A BRAND IS FOREVER:

A FRAMEWORK FOR

REVITALIZING DEAD AND

DECLINING BRANDS

REVIVAL OF A DEAD

BRAND

…..IS OFTEN

FOUND TO BE A

MUCH MORE

FEASIBLE

SOLUTION

THAN THE

LAUNCHING OF

A NEW

PRODUCT

EXHIBIT 1

POST SECOND WORLD WAR,

HARLEY DAVIDSON

MOTORCYCLES

WERE POPULAR FOR THEIR

UNIQUE DESIGN AND

ENGINEERING

EXHIBIT 1

IN THE 70’S THEIR BUSINESS TOOK A HIT WITH THE ADVENT

OF SMALLER JAPANESE MOTORCYCLES IN THE AMERICAN

MARKET

AN ATTEMPT TO LAUNCH ITS OWN

LINE OF SMALLER VEHICLES

BACKFIRED AND THE COMPANY

WAS ON

THE VERGE OF SHUTTING DOWN

EXHIBIT 1

INSTEAD OF GIVING UP,HARLEY DAVIDSON DECICDED TO

MAKE SIGNIFICANT INVESTMENTS IN QUALITY AND ITS

DISTINCTIVE STYLING

THE RESULT?

EXHIBIT 1

HARLEY DAVIDSON

EMERGED STRONGER

THAN EVER

?

REINVENTING A DECLINING BRAND IS VERY OFTEN ABETTER SOLUTION THAN

CREATING A NEW BRAND !

THIS IS MAINLY

BECAUSE…

1. INTRODUCTION OF NEW

BRANDS OFTEN COST A

LOT OF MONEY AND TENDS

TO FAIL MORE OFTEN

THAN NOT

2.OLD DECLINING BRANDS

OFTEN HAVE HIGH

BRAND RECALL,

BRAND AWARENESS AND

A STRONG BRAND IMAGE

BRAND EQUITY:

A BRAND IS SAID TO HAVE

HIGH BRAND EQUITY WHEN

ITS CONSUMERS HAVE

STRONG BRAND AWARENESS

AND HOLD STRONG,UNIQUE

AND FAVOURABLE BRAND

ASSOCIATIONS

SOME BRANDS WITH

STRONG BRAND

EQUITY

HOWEVER AT TIMES SOME

BRANDS’ EQUITY MAY DECLINE

WITH TIME..LEADING TO THEIR

DEMISE

SO WHAT ARE THE

VARIOUS

REASIONS FOR

BRAND DECLINE?

PRODUCT

QUALITY

EXHIBIT 2

THE CADILLAC HAS BEEN IN STEADY

DECLINE OVER THE PAST FEW DECADES

THE PRIMARY REASON IS

COMPROMISES IN PRODUCT

QUALITY DUE TO COST CUTTING

THE SUCCESS OF THE BRAND

BECAME ITS OWN UNDOING,AS

IT LED TO COMPLACENCY

EXHIBIT 2

WHEN THE CUSTOMERS’ EXPERIENCE WITH THE

PRODUCT DOES NOT MEET EXPECTATIONS,THE

BRAND WILL DECLINE

TODAY,

THE CADILLAC IS

IN THE MIDDLE OF

A TURNAROUND

(refer to slide 51)

PRICE

INCREASES

EXHIBIT 3

VOLKSWAGEN

FAILED WITH ITS RABBIT

MODEL AND REPLACED IT

WITH THE NEW MODEL

GOLF.

EVENTUALLY IT DROVE

ITSELF OUT OF THE

ENTRY LEVEL SEGMENT

WHERE IT HAD PREVIOUSLY

BEEN A LEADER.

EXHIBIT 3

THE LESSON TO BE LEARNT

IS THAT IF A COMPANY

KEEPS INCREASING THE

PRICE OF THE PRODUCT

WITHOUT A

CORRESPONDING INCREASE

IN BENEFITS,SOONER OR

LATER CONSUMERS WILL

ABANDON THE BRAND

PRICE

CUTS

EXHIBIT 4

LACOSTE WAS A POPULAR BRAND IN

USA,UNTIL IT SAW A DECLINE IN SALES IN THE

80’S.

