1. A BRAND IS
FOREVER:
A FRAMEWORK FOR
REVITALIZING DEAD AND
DECLINING BRANDS

2. REVIVAL OF A DEAD
BRAND

3. …..IS OFTEN
FOUND TO BE A
MUCH MORE
FEASIBLE
SOLUTION
THAN THE
LAUNCHING OF
A NEW
PRODUCT

4. EXHIBIT 1
POST SECOND WORLD WAR,
HARLEY DAVIDSON
MOTORCYCLES
WERE POPULAR FOR THEIR
UNIQUE DESIGN AND
ENGINEERING

5. 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

6. EXHIBIT 1
INSTEAD OF GIVING UP,HARLEY DAVIDSON DECICDED TO
MAKE SIGNIFICANT INVESTMENTS IN QUALITY AND ITS
DISTINCTIVE STYLING
THE RESULT?

7. EXHIBIT 1
HARLEY DAVIDSON
EMERGED STRONGER
THAN EVER

8. ?

9. REINVENTING A DECLINING
BRAND IS VERY OFTEN A
BETTER SOLUTION THAN
CREATING A NEW BRAND !

10. THIS IS MAINLY
BECAUSE…

11. 1. INTRODUCTION OF NEW
BRANDS OFTEN COST A
LOT OF MONEY AND TENDS
TO FAIL MORE OFTEN
THAN NOT

12. 2.OLD DECLINING BRANDS
OFTEN HAVE HIGH
BRAND RECALL,
BRAND AWARENESS AND
A STRONG BRAND IMAGE

13. 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

14. SOME BRANDS WITH
STRONG BRAND
EQUITY

15. HOWEVER AT TIMES SOME
BRANDS’ EQUITY MAY DECLINE
WITH TIME..LEADING TO THEIR
DEMISE

16. SO WHAT ARE THE
VARIOUS
REASIONS FOR
BRAND DECLINE?

17. PRODUCT
QUALITY

18. 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

19. 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)

20. PRICE
INCREASES

21. 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.

22. 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

23. PRICE
CUTS

24. 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

25. 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.

26. BRAND
NEGLECT

27. EXHIBIT 5
BLACK AND DECKER’S POPULAR BRAND DeWALTKEPT 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

28. 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

29. INABILITY TO
STAY WITH
TARGET
MARKET

30. 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

31. 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.

32. ENVIRONMENTAL
FACTORS

33. EXHIBIT 9
CIGARETTE
COMPANIES’ SALES
ARE DECLINING DUE
TO A CHANGING,
LARGELY NEGATIVE
ATTITUDE TOWARDS
SMOKING

34. 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

35. COMPETETIVE
ACTIONS

36. 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

37. 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.

38. DECONSTRUCTING
BRAND DECLINE

39. 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

40. 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

41. BRAND
KNOWLEDGE
BRAND
AWARENESS
BRAND
IMAGE

42. 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

43. 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

44. 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

45. REVITALIZING
BRANDS
A FEW GUIDELINES…..

46. 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.

47. 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

48. 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

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

50. 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

51. 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 .

52. Rebuild
quality

53. 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.

54. Resist
temptation
to ‘‘milk’’
the brand

55. 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.
APPLEWAS 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.

56. Pursue a
carefully
defined target
market

57. 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

58. 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

60. Created by
deeptish Mukherjee of
jadavpur university
during an internship by
prof. Sameer
mathur,iim lucknow