitalization, Brand Enhancement & Brand Elimination

A brand is forever! A framework for revitalizing declining and dead brands
A brand is forever! A framework for revitalizing declining and dead brandsA brand is forever! A framework for revitalizing declining and dead brands
A brand is forever! A framework for revitalizing declining and dead brands114iiminternship
 
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)A framework for revitalising dead and decaying brands.(by Kohli,Thomas)
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)114iiminternship
 
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...DR BHADRAPPA HARALAYYA
 
branding and positioning
branding and positioningbranding and positioning
branding and positioningNishant Pahad
 
Customer centered brand management
Customer centered brand managementCustomer centered brand management
Customer centered brand managementAfzaal Ali
 
Brand report card
Brand report card Brand report card
Brand report card Jessy Jessy
 
Three questions you need to ask about your brand (1)
Three questions you need to ask about your brand (1)Three questions you need to ask about your brand (1)
Three questions you need to ask about your brand (1)Sameer Mathur
 
Three questions you need to ask about your brand
Three questions you need to ask about your brandThree questions you need to ask about your brand
Three questions you need to ask about your brandSameer Mathur
 
Integrated marketing communication
Integrated marketing communication Integrated marketing communication
Integrated marketing communication Kushal Kaushik
 
Strategy of co branding
Strategy of co brandingStrategy of co branding
Strategy of co brandingSuryadev Maity
 
A brand is forever ! A framework for Revitalizing Declining and Dead brands
A brand is  forever !  A framework  for  Revitalizing Declining and Dead brandsA brand is  forever !  A framework  for  Revitalizing Declining and Dead brands
A brand is forever ! A framework for Revitalizing Declining and Dead brandsSameer Mathur
 

Similar to Brand Revitalization, Brand Enhancement & Brand Elimination (20)

A brand is forever
A brand is foreverA brand is forever
A brand is forever
 
A brand is forever!
A brand is forever! A brand is forever!
A brand is forever!
 
A brand is forever! A framework for revitalizing declining and dead brands
A brand is forever! A framework for revitalizing declining and dead brandsA brand is forever! A framework for revitalizing declining and dead brands
A brand is forever! A framework for revitalizing declining and dead brands
 
A brand is forever
A brand is foreverA brand is forever
A brand is forever
 
Brand positioning
Brand positioning Brand positioning
Brand positioning
 
Product success and failure
Product success and failureProduct success and failure
Product success and failure
 
Product success and failure
Product success and failureProduct success and failure
Product success and failure
 
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)A framework for revitalising dead and decaying brands.(by Kohli,Thomas)
A framework for revitalising dead and decaying brands.(by Kohli,Thomas)
 
Brand Positioning
Brand PositioningBrand Positioning
Brand Positioning
 
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...
1703257 PAPER Effect of Branding on Consumer Buying Behaviour in Bharat Ford ...
 
branding and positioning
branding and positioningbranding and positioning
branding and positioning
 
Customer centered brand management
Customer centered brand managementCustomer centered brand management
Customer centered brand management
 
Brand report card
Brand report card Brand report card
Brand report card
 
Three questions you need to ask about your brand (1)
Three questions you need to ask about your brand (1)Three questions you need to ask about your brand (1)
Three questions you need to ask about your brand (1)
 
Three questions you need to ask about your brand
Three questions you need to ask about your brandThree questions you need to ask about your brand
Three questions you need to ask about your brand
 
Integrated marketing communication
Integrated marketing communication Integrated marketing communication
Integrated marketing communication
 
Brand is Forever
Brand is ForeverBrand is Forever
Brand is Forever
 
Strategy of co branding
Strategy of co brandingStrategy of co branding
Strategy of co branding
 
Chapter 12 managing the product
Chapter 12 managing the productChapter 12 managing the product
Chapter 12 managing the product
 
A brand is forever ! A framework for Revitalizing Declining and Dead brands
A brand is  forever !  A framework  for  Revitalizing Declining and Dead brandsA brand is  forever !  A framework  for  Revitalizing Declining and Dead brands
A brand is forever ! A framework for Revitalizing Declining and Dead brands
 

More from Kushal Kaushik

SNAPDEAL BUSINESS AND OPERATION
SNAPDEAL BUSINESS AND OPERATIONSNAPDEAL BUSINESS AND OPERATION
SNAPDEAL BUSINESS AND OPERATIONKushal Kaushik
 