ITS PARENT COMPANY

GENERAL MILLS RESPONDED

BY LOWERING PRICES AND

INCREASING DISTRIBUTION.

THE RESULT WAS A MAJOR

HIT ON THE BRAND’S IMAGE

EXHIBIT 4

IN ORDER TO CUT DOWN

ON PRICES,THE COMPANY

HAD TO USE CHEAPER

MATERIALS.

IT TURNED OUT TO BE A

DISASTROUS

MOVE.CONSUMERS DID

NOT TAKE KINDLY TO IT

AT ALL.

BRAND

NEGLECT

EXHIBIT 5

BLACK AND DECKER’S POPULAR BRAND DeWALT KEPT BEING

IGNORED BY THE MANAGEMENT BEFORE IT VIRTUALLY CEASED TO EXIST.

THIS IS BECAUSE SOMETIMES MANAGERS GET SO CAUGHT UP IN THE INERTIA

OF A BRAND THAT INACTION CREEPS IN AND THEY MISS CHANGES IN THE

MARKET

THE LESSON HERE IS

THAT EVEN

SUCCESSFUL BRANDS

NEED CONSTANT

NURTURING AND

CANNOT BE

NEGLECTED

EXHIBIT 6

THE POPULAR MILK FLAVORING

NUTRITION PRODUCT

OVALTINE SUFFERED

CORPORATE NEGLECT DUE TO

VERY DIFFERENT REASONS

OVALTINE FACED THIS NEGLECT AS

IT WAS NOT A CORE BRAND OF THE

ACQUIRING PHARMACEUTICAL

COMPANY SANDOZ.SO A CHANGE IN

MANAGEMENT MAY ALSO BE A

REASON FOR BRAND NEGLECT

INABILITY TO

STAY WITH

TARGET

MARKET

EXHIBIT 7

GAP TRIED TO REACH

OUT TO THE YOUTH IN

SEARCH OF A NEW

MARKET AND THUS

ENDED UP

ALIENATING ITS KEY

TARgET MARKET AS

THEIR ADS BECAME

TOO EDGY

EXHIBIT 8

HIGH END FASHION BRAND ST JOHN STARTED LOSING

CUSTOMERS WHEN THEY REPLACED ITS ICONIC MODEL

KELLY GRAY WITH THE MORE REBELLIOUS ANGEILNA JOLIE TO

ATTRACT A MORE YOUTHFUL CLIENTELE.

ENVIRONMENTAL

FACTORS

EXHIBIT 9

CIGARETTE

COMPANIES’ SALES

ARE DECLINING DUE

TO A CHANGING,

LARGELY NEGATIVE

ATTITUDE TOWARDS

SMOKING

EXHIBIT 10

VS

SUCCESSFULLY MADE THE

SWITCH FROM ANALOG TO

DIGITAL CAMERAS.STILL HAS

16% MARKET SHARE

COULD NOT PREDICT THE CHANGING

MARKET.SPIRALLED INTO DECLINE

AND BECAME BANKRUPT

COMPETETIVE

ACTIONS

EXHIBIT 11

THOUGH ADIDAS

AND PUMA

WERE BOTH

VERY STRONG IN

EUROPE,THEY

WERE

OUTMUSCLED

BY NIKE AND

REEBOK IN THE

USA.IN

PARTICULAR

NIKE CAUSED

ADIDAS’ SHARE

IN USA TO DROP

FROM 60%TO

3%IN THE 90’S

EXHIBIT 12 &13

RETAIL GIANT KMART WAS BULLIED INTO OBLIVION

BY WALMART IN THE 1980’S.WALMART DESTROYED

KMART BY ITS SCIENTIFIC USE OF COST CUTTING

AND CUTTING EDGE OPRATIONS.

SIMILARLY IN THE PERSONAL COMPUTER MARKET

DELL FORCED ITS COMPETITOR COMPAQ INTO A

MERGER WITH HP BY MAKING SMART USE OF THE

INTERNET AS APLATFORM FOR ITS OFFERS.

