Post on 03-Apr-2018
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Brand Revitalization
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Customer-based brand equity :Differential effect that consumer knowledge about a brand has on the customers response to mktg. Activity.
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
Cost saving : formula change
(Not so effective in
Immediate Reaction
Change back to original formulaP&G; Inform Lever Brothers of the formula change,
forcing to stop running the comparative ads.
Brand Equity / Key Brand Association of Cascade Virtually Spotless
:P & G fiercely defends their Brand Equity
P&G : Cascade Lever Brothers : Sunlight
Levi Brothers attack the weakness
Sun lights fights spots better than Cascade
ReinforcingBrands
How to make consumers have the necessary sources of Brand Equity
- Convey the meaning of the brand to consumers.
What product does the brand represent : what benefits does it supply : What needs does it satisfy ?
How does the brand make those product superior ?
1) Maintaining Brand Consistencye.g . Budweiser, Coca-cola, Hershey : remarkably consistent in their strategies once they achieved a pre-eminent market
leadership positionMarlboro : Western cowboy image : Focused mktg. Comm.
2) Protecting Sources of Brand Equity
Case
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3) Fortifying vs. Leveraging to build strong consumer-based brand equity
Fortifying : mktg. Activities to fortify / contribute to Brand Equity.
Leveraging : mktg. Activities to leveraging / capitalize on existing Brand Equity.
leveling source of equity may become neglected/ diminished
4) Fine tuning the Supporting mktg. Program
Brand tactics should only be changed when there is evidence that theyre no longer making the desired contribution
to maintaining or strengthening brand equity
5) Product-related associations ; (Core associations) Product Functional benefit :
/ merchandising : Critical
Product innovations : critical forPerformance-Based brands; not to change product too much, Make new prpduct better not differentTiming of introduction & Announcement.
6) Non Product-related Associations; Core association non-product-based attributes, symbolic or experiential benefits Relevance in user & Usage Image is criticalbut too frequent repositioning ; alienate (blur image/confuse/alienate consumer
memory established /dangerous Convincing new brand claims : must be presented in a compelling fashion()
Pepsi Youthful Appeal Riskyback to Be Young Nothing else is Pepsi()back to Generation Next(); repositioning.
Case
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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: Harley-Davidson, Mountain Dew, Chrysler
General Approach
Recapturing Lost Sources
Identifying / Establishing New Sources of Brand Equity brand meaning reinforce evolutionary revolutionary.
Revitalizing Brands
Case Addidas Revitalization; Saatchi & Saatchi 1993
Teen concentrateMarketing Efforts :(,.)Consumer Pull Push Marketing.
Pull Performance-oriented product.
advertising / athlete sponsor Urban, young audience targetSponsor World Cup soccer
Push shelf space share
M/S 2% 5% 4
Brand Audit
: Profiling brand knowledge structure in order to guide repositioning
: Important to accurately characterize Breadth & Depth of brand awareness, strength, favorability, uniqueness of brandassociation held in consumer memory.
, .;
( Extent to which key brand associations are still properly positioning the brand)
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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Brand Audit
; Comprehensive examination of the health of a brand in terms of its sources of band equity from
the perspective of the firm and consumer
; Whether to Retain the Same Positioning or To Create a New Positioning : Desirability, Deliverability of differentiated Brand Associations
CustomerBased Brand Equity Framework ; Provides guidance as toHow to Best Refresh Old Source of Brand Equity
& Create New Sources of Brand Equity
Profiling Brand Knowledge Structure;
Repositioning
guidance
: Understanding what the sources of brand equity were to begin with.1) Expand depth / breadth of brand awareness (,)
2) Improve Strength for ability/ uniqueness of brand association
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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depth breadth( recall, recognition brand narrow )
Usage (Increase Usage)
: increasing level or quantity of consumption
: increasing frequency of consumption
A. Identifying Additional & New Usage
--(usage situation) remind[] Maxwell Home Fitter pack simples : 1 package
(usage increase)
- TPOe.g. Holiday event or time of year
- regular usage merits
B. Identifying New & Completely Different Ways to use
1) Expanding Brand Awareness
Case Cheez-whiz : use in microware oven ( )
Wriglegs chewing gum : substitute for smoking ()
Tums () : calcium (supplement)
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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: to improve strength, favorability and uniqueness
Heritage Brand :;(trustworthy );,. (boring. Uninteresting)
(relevant usage situations ) user image (contemporary user profile ) (modern brand personality)
Re-Positioning : Target Market repositioining
target mkt. possible segment. cost-benefit.(--)
Mustestablish
New Products, Ads Promo, packaging
2) Improving Brand Image
A. Retaining vulnerable / Recapturing Lost CustomersOreo : segment regain.
B. Identifying Neglected SegmentP & G Ivory baby Adult (pure and simple )
& baby shampoo
C. Attract New Customers revitalization seg seg.
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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3) Balancing New & Old Target market
vs. (Trade-offs between retaining existing customers vs. attracting new customers ).
