A Brand is forever! A framework for Revitalizing declining and dead brands

Sunil Thomas, Chiranjeev KohliMihaylo College of Business & Economics, California State University Fullerton, Fullerton, CA 92834, U.S.A.

REVIVAL OF A DEAD BRAND

1. Examples of brand decline2. Causes of brand decline3. Deconstructing brand decline4. Guidelines to revitalize brands

1. Examples of Brand Decline

Classic example of DEATH which followed an extended period of struggle

Oldsmobile known for PIONEERING DESIGNS and INNOVATIONS

Died as it lost its unique identity as an INNOVATOR

According to Product Evolutionary Cycle (PEC), proposed by Tellis and Crawford, evolution of a brand is like the evolution of an organism.

It depends on three factors

Generative Force-Managerial ActionsSelective Force-Market EnvironmentMediative Force-Competitor’s Actions

2. Causes of Brand Decline

1. Product quality 2. Price increases 3. Price cuts 4. Brand neglect 5. Inability to stay with the target market

2. Causes of Brand Decline-Managerial Actions

Product quality

2. Causes of Brand Decline-Managerial Actions

Price Increases

Competitor’s Actions 2. Causes of brand decline-Managerial Actions2. Causes of Brand Decline-Managerial Actions

Price Cuts

2. Causes of Brand Decline-Managerial Actions

Brand Neglect

2. Causes of Brand Decline-Managerial Actions

Inability to stay with the target market

2. Causes of Brand Decline-Managerial Actions

2. Causes of Brand Decline-Market Environment

Markets are dynamic in nature and can

be significantly influenced by the larger

environment in which they operate

Use of JOE CAMEL, a cartoon character,invited a lot of criticism which impacted the SALES

KODAK never allowed the transformation of the marketto derail its

BRAND

2.Causes of Brand Decline- Competitor’s Actions

Relentless onslaught

from the competitors

can be detrimental to

your product

Market share of adidas dropped

from 60%

to less than 3%

WALMART captured K-MART’s market share

using this TAG LINE

3. Deconstructing Brand Decline

What is Brand Equity?

• Brand Equity is defined as ‘‘the differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity’’

• Consumer Brand Knowledge can be characterized in terms of brand awareness and brand image dimensions

1.Differential effect2.Brand knowledge3. Customer Response

ELEMENTS of BRAND EQUITY

1. Differential effect

2. Brand knowledge

3. Customer Response

1. Is the brand worth reviving?2. Take a long-term perspective3. Carefully reposition the brand, invest in it,

and educate the market4. Correct mismanagement of the brand

4. Guidelines to revitalize brands

Is the brand worth reviving?

Is the BRAND worth Reviving?Brands that commanded a premium in the recent past, and had a singular focus with a well-defined differentiation, can be revitalized

Take a long-term perspective

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

DeWalt studied its

weaknesses, and successfully

created an image of heavy duty

tools for professionals

Carefully reposition the brand, invest in it, and educate the market

Carefully Reposition the Brand, Invest in it, and Educate the Market

Once behind German and

Japanese Brands, Cadillac

was rated as the most

favorable car in 2008

Correct Mismanagement of the BRAND

• Rebuild quality• Resist temptation to ‘‘milk’’ the brand • Pursue a carefully defined target market

Let the Revitalization Begin!

CREATED BY

PRAKHAR BANSALMNIT JAIPUR

During An Internship by Prof. SAMEER MATHURIIM LUCKNOW

www.IIMInternship.com