DECONSTRUCTING

BRAND DECLINE

THE DEFINITION OF BRAND

EQUITY HAS 3 IMPORTANT

COMPONENTS AS ITALICIZED:

THE DIFFERENTIAL EFFECT

THAT THE

BRAND KNOWLEDGE HAS ON

THE CUSTOMER RESPONSE TO

ANY MARKETING ACTIVITY

DIFFERENTIAL EFFECT IS A

COMPELLING ARGUMENT

TO THE CONSUMER AS TO

WHY HE SHOULD

PURCHASE THE PRODUCT

IN QUESTION.

IT MAY BE ACHIEVED BY:

1)OFFERING SAME LEVEL

OF QUALITY AS OTHER

SIMILAR PRODUCTS BUT

AT A REDUCED RATE

2)BY MAKING THE

PRODUCT

PHYSICALLY MORE

IMPRESSIVE OR OF

SUPERIOR QUALITY

AND CHARGING A

PREMIUM PRICE FOR

IT

CHEVRON IS AN EXAMPLE

OF A COMPANY WHO USED

A DIFFERENTIATING

ELEMENT IN THEIR

PRODUCT,MAMELY AN

ADVANCED FORM OF A

DeTERGENT THAT ALLOWED

THEM TO SNARE

CUSTOMERS

BRAND

KNOWLEDGE

BRAND

AWARENESS

BRAND

IMAGE

BRAND AWARENESS

IS CRUCIAL FOR A

BRAND.WHEN MARKET SHARES

DROP IT IS CRUCIAL TO NOT

COMPROMISE ON ADVERTISING

BRAND AWARENESS IS

GAUGED BY UNAIDED

RECALL LEVEL OF THE

BRAND

PREVIOUS SUCCESSES

COUPLED WITH CONTINUING

BRAND AWARENESS CAN LULL

MARKETERS INTO A SENSE OF

COMPLACENCY

BRAND IMAGE

NEEDS TO BE SUCH THAT

THE BRAND HAS

STRONG,FAVOURABLE AND

UNIQUE BRAND

ASSOCIATIONS:

OFTEN COMPANIES SUCH AS LEVI’S LOSE THEIR

FOCUSED WELL DEFINED IMAGE.LEVI’S SOLD ITS

DENIM PRODUCTS THROUGH A LOW END RETAILER

WHICH RESULTED IN ITS BRAND IMAGE TAKING A

HIT.OFTEN COMPANIES TRY TO MILK THEIR EXISTING

BRANDS INSTEAD OF SHORING UP THE EXISTING IMAGE

MONITORING OF

CUSTOMER RESPONSE

OR BEHAVIOUR IS ANOTHER

REQUIREMENT TO KEEP A

CHECK ON BRAND DECLINE

CUSTOMERS OFTEN START

TRYING ALTERNATE BRANDS

BEFORE MAKING A

SWITCH.KEEPING A TAB ON

CUSTOMERS’ BRAND SWITCHING

BEHAVIOUR CAN GIVE A DEGREE

OF INSIGHT AS TO WHETHER A

BRAND IS IN DECLINE OR NOT

REVITALIZING

BRANDS

A FEW GUIDELINES…..

IS THE BRAND WORTH

REVIVING?

A BRAND MAY BE CONSIDERED FOR

REVIVAL IF IT COMMANDED A PREMIUM IN

THE RECENT PAST AND HAD A SINGULAR

FOCUS WITH A WELL DEFINED

DIFFERENTIATION.

