The document discusses brand revival and decline. It provides examples of Ford reviving the Taurus brand and GM discontinuing the Oldsmobile brand. Brand decline can occur due to lack of innovation, strong competition, negative perceptions, and neglect by management. Guidelines for brand revitalization include differentiating the brand, investing in quality, assessing target markets, and addressing the original cause of decline. Simply lowering prices or adding extensions may not solve the underlying problems that led to decline. Reviving a brand is a long-term process that requires properly diagnosing issues and executing an effective strategy.

2. The Situation

3. Over the
years
numerous
brands have
met their
untimely
death

4. Over the
years
numerous
brands have
met their
untimely
death
While many
have declined
into oblivion

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

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?

9. e.g. Ford Taurus

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

13. e.g. GM’s Oldsmobile

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

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

22. Compromise in
quality for cost
cutting reasons
leads to brand
decline in the
long run

23. Increasing prices without
increasing corresponding benefits

24. Slashing prices to increase sales
can be lethal

25. Slashing prices to increase sales
can be lethal
Damages brand image
Reliance on low quality products

26. Strong brands
sometimes face
neglect and are seen
as cash cows

27. When companies reach out to
other markets, it may lose its
appeal to its target markets

29. The legal regulations on a product may cause
strong negative publicity

30. Polaroid spiraled
into decline when
digital imaging
became popular

31. Most brands face
relentless onslaught
from its competitors

32. Most brands face
relentless onslaught
from its competitors
Puma and Adidas
were squeezed out of
the US market by
Nike and Reebok

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

36. But such
solutions
may often
mask the
real problem
The power of a
brand lies in its
Brand Equity

37. is defined as
the differential effect that consumer knowledge about
a brand has on the customer’s response to marketing
activity

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

41. Feasible when
different brands
in a product
category are
similar

42. Superior Quality,
Physical Attributes or
Intangible Benefits

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.

46. The brand’s products should be in
line with the brand image

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

50. In most cases
even declining
brands have
significant brand
equity
With proper
diagnosis, strategy
and execution, a
brand can be
revived

51. Guidelines to
revitalizing brands

54. Even if the brand can be revived ,
it may not be worth the effort

55. Even if the brand can be revived ,
it may not be worth the effort

56. Reviving a brand is a
long term initiative
The revitalization can be
kick started by addressing
the cause of decline

58. If a brand is
not viewed as
unique, its
future growth
is questionable

60. Poor quality rarely goes
unnoticed for long

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

63. Critically assess the
brand’s target markets
It is very difficult to
appeal divergent targets
with the same brand

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

65. All done ?

66. then let the
revitalization
begin

68. Created by Ronak Jain, NIT Surat, during an internship by
Prof. Sameer Mathur,
IIM Lucknow.
www.IIMInternship.com