2. Brand Revitalization
Presented By:
Haseeb Baloch (FA12-MBT-031)
Tehreen Bint Ilyas (FA12-MBT-089)
Fraz Azmat (FA12-MBT-027)
M. Ubair (FA12-MBT-063)
Mashal Mahmood (FA12-MBT-113)
Ata ul Hassnain (FA12-MBT-015)
Presented To: Miss Tahira Umair

3. We analyze the conditions that lead to brand decline and brand
death, highlight signs that may suggest an impending decline,
offer insights into assessing the viability of reviving a brand, and
suggest various approaches that can be used to strengthen the
brand and give it a second life. Including Examples.
The frame work of this presentation is gathered from various researches,
case studies and some authorized marketers videos.

4. A
BRAND
IS FOREVER

5. Brand revitalization
A strategy to recapture lost sources of brand equity and
identify and establish new sources of brand equity. This
may include product modification or brand
repositioning.

7. Ford realized that in- stead of trying to use
another brand name that meant little to the market,
it would be better off utilizing the Taurus brand
name, which had 90% name recognition and a
positive image (Kiley, 2007).

8. Reviving a brand is not just feasible; it may very well be a
more attractive strategy than launching a new brand.

9. Today the power of a brand lies in its equity with its
customers, and over the years, a more customer-based
brand equity framework has been developed.

10. Brand equity is defined as ''the differential effect that consumer
knowledge about a brand has on the customer's response to
marketing activity,”

11. Brand equity is defined as ''the differential effect that consumer
knowledge about a brand has on the customer's response to marketing
activity,'' …
…..and ''consumer brand knowledge can be characterized in terms
of brand awareness and brand image dimensions''

12. However, brand equity may decline with the passage
of time, sometimes leading to a brand's demise.

13. CAUSES OF
BRAND DECLINE

14. 1. Managerial actions:
Even when environmental factors and competitive actions
remain static, managerial actions can significantly impact brand
health.
we found that such actions can be classified into five categories:
product quality, price increases, price cuts, brand neglect, and
inability to stay with the target market.

15. 2. Environmental factors
Markets are dynamic in nature and can be significantly
influenced by the larger environment in which they operate.
They can undergo major transformations, which in turn
have an impact on the various companies in an industry and
their brands.

16. 2. Environmental factors
Polaroid, the company
spiraled into decline and
went bankrupt as the
environment changed
and digital imaging became
popular.

17. 3. Competitive actions
In most markets today, a brand faces relentless onslaught from its
competitors. This can become particularly problematic if the
competitors have deep pockets.

18. 3. Competitive actions
Puma and Adidas are good examples of brands that
declined in the face of intense competition.

19. 3. Competitive actions
New competitors are able to leverage novel
technologies or marketing approaches to their
advantage to challenge well- established market
leaders, which are often bound by their legacy.

20. Is the brand
worth reviving?
YES, Only if there is
significant residual
value in one or more of
the components of
brand equity.

21. Take a long-term perspective.
Most brands take a long
time to build, and a long
time to die.
Reviving a brand is also a
long-term initiative, typically
taking more than a
year or two.

22. REVITALIZING THE BRAND
• Revitalizing - deals with such brands which are old but if
redirected may have plenty of life.
• This can be substantially less costly and risky than introducing a
new brand.

23. Seven Avenues for Brand Revitalization.
Brand
Revitalization
1. Increasing Usage
2. Finding new uses
3. Entering new markets
4. Repositioning
5. Augmenting the Product/services
6. Obsoleting Existing Products
7. Extending the Brand

24. 1. Increasing the Frequency of Use
• Reminder Communications
• Position for frequent / regular use (Colgate, head n shoulder)
• Make the use easier (Dalda)
• Provide Incentives (warid, telenor)
• Address any undesirable consequences attached with frequent
use.
• Use at Different Occasions / Locations (Coffee, Cola instead of
Coffee/tea; soft drinks at home) (Coca Cola, Refhan Custard)

25. • Insurance customer reminded to cover more items
(household).
• Positive associations with use (Frito-Lay “You just
can’t eat one”).
• Incentives can be used to increase the quantity
used / bought (quantity discounts)
• Communication efforts to change attitudes related
to usage quantity.
2.Finding New Uses: Arm & Hammer Baking Soda.
Increasing The Quantity Used

26. There was a commercial about Arm & Hammer Baking soda. After
that the company revitalized it self. The message of ad was the new
usage of baking soda.

