HOW TO HANDLE LARGE

PORTFOLIO REVITALIZATION,
REJUVINATING, RELAUNCH OF
BRAND
Presented by:
Sameer Sharma
 Need for managing brand
• Changing Market Environment
• Shifts in consumer behavior
• Competitive strategies
• Government regulations
• Internal changes in the firm
 Reinforcing Brands
• Activity associated with getting consumers
who have tried a particular brand to become
repeat purchasers and with attracting new
users.
• Key objective of the growth stage of the
product's life cycle.
 How we reinforce Brands
• Brand equity is reinforced by marketing
actions that consistently convey the meaning
of the brand to consumers in terms of BRAND
AWARENESS and BRAND IMAGE
 Consideration for brand
reinforcement
• What products does the brand represent, what
benefits does it supply, and what needs does it
satisfy?
 Ex: Nutri Grain
• How does a brand make those products superior?
What strong, favorable, and unique brand
associations exist in the minds of consumers?
 Black & Decker offering innovative designs in small
appliance category
 Brand Consistency
• Brand consistency is where a business
attempts to communicate messages in a way
which doesn’t detract or wander away from
the core brand proposition.
Ex: Logos
 Maintaining Brand consistency
• Critical to maintaining the strength and
favorability of brand association.
• Brands with shrinking R&D and marketing
communication budget run the risk of
becoming technologically disadvantaged – or
even obsolete – as well as out of date,
irrelevant, or forgotten.
Ex: Pager
 Cont’d
• Market Leaders and Failures: Inadequate market
support combined with price increase lead to
brand failure.
 Ex: Delta Faucet
• Consistency and Change: An emerging brand
strategy is that which capitalizes on the benefits
of ubiquity and uniformity while encouraging
flexibility to ensure relevance and differentiation
without eroding long-term credibility and trust
 Ex: Cadbury Dairy Milk
 Cont’d
• Retro-branding or Retro-advertising: is a
means to tie in with past advertising that was,
and perhaps could still be , a key source of
brand equity.
• It may activate and strengthen brand
associations that would be virtually impossible
to create.
Protecting Sources of brand equity
• Need to change Brand Positioning:
 Change in Consumers
 Change in Competition
 Change in Company
• Brands should always look for potentially
powerful new sources of brand equity, a top
priority is to preserve and defend those sources
of brand equity that already exist.
 Ex: P&G’s Cascade automatic dishwashing detergent
 Fortifying vs. Leveraging
• Fortifying: To strengthen or secure a position.
• Leveraging: Power to act effectively.
• Marketers can design marketing programs
that mainly try to capitalize on or maximize
brand awareness and brand image.
Ex: Reducing advertising expenses
Seeking increasingly higher premiums
Introducing numerous brand extensions
 Fine tuning the supporting
marketing program
• Marketers should change tactics only when
it’s clear they are no longer making the
desired contribution to maintaining or
strengthening brand equity.
• The way branding is reinforced may depend
on the nature of brand associations. It is of
two types:
Product related performance
Non Product related performance
 Cont’d
• Product Related Performance Association: Brands
whose core associations are primarily product related
performance attributes or benefits, innovation in
product design, manufacturing.
 Ex: Timex
• In making product changes to a brand, marketers want
to reassure loyal customers that it is a better product
but not necessarily a different one.
• Timing of announcement and introduction of a new
product should be taken into consideration.
 Cont’d
• Non Product Related Imagery Association:
Brands whose core associations are primarily
non product related attributes and symbolic
or experiential benefits in user or usage
imagery is critical.
• Need for association:
Intangible nature
Easier to change
• Negative consequences:
 Ill conceived or too frequent repositioning can blur
the image of a brand and confuse or perhaps even
alienate consumers.
 Ex: Cielo
 Brand images can be too sticky, and once consumers
form strong associations, they may be difficult to
change. Consumers may ignore the new positioning
when strong brand association already exists.
 Ex: Brand Einstein promoting subject Physics
 Brand Concept management
• Process of selecting, implementing and
controlling brand image over time to enhance
market performance.
 Factors influencing selection of
brand concept
• Functional Need: motivate the search for products that
solve consumption related performance. It solves
externally generated consumption need. Ex: Use of
Shampoo for cleaning hair.
• Symbolic Needs: desire of a product that fulfill internally
generated needs for self enhancement, role position, group
membership, social approval, or ego identification. Ex: Use
of Shampoo is by those people who appreciate beauty.
• Experiential Needs: desires for products that provide
sensory pleasure, variety, or cognitive simulation. Ex: Scent
or lather or shampoo.
 Management Stages to understand
Brand Image
• Introductory Stage: Set of activities designed to
establish a brand image and position in the
market place during market entry.
• Elaboration Stage: positioning strategies focus on
enhancing the value of the brand’s image so that
the firm can establish or sustain its perceived
superiority to competitors.
• Fortification Stage: aims to link an elaborated
brand image to the image of the firm’s other
products in different product classes.
 Revitalizing Brands
• Strategy employed when a brand has reached
maturity and profits begin to decline.
• The brands most likely to respond to
revitalization efforts are those that have a clear
and relevant values that have been left dormant
for a long time, have not well been expressed in
the marketing and communications recently,
