030210 brand revitalization[1]

7/28/2019 030210 Brand Revitalization[1]

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Brand Revitalization


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Customer-based brand equity :Differential effect that consumer knowledge about a brand has on the customers response to mktg. Activity.

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller

Cost saving : formula change

(Not so effective in

Immediate Reaction

Change back to original formulaP&G; Inform Lever Brothers of the formula change,

forcing to stop running the comparative ads.

Brand Equity / Key Brand Association of Cascade Virtually Spotless

:P & G fiercely defends their Brand Equity

P&G : Cascade Lever Brothers : Sunlight

Levi Brothers attack the weakness

Sun lights fights spots better than Cascade

ReinforcingBrands

How to make consumers have the necessary sources of Brand Equity

- Convey the meaning of the brand to consumers.

What product does the brand represent : what benefits does it supply : What needs does it satisfy ?

How does the brand make those product superior ?

1) Maintaining Brand Consistencye.g . Budweiser, Coca-cola, Hershey : remarkably consistent in their strategies once they achieved a pre-eminent market

leadership positionMarlboro : Western cowboy image : Focused mktg. Comm.

2) Protecting Sources of Brand Equity

Case


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3) Fortifying vs. Leveraging to build strong consumer-based brand equity

Fortifying : mktg. Activities to fortify / contribute to Brand Equity.

Leveraging : mktg. Activities to leveraging / capitalize on existing Brand Equity.

leveling source of equity may become neglected/ diminished

4) Fine tuning the Supporting mktg. Program

Brand tactics should only be changed when there is evidence that theyre no longer making the desired contribution

to maintaining or strengthening brand equity

5) Product-related associations ; (Core associations) Product Functional benefit :

/ merchandising : Critical

Product innovations : critical forPerformance-Based brands; not to change product too much, Make new prpduct better not differentTiming of introduction & Announcement.

6) Non Product-related Associations; Core association non-product-based attributes, symbolic or experiential benefits Relevance in user & Usage Image is criticalbut too frequent repositioning ; alienate (blur image/confuse/alienate consumer

memory established /dangerous Convincing new brand claims : must be presented in a compelling fashion()

Pepsi Youthful Appeal Riskyback to Be Young Nothing else is Pepsi()back to Generation Next(); repositioning.

Case



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: Harley-Davidson, Mountain Dew, Chrysler

General Approach

Recapturing Lost Sources

Identifying / Establishing New Sources of Brand Equity brand meaning reinforce evolutionary revolutionary.

Revitalizing Brands

Case Addidas Revitalization; Saatchi & Saatchi 1993

Teen concentrateMarketing Efforts :(,.)Consumer Pull Push Marketing.

Pull Performance-oriented product.

advertising / athlete sponsor Urban, young audience targetSponsor World Cup soccer

Push shelf space share

M/S 2% 5% 4

Brand Audit

: Profiling brand knowledge structure in order to guide repositioning

: Important to accurately characterize Breadth & Depth of brand awareness, strength, favorability, uniqueness of brandassociation held in consumer memory.

, .;

( Extent to which key brand associations are still properly positioning the brand)



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Brand Audit

; Comprehensive examination of the health of a brand in terms of its sources of band equity from

the perspective of the firm and consumer

; Whether to Retain the Same Positioning or To Create a New Positioning : Desirability, Deliverability of differentiated Brand Associations

CustomerBased Brand Equity Framework ; Provides guidance as toHow to Best Refresh Old Source of Brand Equity

& Create New Sources of Brand Equity

Profiling Brand Knowledge Structure;

Repositioning

guidance

: Understanding what the sources of brand equity were to begin with.1) Expand depth / breadth of brand awareness (,)

2) Improve Strength for ability/ uniqueness of brand association



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depth breadth( recall, recognition brand narrow )

Usage (Increase Usage)

: increasing level or quantity of consumption

: increasing frequency of consumption

A. Identifying Additional & New Usage

--(usage situation) remind[] Maxwell Home Fitter pack simples : 1 package

(usage increase)

- TPOe.g. Holiday event or time of year

- regular usage merits

B. Identifying New & Completely Different Ways to use

1) Expanding Brand Awareness

Case Cheez-whiz : use in microware oven ( )

Wriglegs chewing gum : substitute for smoking ()

Tums () : calcium (supplement)



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: to improve strength, favorability and uniqueness

Heritage Brand :;(trustworthy );,. (boring. Uninteresting)

(relevant usage situations ) user image (contemporary user profile ) (modern brand personality)

Re-Positioning : Target Market repositioining

target mkt. possible segment. cost-benefit.(--)

Mustestablish

New Products, Ads Promo, packaging

2) Improving Brand Image

A. Retaining vulnerable / Recapturing Lost CustomersOreo : segment regain.

B. Identifying Neglected SegmentP & G Ivory baby Adult (pure and simple )

& baby shampoo

C. Attract New Customers revitalization seg seg.



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3) Balancing New & Old Target market

vs. (Trade-offs between retaining existing customers vs. attracting new customers ).