27. 3. Entering New Markets
• The target market for a particular brand may not comprise of
all the market segments.
• If firm may not have other Brands for these target segments,
then they become potential areas for the brand to expand.

28. • Johnson & Johnson baby shampoo promoted on gentleness
plank, taken to adults as a shampoo that can be used every day.
• A proposed caffeine-laden Diet Pepsi, named Pepsi A.M
represented an entry into the breakfast market
– “The great-tasting cola that beats coffee cold!”

29. • P&G’s Ivory soap was revived by promoting
it as a pure and simple product for adults
than just babies.
• Van Heusen gained the edge over Arrow in
the US markets by targeting 50% of its ad
budget to women.
• Women buy an estimated 60% to 70% of
men’s shirts.
• Arrow followed by retracing their strategy
to brand its shirts especially with women.
(Selling bolder colors and busier patterns at higher
prices)

30. 4. Repositioning
• One strategic option for revitalizing a fading brand is
simply to abandon the consumer group that supported
the brand in the past to target a completely new
segment.
• Brylcream – slicked-back look of 1960’s, saw its sales
go limp in the 1970’s, when the Beatles popularized
“mop-top” look.
• To revive – Brylcream Gel was launched, a clear gel
with newer packaging enlisting soccer stars (now
Beckham) to endorse --- younger audience.

31. 5. Changing Associations
• A Positioning Strategy can become in-appropriate as the
target market ages, the association becomes less
appealing as tastes and fashions change.
• A positioning strategy can simply wear out as the target
segment becomes saturated
• New associations and associated segments are needed to
generate growth.

32. New Associations – Add Value by
Differentiation
• Sometimes, as it matures a product becomes a
commodity and the price pressure makes the
product unprofitable.
• One approach is to attempt to reposition the
commodity.
• 1960’s saw Frank Perdue, tired of being in the
commodity business, completely repositioned it
as a high quality branded product ----
• “It takes a tough man to make a tender chicken”.

33. 6. AUGMENTING THE PRODUCT
• As product categories mature
• Once strong brand associations which differentiated your product
are now matched by most of competition.
• Customers seem more and more concerned about price and most
are not willing to pay premium price for a brand.
• The temptation is to become resigned to a very competitive
environment.

34. Augmenting The Product
• Theodore Levitt: When the product is close to
becoming a commodity, consider augmenting it by
providing services or features not expected by the
customer as they go beyond anything being offered.
• Two ways – Do something better /Do something
extra/different.
• With a mature product it is more feasible to do
something extra than better.
• Improving or innovations in packaging is a way to
provide this differentiating extra.

35. • Improving package – Olpers gave new package of
milk that would be easy to pour it in to glass or even
easy to microwave.
• Clinic shampoo’s special packaging for children
which provided the right quantity per squeeze
(meant for five rinses).
• A new package can solve a customer problem. Eg:
sachets enabled packing of shampoos, tooth paste,
coconut oil to be packed for the use of traveling lot
and also for rural population.

36. • McKesson Inc., in drug wholesaling or Baxter in Hospital supplies built
computer based information system for their retail / customers
• Virtually taking over inventory management, reorder decisions.
• McKesson could reduce its sales force engaged in store level sales by a
small force which serviced the systems(1975)
• McKesson grew from $1 billion in 1978 to $5 billion in 10 years.

37. 7. Customer Involvement
• Involving customer can be key to the process of finding ways to
augment the product or service.
• Customer involvement not only helps to identify the most
appropriate areas to work on but also makes the effort visible to
the consumer.
• The US textile firm Millikin, using Customer Action Teams (CAT’s),
started making creative solutions to both current customers (in
better serving them) and to new customers (in developing them).