have been violated by product problems, cost
reductions and so on.
 Ex: Maggi Noodles
 Cont’d
• Revitalizing strategies run along continuum,
with pure ‘back to basics’ at one end and pure
‘reinvention’ at the other.
• Marketing failures in which the insufficient
consumers are attracted to a brand, are
typically much less damaging than product
failures, in which the brand fundamentally
fails to live up to its consumer promise.
Ex: Kellogg's & Pager
Guidelines to Refresh Old Brand Equity or
Creating New one
• Expand the depth or breadth of brand
awareness, or both, by improving consumer
recall & recognition of the brand during
purchase or consumption settings.
• Improve the strength, favorability, and
uniqueness of brand associations making up
the brand image.
 Expanding Brand Awareness
• Brand equity is build through increasing
breadth of brand awareness, making sure that
customers don’t overlook the brand.
• Identifying Additional Or New Usage
Opportunities:
Increasing the quantity of consumption.
Increasing the frequency of consumption
Ex: Colgate
 Cont’d
• Identifying New And Completely Different
Ways To Use The Brand:
Ex: Wrigley’s chewing Gum used as a substitute to
smoking
 Improving Brand Image
• Perception / image that the customer hold about
the brand.
• Repositioning the Brand:
 Repositioning the brand requires establishing more
compelling points of Points of Difference
 Nostalgic advertising can positively influence
consumers.
 Potential source of nostalgic purchase behavior is
‘intergenerational Influence’
 Ex: Allahabad Bank
 Repositioning a Brand to establish Point of Parity
• Changing Brand Elements: Change one or
more brand elements to either convey new
information or signal that the brand has taken
on new meaning.
Ex: Federal Express to FedEx
• Entering New Markets: Specify the target
market and the nature of the competition to
set the competitive frame of reference.
Ex: Coca Cola in Rural Market
 Adjustments to Brand Portfolio
• Considerations:
 Requires long term view
 Role of different brands in the portfolio and their
relationship.
• Migration Strategies:
 Entry level brands are often more critical in bringing in
new customers and introducing them to brand offerings.
 Corporate or family branding strategies in which brands
are ordered in a logical manner to provide the hierarchical
structure in consumers mind to facilitate brand migration.
 Ex: BMW with 3-, 5-, 7- series numbering to denote higher level of
quality
• Acquiring New Customers: marketing
challenge in acquiring new customers, lies in
making a brand seem relevant to vastly
different generations and cohort groups or
lifestyles.
• Approaches to attract new Customers & retain
existing ones
 Multiple Marketing Communication Programs: To attract
new market segments & satisfying current ones, create
separate advertising campaigns & communication
programs for each.
 Brand Extension & Sub-Brands: the new product offerings for the
brand can incorporate new technology, features, and other
attributes to satisfy the needs of new customers as well as satisfy
the changing desires of existing customers.
 Ex: Nokia
 New Distribution Outlets: Making the product more
available to the target group.
 Ex: Sunglasses
• Retiring Brand: Brands whose brand equity has essentially
dried up.
• Steps in retrenching fading brands:
 Reduce the number of product types(package sizes or
variations)
 Halo Shampoo
 Orphan Brand: Once popular brand with diminished equity that
parent company allows to decline by withdrawing marketing
support
 Ex: Polaroid Camera
 Consolidate fading brands into stronger brand
 Ex: P&G merged its Solo & Bold detergent.
 Discontinue the product all together
 Ex: P&G sold its Oxydol laundry detergent to Redox
• Obsoleting Existing Products: Questions to ask when
considering whether to invest in a fading brand:
 Market Prospects:
 Is the rate of decline orderly & predictable?
 Are there pockets of enduring demand?
 What are the reasons for the decline – is it temporary? Might it be
reversed?
 Competitive Intensity:
 Are there dominant competitors with unique skills or assets?
 Are there many competitors unwilling to exit or contract
gradually?
 Are customers brand loyal? Is there product differentiation?
 Are there price pressures?
 Cont’d
Brand Strength And Organizational Capabilities:
Is the brand strong? Does it enjoy high recognition and
positive, meaningful associations?
What is the market share position and trend?
Does the business have some key sustainable
competitive advantages with respect to key segments?
Can a business manage a milking strategy?
Is there a synergy with other businesses?
Does the brand fit with the firm’s current strategic
thrust?
What are the exit barriers?
 Consistency in
Innovation in
BRAND AWARENESS amount and
product
•What products does nature of
design,
the brand represent? marketing
manufacturing
•What benefits does it Support
&
supply? merchandising
•What needs does it Continuity in
supply? brand meaning;
Brand changes in
Reinforcement marketing tactics
Strategies

BRAND IMAGE Protecting sources

of brand equity
•How does the brand
make products
superior? Trading off
•What strong, marketing
favorable and activities to
Relevance in
unique brand fortify vs.
user & usage
associations exist in leverage brand
imagery
customers mind? equity
 Increase Identify additional
quantity of opportunities to use
Expand depth consumption brand in same basic
& breadth of (how much) way
awareness &
usage of Increase Identify completely
brand frequency of new & different ways
Refreshing consumption to use brand
old sources (how often)
of brand
Brand equity
Revitalization
Strategies Retain Vulnerable
customers
Create new
source of Recapture lost
Bolster Fading
brand customers
Associations
equity
Improve Neutralize Identify neglected
strength, negative segments
favorability, & associations
uniqueness of Attract new
brand Create new customers
associations associations