Acquiring New customers; relevancy, segment,. strong personality user image association

A. Multiple Marketing Communication Programs

segment.

[] P&G Old Spice;.

Old Spice Revitalization;.whistling

sailor.[] Budweiser (

).

B. Brand Extensions and Sub-brands

Introducing line extension or sub-brands; Haagen Daz Extraas;Ben & Jerrys

sub-brand.

C. New Distribution Outlets

Target segment;

) 1970 sunglass,, teen,

loyalty.



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Some brands are not worth saving; brand equity has dried up or damaging,;

Fading Brand: Reduce the number of its product types reducing the cost for support

support milk cow.

( Unilever Lux; 15 support M/S 3%. )

4) Retiring Brands

5) Obsoleting Existing Products

strength,, obsolete.



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Brand

Reinforcement

Strategies

Brand Awareness Brand Image

What product does the brand represent?

What benefits does it supply?

What needs does it satisfy?

How does the brand make products superior?

What strong, favorable, and unique brand associations

exist in customers mind?

Innovation in Product

Design, Manufacturing and MerchandisingRelevance in User and Usage Imagery

Consistency in

Amount and

Nature of

Marketing Support

Continuity in Brand

Meaning. Changes in

Marketing Tactics

Protecting Sources of

Brand EquityTrading Off Marketing

Activities to Fortify vs.

Leverage Brand Equity

SUMMARY



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Brand

Revitalization

Strategies

Refresh Old Sources ofBrand Equity

Create New Sources of Brand Equity

Expand Depth and Breadth of Awareness

And Usage of BrandImprove Strength, Favorability, and

Uniqueness of Brand Associations

Identifying

Additional

Opportunities to

Use Brand in

Same Basic Way

Identify Completely New

and Different Ways to

UseRetain

Vulnerable

Customers

Recapture

Lost

Customers

SUMMARY

Increase Quantity

of Consumption

(How Much)

Increase Frequency

of Consumption

(How Often)

Bolster Fading

Associations

Neutralize

Negative

Associations

Create New

Associations

Identify

Neglected

Segments

Attract

New

Customers



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Brand Strategies over Time - David Aaker, Building Strong Brands(1996)Why change identities, positions, or executions?

Rationale 1: The Identity/Execution Was Poorly Conceived

Rationale 2: The Identity/Execution Is Obsolete

Rationale 3: The Identity/Execution Appeals to a Limited Market

Rationale 4: The Identity/Execution Is not Contemporary

Rationale 5: The Identity/Execution Is Tired

Customer Interest, Brand Perceptions, Brand Attitudes

Sales & Share trends Brand Identity.

,,/

Identity change.

: KFC,, Fried, CI KFC.

Brand Identity,

change.

: Johnson & Johnson Baby Shampoo;.

Arm & Hammer Baking Soda

Brand Identity,

: GE; contemporary value proposition.

Brand Identity boring,

identity execution change repositioning

.


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Why consistency( if Done well) is Better?

Consistency or Change?

Consistency

IPE(identity/positioning/ execution)?Not necessarily. Consistency Brand:

Ivory Soap(purity), Marlboro ( Cowboy, masculine, out-door,),

Maytag( functional benefit of dependability, and emotional benefit of relief from worry)Black Velvet Canadian Whiskey ( soft and smooth, Black Velvet Lady)

Brand I.PE identity(enduring) positioning.

Strong Brand identity, position, visual imagery, theme or slogan.

Ownership of Position

Ownership of Identity Symbol

Cost Efficiencies

(Marlboro, Maytag)

consistency symbol( visual image, slogan, jingle, metaphor, spokesperson).

( Maytag repairman, Marlboro country)

identity symbol

Brand Strategies over Time - David Aaker, Building Strong Brands(1996)


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Consistency Over Time: Why is it Hard?

IPE Consistency IPE,

bias.

