A brand is forever


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some Indian brands that have declined and some which have revitalized

A brand is forever

  1. 1. A BRAND IS FOREVER!<br />Revitalizing declining and dead brands<br />&quot; Marketing is easy to teach and understand but difficult to practice&quot;<br />GROUP 1<br />
  2. 2. Important Definitions<br />Brand Equity:- The differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity.<br />Brand Decline:- Failure of a brand due to many factors like change in technology , lack of brand awareness etc. It is a Reversible process.<br />Brand Death:- Becomes imaginary , have significant brand equity in terms of high brand awareness and a strong brand image.<br />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.<br />
  4. 4. Product Life Cycle<br />Uses sales - define stages of PLC - to predict sales<br />Self fulfilling prophecy : sales decline – no more investment – milk the brand<br />
  5. 5. Product Evolutionary Cycle<br />3 forces:<br />i) Generative forces – Managerial Actions (strategic & tactical)<br /><ul><li>Product Quality
  6. 6. Price Increase
  7. 7. Price Cuts
  8. 8. Brand Neglect
  9. 9. Inability to stay with the target market
  10. 10. Brand Extension
  11. 11. Mismanagement of Ownership
  12. 12. Inadequate Marketing (Distribution, Merchandising)
  13. 13. Targeted to wrong segment</li></ul> ii) Selective forces – Market Environment<br /> iii) Mediative forces – Competitive Actions & Responses to Marketing Initiatives<br />Intuitive & Insightful approach of categorizing key factors in a brand’s success or decline<br />
  14. 14. Product Quality<br />Compromising product quality <br />For cost cutting reasons <br />Not impact brand loyalty in short run<br />Brand start decline when brand do not live to customer expectations<br />Examples:Sunfill<br />Maruti gypsy<br />
  15. 15. Contd..<br />For example Maruti gypsy :- Born in 1985<br />Positioned :- on ruggedness, sportiest looking SUV<br />Tagline:-&quot; There is a Gypsy in Everyone“<br />Target customer:- Police and Army vehicle segments<br />Failed because:<br />Apathy of the company in investing in the brand <br />Considered as a tough vehicle -lacked many important attributes.<br />The driving quality and the mileage was awful, lacked space and comfort, underpowered for an off roader.<br />Ridiculous premium which was not justified in terms of the delivery of value, brand was priced Rs 5 lakh.<br />
  16. 16. Price Increases<br />Price rise without corresponding increase in benefits<br />Consumers abandon the brand<br />Examples: (i) Tata Sierra<br />1st Indian SUV - Came too early<br />Sporty beast - Rightly promoted<br />Failed because:<br />Steep price – Rs. 5 lakhs<br />Price didn’t justify the quality proposition<br />No added feature as offered power steering, power windows etc.<br />(ii) Maruti Gypsy<br />
  17. 17. Price Cut<br />Cut prices to increase sales<br />Damages the brand<br /> Example: Lacoste<br />Sales began to decline in U.S<br />Parent company – General Mills<br />Lowered prices<br />Expanded distribution<br />Used cheaper material<br />Disastrous effect<br />
  18. 18. Brand Neglect<br />Constant nurturing required<br />Cash cow stage ,neglect to invest in them<br />Less attention to strong brand<br />Example: Vimal suiting&apos;s<br />Handled by Mudra garments<br />Army veterans, experts in various fields were used as models to build the character of the brand<br />Famous personalities like KabirBedi<br />Tagline“ only vimal”<br />Shift in the consumer&apos;s preference towards readymade garments<br />Lack of marketing support by Reliance had virtually killed the brand<br />
  19. 19. Target on Wrong Segment<br />Example:Vanilla Coke (2004)<br />Coca cola product<br />different in taste, promotion, package, price etc.<br />Promotion: Retro Style using VivekOberoi<br />Old Lamby Scooter screaming Wakaw.<br />Failed because:<br />Bad taste<br />Not targeted at the right segment ”people in twenties could not relate to Elvis Presley”.<br />
  20. 20. Inability To Stay With The Target Market<br />Reach out to new segment<br />Alienate core customers<br />Felt neglected<br />Brand decline<br />Example: Nivea (born in 1911)<br />German company marketed in India<br />Famous for face cream for winter <br />Brand element” Blue and White&quot; colour<br />Failed because:<br />JL Morrison tried to extend the brand to soaps<br />Failed to strengthen its positioning as a skin care leader<br />Marketing laziness.<br />Sold in the grey market.<br />
  21. 21. Mismanagement Of Ownership<br />Frequent change of hands of ownership<br />Negatively affects Brand Equity<br />Brands decline<br />Examples: (i) Cuticurra <br /> (ii) Burnol<br />Indian antiseptic cream – Burn Specialist<br />Brand Owners : Boots – Knoll – Dr. Morepan<br /> This constant change over of this brand from one company virtually undermined the equity of this heritage brand<br />Brand regaining with major repositioning campaign<br />