38. • A series of CAT’s launched every year has turned
Millikin’s industrial towel business from a
commodity to a value added service business.
• Millikin now virtually runs the business of their
client’s industrial laundries.
• They provide computerized ordering and logic
systems, market research assistance , leads from
trade shows, audio visual sales aids etc.

39. OBSOLETING EXISTING PRODUCT WITH NEW-
GENERATION TECHNOLOGIES
• Sometimes a sleepy industry segment can be revitalized by a
product which obsoletes the existing installed base and
accelerates the replacement cycle.
• Yamaha Disklavier, FM-radio are e.g.’s.
Introduction of CD’s virtually saw a rebirth for the audio and video
entertainment industry with the sales of audio & video systems
surging.

40. • Market leader who has vested interest in the old
technology, faces competitive threat and delay strategy.
• Gillette (1960’s) resisted the stainless steel technology
knowing the durability of the new material will reduce the
volumes and also the cost to change over its
manufacturing.
• Small player such as Wilkinson(UK) made permanent
inroads into the market. Gillette’s share fell from 70% to
55% and ROI from 40% to 30%.

41. Case of McDonald's as an Example
BIG BRAND IN
BIG TROUBLE.

42. McDonalds
• In February 1996, McDonald’s stock traded at 27
times earnings.
But in July 1997, McDonald’s second quarter profit
growth was just 4%, with a 2% decline in earnings
from the US business.
• By March 12, 2003, the stock price was just above
$12.
• McDonald’s sales were in decline.
• Market share was shrinking.
• Franchisees were frustrated.
• Employee morale was low.
AND MORE IMPORTANT
Customer satisfaction was even lower.

43. BUT!!!!!!!!!!
McDonald’s had one great asset:
Consumers had truly fond
memories of their McDonald’s
brand experience.
People recalled their happy
experiences at McDonald’s as a
child. Parents remembered their
parents taking them to
McDonald’s.
Not Enough for profit generating.

44. What Went Wrong?
• Many things contributed to the decline of the McDonald’s brand
between 1997 and 2002.
• The brand had been declining slowly, painfully, and publicly for
some time.
• Some of the reasons are:
• Renovation
• Innovation
• Marketing

45. • McDonald’s focused on cost reduction
instead of quality growth of the top
line.
• McDonald’s focused on monthly
promotions rather than on brand
building.
• Instead of brand building marketing
communications, the focus was on
monthly promotional tactics designed
to drive short-term sales at the expense
of brand equity.
• Focus upon increasing outlets instead
of increasing sales.
• Unhealthy food.
Big bursts of activities
that dissipated
quickly.

46. Rule #1: Refocus the
Organization
• Brand Purpose and Goals
• Financial Discipline
• Operational Excellence
• Leadership Marketing
Rule #2: Restore
Brand Relevance
• Thorough Knowledge of
the Market Needs-Based
• Market Segmentation
• Customer Insight Brand
Promises.
Rule #3: Reinvent
the Brand
Experience
Innovation
Renovation
Marketing Fair Value
Total Brand
Experience
Rules of revitalization By Larry Light

47. Rule #4: Reinforce a
Results Culture
• Measurable
Milestones
• Balanced Brand-
Business Scorecard
• Recognition and
• Rewards
Rule #5: Rebuild Brand
Trust
• Internal/External
Commitment and
Behavior
Rule #6: Realize Global
Alignment
• Plan to Win
Eight Ps: Purpose, Promise,
People, Product, Place,
Price, Promotion,
Performance
• Freedom Within a
Framework
More Customer
More often
More loyal
More profitable

48. Summary
Revitalizing is possible.
Companies are increasingly looking to revitalize dying or dead
brands in their portfolio. History shows that this is possible.
The risk of brands turning into zombies is very real.

49. Keep an eye on brand.

50. Ray Kroc says that one of the greatest rewards is
the satisfied smile on a customer’s face.
For brands to live forever, they must be loved
forever.