Managing Brands Over Time

Managing Brands Over Time

Brand management requires a long-term view of marketing decisions as

Any action of its marketing program has the potential to change consumer knowledge about the brand Consumer brand knowledge from current (or change in the current) marketing activity has an indirect effect on the success of future marketing activities

Long Term Effect of Marketing Actions on Brand Equity

Consumer response to past marketing activity
Brand awareness and brand image Consumer response to current marketing activity Changed brand awareness and brand image Consumer response to future marketing activity

Managing Brands Over Time

Brand management long-term marketing decisions must be focused on
1.

Brand consistency - Reinforcing brand meaning (BE actively managed over time)

Protect and nurture sources of BE

2.

Identifying new sources of BE Revitalization strategies

Making adjustments to the marketing program Trade off between fortifying and leveraging brands

Reinforcing Brands
1.

Maintain brand consistency the amount and nature of support necessary to maintain strength and favorability of brand associations.

Invest in R&D (to avoid obsolescence) Marketing and communication programs (to not be out-of-date, irrelevant, forgotten) Adequate budgets to do the above

Failure to maintaining brand consistency

Market leaders complacency and greed results in lost Loyalty because of marketing support shrinking or unrealistic price hikes

Reinforcing Brands
2. Both Consistency and Change are necessary

Consistency - Maintain desired knowledge structure Change - Tactical shifts needed to maintain strategic thrust and direction

Price can move up or down Product features can be added and dropped Ad campaigns can have different - creative, slogans Extensions can be introduced or withdrawn

No need to deviate from a positioning unless there is a change in consumers, competition, or company, that makes it less powerful.

Reinforcing Brand Images

2. Protect sources of brand equity - because

Key sources of brand value should be enduring, and guarded and nurtured Value of sources get eroded

when the brand is expanding to include new associations (product and non-product related) Over time there is change

No need to deviate from a positioning unless there is a change in consumers, competition, or company, that makes it less powerful.

Reinforcing Brand Images

3. Fortifying versus leveraging - Tradeoffs between

Elements that fortify and contribute to BE may be compromised by activities that leverage existing BE to reap financial gain increased prices, reduced advertising, introduction of extensions Specific tactics and marketing programs might be changed (if they are not contributing) but not the strategic positioning

Reinforcing Brand Images

4. Fine-tune support marketing program to reinforce brand meaning in terms of core associations
(a) For products where product-related performance associations are important, and (b) For products which non-product related imagery associations are important

(a) Product-related performance associations are important

Innovations - in design, manufacturing, merchandising is critical to maintaining or enhancing BE toys, watches Extensions based on new / improved ingredient or feature Timing of the introduction cant be too early or late Important not to change products too much New Coke. Loyal customers must feel it is a better product

Reinforcing Brand Images

4. Fine-tune supporting marketing program to reinforce the brand meaning in terms of core associations (b) Non-product related imagery associations are important contemporizes associations symbolic or experiential benefits, relevant user and usage imagery (potentially more easy to change)

Advertising showing different type of users or use occasions, use experience

Frequent changes can confuse and alienate consumers

Reinforcing Brand Images

4. Fine-tuning the supporting marketing program - Dangerous to flip-flop between product related and non-product related imagery associations because of they call for fundamentally different marketing and advertising approaches both are necessary
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Repositioning can also be dangerous because brand images are sticky .

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For repositioning to work, convincing new brand claims must be made

Brand Awareness What products does the brand represent? What benefits does it supply? What needs does it satisfy? BRAND REINFORCEMENT STRATEGIES Brand Image How does the brand make products superior? What strong, favorable, and unique brand associations exist in customers minds?

Reinforce product related associations Innovation in Product Design, Manufacturing and Merchandising

Consistency in amount and nature of marketing support

Continuity in brand meaning; changes in marketing tactics

Reinforce non-product related associations Relevance in User and Usage Imagery

Protecting sources of brand equity Trading off marketing activities to fortify vs. leverage brand equity

Revitalizing a Fading Brand

Because of changes in the marketing environment, BE can be eroded over time if not nurtured and reinforced. Reversing a brands fortunes involves
Revitalization and Reinvention

Recapturing lost sources of brand equity (e.g., HarleyDavidson)

Identifying and establishing new sources of brand equity (e.g., Mountain Dew)

These changes are revolutionary rather than evolutionary

Revitalizing a Fading Brand

Revitalization efforts is possible for brands that have clear, relevant values that have been left dormant for a long time

Use brand equity measurement system / audit, to profile brand knowledge structures and guide repositioning. Completely and accurately characterize the

breadth and depth of brand awareness Strength, favorability and uniqueness of brand associations Brand responses held in consumers memory Nature of consumer-brand relationship past and current

Revitalizing a Fading Brand

Revitalization Back- to-basics strategy if Positioning is not a problem, but the marketing program is Harley Davidson, Videocon

Bad marketing is not as damaging as a brand that did not deliver on the promise and there are strong negative cues associated with the brand

Revitalization strategy - tap into existing sources of brand equity (e.g., Harley-Davidson)

product strategy pricing strategy channel strategy communication strategy

Revitalizing a Fading Brand

Decisions must be taken on Positioning to adopt

retain old positioning, or change it

Revitalization Back- to-basics strategy is applicable

or

Reinvention strategy Mountain Dew

or

a combination of both

Revitalization Strategies

Create new sources of brand equity for current and desired brand knowledge structures, to achieve the intended positioning (apart from refreshing old brand sources) Increasing brand salience and meaning, getting better response and resonance
1.

Expand the depth and/or breadth of awareness - improve consumer recall and recognition of the brand during purchase or consumption settings. Improve brand image - strength, favorability, uniqueness of brand associations - existing and new to improve image.