Business Plan in Food Industy
Business Plan in Food Industy Business Plan in Food Industy
Business Plan in Food Industy Kushal Kaushik
 
Introduction to adv, adv laws & ethics
Introduction to adv, adv laws & ethicsIntroduction to adv, adv laws & ethics
Introduction to adv, adv laws & ethicsKushal Kaushik
 
Advertising effectiveness
Advertising effectiveness Advertising effectiveness
Advertising effectiveness Kushal Kaushik
 
Media planning and advertising agency
Media planning and advertising agency Media planning and advertising agency
Media planning and advertising agency Kushal Kaushik
 
Advertising planning and budget
 Advertising planning and budget  Advertising planning and budget
Advertising planning and budget Kushal Kaushik
 
Introduction brand management
Introduction brand managementIntroduction brand management
Introduction brand managementKushal Kaushik
 
Brand image constellation
Brand image constellationBrand image constellation
Brand image constellationKushal Kaushik
 
Brands That have changed their Logo over the time.
Brands That have changed their Logo over the time.Brands That have changed their Logo over the time.
Brands That have changed their Logo over the time.Kushal Kaushik
 

More from Kushal Kaushik (14)

SNAPDEAL BUSINESS AND OPERATION
SNAPDEAL BUSINESS AND OPERATIONSNAPDEAL BUSINESS AND OPERATION
SNAPDEAL BUSINESS AND OPERATION
 
SIRI THE AI BOT
SIRI THE AI BOTSIRI THE AI BOT
SIRI THE AI BOT
 
Business Plan in Food Industy
Business Plan in Food Industy Business Plan in Food Industy
Business Plan in Food Industy
 
Introduction to adv, adv laws & ethics
Introduction to adv, adv laws & ethicsIntroduction to adv, adv laws & ethics
Introduction to adv, adv laws & ethics
 
Tourism advertising
Tourism advertising Tourism advertising
Tourism advertising
 
Sales promotion 1
Sales promotion 1Sales promotion 1
Sales promotion 1
 
Creative strategy
Creative strategyCreative strategy
Creative strategy
 
Advertising effectiveness
Advertising effectiveness Advertising effectiveness
Advertising effectiveness
 
Media planning and advertising agency
Media planning and advertising agency Media planning and advertising agency
Media planning and advertising agency
 
Advertising planning and budget
 Advertising planning and budget  Advertising planning and budget
Advertising planning and budget
 
Introduction brand management
Introduction brand managementIntroduction brand management
Introduction brand management
 
brand identity
brand identity brand identity
brand identity
 
Brand image constellation
Brand image constellationBrand image constellation
Brand image constellation
 
Brands That have changed their Logo over the time.
Brands That have changed their Logo over the time.Brands That have changed their Logo over the time.
Brands That have changed their Logo over the time.
 

Recently uploaded

Talent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulTalent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulAtifaArbar
 
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdfResearch and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdfVWO
 
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfDIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfmayanksharma0441
 
Master the Art of Digital Recruitment in Asia.pdf
Master the Art of Digital Recruitment in Asia.pdfMaster the Art of Digital Recruitment in Asia.pdf
Master the Art of Digital Recruitment in Asia.pdfHigher Education Marketing
 
Fiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFarrel Brest
 
The Impact of Digital Technologies
The Impact of Digital Technologies The Impact of Digital Technologies
The Impact of Digital Technologies bruguardarib
 
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024CIO Business World
 
Fueling A_B experiments with behavioral insights (1).pdf
Fueling A_B experiments with behavioral insights (1).pdfFueling A_B experiments with behavioral insights (1).pdf
Fueling A_B experiments with behavioral insights (1).pdfVWO
 
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local LeadsSearch Engine Journal
 
Codes and Conventions of Film Magazine Covers.pptx
Codes and Conventions of Film Magazine Covers.pptxCodes and Conventions of Film Magazine Covers.pptx
Codes and Conventions of Film Magazine Covers.pptxGeorgeCulica
 
Exploring Web 3.0 Growth marketing: Navigating the Future of the Internet
Exploring Web 3.0 Growth marketing: Navigating the Future of the InternetExploring Web 3.0 Growth marketing: Navigating the Future of the Internet
Exploring Web 3.0 Growth marketing: Navigating the Future of the Internetnehapardhi711
 
