Action Project:

Product Re-launch

By: Pawel Puszko

Ian Sheldon

Presented to: Professor Steve Karpenko

Bishop’s University

April 8, 2015

Table of Contents

Introduction ........................................................................................................... 3

Problem Statement ............................................................................................... 3

Rationale for the Research ................................................................................... 4

Statement of Research Objectives........................................................................ 4

Hypothesis ............................................................................................................ 5

Definition of Terms ................................................................................................ 5

Branding ............................................................................................................... 6

Re-Branding .......................................................................................................... 9

Product Launch ................................................................................................... 10

Positioning in the Re-launch ............................................................................... 12

Strategy and tactics ......................................................................................... 13

Product Re-Launch ............................................................................................. 14

The use of the marketing mix in product launch ................................................. 16

Product ............................................................................................................ 17

Price ................................................................................................................ 17

Place ................................................................................................................ 18

Promotion ........................................................................................................ 18

Action Plan .......................................................................................................... 19

Appendices ......................................................................................................... 27

Appendix 1 ...................................................................................................... 27

Appendix 2 ....................................................................................................... 28

Appendix 3 ....................................................................................................... 29

References ......................................................................................................... 30

2

Introduction

Tactfully planned product launch and branding strategies can generate

enormous added value for firms of all sizes. Effective launch and branding

strategies create an emotional relationship between the product or brand and

the consumer. Building an emotional connection between the brand and the

consumer will develop customer loyalty leaving the consumer with a greater

feeling of satisfaction with the product, making them less price sensitive, much

more likely to make a repeat purchase, as well as more likely to recommend

the product or brand to their friends and colleagues (Gurski, 2014). The

research will explore case studies to analyze the successes, as well as the

failures in order to diagnose the do’s as well as the don’ts. This research aims

to highlight re-branding techniques that can increase brand identity as well as

brand awareness, in order to recommend a strategy to help real entrepreneurs

with real issues.

Problem Statement:

Previous research has found a strong link between tactical branding

strategy and customer loyalty, customer loyalty and brand awareness &

recognition, and brand recognition with success. What these studies fail to

produce is a working model for defining a branding strategy, with a real world

application. It has been expressed that branding tacitly to spark emotions can

translate into customer loyalty. However, how does one develop a tactical

branding strategy? What does it entail? To define a branding strategy, one must

first define what a brand is. The research will go in-depth; looking into branding,

re-branding, launches and re-launches. This is of importance, as it will provide a

knowledge base to construct a branding strategy to model the action plan.

3

Rationale for the Research

The purpose of this research study is to develop a functioning strategic

model for a successful product re-launch. The rationale of this study is that for re-

launches to be successful, brand awareness and management must be on point.

If:

A) Implementing intriguing branding strategy leads to increased customer

loyalty

and,

B) Customer loyalty translates to increased word of mouth marketing,

purchasers price flexibility, as well as likeliness to make a repeat purchase

Then,

C) Successful re-launches require a shrewd branding strategy to attain

success.

Statement of Research Objectives:

This exploratory study aims to shine light onto the question “What does a

strategic branding plan entail?” Entrepreneurs can use any advantage they can get

in the market place. To grow in a global economy, all the while staying legitimate,

and resourceful requires keen strategic planning as well as cunning decision-

making skills. These are human capital functions, which can be learned through

the research. The objective of the study is to develop an understanding of the

branding and launching processes in order to produce a model branding strategy

and use it in action, in the action plan section. The study will begin by defining

brands, branding and branding strategy, then it will continue to use this knowledge

base to do a comparative analysis on re-launch case studies. Finally the research

will use the conclusions made to suggest an action plan.

4

Abstract Level

Better Branding Effective Product

Re-launch

Empirical Level

Strategic Brand

Modeling

Increased Chances of Successful Re- launch Campaign

5

Hypothesis:

H1: More strategic brand modeling will result in a more successful re-launch

campaign.

Proposition

Hypothesis

*See key terms definition

Definition of Terms:

i. Branding: The function of creating a company identity through the

dissemination of the founders dream, the identification of the company

vision, and the formation of a captivating brand story.

ii. Re-branding: The function of updating a firms branding strategy.

iii. Customer Loyalty: A result of effective branding which leads to the

consumer developing an emotional connection with the brand.

Figure 1; (Hasted, 2013)

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iv. Launch: Introduction of a new product, which is in line to meet all

the criteria of a successful pre-launch work completed.

v. Re-launch: The action of a launch, re-launch is not abandoning ones

strengths, but rather adapting to a changing environment.