Pressure to Change Identification/ Execution

Brand Manager Mindset Strategic Misconceptions

Problem solver/ Action orientation

High aspirations

Identity/Execution Owned by Predecessor

A New identity/execution is ineffective

A New paradigm requires a new identity/ execution

A superior identity/execution can be found

Customers are bored with a tired or stodgy identity/execution

Pressures Resisted

Consistent Brand Identity, Positions

and Executions

Benefits of Consistency

Own Position

Own identity symbols

Cost efficiencies



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Mindset of Managers

Problem Solver/ Action Orientation, action

brand equity driver.

High AspirationBrand performance.

Owned by Predecessor Identity/ Execution() brand identity

involvement brand identity.

Strategic Misconceptions

New Identity/ Execution is IneffectiveBrand Identity settle-in.

Marlboro man cowboy.

A New Paradigm Requires a New Identity/ Execution trend. Fad paradigm shift

, paradigm shift identity.

A Superior Identity/ Execution can be Found,

.

.

Customers are Bored with a Tired or Stodgy Identity/ Execution.

, brand

identity. boredom.

consistency.



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The Panic Attack

, brand identity.

Miller Lite Case

Light Beer Market Creation

Miller : Created Light Beer CategoryPositioning as a beer with great tasting and less filling ( Not as a diet drink )

Heavy Beer Drinkers Appeal

Brand Image Building: Remarkable Success in the 1970s-1980s

Ads: Strong image around Male Camaraderie()( + + fun)::

Appealing point: to make the audience feel accepted as part of this group Miller Lite Customer Relationship.

Decline of Market Share

1980 market share. ( 12.5% 10%)

: Coors Light & Bud Light ; to attract Young beer drinkersMiller Lite appeal disadvantage.

Miller Reaction, classic Miller Lite upbeat theme.

Appealing Point: Miller Lite Light Beer, Light Beer

Failure of New Ad Campaign

target audience Miller Lite beer-drinker,.



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What caused decline of Miller Lite?

Brand EquityQuestions;

- Young target?- Miller Lite identity? Brand Equity?- () Miller Lite target market()??

- Miller m/s?- equity MS?- Brand Identity?- Brand Essence?

( Essences: Maleness, acceptance, Fun setting)

Brand Core Identity Execution, Brand Identity Brand Identity.




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The Search for the Fountain of Youth

Brand Identity Key Elements

.

Heritage Brand

( Heritage Brand :

;),,,,

;,,.

1)( Consumer Brand(,, 20) ),

2) High-Tech Brand ( )

Evolving an Identity

Symbols : Symbol Symbol.

Name : Federal Express FedEx ;

Slogans : Brand identity,

. (GE case)

New Products : Jell-O: kid/fun association + mom/family ; MTV .

Jiggler( kind/fun/ mom equity, fun. )

Augmenting the Identity Identity core identity additional extended elements.

) New Attributes, Different Personality Characteristics, New Market Segment, New User Imagery,

Product Extensions, New Emotional Benefits

Adding User Imagery : Levi Straus

TV: , hip

(, personality)

Product Extension:category, attributes

identity .

Adding an Emotional Benefit: Tasters Choice: Quality Cue

emotional surrounding

. 3M/S 3%

Use of Sub brands: Canon Rebel; Agassi ,.



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Providing Links to the Heritage Identity brand identity dramatic heritage identity

.

heritage identity

.



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Revitalizing the Brand - David Aaker, Managing Brand Equity(1991)

Brand

Revitalization

1. IncreasingUsage

2. Finding New

Usage3. Entering New

Markets

4. Repositioning

the Brand

5. Augmenting theProduct Service

6. Obsoleting

Existing Products

7. Extending

the Brand

Revitalization Options

Revitalization :

Stagnated Brand Equity+ Generate Added Sales + Enhanced Equity

Enhanced Equity : improved recognition, enhanced perceived quality, changed associations,expanded customer base, increased loyalty


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Increasing Usage

Increasing the Frequency of Use

Increasing the Quantity Used

Reminder Communication:

Position for Frequent or Regular Use:

Make the Use Easier:

Provide Incentives:

Reduce Undesirable Consequences of Frequent Use:

Use at Different Occasion or Locations:

Reminder of related products or service( Cross-selling, Up-selling)

Incentives (promotion)

Affect Usage-level Norm

Address Perceived Undesirable Consequences of heavy consumption

Positive Associations with Use ( through Ads)

Finding New Uses

New functional use for a brand;

Jell-O( dessert) Jell-O Salad

Cereal( with milk) with Ice Cream or Yogurt

Market research

50%.

