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REVITALIZING BRANDS

Akash C.Mathapati
Asst Professor Marketing Area
Kirloskar Institute of Advanced Management Studies
akashcm@gmail.com
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, Cuticura
Brands sometime have to return to their
roots to recapture its lost source of brand
equity.
Akash C.Mathapati
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.
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.
Akash C.Mathapati
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.
Brand
Revitalization
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
Akash C.Mathapati
Increasing the Frequency of Use
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)
Akash C.Mathapati
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: Milkmaid. Arm &
Hammer Baking Soda (to deodorizer).
Akash C.Mathapati
3.Entering New Markets
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.
Akash C.Mathapati
Texas Instruments looked for previously
neglected womens market
A proposed caffeine-laden Diet Pepsi,
named Pepsi A.M represented an entry
into the breakfast market
The great-tasting cola that beats coffee
cold!
Small refrigerators
Akash C.Mathapati
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.
Arrow followed by retracing their strategy to
brand its shirts especially with women. (Selling
bolder colors and busier patterns at higher prices)

Akash C.Mathapati
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.
Akash C.Mathapati
5.Changing Associations

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.
Akash C.Mathapati
New Associations Add Value by
Differentiation

Sometimes, as it matures a product becomes a
commodity and the price pressure makes the
product unprofitable.
One approach is to attempt to reposition the
commodity.
1960s saw Frank Perdue, tired of being in the
commodity business, completely repositioned it
as a high quality branded product ----
It takes a tough man to make a tender
chicken.
Akash C.Mathapati
6.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.
Akash C.Mathapati
Augmenting The Product
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.
Akash C.Mathapati
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.
Akash C.Mathapati
McKesson Inc., in drug wholesaling or Baxter in
Hospital supplies built computer based
information system for their retail / customers
Virtually taking over inventory management,
reorder decisions.
McKesson could reduce its sales force engaged
in store level sales by a small force which
serviced the systems(1975)
McKesson grew from $1 billion in 1978 to $5
billion in 10 years.
Akash C.Mathapati
7.Customer Involvement
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 (CATs), started making creative
solutions to both current customers (in better
serving them) and to new customers (in
developing them).
Akash C.Mathapati
A series of CATs launched every year has turned
Millikins industrial towel business from a
commodity to a value added service business.
Millikin now virtually runs the business of their
clients industrial laundries.
They provide computerized ordering and logic
systems, market research assistance , leads from
trade shows, audio visual sales aids etc.
Akash C.Mathapati
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 CDs virtually saw a rebirth for the
audio and video entertainment industry with the
sales of audio & video systems surging.
Akash C.Mathapati
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 player such as Wilkinson(UK) made
permanent inroads into the market. Gillettes
share fell from 70% to 55% and ROI from 40% to
30%.
Akash C.Mathapati
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.
Akash C.Mathapati
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.

Akash C.Mathapati
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.
Akash C.Mathapati
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.

Akash C.Mathapati
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 Brand loyalty, differentiation and
competitive pressures from those who have exit
barriers).
Akash C.Mathapati
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.

Akash C.Mathapati