Branding

The brand is the specific message that each individual company

communicates, merely through their existence. The brand is more than just the

firms’ logo, slogan and mission statement. A brand is the definition of that

discrete organization/product. Brands have the power to broadcast images,

ideas, and emotions to the receiver (Jones & Bonevac, 2013). Essentially, the

brand is the meaning behind the sum of the companies’ logo, slogan, mission &

vision statements, core competencies, and products.

Branding is the act of disseminating the companies’ definition or ‘brand

story’ to an audience through a medium. There are three aspects behind

branding; the ‘brand story’, the mediator, and the interpreter (Hestad, 2013).

The brand story being the combination of definition and the legend of the

company, it needs to reflect the values of the target customer base; the mediator

being the type of medium in which the brand story is communicated across (ie:

Poster ad, word-of-mouth, TV ad, etc...); and the interpreter being the audience

that is consuming that message.

The ramifications of a firms branding strategy can have a pivotal impact

on the level of success that a company attains. Creating an engaging branding

strategy can be the difference between being a complete bust and becoming a

cultural icon. This effect is seen in the ‘Betamax Vs. VCR’ case study (Owen,

2005). The number one goal for a branding strategy is to manifest an emotional

connection between the company or product and the patron. Humans are

emotional beings, which base many decisions off of their feelings (Berthoz,

2012). Companies that understand this fact can create a competitive advantage

through manipulating the way consumers feel towards the firm to create

customer loyalty. When a customer feels a sense of loyalty towards a brand or

product they are more inclined to a) spend more on the product, b) buy products

from that brand multiple times and c) even recommend that product or brand to

their family, friends, and colleagues, which is essentially the cheapest and most

effective form of advertisement. (Gurski, 2014). Ipso facto, customer loyalty

prompts brand engagement. “Brand engagement intensifies with emotional

arousal as design benefits change from functional, to hedonic, to symbolic”

(Franzak, Makarem, & Jae, 2014).

Creating an engaging branding strategy begins with defining the brand.

Defining the brand will give the firm a concrete understanding of whom they

are and how they want to be seen in the market. If the firm doesn’t have a grasp

on their own identity, how are they supposed to relay that message to the

consumer? When defining a strategic branding model, these ten key points must

be included:

1. Composing a relatable ‘brand story’

2. Establishing the 4 P’s (product, place, promotion, price)

3. Determining the short-term and long-term goals (Make sure they

are ‘SMART’).

4. Determining the skills needed to accomplish goals

5. Specifying the value proposition

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6. Segmenting the target audience

7. Conducting a market analysis using the ‘SWOT’ model

8. Identifying the stakeholders

9. Designing the image of the brand (logo’s, slogans, label/product

design, etc...)

10. Defining ‘success

The exercise of defining the branding strategy will shed light onto what

resources are necessary to achieve the important milestones (Hestad, 2013).

‘SMART’ goals are goals, which are specific, Measurable, Attainable, Relevant

and Time-bound. The purpose of the ‘SMART’ model is to make sure that the

goals set are realistic. Goal striving is an excellent motivator, but they must be

realistic (Healy, 2014). The value proposition must be clearly defined as it

expresses the experience of the brand and the intended ‘benefits’ received by

association. When conveying the value proposition to the consumer, don’t

market the products specifics, or self-compare against the competition. Instead,

the firm should market the benefits gained from use, the added value to the

customers’ lifestyle and the brand story. Intended benefits can be sorted into 6

different categories;

1. Functional Benefit

2. Emotional Benefit

3. Self-Expression Benefit

4. Experiential Benefit

5. Creative Credibility Benefit

6. Cultural Credibility/ Iconic Benefit

The Functional benefit focuses primarily on pushing the products high level

of performance. The Emotional Benefit ties an emotional story to the product or

brand. With the self-expression benefit, the company associates strong

personality traits with the brand or product, the consumer then wishes to emulate

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these personality traits by supporting the brand. This intended benefit works

better with brands that regularly release new products. The experiential benefit

pitches perks of the product or brand as the experience in which use is

associated with. The creative credibility benefit is marketed as facilitating the

consumer lead a more creative and personalized life. Finally, the cultural

credibility benefit is used when the brand becomes imbedded with a successful

strong personalitied culture. The cultural credibility benefit leverages the

already established iconic brand identity to demand respect and loyalty from the

market (Hestad, 2013). (Please refer to appendix 1 for more detail)