2.

Revitalization Strategies
Expand Brand Awareness depth is not as much of a problem (with more advertising), as width

Increase usage (width of awareness)

Increase the level or quantity of consumption - more difficult as it is a function of some belief, except in the case of impulse consumption Increase frequency of consumption (easier) - identify new and different ways to use the brand in the current and new situation Identifying new or additional usage opportunities

Revitalization Strategies
Expanding Brand Awareness width Increasing usage - frequency of consumption

Identifying new or additional usage opportunities

Communicate appropriateness and advantages of more frequent use in current situations or new situations Reminders of new use - made available as close as possible to those situations

Reminder advtg. to improve TOM Creative retrieval cues of nontraditional consumption settings Speed up replacement by tying it with some occasion holiday Give information about when the product should be replaced Indicate merits of more regular usage make it more convenient to use Simultaneously retain image

Revitalization Strategies
Expanding Brand Awareness as depth is not as much of a problem as width

Increasing usage through new and completely

different ways to use the brand needs

New ad campaign, media plan New packaging

Revitalization Strategies
Reposition the brand a radical step not to be taken unless it is an imperative

More compelling PODs this could be nostalgia and heritage, or POPs on a key image dimension

More contemporary use situation, user profile, brand personality

Update brand with new products and packaging, advertising

Revitalization Strategies

Change brand elements - changes ideally should be more moderate and evolutionary in nature To take on new brand meaning or information Name and logo change is most difficult but

Initials can be used KFC, to drop negative associations New / more contemporary logo Bajaj flying B

Revitalization Strategies

Enter new markets

Identifying neglected segments Recapture lost customers Target emerging new segments on cultural dimension - needs different communication strategies and media Target a completely new segments Retaining existing customers

Expand Depth and Breadth of Awareness and Usage of Brand

Increase Quantity of Consumption (How Much) Increase Frequency of Consumption (How Often)

Identify Additional Opportunities to Use Brand in Same Basic Way Identify Completely New and Different Ways to Use

BRAND REVITALIZATION STRATEGIES

Refresh Old Sources of Brand Equity Create New Sources of Brand Equity

Bolster Fading Associations Improve Strength, Favorability, and Uniqueness of Brand Associations Neutralize Negative Associations Create New Associations

Retain Vulnerable Customers

Recapture Lost Customers

Identify Neglected Segments Attract New Customers

Adjustments to the Brand Portfolio

A long term perspective must reconsider the role and relationship of different brands in the portfolio Brand Migration Strategy is designed and implemented to accommodate changes in brands and consumers (particularly important in rapidly changing technology product brands) Migrating customers within the portfolio

To switch as needs and desires change - Brands should be organized logically in the mind

Alpha numeric system for cars for consumers to trade up

Adjustments to the Brand Portfolio

Acquiring new customers particularly younger customers

In mature markets it is more important to retain old customers than induce trial Since loss of some customers is inevitable, it is important to attract new customers especially young customers Hence the brand has to be made to look attractive to different generations

This is a problem when the brand has a strong personality Harley Davidson and is trying to appeal to the next generation

Adjustments to the Brand Portfolio

Acquiring new customers alternative strategies

Some marketers cut loose from the past, others develop more inclusive strategies

Multiple marketing communication programs Separate communication program for each segment Different media buys Drawback of the approach potential blurring of image and expensive Brand extensions and sub-brands with new technology, attributes and features to attract new customers and meet evolving needs of existing customers New / more distribution outlets in itself can increase sale

Adjustments to the Brand Portfolio

Retiring brands - Obsoleting existing products

Decision to Retire a brand depends on a number of factors (existing and latent equity of a brand)

If BE is damaged Dalda If BE has dried up beyond repair

Brand Revitalization
by

Jean NoelKapferer

Signs of Brand Aging

Aging occurs because

Brand is associated with products of the past (does not belong to its time cassettes, floppies etc.) There are no outward signs of change design, packaging Brand has nothing more to say to the market , or Brand is saying the wrong thing in a culturally new market Brand survives on a small base of loyal customers The reflected image - typical customers are older Brand is associated with old icons Michel Jackson

This causes the gap between spontaneous awareness and aided awareness to widen

Factors Leading to Brand Decline

Degradation of quality cutting corners (the alpha-risk threshold) approach of companies Unable to see a changing market e.g. Remington typewriters Refusing to follow a durable change e.g. PET packaging Communication stopped / old fashioned / drifts away from brand style code Pricing policy perceived as charging unwarranted premium Falling distribution poor relationship with the channel No extensions - following a single product policy e.g Beetle and Volkswagen Extensions daughter brands overshadow the mother brand or moves away from brand contract Brand going generic when it dominates

Pre-empting the Aging of Brands

Appeal to tomorrows customers with product and communication e.g Sony Bravia
Product level - make a connection in a meaningful way (Sony Walkman - MP3 players rather than cassette players) Keep in touch with the life-style and values of opinion leaders / the younger generation Introduce products that cut across age groups / genders e.g. Levis Jeans

Rejuvenation - Brand Situations

Brand sales drop - abrupt / slow But has goodwill among the public Marginal brand has fame But has lost goodwill

Belongs to another era e.g The Ambassador Car, Mysore Sandal Soap

Revival of a Brand a Misnomer?!

Use old brand memory traces as these will define its territory, legitimacy and evolution latent potential Update overall brand offering while staying true to roots Introduce silver bullets (energizers, branded differentiators) Launch new product for new clientele Campari Soda Support the strategic brand May entail a change in market May entail a change of name - KFC, GE Co-branding is a good route to rejuvenation Exclusive distributorship, for a period of time, for brands that have disappeared