Digital Marketing in 5G Era - Digital Transformation in 5G Age
Digital Marketing in 5G Era - Digital Transformation in 5G AgeDigital Marketing in 5G Era - Digital Transformation in 5G Age
Digital Marketing in 5G Era - Digital Transformation in 5G AgeDigiKarishma
 
Prezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsPrezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsCristian Manafu
 
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...LazarinaStoyanova
 
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...CIO Business World
 
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorTAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorSocial Samosa
 
Michael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisMichael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisjunaid794917
 
The Evolution of Internet : How consumers use technology and its impact on th...
The Evolution of Internet : How consumers use technology and its impact on th...The Evolution of Internet : How consumers use technology and its impact on th...
The Evolution of Internet : How consumers use technology and its impact on th...sowmyrao14
 
Understanding the Affiliate Marketing Channel; the short guide
Understanding the Affiliate Marketing Channel; the short guideUnderstanding the Affiliate Marketing Channel; the short guide
Understanding the Affiliate Marketing Channel; the short guidePartnercademy
 
Influencer Marketing Power point presentation
Influencer Marketing  Power point presentationInfluencer Marketing  Power point presentation
Influencer Marketing Power point presentationdgtivemarketingagenc
 

Recently uploaded (20)

Talent Management for mba 3rd sem useful
Talent Management for mba 3rd sem usefulTalent Management for mba 3rd sem useful
Talent Management for mba 3rd sem useful
 
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdfResearch and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
Research and Discovery Tools for Experimentation - 17 Apr 2024 - v 2.3 (1).pdf
 
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdfDIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
DIGITAL MARKETING STRATEGY_INFOGRAPHIC IMAGE.pdf
 
Master the Art of Digital Recruitment in Asia.pdf
Master the Art of Digital Recruitment in Asia.pdfMaster the Art of Digital Recruitment in Asia.pdf
Master the Art of Digital Recruitment in Asia.pdf
 
Fiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview AssignmentFiverr's Product Marketing Interview Assignment
Fiverr's Product Marketing Interview Assignment
 
The Impact of Digital Technologies
The Impact of Digital Technologies The Impact of Digital Technologies
The Impact of Digital Technologies
 
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024
The 10 Most Inspirational Leaders LEADING THE WAY TO SUCCESS, 2024
 
Fueling A_B experiments with behavioral insights (1).pdf
Fueling A_B experiments with behavioral insights (1).pdfFueling A_B experiments with behavioral insights (1).pdf
Fueling A_B experiments with behavioral insights (1).pdf
 
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads2024's Top PPC Tactics: Triple Your Google Ads Local Leads
2024's Top PPC Tactics: Triple Your Google Ads Local Leads
 
Codes and Conventions of Film Magazine Covers.pptx
Codes and Conventions of Film Magazine Covers.pptxCodes and Conventions of Film Magazine Covers.pptx
Codes and Conventions of Film Magazine Covers.pptx
 
Exploring Web 3.0 Growth marketing: Navigating the Future of the Internet
Exploring Web 3.0 Growth marketing: Navigating the Future of the InternetExploring Web 3.0 Growth marketing: Navigating the Future of the Internet
Exploring Web 3.0 Growth marketing: Navigating the Future of the Internet
 
Digital Marketing in 5G Era - Digital Transformation in 5G Age
Digital Marketing in 5G Era - Digital Transformation in 5G AgeDigital Marketing in 5G Era - Digital Transformation in 5G Age
Digital Marketing in 5G Era - Digital Transformation in 5G Age
 
Prezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media TrendsPrezentare Brandfluence 2023 - Social Media Trends
Prezentare Brandfluence 2023 - Social Media Trends
 
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
When to use Machine Learning Models in SEO and Which ones to use - Lazarina S...
 
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
 
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorTAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
 
Michael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysisMichael Kors marketing assignment swot analysis
Michael Kors marketing assignment swot analysis
 
The Evolution of Internet : How consumers use technology and its impact on th...
The Evolution of Internet : How consumers use technology and its impact on th...The Evolution of Internet : How consumers use technology and its impact on th...
The Evolution of Internet : How consumers use technology and its impact on th...
 