Re-Branding

When a firm’s branding strategy fails or goes stale and ceases to engage,

re-branding may be the only solution. As strenuous as defining a branding is,

defining a re-branding strategy is all that much more difficult due to the simple

factor that must be considered; the consumer. The re-branding process may

cause confusion or spark a backlash from the existing. Keeping this into

account, the firm needs to be utterly convinced that re-branding is the solution

before commitment. Through analyzing various re-branding case studies’ (as

seen in the reference list) and through a review of previous literature on the

matter, the research has derived that the top ten reasons for a firm to re-brand

are as follows:

1. Confusing or nonexistent existing brand image.

2. Loss of market share.

3. The company is entering a new industry.

4. Change in company mission, ideology, culture.

5. Target Segment becomes saturated.

6. New associations are needed to generate growth.

7. Aging target market.

8. New technology makes product obsolete.

9. Pressure from competition.

10. The company would like to broaden its appeal to more segments.

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To implement a successful re-branding plan, the firm must first re-define

their branding strategy. Throughout the re-branding process, the firm should

leverage their brand equity and goodwill in order to keep their loyal customer

base satisfied and informed. Successful redefinitions of a branding strategy

never attempt to navigate the process without a plan or without doing the

necessary market research first. It is essential to plan ahead for strategically

optimal adaptation and ‘rollouts’. A major mistake a firm can make during the

rebranding process is to base the re-branding process off of a single ad

campaign. Instead the firm should base their ad campaign off their re-branding

strategy. Firms that cling too strongly to their history may be left in the past. It

may be proactive to hire “fresh perspectives” to help take the company in a

different direction, with out completely forgetting their roots. The ability to

take the time to test the implementations first is a luxury that re-branding

strategies should take advantage of, which branding strategies cannot.

And the most important rule of all – Don’t bypass the basics; pay attention

to the little details.

Product Launch

In order to have a new product launched successfully it should provide

better solutions to consumer’s problems and needs. An effective product is one

which brings a solution that will make the consumer feel that the product is

either better than anything else available on the market or making the product

being perceived as just what the consumer is looking for.

Some examples of products and services, which were created and were

successful solutions are: “non-stick frying pans, cordless kettles, personal

stereos.”

A case study on Amway demonstrated what happens when the market is

saturated just like in our case with Sweatout. In the case of Amway there were

many cleaning products on the market. When consumers would visit their local

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supermarket and would quickly find the aisle, which is filled with similar

looking cleaning fluids, produced by a relatively small number of companies.

However, most of these cleaning products were single purpose ones and were

produced by manufacturers to standard specifications. Many cleaning products

lacked versatility such as only being useful for one particular task and in one

particular format. Consumers, therefore, bought and stored a whole range of

inflexible products. This was demonstrated by simply examining the range of

cleaning fluids that were stored in customers’ own homes.

Knowing that “today’s consumer does not want to spend valuable leisure

time shopping for dozens of different cleaning products.” (Successful Products -

Successful Solutions, 2014) Amway launched a multi-purpose cleaner called the

“Amway Super Concentrated Cleaning System” allowing a unique and all-in-one

product that would facilitate consumers’ lives. Stating that Amway’ new product

is “The Super Concentrated Cleaning System is a three-in-one unit that saves

time and money.” (Successful Products - Successful Solutions, 2014)

In the current case of Sweatout it is to target sports such as hockey where

the product can be used to eliminate offensive odors associated with sweat in

footwear and sport equipment as much as it can be used for other purposes.

Hence why this case teaches the importance of providing consumer

benefits making it a foundation to any successful product if not the product will

end up just being another product lying on the shelves. A key point here is to be

able to successfully market to consumers is that they are not just buying a

product but they are purchasing benefits. These benefits can simply be sensory

benefits such as the colour and look of your product, the value of your product

such as the price in relation to the quality of the product and convenience which

is the ease of using or storing the product itself.

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And that’s why Amway understood that “the same sorts of considerations

can be related to cleaning products. The customer will want cleaning products

that: are easy to use and control, have desirable sensory qualities (i.e. look and

smell nice), are easy to store, give good value for money.” (Successful Products -

Successful Solutions, 2014)

Positioning in the Re-launch

In order to make a product launch work, it is essential to think very

carefully about the position that you want the new product to take place in the

market.

