5. In today’s market new
product introductions are
both expensive and risky
6. In today’s market new
product introductions are
both expensive and risky
So it may be worthwhile
to revitalize
declining brands
7.
8. What are some of the
examples of brand revival
and brand death ?
What are the causes of
brand decline?
What are the signs that
are precursors to impending
decline?
What are some guidelines
to revitalize brands?
10. Taurus, which was one of Ford’s top selling models in
the United States faced brand decline due to intense
competition from Honda Accord and Toyota Camry
11. Taurus, which was one of Ford’s top selling models in
the United States faced brand decline due to intense
competition from Honda Accord and Toyota Camry
Ford pulled the plug on it in 2006 and soon
reintroduced the Taurus brand
12. Taurus, which was one of Ford’s top selling models in
the United States faced brand decline due to intense
competition from Honda Accord and Toyota Camry
Ford pulled the plug on it in 2006 and soon
reintroduced the Taurus brand
This move worked because Ford still had a lot
of brand equity in the United States over
foreign brands like Toyota and Honda
14. General Motors’ iconic Oldsmobile which was
known for its innovative design stopped
production in 2004
15. General Motors’ iconic Oldsmobile which was
known for its innovative design stopped
production in 2004
There were two primary reasons for this.
First, Oldsmobile was perceived as an “old brand”.
Even with new marketing efforts firm was unable
to shake its staid positioning.
Second, as GM strived for uniformity across its
brands Oldsmobile lost its identity as an innovator
16.
17. To understand why brands
decline we must look at
brand evolution theories
18. Sales are used to predict life cycle,
which in turn are used to predict sales
19. Sales are used to predict life cycle,
which in turn are used to predict sales
When sales decline management decides that a brand no
longer needs investment and begins to milk the brand
20. Product Evolution Cycle
According to PEC the evolution (and decline)
of brands depends on three forces
Generative (Managerial actions)
Selective (Environmental factors)
Mediative (Competitor's actions)
21. Leads to brand decline
when management
makes excuses rather
than acting with
integrity
32. Most brands face
relentless onslaught
from its competitors
Puma and Adidas
were squeezed out of
the US market by
Nike and Reebok
33.
34. The ultimate sign of
brand decline is
significant drop in sales
over a prolonged time
35. The ultimate sign of
brand decline is
significant drop in sales
over a prolonged time
Managers apply
quick fix solutions
by raising prices
or introducing
brand extensions
37. is defined as
the differential effect that consumer knowledge about
a brand has on the customer’s response to marketing
activity
38.
39. Consumers must be provided
with a compelling argument
as to why they should
choose a particular brand
over the others
40. Consumers must be provided
with a compelling argument
as to why they should
choose a particular brand
over the others
Two approaches
can be used
towards that goal
43. Superior Quality,
Physical Attributes or
Intangible Benefits
If a brand is successful in creating this
differentiation , they can charge a
premium price for their products
44. For a brand to be
successful, consumers should
be knowledgeable about it
There are two
components of
Brand Knowledge
45. Aided Recall
Top of the mind recall
Often , managers are
lulled into complacency by
a brand’s past success.
47. Sales figures are considered
the gold standard of
measuring customer response
48. Sales figures are considered
the gold standard of
measuring customer response
Additionally managers can
look to other indicators
such as purchase decisions
or brand switching
49.
50. In most cases
even declining
brands have
significant brand
equity
With proper
diagnosis, strategy
and execution, a
brand can be
revived
61. Poor quality rarely goes
unnoticed for long
If poor quality is
the problem and the
decision to revive
the brand has been
made then expensive
as it may be,
quality issues need
to be addressed
62. If a brand is to
be revived,
management
must invest in it
64. Critically assess the
brand’s target markets
It is very difficult to
appeal divergent targets
with the same brand
An effective strategy to
cater different targets
is to introduce
a line extension
with a sub brand
