This document provides guidelines for revitalizing declining brands. It defines key terms like brand equity, brand decline, and brand revival. Common causes of brand decline are discussed, such as compromising on quality, price increases without added value, neglecting the brand, and losing the target market. The document also examines the product life cycle and product evolutionary cycle models. It provides examples of brands that declined and were able to revive by reconnecting with their original target markets and brand identities. The document concludes with criteria for determining if a brand is worth reviving and guidelines for taking a long-term perspective through repositioning while resisting short-term tendencies to milk the brand.

1. A brand is
forever !
A
framework
for
Revitalizing
Declining S. Thomas
C. Kohli

2. Important Definitions
 Brand Equity:- The differential effect that consumer
knowledge about a brand has on the customer’s response
to marketing activity.
 Brand Decline:- Failure of a brand due to many factors like
change in technology , lack of brand awareness etc. It is a
Reversible process.
 Brand Death:- Becomes imaginary , have significant brand
equity in terms of high brand awareness and a strong brand
image.
 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.

3. CAUSES OF BRAND DECLINE

4. Product Life Cycle
S
A
L
E
S
 Uses sales - define stages of PLC - to predict sales
 Self fulfilling prophecy : sales decline – no more investment
– milks the brand

5. Product Evolutionary Cycle
• It is monitored by 3 forces
 Generative forces – Managerial Actions
 Selective forces – Market Environment
Mediative forces – Competitive Actions &
Responses to Marketing Initiatives
 PEC suggests that a brand can evolve, not
predestined to die

6. Managerial Actions
• Brands often decline because of “leadership, management
& employees making excuses rather than acting with
integrity” -Ron Strauss of Brandzone
• Managerial actions (generative force) divided into 5
categories:
1. Product quality
2. Price increase
3. Price cuts
4. Brand neglect
5. Inability to stay with target market

7. 1. Product quality
 Compromise in product quality for Cost cutting
reasons.
 Impacts brand loyalty in the long run.
 Brand declines when could not meet Customer
expectations.
Example:
Cadillac’s steady
decline over two
decades.

8. 2. Price increase
 Increasing Prices without increase in Benefits.
 Later consumers will start to abandon brand.
After volkswagen failed with its Rabbit model(left) in US, it replaced it with a
newer model, the Golf(right). However, they were unable to control costs.

9. 3. Price cuts
 Cutting Prices to increase Sales
 Damages the Brand identity
Until 1980’s, Lacoste was a popular brand in US. When sales
began to decline they lowered prices and expanded
distribution. To maintain low prices , the company had to in
turn use cheap material which proved to be a disaster and the
brand’s image ended

10. 4. Brand neglect
 Even successful Brands also needs constant
nurturing.
 Looking at core Brands as cash cows and
neglect investment.
 Managers get wrapped up in the inertia of a
brand and begin to miss changes in market

11. 4. Brand neglect
Example: Ovaltine
Suffered because it wasn’t
a core brand of Sandoz
Biopharmaceuticals
Declined due to Corporate
negligence

12. 5. Inability to stay with target market
 When the target moves away from the brand, the
brand can move into decline
 By shifting its focus mid-way to a more promising younger
audience, the brands runs the risk of alienating its core
customer base
Example: In 1990’s GAP decided to do more to reach
out to teenagers and young adults . But in the process
alienated its core customers
Example: St. John’s decided to replace its Iconic model Kelly Gray with
more Rebellious model Angelina Jolie as Brand ambassador.
Unfortunately consumers started to turn away from the brand.

13. Environmental factors
 Markets-dynamic in nature
 Major market transformation impacts various companies
 Changes in legal environment
Example: Cigarette
brands are
affected by
changes in legal
environment. The
industry is facing
increasing number
of regulations and
Negative Publicity

14. Environmental factors
Example: Polaroid
Unique product offering
 Gained prominence and retains brand awareness
Declined as market changed with digital imaging
becoming popular

15. Competitive actions
A brand faces relentless onslaught from its competitors.
Becomes problematic if competitor has Deep pockets.
Innovative changes, Technological advancement and Cost
cutting.

16. The Epic Battle Of all
Times

17. Example:
Dell Compaq
 Offered a Direct-to-
Customer distribution
system
 Created savings using
above system and
Lowered its prices
 Compaq could not
tackle such
innovative changes
 Suffered losses in
market and merged
with HP

18. DECONSTRUCTURING BRAND DECLINE
 Revisit the Brand Equity concept
 Three key elements of brand equity :
1. Differential effect
2. Brand knowledge
3. Customer response

19.  Based on two methods :
1. Value priced (Good quality at low price)
“Brands must offer something different; they cant
just be another flavour of vanilla” -public relation
manager of volkswagen
Example: Techron (chevron)
2. Superior quality , physical attributes
Differential effect

20. Brand Knowledge
 Consists of two components:
1. Brand Awareness: Failing which leads to serious
and long term problem and find themselves in
Catch-22 situation. Highly aided and top of mind
recall should be done.
Example: PAN AM

21. Brand Knowledge
2. Brand Image: Maintain a strong, favourable and unique
brand association. Look for changes in consumer
perceptions.
Example: Levi’s and Denim
The Levi’s brand was synonym
with High quality Denim Jeans
and couldn’t run with new style
adoption as a result Sales
declined and forced to sell at
35% less

22. Customer response
 Indicators measuring customers response:
Sales figure, Purchase intentions and Brand loyalty
measures
Brand switching behaviour triggered by :
Price increase , Entry of new competitor and
Negative news about the brand
 Steps to be taken :
1. All 3 aspects of brand equity to be followed
2. Brand knowledge & differential effect should be
addressed

23. REVITALIZING BRAND
1. Brand equity most valuable asset
2. Lesser known brands can be valuable
3. New brands costs lot of money
4. Revitalizing existing brand is worthful

25. GUIDELINES FOR REVIVAL OF A
BRAND
1. Is the brand worth reviving ?
2. Take a long term perspective.
3. Carefully reposition the brand , invest in it ,
educate the market.
4. Correct mismanagement of the brand.

26. Is the brand worth reviving ?
Criteria for revitalization :
1. Significant residual value
2. Examine all three aspects of brand equity
3. The revival cost must be comparable to
the cost of new product
4. Measuring the level of awareness Brands
with :
singular focus
well defined differentiation
high premium

27. Take a long term perspective.

30. RESIST TEMPTATION TO MILK THE
BRAND
Aggressive form of milking entails :
Cutting prices steadily
Reflection of brand weakened position
Example : Apple Losing awareness
Invested in MP3 technology , IPOD
Came to forefront once more
PURSUE A CAREFULLY DEFINED TARGET MARKET : Risk of
shrinking over time , Risk of alienating the core customers and Appeal to
divergent tasks with the same brand
Example :Levi’s Launched Dockers (business casual clothing)
and Dockers became well known, after that Levi's removed
its name

32. Created By
Rahul Kalra, NSIT
During an internship by
Prof. Sameer Mathur, IIM
Lucknow