Understanding the Affiliate Marketing Channel; the short guide
Understanding the Affiliate Marketing Channel; the short guideUnderstanding the Affiliate Marketing Channel; the short guide
Understanding the Affiliate Marketing Channel; the short guide
 
Influencer Marketing Power point presentation
Influencer Marketing  Power point presentationInfluencer Marketing  Power point presentation
Influencer Marketing Power point presentation
 

Brand Revitalization, Brand Enhancement & Brand Elimination

  • 1.  Brand Revitalization:- A brand would always have a market angle to it. Its success lies in its connection with customers, its value, & its favorability.  The market forces like competitive advancements, shifts in consumer tastes & liking, technological & legal development impact the brand’s fitment to the market.  Brands which have lost their glory suffer from this drawback. Brands like Dalda, Ambassador and Bajaj Chetak have lost their hold on the market.  These brands neither suffered from fuzzy or inconsistent knowledge structures, nor, there is any ambiguity as to what these brands signify, but they were unable to create positive brand equity with the advancement of time.  The apparent loss of relevance of these brands is due to shifts in consumer, competitive & technological environment.
  • 2.  Dalda:- Once the choice of every Dadimas, and a symbol of love, the preferred Vanaspati has fallen by the wayside. The new emerging health conscious customers do not identify with properties such as stickiness, ghee–like character and higher cholesterol. There has been a general shift in favour of refined oils and customers of present look for de-waxed, refined, cholesterol free solutions.  Ambassador:- This erstwhile king of Indian roads, once the symbol of power, durability & safety is facing oblivion. On the consistency front, Ambassador is perhaps the only global brand which has defied the winds of change. So consistent has been the product that Ambassadors of the ‘sixties’, ‘seventies’, ‘eighties’, ‘nineties’, and even today look more or less the same, and the brand represents the same value which it did in the ‘seventies’. But consistency is not a virtue in this case, as car technology has evolved radically. Moreover, with the liberalization of the economy, the nature of the Indian car market has changed from a highly protected one to a whole battalion of foreign cars grappling for market share.
  • 3. The customer’s definition of a car has also changed over time, but the Ambassador brand has not. It appears to a new customer as a living fossil, a vintage car still in circulation, a bullock cart on steroids, And people don’t use vintage cars for daily use, they are kept for participation in rallies & displays in museums.  Bajaj Chetak:- Chetak had been the reigning king of the two- wheeler market in India for over four decades. Known for its trouble- free service, easy maintenance & durability, it was the most cherished possession of the Indian Middle class society. The brand enjoyed best of the times, which no other brand would perhaps be able to see ever again. After booking, people waited for years (in some cases decade) before their turn came. One could even sell a Chetak in the black market & procure double or triple the official price. The masses saw Chetak as an non- depreciating brand. But, over the years, it has witnessed vanishing premiums and few takers in-spite of easy finance, showroom availability, and improved looks & technology. The sales dipped to such levels that the company decided to stop manufacturing.
  • 4.  The brands mentioned above (and many others, like Rajdoot and Yezdi) have witnessed erosion in their equity.  All those brands enjoyed clear & concrete meanings, but there image is becoming a burden on them in changed circumstances.  The challenge for the brand stewards is how these brands can be revitalized? – This task involves studying the associations and executing appropriate changes therein, in order to re- establish their relevance in the served market. Ex:- Hero Moto Corp., Maruti etc.  One point is for sure that all the brands can not be revitalized. Similarly, it may not be possible to achieve the same height at which the brand once was and vise versa.  The revitalization effort could move in two directions: First, The brand may be adjusted or modified to appeal to the market, or a brand’s market may be adjusted.
  • 5.  Which rout a brand should take is influenced by a variety of factors. The brands, which have relevant values, but somehow which have become dormant are true candidates for revitalization.  There are a number of ways a firm can work to revitalize its brands. Ex:- Harley-Davidson (Rugged American individuality & personal freedom Vs. Japanese Bikes) went back and re-established its image which had taken a beating due to the companies moves that ignored the brand’s essence.  The following Brand Revitalization measures can be taken:- A. Increasing Usage:- i. Make the brand more convenient to use – easy to cook (Maggi), Instant Breakfast (Kellog’s). ii. Reduce doubts associated with more or frequent use – no harmful chemicals (Vatika). iii. Provide incentive to use frequently – frequent flier benefits (Airways), Privilege Cards.