Acquiring New customers; relevancy, segment,. strong personality user image association
A. Multiple Marketing Communication Programs
segment.
[] P&G Old Spice;.
Old Spice Revitalization;.whistling
sailor.[] Budweiser (
).
B. Brand Extensions and Sub-brands
Introducing line extension or sub-brands; Haagen Daz Extraas;Ben & Jerrys
sub-brand.
C. New Distribution Outlets
Target segment;
) 1970 sunglass,, teen,
loyalty.
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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Some brands are not worth saving; brand equity has dried up or damaging,;
Fading Brand: Reduce the number of its product types reducing the cost for support
support milk cow.
( Unilever Lux; 15 support M/S 3%. )
4) Retiring Brands
5) Obsoleting Existing Products
strength,, obsolete.
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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Brand
Reinforcement
Strategies
Brand Awareness Brand Image
What product does the brand represent?
What benefits does it supply?
What needs does it satisfy?
How does the brand make products superior?
What strong, favorable, and unique brand associations
exist in customers mind?
Innovation in Product
Design, Manufacturing and MerchandisingRelevance in User and Usage Imagery
Consistency in
Amount and
Nature of
Marketing Support
Continuity in Brand
Meaning. Changes in
Marketing Tactics
Protecting Sources of
Brand EquityTrading Off Marketing
Activities to Fortify vs.
Leverage Brand Equity
SUMMARY
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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Brand
Revitalization
Strategies
Refresh Old Sources ofBrand Equity
Create New Sources of Brand Equity
Expand Depth and Breadth of Awareness
And Usage of BrandImprove Strength, Favorability, and
Uniqueness of Brand Associations
Identifying
Additional
Opportunities to
Use Brand in
Same Basic Way
Identify Completely New
and Different Ways to
UseRetain
Vulnerable
Customers
Recapture
Lost
Customers
SUMMARY
Increase Quantity
of Consumption
(How Much)
Increase Frequency
of Consumption
(How Often)
Bolster Fading
Associations
Neutralize
Negative
Associations
Create New
Associations
Identify
Neglected
Segments
Attract
New
Customers
Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
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Brand Strategies over Time - David Aaker, Building Strong Brands(1996)Why change identities, positions, or executions?
Rationale 1: The Identity/Execution Was Poorly Conceived
Rationale 2: The Identity/Execution Is Obsolete
Rationale 3: The Identity/Execution Appeals to a Limited Market
Rationale 4: The Identity/Execution Is not Contemporary
Rationale 5: The Identity/Execution Is Tired
Customer Interest, Brand Perceptions, Brand Attitudes
Sales & Share trends Brand Identity.
,,/
Identity change.
: KFC,, Fried, CI KFC.
Brand Identity,
change.
: Johnson & Johnson Baby Shampoo;.
Arm & Hammer Baking Soda
Brand Identity,
: GE; contemporary value proposition.
Brand Identity boring,
identity execution change repositioning
.
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Why consistency( if Done well) is Better?
Consistency or Change?
Consistency
IPE(identity/positioning/ execution)?Not necessarily. Consistency Brand:
Ivory Soap(purity), Marlboro ( Cowboy, masculine, out-door,),
Maytag( functional benefit of dependability, and emotional benefit of relief from worry)Black Velvet Canadian Whiskey ( soft and smooth, Black Velvet Lady)
Brand I.PE identity(enduring) positioning.
Strong Brand identity, position, visual imagery, theme or slogan.
Ownership of Position
Ownership of Identity Symbol
Cost Efficiencies
(Marlboro, Maytag)
consistency symbol( visual image, slogan, jingle, metaphor, spokesperson).
( Maytag repairman, Marlboro country)
identity symbol
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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Consistency Over Time: Why is it Hard?
IPE Consistency IPE,
bias.
Pressure to Change Identification/ Execution
Brand Manager Mindset Strategic Misconceptions
Problem solver/ Action orientation
High aspirations
Identity/Execution Owned by Predecessor
A New identity/execution is ineffective
A New paradigm requires a new identity/ execution
A superior identity/execution can be found
Customers are bored with a tired or stodgy identity/execution
Pressures Resisted
Consistent Brand Identity, Positions
and Executions
Benefits of Consistency
Own Position
Own identity symbols
Cost efficiencies
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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Consistency Over Time: Why is it Hard?