,



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Entering New Markets

Van(Use of Commercial Delivery) Consumer Use

Small Refridge ( Home ) Dormitory, Offices

Johnson & Johnson ( Baby Shampoo) Mild shampoo

Repositioning the Brand

Changing Associations;

Inappropriate Positioning Over Time;

- becomes obsolete over time, target market ages, or association becomes less appealing

V-8 Juice ; Repositioned as a healthy drink/ weight control

Campbells Soup: Lunch Supplementary Main Meal Substitutes for adults

Market research

50%.

,

Adding Value by Differentiating: New Associations

commodity: Reposition as an Upscale Branded Products



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Augmenting the Product/ Service

Customer Involvement

stagnating/ declining, commodity,

,

.

WTP/

..

Theodore Levitt. commodity

feature.

( Do something better or Do something Extra, Something Different)

-(stimulating a new look)

- channel( Leggs high-quality hosiery in Supermarket concept + total marketing program)- Computer-based Info. System Foremost-McKesson; ,,

Obsoleting Existing Products with New Generation Technologies

revitalization

.: TV, large-head tennis racket, Yamaha Digital Piano(Disklavier),

CDhome audio.

. Challenger

- stainless(, 40% ROI )

-Wilkinson( stainless innovator), Eversharp, Schick innovator M/S 70%

55%. ROI 30%.



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Revitalization- Milking Milking Divest :

Brand Prospect 1 unfavorable milking divest(exiting market)

.

- Strength of Brand, Equity, intensity and commitment of the competition,

- Market Demand for the Product Class

Multi brand.

- Withholding resources from some brand or allow brand to die

Milking Option: Avoiding investment and generating additional cash flow

-/

-

Milking Assumption;

1) faltering brand, strong competition, eroding market demand ; Unattractive Market

2) firm has a better use for the funds

3)/; financially, synergistically

4) milking(.)

Exit Milking Strategy

1)

2) stable profit3) customer loyalty( market segment)

4) ; economies of scale, support

5) milking strategy

Milking /.

-,,

.

-, milking.

- milking strategy;,



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Revitalization- Divestment or Liquidation Divest Liquidate:

Brand Prospect milking exit decision

1).2) exit barrier,

milking

3) SCA

4) superfluous mission

5) exit barriers(,)

Milking /.

-/ attachment-.

: IBM 386 286 286 erosion ,

286.

Milk vs. Exit? ;

1) Brand Strength

2) Market Demand

3) Competitive Intensity



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Market Prospects Competitive Intensity Brand Strength &Organizational Capabilities

1. Is the rate of decline orderly andpredictable?

2. Are there pockets of enduring demand?

3. What are the reasons for the decline

is it temporary? Might it be reversed?

4. Are there dominant competitors withunique skills or assets?

5. Are there many competitors unwilling to

exit or contact gracefully?

6. Are customers brand-loyal? Is there

product differentiation?

7. Are there price pressure?

8. Is the brand strong? Does it enjoy high

recognition and positive, meaningfulassociations?

9. What is the market share position and

trend?

10. Does the business have some key

competitive SCAs with respect to key

segment?11. Can the business manage a milking

strategy?

12. Is there synergy with other businesses?

13. Does the brand fit with the current

firms strategic thrust?

14. What are the exit barriers?

Investment Decision in a Declining Industry: Some Strategic Questions



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Brand Revitalization Keller vs. Aaker

Expanding Brand Awareness

Improving Brand Image

Balancing New &

Old Target Market

Retiring Brands

Obsoleting Existing

Products

Increasing Usage

Finding New Usage

Entering New Markets

Repositioning the Brand

Augmenting the

Product Service

Obsoleting Existing

Products

Extending the Brand

Identifying Additional & New Usage

Identifying New & Completely Different way to Use

Retaining Vulnerable/ Recapturing Lost Sources

Identifying Neglected Segment

Attract new Customers

Multiple Marketing Communication Programs

Brand Extensions and Sub-Brands

New Distribution Outlets

Keller Aaker


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Brand Life CycleGrow Mature Decline - Die

Change of Consumer Needs + Heavy Competition Negative Attitude towards old brand Revitalization

: Lost appeal, identity, overshadowed by competition

Best way to jump start a mature brand : Understanding its Uniqueness and Equity, and making the most of them.

Increase Brand Awareness; Frequent, consistent advertising

Change usage suggestions or Add new usage

Key to effectively advertising New User for an old brand

making new uses appear similar to existing ones;seg/.Quick way to Increase Usage Frequency positioning a brand as a substitute for product in other categories

;,

,, Altering package design / size

Making old Brand New - American Demographics Dec. 1997

030210 brand revitalization[1]

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