  22. 22. Contd..<br />(iii) Clearasil (Reckitt & Benckiser)<br />Ultimate cream for Pimples and acne<br />Invented by Mr Ivan Combe of USA in 1950<br />Many ownership changes : Richardson Vicks (1961) – P&G (1985) - Boots Pharmaceuticals (2000) - Reckitt &Benckiser (2006)<br />Lack of brand building efforts<br />Now, Tapping the existing brand equity and trying to create a new space<br />
  23. 23. Brand Extension<br />Taking existing brands and launching products with the same name in new categories<br />Sometimes lead to brand decline<br />Example: CeaseFire Fire Extinguishers<br />India&apos;s first domestic fire extinguisher<br />Compact, unique, boasted of extinguishing all sorts of fire<br />Brand diversified to Vaccumizer<br />Unsuccessful new product<br />The top ten fastest growing brand in the country to a company referred to BIFR<br />
  24. 24. Environmental Factors<br />Dynamic Market<br />Major transformations<br />Environment – Legal (regulations), Technology<br />Cope with rapidly changing environment<br />Example: (i) Bajaj Chetak<br />Realiable & Sturdy<br />High Brand Equity - Had Waiting Period of more than 10 years<br />Failed to understand the changing perception of the customers towards scooters<br />Same look, same quality and style<br />Problem - starting trouble and riding comfort<br />No product development ; R&D – 1%<br />Average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors<br />Bajaj beaten by Customer<br />
  25. 25. Contd..<br /> (ii) Onida<br />Tagline:- &quot; Neighbour&apos;s Envy, Owner&apos;s Pride <br /> In 1998 it scrapped its devil advertisement<br />Failedbeacuse:<br />Ownership issues within the company<br />No brand promotion or new product launches<br />Onida is changing its brand elements because of competition from Korean brands like LG and Samsung for which the product speaks for itself<br />No high technology products came from this brand<br />
  26. 26. Competitive Action<br />Smart use of Technology & Efficient operations<br />Competitive advantage<br />Change in market dynamics<br />Customization & Innovation<br />Mergers and acquisitions<br />Example: Proline (Batra Group) 1983<br />Sports/ Leisure wear segment in the Indian market<br />High Equity - Premium International image<br />International players (in 2000) - Brands or icons like Nike , Reebok and Adidas<br />Competition from unbranded players & National Players like Peter England & Colour plus<br />Didn’t find space to fit in – couldn’t stand competition<br /> Despite the good brand name, first mover advantage and the memorable positioning, Proline was a brand that could not sustain<br />
  27. 27. EXAMPLE OF A PRODUCT <br />DECLINE<br />
  28. 28. AKAI (launched in 1995) <br />Handled by Baron international<br />Outbreak players like Videocon, BPL , Philips<br />Onida by greatest marketing practices captured 14% market share within 18 months<br />Marketing strategy : make an offer that no one can refuse.<br /> Impressed Indians :- Full page ads, exchange policy schemes, attractive prices, made in Japan <br />Unconventional distribution strategy , distributors paid upfront to get orders, additional margins to dealers , price cut to 40%<br />
  29. 29. Contd..<br />Globally Owned by Ontario, had issues with Barons<br />Due to non-fruitful deals with Aiwa of Japan and Videocon it had an image of low price brand. <br />Heavily spent on advertisements.<br />Didn’t succeed to come up with TCL Chinese brand<br />Low brand awareness<br />But Made two luxury product categories CTV , hi-fi systems affordable to Indian consumers. <br />
  30. 30. Deconstructing Brand Decline <br />To deconstruct the decline, revisit brand equity concept.<br />Three key elements of brand equity<br />Differential Effect: It plays an important role in the purchase decision.<br />Two methods-<br /><ul><li>Value-priced.
  31. 31. Better quality & value added service.</li></ul>Example: Sunfill (Coca-Cola)<br /><ul><li>Convenience route
  32. 32. Innovative methods to reach market
  33. 33. Alliance for Distribution
  34. 34. Died in 4 years
  35. 35. Quality Issues
  36. 36. Less focus on marketing</li></li></ul><li>Brand Knowledge: Clear understanding of the brand required<br />(i) Brand Awareness:<br />Failing leads to-<br /><ul><li>Long-term problem.
  37. 37. Catch-22 situation.</li></ul>Example: Melody (Parle)<br /><ul><li>Unique Taste, Quality
  38. 38. Differentiator
  39. 39. Lost visibility due to competition
  40. 40. Current Position- Question Mark</li></li></ul><li>Contd..<br />(ii) Brand Image: Required for strong and unique brand association.<br /><ul><li> To prevent brand decline companies need to monitor brand image.</li></ul> Example: Margo (Henkel)<br /><ul><li>Initially, it had a dedicated customer base
  41. 41. Uniqueness</li></ul>Problem Faced: <br /><ul><li>Failed to evolve with market needs
  42. 42. Margo got sidelined.
