brand revitalisation ppt appropriate for MBA and BBA students of brand management

1. REVITALIZING BRANDS

2. � In virtually every product category, there are examples
of once prominent brands that have fallen on hard times
and in some cases even completely disappeared.
� Some of these Brands manage to turnaround and come
back – --- Readers Digest, Kelvinator, LML
� Brands sometime have to return to their roots to
recapture its lost source of brand equity.
REVITALIZING THE BRAND

3. � Reversing a fading brand’s fortunes require either
recapturing the lost sources of brand equity or bringing in
new sources of brand equity.
� Brand on the comeback trail needs revolutionary changes
rather than evolutionary changes.
� Brands most likely to respond to revitalization efforts are
those that have clear and relevant values that have been left
dormant for a long time.
� They still have lot of Brand equity left in them.
REVITALIZING THE BRAND

4. Seven Avenues for Brand Revitalization.
REVITALIZING THE BRAND
Brand
Revitalizatio
n
1. Increasing Usage
2. Finding new uses
3. Entering new markets
4. Repositioning
5. Augmenting the Product/services
6. Obsoleting Existing Products
7. Extending the Brand

5. � Reminder Communications
� Position for frequent / regular use (clinic shampoo)
� Make the use easier (Araldite)
� Provide Incentives (frequent flier plans)
� Address any undesirable consequences attached with
frequent use.
� Use at Different Occasions / Locations (Coffee, Cola
instead of Coffee/tea; soft drinks at home)
Increasing the Frequency of Use

6. Increasing The Quantity Used
� Insurance customer reminded to cover more items
(household).
� Positive associations with use (Frito-Lay “You just can’t
eat one”).
� Incentives can be used to increase the quantity used /
bought (quantity discounts)
� Communication efforts to change attitudes related to
usage quantity.
2.Finding New Uses: Milkmaid. Arm & Hammer Baking
Soda (to deodorizer).

7. � The target market for a particular brand may not
comprise of all the market segments.
� If firm may not have other Brands for these target
segments, then they become potential areas for the
brand to expand.
� Johnson & Johnson baby shampoo promoted on
gentleness plank, taken to adults as a shampoo that
can be used every day.
3.Entering New Markets

8. � P&G’s Ivory soap was revived by promoting it as a
pure and simple product for adults than just babies.
� Van Heusen gained the edge over Arrow in the US
markets by targeting 50% of its ad budget to women.
� Women buy an estimated 60% to 70% of men’s
shirts.
� Arrow followed by retracing their strategy to brand
its shirts especially with women. (Selling bolder
colors and busier patterns at higher prices)

9. � One strategic option for revitalizing a fading brand is
simply to abandon the consumer group that supported
the brand in the past to target a completely new
segment.
� To revive – Brylcream Gel was launched, a clear gel
with newer packaging enlisting soccer stars (now
Beckham) to endorse --- younger audience.
4. Repositioning

10. � A Positioning Strategy can become in-appropriate as
the target market ages, the association becomes less
appealing as tastes and fashions change.
� A positioning strategy can simply wear out as the
target segment becomes saturated
� New associations and associated segments are needed
to generate growth.
Changing Associations

11. � As product categories mature
� Once strong brand associations which differentiated
the product are now matched by most of competition.
� Customers seem more and more concerned about
price and most are not willing to pay premium price
for a brand.
� The temptation is to become resigned to a very
competitive environment.
5.AUGMENTING THE PRODUCT

12. � Theodore Levitt: When the product is close to becoming a
commodity, consider augmenting it by providing services
or features not expected by the customer as they go beyond
anything being offered.
� Two ways – Do something better or
do something extra / different.
� With a mature product it is more feasible to do something
extra than better.
� Improving or innovations in packaging is a way to provide
this differentiating extra.
Augmenting The Product

13. � Improving package -- Nestle packaged its chocolates in
tiny tubs, so that children can use it to make chocolate
fudge or sundaes in a microwave oven.
� Clinic shampoo’s special packaging for children which
provided the right quantity per squeeze (meant for five
rinses).
� A new package can solve a customer problem. Eg:
sachets enabled packing of shampoos, tooth paste,
coconut oil to be packed for the use of traveling lot and
also for rural population.

14. � Involving customer can be key to the process of
finding ways to augment the product or service.
� Customer involvement not only helps to identify the
most appropriate areas to work on but also makes the
effort visible to the consumer.
� The US textile firm Millikin, using Customer Action
Teams (CAT’s), started making creative solutions to
both current customers (in better serving them) and to
new customers (in developing them).
6.Customer Involvement

15. � OBSOLETING EXISTING PRODUCT WITH NEW-
GENERATION TECHNOLOGIES
� Sometimes a sleepy industry segment can be
revitalized by a product which obsoletes the existing
installed base and accelerates the replacement cycle.
� Yamaha Disklavier, FM-radio are eg.’s.
� Introduction of CD’s virtually saw a rebirth for the
audio and video entertainment industry with the sales
of audio & video systems surging.

16. � In a declining industry there are substantial risks in
investing especially if your brand starts to show weakness.
� At this point it may not be possible to provide equal
access to resources for all the brands in any multi brand
organization.
� Options are:
� 1. Milking the brand
� 2. Exit the market.
ALTERNATIVES TO REVITALIZATION: END GAME

17. � The Milking Option
� Avoiding investment in the brand, attempting instead to
generate additional cash flow from it.
� Milking strategy will accept a decline in sales and profits
and the risk that the brand will eventually go under.
� A variant to milking strategy is ‘hold’ or ‘maintain’, where
enough investment to maintain the brand.---No growth.
� A fast milking: sharp reductions in operating expenses,
increase in price to maximize short term cash flow.
ALTERNATIVES TO REVITALIZATION-END GAME

18. Situational characteristics that lead to milking strategy
rather than exit:
� 1. Industry decline rate is not exceedingly steep. Pockets
of demand exist.
� 2. Price structure will be stable allowing efficient firms
to make profits.
� 3. Brand has enough customer loyalty in certain pockets,
to generate enough sales /profits. Risk of losing relative
position due to milking is low.
� 4. Milking strategy can be successfully managed.

19. � Suspicion that milking strategy is implemented can
upset the plan.
� Customers may lose faith in the brand.
� Competitors may attack more vigorously
� Most managers will not be experience or orientation to
handle the situation.
� To minimize such effects it is better to keep the milking
route inconspicuous.
Difficulties in Implementing strategy

20. � When prospects for the brand are bad and a milking
strategy doe not seem feasible, the final alternative –
divestment or liquidation is considered. Conditions
that suggest an exit than a milking decision are:
1. Decline rate is rapid and accelerating. (no pockets of
enduring demand).
2. Price pressures are anticipated to be extreme. (lack
of Brand loyalty, differentiation and competitive
pressures from those who have exit barriers).
Divestment or Liquidation

21. 3. The brand position is weak and there are more than one
competitor who hold dominant position.
4. Firm’s mission has changed and the business is
becoming non related.
5. Exit barriers if any can be overcome, such as specialized
machines, long term contracts with suppliers etc.