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Brand Life Cycle Theoretical Discourses
Brand Life Cycle Theoretical Discourses
15
Abstract
This article discusses a theoretical concept of the brand life cycle which not only reveals a newly actualized concept of brand, functions performed by brand, but it also shows a qualitatively changed paradigm of brand management. In the global market, where number of homogeneous goods and of those similar in their functions is constantly increasing, exactly a brand is often treated as an exceptional characteristic that cannot be copied easily. For a customer, a brand is not just a usual means of product identification anymore, it expresses individualized needs. For a company, a brand is a tool of competitive superiority and therefore the brand life acquired a new qualitative content. Scientific literature discusses the factors and interactions of elements that this concept involves, includes and etc. The brand life cycle may be described as the distinguishing of separate stages in which a brand is introduced to the market, the sales of products (marked with brand) are increasing and later decreasing. In this case, the concept of brand life is explained by invoking the stages of PLC. On the other hand, while discussing the brand life cycle, it is necessary to identify the aspects of brand identity and image as these reveal brands orientation towards a customer. In the brand life cycle, the brand identity as well as brand image develops companys orientation towards the customer. Keywords: brand, brand image, brand identity, life cycle, PLC.
Introduction
The relevance and newness of this article is determined by the following main aspects: 1. In scientific literature (Arora et al., 2009; Mohan et al., 2006; Burnett et al., 2007) and etc. the paradigm of brand management, where the main attention is paid to the creation and management of brand value for the customer, is widely analyzed; however, at the same time, different brand life aspect are fragmentarily analyzed and discussed. As early as in 1996 D.Aaker offered the concept of brand as personality and later, when the tendencies of business and marketing were changing, it was expanded by the dimensions of customers experience, brand loyalty (Ghose, 2009) and the analysis of links between brand life and brand awareness (as the assumption of brand life). Thus firstly it is as if acknowledged that the concept of brand life is important; however, there are more and more discussions on the factors the interactions of which the concept involves, includes and etc. This determines new scientific providences and discussions that the brand life reveals brand managements orientation towards the customer. The relation between customers and the brand is a determining factor in the brand life (Johnson et al., 2006). Therefore, according to I.Szmigin (2006) the complexity of customers decision to buy a product becomes important: it is stated that after the supply of products and their functional homogeneity increased, the customers motives and arguments influencing customers decision to buy one or another product changed; the customers choice is determined by the functional characteristics of a product and non-functional benefit as well. 2. The main objective of the brand management is a long-term usage and strengthening of the brand as a source of companys competitive superiority, and this relates to the features of brand life, identification of the main stages and etc. According to V.Janonis et al. (2007), exactly the brand is a companys wealth that cannot be easily imitated/copied. A company is interested in brand life and especially in the perspectives. The need of analysis, revealing the issues of brand life cycle by identifying the aspects of interaction of PLC, brand identity and brand image, may be based on several statements: the undeniable benefit for customers is not only closely related to the quality of a product, but also to the other intangible factors, such as features of customers consumption, feelings that a brand should evoke for its customers (Aaker, 1996; and etc.). The brand image is the understanding of brand, i.e. the reflection of brand associations in customers consciousness (Keller, 1993; and etc.), and the associations determine the customers choice (James et al., 2006; and etc.), the levels of brand cognition, awareness are related to the customers decisions. And when new ways of consumption and new consumers are found, or the present customers consumption is increased, it is possible to extend the brand life cycle (Lapainskait et al. (2006), and in this way too increase the brand life. This article has the following issue: What is a possible model of brand life? The object of the study is the modelling of brand life. 408
The objective of the study is to identify the theoretical aspects of brand life. In the study, the following methods were used: the analysis of scientific literature.
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It is possible to claim that the communicative function of a brand is becoming one of the most important in the analysis of the brand life as S. Madhavaram et al. (2005) emphasizes that communication (especially, the integrated marketing communication) should be understood as a constituent of the strategy of the general brand value creation. D. Schultz (2001) agrees and claims that a brand has to be included into the IMC activity. According to L. Keller (1993), the brand value is related to consumers familiarity, associations and etc. Generalizing the issues of determination of the content of brand functions, it is necessary to mention that a brand gives benefit and performs some functions. The latter are traditionally divided into two groups: for a company and for a consumer. The brand life is inseparable from the communicative function and the analysis of PLC.