TAKE A LONG

TERM

PERSPECTIVE

REVIVING A BRAND IS A LONG TERM INITIATIVE WHICH

REQUIRES VISION,A WELL-THOUGHT OUT STRATEGY

AND ITS EXECUTION.IT IS THEREFORE AN EXERCISE IN

PATIENCE

EXHIBIT 15

BLOCKBUSTER THEN SPENT

SEVERAL YEARS CLOSING

DOWN UNPROFITABLE STORES

AND MADE USE OF ITS

PROMISING TOTAL ACCESS

ONLINE RENTAL

PROGRAM.THIS EVENTUALLY

LED TO IT REGAINING SOME

PART OF THE MARKET SHARE

BLOCKBUSTER USED TO BE A BEHEMOTH IN THE VIDEO RENTAL

BUSINESS UNTIL THE ADVENT OF NETFLIX.NETFLIX SENT VIDEOS TO

PEOPLE VIA POSTAL MALE.THIS RESLTED IN BLOCKBUSTER HAVING

TO CLOSE DOWN SEVERAL STORES ALL ACROSS USA

Carefully

reposition the

brand, invest

in it, and

educate the

market

EXHIBIT 16

CONSEQUENTLY WHEN THE

OLDSMOBILE AURORA WAS

INTRODUCED,THE CAR DID NOT

EVEN CARRY THE OLDSMOBILE

NAMEPLATE.THE OLDSMOBILE

DIVISION WAS SHUT DOWN

SOON AFTER

OLDSMOBILE SUFFERED FROM A LACK OF CLEAR

POSITIONING WHEN COMPARED TO THE GENERAL MOTORS

AUTOMOBILES AS WELL AS A NEGATIVE IMAGE DUE TO LACK OF

QUALITY

EXHIBIT 17

IN EARLY 2008 THE EFFORTS BEARED

FRUITION AS THE CADILLAC WAS

RATED MORE FAVOURABLY THAN

GERMAN OR JAPANESE CARS OF THE

SAME GROUP.THE TURNAROUND HAD

BEEN SUCCESSFUL.

AFTER THE FAILURE WITH THE OLDSMOBILE,GENERAL MOTORS WENT

FOR A MAKE OOR BREAK 4 BILLION$ OVERHAUL IN THE QUALITY OF

THE CADILLAC CARS.THEY CAME OUT WITH A LARGER VARIETY OF

MODELS AS WELL AS DISTINCTIVE AND DARING DESIGNS .

Rebuild

quality

EXHIBIT 18

In 2006, Hyundai was

rated above Mercedes

Benz in J.D. Power and

Associates’ initial

quality survey

SOUTH KOREAN CAR MAKER HYUNDAI INVESTED

SIGNIFICANTLY IN QUALITY AND BACKED THIS WITH A 100,000 MILE

SERVICE WARRANTY TO OVERCOME NEGATIVE PERCEPTIONS

REGARDING THE SAME.

Resist

temptation

to ‘‘milk’’

the brand

EXHIBIT 19

AN EXTREME CASE OF MILKING A BRAND

IS STEADY LOWERING OF PRICES ,WHICH

REEFLECTS VERY POORLY ON THE

BRAND.THE BRAND’S POSITION MUST

NEVER BE TAKEN FOR GRANTED.

APPLE WAS LOSING UNAIDED AWARENESS A LITTLE AFTER

THE TURN OF THE CENTURY AFTER STRUGGLES IN THE PC

MARKET.SO IT INVESTED HEAVILY AND CAME OUT WITH THE SLICK

NEW IPOD,WHICH STUCK A CHORD WITH THE YOUTH AND BROUGHT

APPLE TO THE FOREFRONT ONCE AGAIN.

Pursue a

carefully

defined target

market

IT MAY BE APPEALING TO DISCARD A

DWINDLING MARKET FOR A

HEALTHIER TARGET MARKET,BUT

THIS SWITCH MUST NEVER BE

ABRUPT.THIS ERROR WAS MADE BY

GAP AND ST. JOHN.THE TRANSITION

BETWEEN MARKETS MUST BE

DELIBERATE AND CAUTIOUS

SO TO RECAP……

REVIVING AN OLD BRAND IS

OFTEN A BETTER ALTERNATIVE

TO INTRODUCING A NEW ONE

CONCENTRATE ON IMPROVING

QUALITY,RECOGNIZING CLEAR

TARGET MARKETS AND

INVESTING FOR THE LONG TERM

AVOID ‘MILKING’ THE BRAND

Created by

deeptish Mukherjee of

jadavpur university

during an internship by

prof. Sameer

mathur,iim lucknow