Brand Revitalization

1. Brand Revitalization Presented By: Haseeb Baloch (FA12-MBT-031) Tehreen Bint Ilyas (FA12-MBT-089) Fraz Azmat (FA12-MBT-027) M. Ubair (FA12-MBT-063) Mashal Mahmood (FA12-MBT-113) Ata ul Hassnain (FA12-MBT-015) Presented To: Miss Tahira Umair

2. 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 . Including Examples. The frame work of this presentation is gathered from various researches, case studies and some authorized marketers videos.

3. A BRAND IS FOREVER

4. Brand revitalization A strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity. This may include product modification or brand repositioning.

5. Brands do not die natural deaths. brands can be murdered through mismanagement . Sometimes dying or dead brands may still have significant brand equity in terms of high brand awareness and a strong brand image.

6. 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).

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

8. 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.

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

10. 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 ''

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

12. CAUSES OF BRAND DECLINE

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

14. 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 transformations , which in turn have an impact on the various companies in an industry and their brands.

15. 2. Environmental factors Polaroid , the company spiraled into decline and went bankrupt as the environment changed and digital imaging became popular.

16. 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.

17. 3 . Competitive actions Puma and Adidas are good examples of brands that declined in the face of intense competition.

18. 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.

19. Is the brand worth reviving ? YES, Only if there is significant residual value in one or more of the components of brand equity.

20. 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.

21. 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 .

22. 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

23. 1. Increasing the Frequency of Use Reminder Communications Position for frequent / regular use (Colgate, head n shoulder) Make the use easier ( Dalda ) Provide Incentives ( warid , telenor ) Address any undesirable consequences attached with frequent use. Use at Different Occasions / Locations (Coffee, Cola instead of Coffee/tea; soft drinks at home ) (Coca Cola, Refhan Custard)

24. Insurance customer reminded to cover more items (household). Positive associations with use (Frito-Lay “You just can’t 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. Increasing The Quantity Used

25. There was a commercial about Arm & Hammer Baking soda. After that the company revitalized it self. The message of ad was the new usage of baking soda.

26. 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.

27. Johnson & Johnson baby shampoo promoted on gentleness plank, taken to adults as a shampoo that can be used every day . 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!”

28. P&G’s 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 men’s shirts. Arrow followed by retracing their strategy to brand its shirts especially with women . (Selling bolder colors and busier patterns at higher prices)

29. 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 1960’s, saw its sales go limp in the 1970’s, 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.

30. 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.

31. 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. 1960’s 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”.

32. 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.

33. 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 /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.

34. Improving package – Olpers gave new package of milk that would be easy to pour it in to glass or even easy to microwave. Clinic shampoo’s 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.

35. 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.

36. 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 (CAT’s), started making creative solutions to both current customers (in better serving them) and to new customers (in developing them).

37. A series of CAT’s launched every year has turned Millikin’s industrial towel business from a commodity to a value added service business. Millikin now virtually runs the business of their client’s industrial laundries. They provide computerized ordering and logic systems, market research assistance , leads from trade shows, audio visual sales aids etc.

38. 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 e.g. ’s . Introduction of CD’s virtually saw a rebirth for the audio and video entertainment industry with the sales of audio & video systems surging .

39. Market leader who has vested interest in the old technology, faces competitive threat and delay strategy. Gillette (1960’s) 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. Gillette’s share fell from 70% to 55% and ROI from 40% to 30%.

40. Case of McDonald's as an Example BIG BRAND IN BIG TROUBLE.

41. McDonalds In February 1996, McDonald’s stock traded at 27 times earnings. But in July 1997, McDonald’s second quarter profit growth was just 4%, with a 2% decline in earnings from the US business. By March 12, 2003, the stock price was just above $12. McDonald’s sales were in decline. M arket share was shrinking. F ranchisees were frustrated. Employee morale was low. AND MORE IMPORTANT Customer satisfaction was even lower.

42. BUT!!!!!!!!!! McDonald’s had one great asset: Consumers had truly fond memories of their McDonald’s brand experience. People recalled their happy experiences at McDonald’s as a child. Parents remembered their parents taking them to McDonald’s. Not Enough for profit generating.

43. What Went Wrong? Many things contributed to the decline of the McDonald’s brand between 1997 and 2002. The brand had been declining slowly, painfully, and publicly for some time. Some of the reasons are: Renovation Innovation Marketing

44. McDonald’s focused on cost reduction instead of quality growth of the top line. McDonald’s focused on monthly promotions rather than on brand building. Instead of brand building marketing communications, the focus was on monthly promotional tactics designed to drive short-term sales at the expense of brand equity. Focus upon increasing outlets instead of increasing sales. Unhealthy food. Big bursts of activities that dissipated quickly.

45. Rule #1: Refocus the Organization Brand Purpose and Goals Financial Discipline Operational Excellence Leadership Marketing Rule #2: Restore Brand Relevance Thorough Knowledge of the Market Needs-Based Market Segmentation Customer Insight Brand Promises. Rule #3: Reinvent the Brand Experience Innovation Renovation Marketing Fair Value Total Brand Experience Rules of revitalization By Larry Light

46. Rule #4: Reinforce a Results Culture Measurable Milestones Balanced Brand-Business Scorecard Recognition and Rewards Rule #5: Rebuild Brand Trust Internal/External Commitment and Behavior Rule #6: Realize Global Alignment Plan to Win Eight Ps: Purpose, Promise, People, Product, Place, Price, Promotion, Performance Freedom Within a Framework More Customer More often More loyal More profitable

47. Summary Revitalizing is possible. Companies are increasingly looking to revitalize dying or dead brands in their portfolio. History shows that this is possible. The risk of brands turning into zombies is very real.

48. Keep an eye on brand.

49. Ray Kroc says that one of the greatest rewards is the satisfied smile on a customer’s face. For brands to live forever, they must be loved forever.