1. In the introduction stage of PLC a product is new. Consumers no little about it and therefore the habits of consumption are not developed. The majority of purchases are probationary. Only those consumers who like novelties buy the new product. Having evaluated the purchased product, they spread the information for the surrounding people. In this way, more and more consumers, seeking to acquire the product, appear. If a company is able to interest more and more consumers with a new product, the sales volumes and income are growing rapidly. In the introduction stage of brand life, the brand is new and unknown. The company usually performs communication and information communication. The purpose is to enter into a primary relation with a consumer. 2. In the growth stage of PLC, more and more consumers recognize the product, the habits of consumption are in the process of formation. It is important for a company to sustain a rapid growth of sales volumes by attracting as much potential consumers as possible. This is achieved by compiling more and more information about consumers behaviour and needs. However, the sales volumes stabilize and start decreasing. The new consumers purchase only a very little part. The present consumers purchase the usual amounts and do not intend to increase them. In the growth stage, the brand is already known; however, the circle of loyal consumers is only in the process of formation. Precisely in this stage, the company actively develops communication meant for the formation of brand image, i.e. it is tried to acquire the favour of consumers and to entrench the brand. 3. In the maturity stage of PLC, the sale of a product stabilizes and starts decreasing. The general number of consumers does not change, later it starts decreasing as new products satisfying this need appear in the market. The sales volumes are decreasing. In this stage, the brand has its consumers; however the company seeks for long-time attachment. 4. In the decline stage of PLC, the sales of the product are constantly decreasing. New products appear in the market. The company usually does not take any radical measures as when the sales volumes extremely decrease, the product may be simply recalled from the circulation. The company usually stops the production of the product before it becomes detrimental. Then the PLC ends. In this stage, the company firstly seeks to sustain the loyal consumers, i.e. attachment to the brand. It is necessary to mention that the brand may be repositioned in this stage. The analysis of the main features of product and brand life cycles showed that the concept of brand life cannot be analysed separate from the stages of PLC, as in specific stages actions, invoking the functions of brand and creating / sustaining the brand, are realized. The stages of PLC may be assumed as a basis for the stages of the brand life. In general, it is possible to mention the following main aspects of benefit of the concept of brand life: it emphasizes the links between PLC and brand, when one cycle is the basis for the other one; it reveals orientation towards the customer as the brand life actualizes the relation between time and value for the consumer, while PLC evaluates the relation between sales volumes and time; the brand life is based on the product and on the customers and the analysis of their behaviour and opinion. The distinguished main stresses of the brand life showed that the newness (product newness, attraction of new consumers and etc.) is the most important stress in introduction stage of the brand. The primary awareness and favour that determine the entrenchment of the brand is an exceptional stress in the growth stage. In the maturity stage, the role of stress is performed by the long-term awareness and attachment as the brand is already well-known and companys communication is oriented towards the loyal consumers. In the fourth stage, the company is seeking for consumers loyalty as in this way the customers attachment to other companys products or brands is sustained. The substantiation of the concept of brand life is based on the communicative function of the brand (which clearly names the feedback), and the characteristics of the stages of the brand life cycle should be expanded by exploring the issue of brand identity and image.