The chosen position of Amway is “A revolutionary product system that

provides the ultimate in customer convenience and control by automatically

diluting and delivering the cleaning concentrates with water, providing

customised cleaning at your fingertips, according to the customer’s needs.”

(Successful Products - Successful Solutions, 2014)

The main goal for any sustainable product is to become a selling

solution, selling a product with a highest return per unit sold possible and

getting repeat orders from satisfied customers.

Sweatout consumers should benefit from having an innovative product

that benefits them by having a high value product relative to price, convenient,

highly performing and environmentally sustainable.

Once the above are established the company is finally ready for launching

the new product. In the case of multinational organizations like Amway they

“have to consider the best ways of launching products on a global scale. It may

be possible to carry out some aspects of the launch in identical ways in a range of

countries, e.g. by providing an almost identical product in all markets. Other

aspects, however, such as choosing the right sort of media and the language in

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which videos and commercials are produced, will be specifically tailored to a

local market. When carrying out a major launch, it makes sense to start in your

traditional home market (in this case the United States) before rolling out the

launch in stages across the globe. Lessons can be learnt from the early launches

which can then be built into ongoing launches.” (Successful Products -

Successful Solutions, 2014) Letting companies know that once they go

multinational the process of a product launch mostly remains the same.

Strategy and tactics

A strategy is a plan or practical measure designed to achieve certain objectives,

while the tactics are the actions taken to implement the strategy and achieve

these objectives:

Stage 1: to build excitement

Stage 2: to create awareness

Stage 3: to build product knowledge.

“Building excitement usually involves informing the consumer that a new product

will shortly be available. However, providing very few details of what the product

actually is creates suspense. Then, nearer the launch, you start to give the public a

clearer idea of the product and its attributes. Finally, after the launch, you need to

carry out a lot of hard work to build up an understanding of the brand and its

advantages so that you build up a solid base of consumers.”

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(Successful Products - Successful Solutions, 2014)

Following a product launch, it is imperatively important for the company

to assess how well the product has been received by consumers. This can be

done by conducting either research or surveys.

Any product launch of any new product can encounter numerous threats

whether it is competitors copying the product and steal a share of the market

with a similar product. Continuing to develop the product, research the market

and respond to customers’ demands are key elements to survive in the market

place. Always remembering, “new products are often successful if they provide

better solutions to consumer’s problems and needs.” (Successful Products -

Successful Solutions, 2014)

Product Re-Launch

Product re-launch does not mean abandoning ones strengths, but rather

adapting to a changing environment. The business environment faces several

forces or pressures for change including:

Changed legal requirements (e.g. new environmental laws that

reduce unnecessary packaging)

Actions of competitors (e.g. a rival markets a new product)

Shifts in consumer demand (e.g. consumers seeking more sophisticated

products)

(Getting the right message across – the re-launch of Mars, 2014)

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Successful companies therefore use market research as a guide to

ensuring that consumers’ needs are met by having relevant products and

services. To achieve a positive impact, any changes to the marketing mix that

will be later on described in this paper should be communicated clearly to its

consumers.

When making major changes to a product, it is essential to communicate clearly

what changes are taking place, why these changes are taking place as well as

how the public, in particular consumers, will be better off.

Re-launching any product can get expensive, involving changing

production processes, and technologies, packaging methods and

communication. This requires detailed planning throughout. There is no specific

timeline on when a product should be re-launched, as this will depend on the

company’s budget as well as inside information on how well the brand is

currently doing. The same goes for how long a product should be off the market

before it is properly re-launched as most companies have discovered that it is

harder to comeback after negative publicity compared to being remembered as a

well-reviewed product.

However, the case of the re-launch of Mars proves to be money well spent

when the net effect is to re-position the product appropriately grew sales

including a slogan “pleasure you can’t measure - an every day treat for everyone”

(Getting the right message across – the re-launch of Mars, 2014) positioning it as

a daily habit.

Reasons for a re-launch are usually but not limited to confusion, a move

for a brand from the mid-market sector to a growing premium market or to

encourage lapsed users to repurchase and to generate new customers.

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Therefore developing a re-launch strategy extends the lifecycle of a brand.

A re-launch strategy involves reviewing all the ingredients of the marketing mix in

order to differentiate products from competition and thereby provide a more

appropriate market position.

(No 7 The Relaunch of a Brand, 2014)

In the case of No 7 products were perceived as being good quality but old

fashioned, before the re-launch. The re-launched product changed this image, as

it became a higher quality and a better value for money. Not forgetting that

there was also confusion that existed between No 7 and 17 and it was often

referred to as “Boots Own Brand” as found in No 7 The Relaunch of a Brand.