Mindset of Managers
Problem Solver/ Action Orientation, action
brand equity driver.
High AspirationBrand performance.
Owned by Predecessor Identity/ Execution() brand identity
involvement brand identity.
Strategic Misconceptions
New Identity/ Execution is IneffectiveBrand Identity settle-in.
Marlboro man cowboy.
A New Paradigm Requires a New Identity/ Execution trend. Fad paradigm shift
, paradigm shift identity.
A Superior Identity/ Execution can be Found,
.
.
Customers are Bored with a Tired or Stodgy Identity/ Execution.
, brand
identity. boredom.
consistency.
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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Consistency Over Time: Why is it Hard?
The Panic Attack
, brand identity.
Miller Lite Case
Light Beer Market Creation
Miller : Created Light Beer CategoryPositioning as a beer with great tasting and less filling ( Not as a diet drink )
Heavy Beer Drinkers Appeal
Brand Image Building: Remarkable Success in the 1970s-1980s
Ads: Strong image around Male Camaraderie()( + + fun)::
Appealing point: to make the audience feel accepted as part of this group Miller Lite Customer Relationship.
Decline of Market Share
1980 market share. ( 12.5% 10%)
: Coors Light & Bud Light ; to attract Young beer drinkersMiller Lite appeal disadvantage.
Miller Reaction, classic Miller Lite upbeat theme.
Appealing Point: Miller Lite Light Beer, Light Beer
Failure of New Ad Campaign
target audience Miller Lite beer-drinker,.
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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What caused decline of Miller Lite?
Brand EquityQuestions;
- Young target?- Miller Lite identity? Brand Equity?- () Miller Lite target market()??
- Miller m/s?- equity MS?- Brand Identity?- Brand Essence?
( Essences: Maleness, acceptance, Fun setting)
Brand Core Identity Execution, Brand Identity Brand Identity.
Consistency Over Time: Why is it Hard?
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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The Search for the Fountain of Youth
Brand Identity Key Elements
.
Heritage Brand
( Heritage Brand :
;),,,,
;,,.
1)( Consumer Brand(,, 20) ),
2) High-Tech Brand ( )
Evolving an Identity
Symbols : Symbol Symbol.
Name : Federal Express FedEx ;
Slogans : Brand identity,
. (GE case)
New Products : Jell-O: kid/fun association + mom/family ; MTV .
Jiggler( kind/fun/ mom equity, fun. )
Augmenting the Identity Identity core identity additional extended elements.
) New Attributes, Different Personality Characteristics, New Market Segment, New User Imagery,
Product Extensions, New Emotional Benefits
Adding User Imagery : Levi Straus
TV: , hip
(, personality)
Product Extension:category, attributes
identity .
Adding an Emotional Benefit: Tasters Choice: Quality Cue
emotional surrounding
. 3M/S 3%
Use of Sub brands: Canon Rebel; Agassi ,.
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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Providing Links to the Heritage Identity brand identity dramatic heritage identity
.
heritage identity
.
Brand Strategies over Time - David Aaker, Building Strong Brands(1996)
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Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
Brand
Revitalization
1. IncreasingUsage
2. Finding New
Usage3. Entering New
Markets
4. Repositioning
the Brand
5. Augmenting theProduct Service
6. Obsoleting
Existing Products
7. Extending
the Brand
Revitalization Options
Revitalization :
Stagnated Brand Equity+ Generate Added Sales + Enhanced Equity
Enhanced Equity : improved recognition, enhanced perceived quality, changed associations,expanded customer base, increased loyalty
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Increasing Usage
Increasing the Frequency of Use
Increasing the Quantity Used
Reminder Communication:
Position for Frequent or Regular Use:
Make the Use Easier:
Provide Incentives:
Reduce Undesirable Consequences of Frequent Use:
Use at Different Occasion or Locations:
Reminder of related products or service( Cross-selling, Up-selling)
Incentives (promotion)
Affect Usage-level Norm
Address Perceived Undesirable Consequences of heavy consumption
Positive Associations with Use ( through Ads)
Finding New Uses
New functional use for a brand;
Jell-O( dessert) Jell-O Salad
Cereal( with milk) with Ice Cream or Yogurt
Market research
50%.
