A BRAND

IS FOREVER

A frame work for revitalizing dead and

declining brands

Here, we use findings from academic literature, detailed case studies, and inter- views with marketing executives to provide guidelines in dealing with declining brands.

We analyze the conditions that lead to brand decline and brand death, highlight signs that may suggest an impending decline, offer insights into assessing the viability of reviving a brand, and suggest various approaches that can be used to strengthen the brand and give it a second life.

REVIVAL OF A DEAD BRAND

REVIVAL OF A DEAD BRAND

Sometimes dying or dead brands may still have significant brand equity in terms of high brand awareness and a strong brand image.

Ford realized that in- stead of trying to use another brand name that meant little to the market, it would be better off utilizing the Taurus brand name, which had 90% name recognition and a positive image (Kiley, 2007).

Reviving a brand is not just feasible; it may very well be a more attractive strategy than launching a new brand.

DECLINE AND DEATH OF BRANDS

DECLINE AND DEATH OF BRANDS

Today the power of a brand lies in its equity with its customers, and over the years, a more customer-based brand equity framework has been developed.

Brand equity is defined as ''the differential effect that consumer knowledge about a brand has on the customer's response to marketing activity,'’…..

Brand equity is defined as ''the differential effect that consumer knowledge about a brand has on the customer's response to marketing activity,'' …

…..and ''consumer brand knowledge can be characterized in terms of brand awareness and brand image dimensions''

Thus, when a brand has high awareness and consumers ’'hold strong, favorable, and unique brand associations,'’ it is considered to have strong equity.

Familiar brands that have demonstrated strong brand equity

include……..

However, brand equity may decline with the passage of time, sometimes leading to a brand's demise.

CAUSES OF BRAND DECLINE

CAUSES OF BRAND DECLINE

1. Managerial actions

1. Managerial actions

Even when environmental factors and competitive actions remain static, managerial actions can significantly impact brand health.

1. Managerial actions

Even when environmental factors and competitive actions remain static, managerial actions can significantly impact brand health.

In our research, we found that such actions can be classified into five categories: product quality, price increases, price cuts, brand neglect, and inability to stay with the target market.

2. Environmental factors

2. Environmental factors

Markets are dynamic in nature and can be significantly influenced by the larger environment in which they operate.

2. Environmental factors

Markets are dynamic in nature and can be significantly influenced by the larger environment in which they operate.

They can undergo major trans- formations, which in turn have an impact on the various companies in an industry and

their brands.

2. Environmental factors

Polaroid, the company spiraled into decline andwent bankrupt as the environment changed and digital imaging became popular.

3. Competitive actions

3. Competitive actions

In most markets today, a brand faces relentless onslaught from its competitors. This can become particularly problematic if the competitors have deep pockets.

3. Competitive actions

Puma and Adidas are good examples of brands that declined in the face of intense competition.

VS.

3. Competitive actions

New competitors are able to leverage novel technologies or marketing approaches to their advantage to challenge well- established market leaders, which are often bound by their

legacy.

4.

DECONSTRUCTING BRAND DECLINE

DECONSTRUCTING BRAND DECLINE

There are three key elements of a brand’s equity.

There are three key elements of a brand’s equity.

1. decline in brand knowledge

There are three key elements of a brand’s equity.

1. decline in brand knowledge

2. blurring of the differential effect

There are three key elements of a brand’s equity.

1. decline in brand knowledge

2. blurring of the differential effect

2.lackluster customer responses

Differential Effect

In today’s competitive marketplace, consumers must be provided with a compelling argument as to why they should choose a particular brand from a wide variety of alternatives available to them.

Differential Effect

It is also important to ensure that consumers have sufficient exposure to such a message, so that they are knowledgeable about the brand’s assertions.

Brand Knowledge

It is imperative that consumers understand why a certain brand is a more compelling choice than the other alternatives, whether because it is differentfrom them or represents a better value.

Brand Knowledge

There are 2 components to brand knowledge

Brand Knowledge

There are 2 components to brand knowledge

1. Brand Awareness

Brand Knowledge

There are 2 components to brand knowledge

1. Brand Awareness 2. Brand Image

Customer Response

Purchase intentions and brand loyalty measures are other leadingIndicators that managers may look to for measuring customer response.

REVITALIZING BRANDSREVITALIZING BRANDS

Is the brand worth reviving?

Is the brand worth reviving?

Only if there is significant residual value in one or more of the components of brand equity.

Take a long-term perspective.

Take a long-term perspective.

Most brands take a long time to build, and a long time to die.

Take a long-term perspective.

Most brands take a long time to build, and a long time to die.

Reviving a brand is also a long-term initiative, typically taking more than a year or two.

Carefully reposition the brand.

Carefully reposition the brand.

Invest in it.

Carefully reposition the brand.

Invest in it.

Educate the market.

Correct mismanagement of the brand.

Correct mismanagement of the brand.

One of the main problems is the failure to clearly understand brand decline and the commitment to do what is necessary to reverse the trend, and change strategies that weakened the brand in the first place.

Correct mismanagement of the brand.

One of the main problems is the failure to clearly understand brand decline and the commitment to do what is necessary to reverse the trend, and change strategies that weakened the brand in the first place.

There are 3 ways to three ways to address some consistent themes that have emerged in declining brands.

Rebuild Quality

Resist temptation to “milk” the brand.

Pursue a carefully defined target

market.

LET THE REVITALIZATION

BEGIN!

LET THE REVITALIZATION

BEGIN!(Summary)

Companies are increasingly looking to revitalize dying or dead brands in their portfolio. History shows that this is possible.

Managers need to constantly “watch” for signs of brand decline

Most brands with high levels of awareness or positive brand image are candidates for revival.

Thank You.

. Created byKunal Eapen, IIIT AllahabadDuring an internship under

Prof Sameer Mathur, IIM Lucknow

www.iiminternship.com