Вы находитесь на странице: 1из 23

REVITALIZING BRANDS

Expanding Brand Awareness Improving Brand Image.

REVITALIZING THE BRAND

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 etc.

REVITALIZING THE BRAND


Reversing a fading brands fortunes require either recapturing the lost sources of brand equity or bringing in new sources of brand equity. They might still have lot of Brand equity left in them.

REVITALIZING THE BRAND


Revitalizing - deals with such brands which are old but if redirected may have plenty of life. This can be substantially less costly and risky than introducing a new brand. Seven Avenues for Brand Revitalization.

1. Increasing Usage

2. Finding new uses


3. Entering new markets Brand Revitalization 4. Repositioning

5. Augmenting the Product/services


6. Obsoleting Existing Products 7. Extending the Brand

1. Increasing the Frequency of Use


Reminder Communications Position for frequent / regular use (clinic shampoo) Make the use easier Provide Incentives (frequent flier plans) Address any undesirable consequences attached with frequent use.

(PH value of soft drinks, radiation hazards related to Microwave oven Marketing tactics deviating from the normal brand activities will have to be taken up here)

Increasing The Quantity Used


Insurance customer reminded to cover more items (household). Positive associations with use (Frito-Lay You just cant 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: Arm & Hammer Baking Soda


(to deodorizer).

3. Entering New Markets:

Johnson & Johnson baby shampoo promoted on gentleness plank, taken to adults as a shampoo that can be used every day. Cadburys chocolates from kids to adults to all

P&Gs 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 mens shirts.

4. Repositioning
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.

Brylcream slicked-back look of 1960s, saw its sales go limp in the 1970s, when the Beatles popularized mop-top look To revive Brylcream Gel was launched, a clear gel with newer packaging enlisting soccer stars (now Beckham) to endorse --- younger audience.

5. AUGMENTING THE PRODUCT As product categories mature

Once strong brand associations which differentiated your 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.

Theodore Levitt: When the product is close to becoming a commodity, consider augmenting it by providing services or features not expected by the customer Two ways Do something better or do something extra / different. Improving or innovations in packaging is a way to provide this differentiating extra.

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 shampoos 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.

6. OBSOLETING EXISTING PRODUCT WITH NEW-GENERATION TECHNOLOGIES FM-radio Introduction of CDs virtually saw a rebirth for the audio and video entertainment industry with the sales of audio & video systems surging.

Market leader who has vested interest in the old technology, faces competitive threat and will opt for a delay strategy. Gillette (1960s) resisted the stainless steel technology knowing the durability of the new material will reduce the volumes and also the cost to change over its manufacturing. Small players such as Wilkinson (UK) and Schick (US) made permanent inroads into the market. Gillettes share fell from 70% to 55% and ROI from 40% to 30%.

Brand Rejuvenation
Brand Rejuvenation is very similar to brand reinforcement. This happens because of lack of clear focus for the Brand, which may arise out of : 1. Unrelated Diversifications 2. Innovation Dearth 3. Lack of Brand Evolution

Activities to bring back supremacy 1. Regain Focus: operating a number of business can be justified on the basis or logic of scale or scope of operations, but from a brand perspective this can be detrimental . as it diverts the focus from the core of the brand. 2. Elevate Marketing / Branding To The Board Room: Elevate Marketing / Branding from a tactical level to more priority oriented strategic level.

3. Brand oriented Leadership: In the competitive environment other brands are constantly questioning your supremacy. This where the CEO and Top Management should enable the brand to innovate and lead in their respective segments. 4. Develop Design, Features & Relevance: Regain relevance among the loyal customer base (Cool Customers) by bringing in superior designs and features.

ALTERNATIVES TO REVITALIZATION: END GAME

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


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.

Milking (contd.) 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

Difficulties in Implementing strategy 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.

2. Divestment or Liquidation 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 B. loyalty, differentiation and competitive pressures from those who

3. The brand position is weak and there are more than one competitor who hold dominant position. 4. Firms 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.