,
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Entering New Markets
Van(Use of Commercial Delivery) Consumer Use
Small Refridge ( Home ) Dormitory, Offices
Johnson & Johnson ( Baby Shampoo) Mild shampoo
Repositioning the Brand
Changing Associations;
Inappropriate Positioning Over Time;
- becomes obsolete over time, target market ages, or association becomes less appealing
V-8 Juice ; Repositioned as a healthy drink/ weight control
Campbells Soup: Lunch Supplementary Main Meal Substitutes for adults
Market research
50%.
,
Adding Value by Differentiating: New Associations
commodity: Reposition as an Upscale Branded Products
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Augmenting the Product/ Service
Customer Involvement
stagnating/ declining, commodity,
,
.
WTP/
..
Theodore Levitt. commodity
feature.
( Do something better or Do something Extra, Something Different)
-(stimulating a new look)
- channel( Leggs high-quality hosiery in Supermarket concept + total marketing program)- Computer-based Info. System Foremost-McKesson; ,,
Obsoleting Existing Products with New Generation Technologies
revitalization
.: TV, large-head tennis racket, Yamaha Digital Piano(Disklavier),
CDhome audio.
. Challenger
- stainless(, 40% ROI )
-Wilkinson( stainless innovator), Eversharp, Schick innovator M/S 70%
55%. ROI 30%.
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Revitalization- Milking Milking Divest :
Brand Prospect 1 unfavorable milking divest(exiting market)
.
- Strength of Brand, Equity, intensity and commitment of the competition,
- Market Demand for the Product Class
Multi brand.
- Withholding resources from some brand or allow brand to die
Milking Option: Avoiding investment and generating additional cash flow
-/
-
Milking Assumption;
1) faltering brand, strong competition, eroding market demand ; Unattractive Market
2) firm has a better use for the funds
3)/; financially, synergistically
4) milking(.)
Exit Milking Strategy
1)
2) stable profit3) customer loyalty( market segment)
4) ; economies of scale, support
5) milking strategy
Milking /.
-,,
.
-, milking.
- milking strategy;,
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Revitalization- Divestment or Liquidation Divest Liquidate:
Brand Prospect milking exit decision
1).2) exit barrier,
milking
3) SCA
4) superfluous mission
5) exit barriers(,)
Milking /.
-/ attachment-.
: IBM 386 286 286 erosion ,
286.
Milk vs. Exit? ;
1) Brand Strength
2) Market Demand
3) Competitive Intensity
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Market Prospects Competitive Intensity Brand Strength &Organizational Capabilities
1. Is the rate of decline orderly andpredictable?
2. Are there pockets of enduring demand?
3. What are the reasons for the decline
is it temporary? Might it be reversed?
4. Are there dominant competitors withunique skills or assets?
5. Are there many competitors unwilling to
exit or contact gracefully?
6. Are customers brand-loyal? Is there
product differentiation?
7. Are there price pressure?
8. Is the brand strong? Does it enjoy high
recognition and positive, meaningfulassociations?
9. What is the market share position and
trend?
10. Does the business have some key
competitive SCAs with respect to key
segment?11. Can the business manage a milking
strategy?
12. Is there synergy with other businesses?
13. Does the brand fit with the current
firms strategic thrust?
14. What are the exit barriers?
Investment Decision in a Declining Industry: Some Strategic Questions
Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)
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Brand Revitalization Keller vs. Aaker
Expanding Brand Awareness
Improving Brand Image
Balancing New &
Old Target Market
Retiring Brands
Obsoleting Existing
Products
Increasing Usage
Finding New Usage
Entering New Markets
Repositioning the Brand
Augmenting the
Product Service
Obsoleting Existing
Products
Extending the Brand
Identifying Additional & New Usage
Identifying New & Completely Different way to Use
Retaining Vulnerable/ Recapturing Lost Sources
Identifying Neglected Segment
Attract new Customers
Multiple Marketing Communication Programs
Brand Extensions and Sub-Brands
New Distribution Outlets
Keller Aaker
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Brand Life CycleGrow Mature Decline - Die
Change of Consumer Needs + Heavy Competition Negative Attitude towards old brand Revitalization
: Lost appeal, identity, overshadowed by competition
Best way to jump start a mature brand : Understanding its Uniqueness and Equity, and making the most of them.
Increase Brand Awareness; Frequent, consistent advertising
Change usage suggestions or Add new usage
Key to effectively advertising New User for an old brand
making new uses appear similar to existing ones;seg/.Quick way to Increase Usage Frequency positioning a brand as a substitute for product in other categories
;,
,, Altering package design / size
Making old Brand New - American Demographics Dec. 1997