additional value as well if a product gives the benefit of self-expression which reflects customers image (Aaker, 2003). Thus the brand identity gives the brand life a particular emotional basis. 2. Principles of relationships the brand identity has to help to create / sustain relations with consumers. D. Grundey (2002) notes that the main principal attitude of the brand identity is the following: a brand has to communicate with the consumers as this is the condition of brands survival in the market. In this case, the communicative function of brand, which as it was mentioned above is relevant in the brand life, is being realized. D. Aaker (2003) claims that the brand identity is a collection of brand associations, which brand strategists are trying to create and sustain. The brand identity has to help to create relationships between a brand and a consumer, including a particular benefit. The brand life is inseparable from the relationships with consumers and these relationships are changing in different stages. 3. The principle of coherence the brand identity has to reflect the benefit and expectations of a consumer, to react to changes adequately see (Ghodeswar, 2008; Salzer-Mrling et al., 2004; de Chernatony, 2002; Kapferer, 2003; Koll et al. 2009; and etc.). In the concept of brand life, the latter principle enables to orient towards a consumer and a brand reveals the interaction of functions. The time factor is very important for the brand life. The concept of brand identity also considers the effect of time on the uniqueness and permanence of a brand. When one is looking for identity, he/she is actually looking for the main core which consists of inseparable differences and specific cultural integrity. When analyzing the concept of brand life, it is necessary to explore how the brand identity is realized. The structure of brand identity describes the prism of identity (Kapferer, 2003). In this prism, six elements that are ascribed to the sender or receiver are presented (in this way the communicative interaction and the relations of communicative process are actualized). In this case, the prism of brand identity may be understood as the basis for the brand life as the principles of relations, values and coherence being integrated link the six main elements (physical appearance, personality, relations, culture, reflection of consumer, consumers self-image). At the same time, the main direction, which is the sender and receiver, is clearly indicated (the realization of the communicative function of a brand is achieved by invoking the above mentioned elements). On the other hand, this prism of brand identity identifies two essential dimensions: sender vs receiver, which may be also treated in another way, i.e. external vs internal.
PLC STAGE
Brand Identity INTRODUCTION NEWNESS/RECOGNITION
BRAND LIFE
Values
GROWTH
Relations
MATURITY
PRIMARY AWARENESS
LONG-TERM AWARENESS
Coherence
DECLINE LONG-TERM AWARENESS
Figure 1. Brand identity in brand life Figure 1 presents the links of PLC and brand life that include the aspects of the main principles (values, relations and coherence) of the brand identity, at the same time it reveals and emphasizes the PLC, integrating interrelation of the brand identity and their inter-subordination as one of the main elements of the brand life model. Generalizing the brand identity as the basic assumption of the brand life model, it may be noted that the brand has to carry a meaning that presents a product as personally important and appropriate for a consumer. A consumer receives a lot of information and a communication chosen by a company determines the brand life. The most easily recognizable features of a product are the physical ones (e.g. packing and etc.), which are assumed as the primary components of the brand life. Thus the brand identity for the brand life cycle includes the instruments of brand value creation and construction of relations with consumers, which determine the recognition, awareness and brand image.
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PLC
Brand Identity
Brand image
Figure 2. Identification of links of brand identity and brand image in the brand life In scientific literature, it is widely recognized that the brand image is inseparable from consumers opinion and associations about a brand, even the importance of consumers memory is emphasised. In the brand life, the brand image includes a symbolic meaning of a product as consumers relate specific features to a specific brand (Dobni et al., 1990; Aperia et al., 2004). L.Keller (1993) claims that the brand associations are forming from the direct consumers experience, they may be based on the received information about the supply of the market and etc. Generalizing the brand image in the context of brand life, it is necessary to note that the scientific literature emphasises that the brand image is formed by invoking the principles of brand identity (relations, consistency/coherence, values). In the context of brand life, the brand image is analysed as a result of consumers opinions and actions. It switches from image formation (the first stage) to the long-term awareness and attachment (the third stage). The modelling of brand life illustrates / reveals the main close relations among brand identity, brand image, communicative function of brand; however, two aspects are distinguished for further analysis: brand associations and brand awareness.
Conclusion
A descriptive analysis of scientific literature revealed that the following conclusions regarding the concept of brand life may be presented: 1) the links between the product life cycle (hereinafter referred to as PLC) and brand life cycle are identified. The analysis of the main features of stages of product and brand life cycles showed that the concept of brand life cannot be analyzed aside from the stages of PLC as in specific stages actions invoking not only the brand functions but also creating and supporting the brand are realized. 2) In the context of brand life, the brand identity principles indicate the main objectives and expected results, and the prism of brand identity defines the field of action, emphasizes the main trends. 3) In summary of brand identity as a basic assumption of the brand life model, it is possible to note that a brand has to carry meaning presenting a product as personally important and appropriate for a customer. A customer is attacked by huge amount of information, and company's communication determines the brand life. The physical features of a product are the easiest to recognize (e.g. packing and etc.) which are assumed as the primary components of brand life. In brand life cycle, brand identity determines recognition, awareness and brand image. 4) In the context of brand life cycle, brand image is analyzed as a result of customers' opinions and actions. The formation of image leads to enduring awareness and attachment. 413
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