a brand is forever! a framework to revitalizing the declining and dead brand
TRANSCRIPT
Brand is an identity of a product, service or businessto differentiate from others
NAME
LOGO
NAME & LOGO
SLOGAN
COMBINATION
Brand equity is defined as the differential effect that consumer knowledge(i.e. brand awareness and image) about a brand has on the customer’s response to marketing activity.
If a brand has high Awareness and strong, unique and favorable Image It has strong equity
While some once famous Brands declined and Ultimately got extinct
Over the period of timeSome of Brands revived from decline or death
Managerial Actions
Product quality
Price increase
Price cuts
Brand neglect
Inability to stay with target market
If compromises quality for cost cutting itmay not effect in short run but harm in long run
Raise price without offering a corresponding benefits may lead to decline
Cut prices to increase sales
To maintain low price have to use cheaper material
When brand becomes popular, inaction creeps in. Successful brand also need continues attention
Reach out to new customer and alienate old loyal customer
1.Market are dynamic2.Market transforms with
time due to technology3.Change in legal environment
Environmental factors
Environmental factors
Android overcame SymbianDue to technology advancement and now Symbian is defunct
Polaroid was prominent onceBut went bankruptdue to digital imaging andcameras
Environmental factors
Kodak also faced similar environment change problembut company realize and made necessary change, introduced
digital cameras to fight against HP and SONY, and avoided possible death
Competitive actions
Relentless onslaught from competitor
Merging and acquisition
Cost cutting
Innovative technological advantage
Competitive actions
Nike wiped out Adidas in U.S.With its advertising through Celebrity and more American trend
V/s
Walmart overcame Kmart By its “everyday low prices everyday”Cost cutting science strategy
Kmart was forced to merge withSears Roebuck to fight back Walmart
Competitive actions
Blockbuster, a giant in the video rental businesswas in strong position but began to decline whenNetflix started offering video rentals via postal mail
By predicting decline and taking actions accordingly can save brandfrom death
To deconstruct brand declineRevisit the concept brand equity
Differential effect
A brand must provide a different image in Its customer mind from other brands.It can be done either by
VALUE PRICED- Good quality at low price
Or
POD (Points of difference)- Superior quality product and benefits
Brand knowledge
Brand knowledge has two components
Brand awareness
Brand image
High aided recall and high top of mind recall
Strong & unique brand association
Customer responses
Brand switching triggered by
• Price increase• Entry of new competitor• Negative news about
brand
To avoid decline Brand equity aspects to be considered
&For long run success brand
knowledge and differential effect have to be addressed
Brand’s equity is the most valuable assetfor a company.
Where Introducing a new brand costs tens of millions of dollar,
revitalizing existing brands with
proper diagnosis, strategy and execution is a worthwhile exercise
Is the brand worth reviving?
Can the brand regain some of its former glory?
Can its old equity be enhanced through new positioning?
Can the company effectively deal with logistical issue?
Is the brand worth reviving?
Declining brand can be revived if it has Significant residual value and brand equity Revival cost is not very much Premium value and Singular focus with well define differentiation
In some cases Reviving the brand is notworthy, brands that suffer from low awarenessOr a negative image it is better to kill the brand than to invest in it.
Take a long term perspective
Long term perspective is imperative
Well thought out strategy and execution
Redefine & rebuild
Take a long term perspective
Blockbuster was under attack by Netflix.Blockbuster closed its unprofitable stores that were closely situated and used that to benefit its online rental programWhich has more promising future
Long term perspective not only used to revivethe declining brand but also can be used to phase out own brand
Take a long term perspective
Toyota QUALIS was at the top of market competing with Tata SUMO. QUALIS was launched as family MPV
Toyota never wanted a “Taxi ” Tag on Qualis so Toyota phased out QUALIS brand from India and invest in INNOVA
Maruti Suzuki decided to phase out of Maruti 800.Because it was unable to upgrade to Euro lV.It also became outdated model so it was better toPhase out and benefit this to built in other brand Like Maruti Suzuki ALTO.
Carefully reposition the brand, invest in it and educate the market
Tata Nano hit the high revenues in its first yearBut due to its “Cheap Car” tag its sales decreased in following years.
Thus Tata decided to refresh its image by offering new snazzy colors and features and launchingeco-friendly, bi-fuel variant came up with new tagline“Celebrate awesomeness”
Correct mismanagement of the brand
Rebuild quality
Resist temptation to “milk” the brand
Pursue a carefully defined target market
Correct mismanagement of the brand
Harley Davidson almost got killed due tolow price bikes offering the low quality.
Harley Davidson improved quality, extended its product line
and subsequently achieved a complete turn around. It reversed its strategy of cost cutting.
Today it sells its motorcycles to high-end market
Correct mismanagement of the brand
Aggressive form of milking entails cutting prices steadily
Apple was losing its top-of-mind awareness after its struggle in the PC market.
It made investment in technology and launched iPod instead of cutting prices in PC market
Apple brand came to fore front once more
Correct mismanagement of the brand
St. John decided to reach out to teenagers and young adults because they Represented a growth segment thus by shifting its focus mid-way to a more promising younger audience, thus brand alienated its core customer
In such situation sub-brand can be a effective strategy.St. John introduced “Youth by St. John” to target only younger market.It used St. John as a bridge to build a new brand.
Once the Youth brand established,St. John name withdrawn from it
RECAPCauses of brand decline
Managerial actions
Environmental factors
Competitive actions
Key elements of brand equity
Differential effect
Brand knowledge
Consumer response
Revitalizing of Brand
Brand worth reviving or not
Long term perspective
Reinvent, Reposition, Revive
Correct the mismanagement
Disclaimer
Created by Khemendra Raj Pingoliya, IIT Kanpur during an internship
by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com