  • 6. iv. Consumers use more quantity – more toothpaste per application (Colgate). v. New uses – Smoke free mosquito coils (Good Knight). B. New Markets:- i. Reach to new markets, not targeted so far – Rush to Asian Countries (McDonald’s), Rural Areas (HUL). ii. New Segments – Cover un-attacked segments (Line extensions of Shampoo products). C. Image Change:- i. Add new associations when existing associations become obsolete – (Dalda Vanaspati to Dalda Active). ii. When associations wear out because of frequent use – Claim that a detergent washes whitest or it has dirt blasters. iii. Commodization – Brand needs differentiation. (Xerox is not photocopying).
  • 7. D. Brand Enhancement:- i. Add new valued differentiations – Service (Electrolux), Features (Sony), Availability (HUL). ii. Value Discipline – Innovation (Sony), Intimacy (Marriott), Operational Excellence (Southwest Airlines).  Second, A brand’s association may not become burdensome because of explicit un-favorability by the market. Less damage may occur when consumers become indifferent or do not attach any importance to the brands. For instance, A lemon drink positioned as tasty may loose its command once competitors catch upon taste. The differentiation is made at part & the positioning is hollowed out. Similarly, most scooters were on the same boat.  In such a situation, brand can revitalize itself by acquiring new associations & branch off into related customer markets.
  • 8.  In many cases, brands loose their distinction, and they degenerate from being brands to the status of commodities. Ex:- Xerox, Sunmica, Surf etc. In such a case, there is no perceived differentiation between the brand & the product and the commoditized brand is actually a looser.  This is another case where the brand needs to be repositioned from being a commodity to a brand. i.e., make the customer perceive the difference between the Product and the Brand, which it represents, because, only when a brand is registered as different, it can figure on the consumer’s shopping list.  Brand Enhancement:- The greatest menace that bothers brand managers is Product Parity. Brands which begin with strong, favorable & unique associations get cloned very fast, due to which brand switching becomes the norm and the brands loose hold over the market.
  • 9.  For maintaining brand success, creation of brand distinction on favored dimensions is crucial.  There are routes to combat the parity challenge: A brand can compete by doing things differently …. and doing them better. Ex:- In the computer hardware industry two kinds of moves are in practice: Some companies seem to pack more & more ‘performance’ into their brands without focusing on price; while others seem to be outdoing each other on the price dimension.  Product Augmentation provides a different route to revitalize a brand. The brand can offer something different or extra to keep its customer base intact. Ex:- Express Check-ins or mobile check-ins by airlines. Personalized accessories provided by hotels. Maruti outsmart the competition by developing the unique concept of MASS (Maruti Authorized Service Stations) & Maruti True Value.
  • 10.  Companies can choose from three value disciplines to deliver superior value to customers. These are: Operational Excellence, Product Leadership, and Customer Intimacy. i. Operational Excellence:- Dell computers, G.E., McDonald’s. Southwest Airlines, Wal-Mart etc. These companies combine quality, price & ease of purchase that no one can match. The key concept driving their delivery is low price and / or hassle free service. ii. Product Leadership:- Microsoft, Mercedes Benz, Sony, H.P., Apple etc. These companies keep on expanding the performance boundaries. They outsmart their own products and services by pushing them into higher level of performance. iii. Customer Intimacy:- Johnson & Johnson, IBM, Four Seasons Hotel etc. These companies deliver value to customers by building bonds as close as those enjoyed by neighbors. They market the wants of the customers, and their products & services are based on an intimate understanding & knowledge of customer needs. Their hallmark is taking care of customer needs at a reasonable cost.
  • 11.  The implication of value disciplines is that brand managers must make a conscious decision about the path to be chosen for enhancing the brand by carefully scrutinizing the market conditions.  Brand Elimination:- Sometimes the methods of brand revitalization may not prove to be sufficient & effective to change the brand’s fortunes. This may happen due to: i. A brand’s existing associations may be so firmly entrenched that it becomes difficult to change them so as to make the brand relevant in new conditions. ii. New usage & new user opportunities do not show up. iii. A brand’s current customer franchise may be declining, making the continuance of the brand unviable.  When brands get cornered from all directions, the only solution left is to work out a plan for the brand’s elimination.
  • 12.  The Brand Elimination process vary in its forms & shades. Some brands are milked over time, i.e., Selectively supported over time to exploit its potential, Some are left without any support to fade away gradually.  Some companies even resort to brand consolidation, i.e., two or more declining brands are merged into a consolidated brand, or the brand portfolio is pruned (number of variations & pack sizes) so that costs are reduced & profitability is maintained.  Brand consolidation can considerably reduce costs and improve marketing efficiencies.  Finally, the most painful of all actions is to discontinue the brand. This happens when a brand loses its source of brand equity or the market has completely changed & does not offer any scope for the brand.
