Analysing the conditions that lead to brand decline, highlighting the signs that indicate impeding decline and assessing the viability of reviving a rand

1. A
BRAND
IS
FOREVER
A framework for revitalising
dead and declining brands

2. Branding has been used
since time immemorial to
distinguish between
products and services

3. A few strong brands....

4. Few others that faded away into oblivion...

5. Numerous brands have met with gradual decline
and death
Managers must foresee the signs of Brand Decline
and adopt approaches to revive the brand

6. • Popular post World War II for unique designs and engineering
• Tough competition from smaller Japanese motorcycles in the 1970s
• Countered this by introducing smaller vehicles
• These were perceived to be of low quality
The case of Harley Davidson

7. Recognising its weaknesses, Harley Davidson invested
in quality and styling

8. And Voila!
Today, it is one of the most
recognised brands worldwide
Recognising its weaknesses, Harley Davidson invested
in quality and styling

9. Brand decline is reversible

10. Brand decline is reversible
Reviving brands is more profitable and
less risky than launching a new brand

11. (PLC)

12. PEC
Generative
force -
Managerial
activities
Mediative
forces -
Competitors’
response to
marketing
initiatives
Selective
forces -
Market
Environment
Product Evolutionary Cycle (PEC)

13. CAUSES OF BRAND DECLINE
 Managerial actions
 Environmental factors
 Competitive actions

14. Managerial actions
Product Quality
Price increase
Price Cuts
Brand Neglect
Inability to stay with target market

15. I. Product Quality
Cadillac’s steady
decline over two
decades was due
to compromises in
product quality

16. II. Price Increase
Tata Sierra: Too
steeply priced at
5 Lakhs

17. III. Price Cuts
Lacoste’s price cuts
in response to falling
demand proved to be
disastrous
Lower
prices
Cheaper
Quality
Material
Lower
Brand
Image

18. IV. Brand Neglect
Nutritional product Ovaltine
acquired by Sandoz in 1992
Neglected as it was not seen
as a core brand of Sandoz

19. V. Inability to stay with target market
GAP’s shift of focus to the younger audience alienated
its core customers, in the 1990s

20. CAUSES OF BRAND DECLINE
 Managerial actions
 Environmental factors
 Competitive actions

21. Environmental Factors
Polaroid went bankrupt
with the advent of
digital imaging

22. CAUSES OF BRAND DECLINE
 Managerial actions
 Environmental factors
 Competitive actions

23. Competitive actions
Adidas declined in the face of intense competition from Nike

24. HOW TO DECONSTRUCT BRAND DECLINE

25. Brand Equity is defined as
“the differential effect that consumer
brand knowledge has on the customers’
response to marketing activity”

26. Three key elements of brand equity
 Differential effect
 Decline in brand knowledge
 Customer response

27. Change in one or more of these can signal
a brand’s impending decline

28. Differential effect
Provide consumers with a compelling argument on
why they should choose a particular brand
What makes the brand DIFFERENT from the rest?

29. Brand Knowledge
Brand Awareness
Brand Image

30. Customer Response
Decline is preceded by consumer brand switching behaviour

31. Revitalising brands
With proper diagnosis,
strategy and
execution, a brand can
be revived

32. Is the brand worth reviving?
This entails examining all three elements of brand equity

33. While most brands can be revived, some may not be worth the
effort
Pan Am was driven to
death as a result of
negative image in the
aftermath of the
Lockerbie bombing
incident

34. Brand revitalization can be
kick-started by addressing:
 The causes of the decline
 Understanding the brand’s
promise and why it may
have failed to deliver

35. Carefully reposition the brand, invest in it, and educate the market

37. Resist temptation to milk the brand
Apple introduced the iPod at just the right time, launching itself
to the forefront after a lull

38. Pursue a carefully defined target market
Levis leveraged its brand name to promote its new line of business clothing.
Once established, Levis removed its name and Dockers became a stand-
alone brand.

39. • Managers need to identify signs of brand decline
• Managerial actions, environmental factors and
competitive actions contribute to brand decline
• Brand decline is reversible
• Brand revitalisation entails careful repositioning of the
brand, investment and educating the market

40. Disclaimer:
These slides were created by Anju Joseph, MEC Kochi,
as part of an internship done under the guidance of
Prof. Sameer Mathur, IIM Lucknow
(www.IIMInternship.com)