module 4 iiml
Post on 15-Aug-2015
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• The article deals with:1) Investigating leading causes of brand decline2) Identifying signs precursor to impending decline 3) Suggesing guidelines to revitalize brands4) Examples on brand decline
Power of a brand : Brand Equity
The differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity.
Brand evolution
• Product life cycle framework:Introduction, growth, maturity and decline.
It uses sales to define the stages of life cycle, which in turn are used to predict sales
Product evolutionary cycle(PEC approach) :
Evolution of brands is affected by 3 forces- generative, selective and mediative. Managerial and entrepreneurial activities constitute the generative force, market environment act as the selective force, and competitors actions act and responses to marketing initiatives constitute the mediative force.
Causes of Brand decline
• Managerial ActionsProduct QualityPrice cutsPrice increasesBrand neglectInability to stay with the target market
Ambassador decline in India
Lack of mass market approachLack of promotionLack of proper positioning. Positioned as a government vehiclePoor after sale service
Motorola India
Failure to constantly come up with new modelsLack of product varietyPhone not user friendlyLack of expansion to newer markets
Parker Pens
Positioning failure : first positioned as a esteemed product of high quality
Difficult to refill and lack of proper support
3 points to have in mind before revitalizing brands• Is the brand worth revitalizing?• Take a long term perspective• Carefully reposition the brand , invest in it, and educate the market• Correct mismanagement of the brand
Rebuilt qualityResist temptation to milk the brandPursue a carefully defined target market
Created by Sachet Jain, IIT Delhi, during an internship by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com
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