  • 13.  Nirmalya Kumar’s studies over brand portfolios revealed that firms earn almost the whole of their profits from a very few brands in their portfolio. P&G once had over 250 brands, but its top 10 brands contributed to over 50% to company’s sales & profits. Same was the case with HUL. Out of a portfolio of nearly 2000 brands, more than 90% of its profits was contributed by just about 400 brands.  The implications are very clear. Firms can improve their bottom lines by eliminating brands. Deletion of loss making brands would free precious resources and help brands that deserve support.  Kumar also suggested a systematic framework to approach brand elimination decisions:- i. The First step is to make a case for brand deletion, which requires calculating the profitability of the brand in the portfolio.
  • 14. o Both fixed & shared costs must be allocated to each brand in this exercise. Further, this data could be supplemented with each brand’s position classified as : ‘Dominant’, ‘Strong’, ‘Weak’, or ‘Not Present’ for each region a brand is marketed in. o In addition, a brand’s profit contribution could be assessed as to whether a brand is a Cash Generator, Neutral or Cash User. ii. The Second step for the firm is to decide about the number of brands to be kept in the portfolio. o Two models may guide here: Portfolio and Segment approach. o Under the Portfolio approach, strict criteria are laid down for brand selection. For instance, HUL used a three-pronged criteria for this purpose: Brand Power, Brand Growth Potential and Brand Scale (Size & Profitability).
  • 15. o Under the Segment approach, the firm decides about the brand’s retention or elimination on the basis of segment requirements. General criteria like the one used in portfolio approach could be used to decide, whether the brand should be retained in a segment or not. iii. The Last step suggested in the elimination process is about making sure of the growth of the surviving brands in the portfolio. o Brand deletion often results in shrunk sales & to some extent profits. But, at the same time, it also frees precious resources. The surviving brands need to be invested with both financial & non-financial resources to put them into higher orbits.  Once the elimination candidates are identified, the next issue is to devise an appropriate strategy to handle their way to the exit, because though these brands do not fit in the organizational context, they have some hidden revenue or market potential.
  • 16.  Four options are available:- i. Merging Brands:- When a brand to be eliminated enjoys a niche market following, the brand’s customers could be transferred to another brand. • This may be done in a number of ways: If the brand to be eliminated enjoys customer following & is liked for its attributes or benefits, the attributes or benefits can be transferred with an existing brand. Ex:- If a toilet soap enjoys customer support for say its Sandal fragrance, but it is to be eliminated, an existing brand could be launched with Sandal fragrance, & it could woo back its customer following. The other migration option is to launch a new brand with new identity. Ex:- Sandoz & Ciba-Geigy merged to emerge as Novartis. Finally, when both the brands are equally strong, a dual brand could be launched to retain both the camps with one brand and later the weak brand is dropped.
  • 17. Ex:- Standard Chartered Grind Lays Bank, where the Grind Lays brand was dropped after a passage of time. ii. Selling Brands:- Some brands that do not get with company priorities may still be profitable. In such a case these brands could be sold to other firms. Ex:- Thompson, Kenstar, Kelvinator, Sansui brands have been sold to Videocon. Pantaloon has been sold to Aditya Birla Group. iii. Milking:- Some brands, though elimination candidates, may still have loyal following in some parts of the market. But, due to some reason or the other they can’t be sold. In such cases, these brands could be left with no or bare minimum advertising & marketing support and limited distribution. Ex:- Godrej’s shaving round continues to hang on without any active support of the company. iv. Eliminating Brand:- This is the most drastic of all strategies. The brand is dropped without any further considerations of its impact on trade & customers. Ex:- HUL dropped its Sunlight Laundry Bar.
  • 18.  Most companies have grown into behemoths with multi-brand portfolios, with brand extension, new brand launches, line extension and sub-branding. But, often, brand portfolios hide brands that, instead of making positive contribution to business performance, create a burden. They consume both financial & managerial resources.  Under such circumstances, firms stand to gain, if these loss making brands are identified and eliminated.  Many companies with big portfolios of brands are beginning to take a serious look at this unpleasant task, because Brand Creation along with Brand Elimination is essential for effective brand management as the cycle of creation and destruction is a natural process.