Times 100 Case Studies, 2014.

The use of the marketing mix in product launch

With the research in progress it has been noticed that in most cases a

foundation of a well-established product is marketing mix also known as the

four p’s. Making it a critical factor that a company gets the balance of these four

p’s so that a product can achieve its critical success factors. Sweatout needs to

develop a mix that will suit the product and the target market as well as meeting

its own business objectives found in the action plan.

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Product

Understanding the market should be the first step in building an effective

marketing mix. This can be done by doing market research allowing targeting

key market segments which will identify groups of people with the same

characteristics such as: gender, age, lifestyle and possibly attitude. Getting the

knowledge and understanding from the research will help in the development of

a new product. The research can be done by either using “focus groups to listen

to consumers directly, gathering data from consumers through a variety of

different research techniques or simply product testing with consumers in

different markets.” (The use of the marketing mix in product launch, 2015)

Price

Lots of factors will affect the final price of a product companies will want to

maximize their profits and sales without forgetting that the costs of production will

be a major factor. The product’s price also needs to provide value for money in the

market allowing consumers to be attracted to the product and end up buying it.

(The use of the marketing mix in product launch, 2015)

Here are a few pricing strategies a company can use:

Cost based pricing – this can either simply cover costs or include an element

of profit. It focuses on the product and does not take account of consumers.

Penetration price – an initial low price to ensure that there is a high volume of

purchases and market share is quickly won. This strategy encourages

consumers to develop a habit of buying.

Price skimming – an initial high price for a unique product encouraging those

who want to be first to buy to pay a premium price. This strategy helps a

business to gain maximum revenue before a competitor’s product reaches

the market.

On re-launch the price for NIVEA VISAGE Young was slightly higher than

previously. This reflected its new formulations, packaging and extended product

range.” (The use of the marketing mix in product launch, 2015)

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Place

While knowing where the product belongs the company will need to

determine how the product will arrive to its point of sale by determining the

logistics usually determined by a distributor. As well as where the product

should be sold such as retail outlets well-established stores or kiosks in a mall.

Having an online presence is another possibility that includes other ways in

which companies make products directly available to their target market whether

it is through direct mail or online (The use of the marketing mix in product

launch, 2015).

Promotion

Promotion plays a big factor in getting sales, as it is how it will allow the

company to tell customers that a product is available and convince them to buy

it. Promotions can be done with either above-the-line or below-the-line

promotions. While bigger companies, which have a budget that will allow them

to spend on advertisements, use above-the-line promotions such as directly paid

for television and newspaper advertising. (The use of the marketing mix in

product launch, 2015)

Below-the-line promotions are where the company can use other

promotional methods to get the product message across without sacrificing as

much money as they would in above-the-line promotions. This can be done

through events or trade fairs that will help to launch a product to a wider

audience. These events can vary between being business to consumer or trade

fairs that are business to business. (The use of the marketing mix in product

launch, 2015)

Direct mail is another possibility that can reach a large number of people,

but it is harder than to target specific consumers. As well as having public

relations, which include the different ways a company can communicate with its

stakeholders, through newspaper and press releases. Other possibilities include

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sponsorship of different event or donations to charity events and participating in

them. Lastly sales promotions and sampling will encourage consumers to buy your

product in the short-term.

**** Please note that the "Action Plan" section of this research paper has been removed due to the

amount of personal and professional information that should not be divulged to the public. Thank

you for your understanding.

Appendices

Appendix 1

Table 1.1 Brand intent and the role of the product

Brand intent Example Story Product's role in

performing the story

Product

dynamic

Functional

ownership

Cif (cleaning

product)

Power to deal with the

toughest dirt every

day (Unilever website)

Product performance High

Emotional

ownership

Godiva Chocolate A timeless beauty, and

as pure as Lady Godiva

An emotional story added to

the product

Low

Identity

credibility

Nike

1

If you have a body,

you are an athlete

Innovative, forward-

looking and

provocative

individualist

Product has strong

personality traits that are

associated with the brand

Frequently release

innovative products

High

Experience Disney I A world of magic One of many touch-points

where the consumer can

experience the brand

High/low

Cultural

credibility

Harley-Davidson Freedom Product iconic

Added cultural story that

explains why it is relevant

Low

Creative

credibility

Facebook Social media platform People are creating the

content/product and the

stories

High

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