  43. 43. Lost visibility</li></li></ul><li>Contd..<br />Customer Response: It measures :-<br /><ul><li>Customer’s purchasing intentions
  44. 44. Brand loyalty measure</li></ul>Brand Switching is triggered by :-<br /><ul><li>Increase in price
  45. 45. New-entrant
  46. 46. Negative news about the brand</li></ul>Example: ONIDA<br /> Brand Switching by customers due to:-<br /><ul><li>Entry of LCD TVs
  47. 47. New entrants
  48. 48. Limited portfolio
  49. 49. Messy Organizational Structure
  50. 50. Negligence of Management</li></li></ul><li>Revitalizing brands<br />Revitalizing?<br />Can a new proposition be built on the old legacy<br />How Do We Revitalize?<br /><ul><li> Identify potential products
  51. 51. Listen to your consumers
  52. 52. Creating compelling creative messages
  53. 53. Differentiating product from competition
  54. 54. Addressing the weak elements that led to the decline
  55. 55. Through proper diagnosis, strategy & execution</li></ul>Why Do We Revitalize?<br /><ul><li> Repositioning of the brand
  56. 56. Changed market conditions
  57. 57. Relatively Cost effective procedure than introducing a new brand
  58. 58. Old brands have tremendous asset value & resale value
  59. 59. Helps in capturing lost brand equity
  60. 60. To make the brand a leader</li></li></ul><li>Criteria For Revitalization<br />Significant residual value<br />Examining the elements of brand equity<br /><ul><li>Brand knowledge
  61. 61. Differential effect
  62. 62. Customer response</li></ul>Comparing the revival cost with the cost of introducing a new product<br />Measuring the level of awareness<br />Brands with<br /><ul><li>High premium
  63. 63. Singular focus
  64. 64. Differentiation</li></li></ul><li>Taking a Long term Perspective<br />Revival of brand a perspective of more than a year or two.<br />Vision of revival need to be followed by well-thought out strategy & execution.<br />Example: Coffy Bite<br />Problem:<br />-Issue of relevance with new generation.<br />- Perceived to be “old”.<br /> - Low purchases despite high brand recall among the children.<br />Solution:<br />-Changed the packaging to make the brand more contemporary and youthful.<br />- Youth oriented communication pattern adopted.<br /> Seeing the signs of decline Coffy Bite revitalized itself by taking into consideration the long term growth perspective of the company and hence targeting the new generation<br />
  65. 65. Carefully Reposition the brand, Invest in it, & Educate the market<br />Sustainability factors for a brand:<br /> - Differentiation<br /> - Proper Positioning<br /> - Awareness about the product.<br />Example: Melody<br />Problem:<br /> - Decreasing visibility of the brand.<br /> - Competition from aggressive marketers (PERFETTI)<br /> - Not enough spending on the brand.<br /> - Improper store placement<br /> - Low brand recall.<br />Solution:<br /> - New tagline “ Why MELODY is so chocolaty? ”<br /> - Positioned itself in the Rs.1200cr Indian Confectionery market.<br />- Retained the famous positioning of &quot;Chocolaty”<br />
  66. 66. Correct Mismanagement of Brand<br />Failure to clearly understand the reasons for Brand decline<br />Inability to come up with new strategies<br />Lack of commitment to revitalize the brand<br />Rebuild Quality:<br />Poor Quality kills the brand<br />Quality must be improved despite increase in costs<br />Overcome negative perceptions about the brand<br />Example: Coca-cola Sunfill<br /> Problem:<br /> - Bad quality concentrate<br />- Not available in stores<br />- Unable to match with the quality of competing brands<br />- Half hearted effort by the company management to sustain the brand<br /> - Product dropped from market in 2005<br />Therefore Sunfill was unable to revitalize the brand due to lack of managerial persistence to carry the product forward and it also faced the competition from Rasna.<br />
  67. 67. Resist Temptation to Milk the Brand<br />An aggressive form of milking entails <br /> -cutting prices steadily<br /> -reflects brand’s weak position<br />Example: Koutons<br />Problem:<br />- Constantly reducing prices<br /> - Offers a discounted price of 50%+40% all the year around<br /> - During sale seasons offers a discounted rate of 80%<br /> Due to this practice KOUTONS is nowadays is considered to be a weak brand, and doesn’t enjoy much brand equity<br /> Similarly, is the case with Cotton County, which consistently offers a discounted price to its customers and is hence considered to be a weak brand<br />
  68. 68. Pursue a carefully defined target market<br />Carefully defining target market can be a challenging task<br />Risk of shrink in target market<br />Difficult to appeal to two separate target market with same brand<br />Risk alienating the core customers<br />Example :<br />Problem: John Players<br /> - Limited target Market<br /> - Inability to move forward<br />Solution: Miss Players<br />- A line extension with sub-brand<br /> - Utilized the strength of the brand to enter new market<br /> -Using “PLAYERS” to support the introduction of New line<br />