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Detailed Project on 5 brand case studies
Citation preview
Executive Summary
Brand lose their fortunes of their brand equity if consumer tastes or preferences changes,
emergence of younger brands/competitors or new technology or any new development in
marketing techniques or strategies followed by competitors or just tired out by their
unchanging image over time. Hence Brand Rejuvenation is required to bring back the lost
brand value due to one of the above stated reasons. Brand Rejuvenation highlights the
ageing problem that every brand can face and investigates how companies can take steps
to counter the process.
Brand Rejuvenation is a process wherein a brand which is on the verge of retirement, is
brought back to life to regain markets. Jean-Marc Lehu describes the ageing problem in a
three-part process; identifying the ageing process, auditing the brand to ensure that there is
sufficient capital remaining to make the rejuvenation effort worthwhile, and then making
efficient strategic choices to achieve success. To assist with the identification and
describing of a brand's unique problem, Lehu presents a decision making chart that will
guide brand managers toward the most appropriate strategic choices for their ageing
brands.
The study gives a brief gist of the various causes for brand rejuvenation, the methods of
rejuvenation and also the issues in brand rejuvenation. The study includes insights from
the people involved in branding for various companies and many case studies of brands
that have been revitalized, as well as the process of rejuvenation from the perspective of
the manufacturer.
Table of Contents
Executive Summary...............................................................................................................1
Introduction............................................................................................................................4
Related Literature..................................................................................................................8
Product life cycle................................................................................................................8
Brand life cycle................................................................................................................10
Brand Relaunch................................................................................................................13
Brand Repositioning vs Brand Rejuvenation...................................................................14
Reasons of Rejuvenation.....................................................................................................16
Process of Brand rejuvenation.............................................................................................21
Causes for rejuvenation....................................................................................................21
Principles for Rejuvenation..............................................................................................25
Cases of Brand Rejuvenation...............................................................................................27
Case 1 : Sony....................................................................................................................27
Case 2: Tropicana.............................................................................................................33
Case 3: Onida...................................................................................................................36
Case 4: Wal-Mart, Revitalising beats Re-Positioning......................................................41
Case 5: Nokia...................................................................................................................44
Case 6: Lakme..................................................................................................................49
Conclusion...........................................................................................................................50
Bibliography........................................................................................................................52
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Acknowledgement
I am very thankful to everyone who all supported me to complete the project effectively
and moreover on time.
I am equally grateful to Prof. R. Gupte for his support and guided me regarding the topic.
He had been very helpful for suggesting me the outlines of this project.
It was a very stimulating and motivating experience, which gave me an opportunity to
learn, explore, analyze and investigate that helped me to expand my knowledge horizon.
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Introduction
Conventional marketing wisdom says that for every 100 brands that are born upto 90 could
perish. In fact the life expectancy of many brands in countries like Japan is an average 18
months.
Brand plays a vital role in life of the product. Brand is a unique and identifiable symbol,
association, name or trademark which serves to differentiate competing products or
services. Both a physical and emotional trigger to create a relationship between consumers
and the product/service. Brands identify the source or maker of a product and allow
consumers to assign responsibility for its performance to a particular manufacturer or
distributor. It is a way by which consumers evaluate identical product differently
depending on how it is branded. Branding is endowing products and services with the
power of a brand. For branding strategies to be successful and brand value to be created,
consumers must be convinced there are meaningful differences among brands in the
product or service category.
A brand promise is the marketer’s vision of what the brand must be and do for
consumers. At the end of the day the true value and future prospects of a brand rests with
consumers, their knowledge. Understanding consumer brand knowledge-all the different
things that become linked to the brand in the minds of consumer is thus of paramount
importance becaue it is the foundation of brand equity.
However old age can take a toll on brands. At times seemingly invincible brands age too
often and too soon. Dalda vanaspati, Weston televisions, Kelvinator refrigerators, Murphy
radios, Polsen butter and Campa Cola are just some names that no longer have the
visibility in most Indian shops. However, about two- three decades back shopkeepers
could not do without these brands.
Can these brands that were snowed under in changing circumstances be revived? Can a
new proposition be built on the old legacy? That’s were the business of brand revival
comes in. Today it is the buzz word among the corporations who are scrambling in
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carrying out those old fashioned yet still effective cost revenue analysis in seeing if they
can bring back the old! To get the heritage brands back to the market.
The reason for this is not too difficult to see. Simply because businesses are realizing that
brands have a tremendous asset value or resale value. Also companies in a passive thought
are also revitalizing brands so that they can realize more value from these before getting
rid of these. And today if companies want to sell off brands that make no strategic sense
for them, there isn’t a shortage of buyers for defunct brands either.
Sometimes even if brands get a second chance to prove them at the altar of consumerism it
will not be a so easy. That’s because a reborn brand has a much difficult task at hand than
a new brand-- new brands take off from ground zero but in the case of a dead brand the,
company relaunching it has to first clean up the negative baggage associated with the
brand’s earlier failure before it lands on the same level as the new brand. At the conceptual
level, it is an uphill task. E.g. -- When Dalda was introduced; it successfully entered most
customer homes as Indian households were looking for a cheaper alternative for ghee.
However, Dalda came with 2 negative labels stuck to its neck-- it was a cheaper
alternative and it was not the real thing.
If the marketer ignores or overlooks the brand value created then consumers are unhappy
with the brand which can result in failure of the brand. Brands have played important part
for the company’s image and survival in competitive markets. If the brand face away due
to change in fashion or strategies have not been revived according to markets then Brand
rejuvenation is required. The rejuvenation of brands can often result in success for a
product, which has entered the later stages of its life cycle. Brand Rejuvenation has a more
holistic perspective than repositioning. It creates wider space in terms of market
communication that includes escalated advertising and /or repositioning. Rejuvenation is
the effort to bring a brand which could not make money into the money making bracket,
with a new positioning or communication strategy.
In simple terms Rejuvenation is the hypothetical reversal of the aging
process.Rejuvenation is distinct from life extension. Life extension strategies often study
the causes of aging and try to oppose those causes in order to slow aging. Rejuvenation is
the reversal of aging and thus requires a different strategy, namely repair of the damage
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that is associated with aging. Rejuvenation can be a means of life extension, but most life
extension strategies do not involve rejuvenation.
Therefore, Brand Rejuvenation is a process wherein a brand which is on the verge of
retirement, is brought back to life to regain markets.
The main objectives1 of rejuvenation are:
1. Rejuvenation aims at revival of brand. The intention is to breathe some new life
into a brand that may be showing signs of decline.
2. Even healthy, successful brands may need occasional rejuvenation. Because of
competition, some re-formulation and refinement become necessary from time to
time. The brand has to be updated. It ensures the steady success of the going brand.
3. It helps keep the brand live and in focus.
Objective of the study
This study aims at understanding the Strategies of Brand Rejuvenation undertaken by
companies
Scope of the study
The study will involve understanding of:
1. Causes for brand rejuvenation.
2. Study of cases involving brand rejuvenation.
3. Strategies involved in Brand Rejuvenation
4. Problems involved in Brand Rejuvenation.
Methodology:
The study is done with the help of secondary research. Secondary data would be taken to
understand the branding industry; the trends and issues in brand rejuvenation. The
information will be obtained from journals, newspapers and websites.
Need for Brand Rejuvenation
Many companies have gone through the phase of Brand Rejuvenation or Revival. But to
understand that we need to understand how will a company decide whether Brand
Rejuvenation is required.
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Mature brands tend to share common characteristics. They have not been historically
discounted, but tend to be moderately to higher-priced within their respective categories.
They are profitable, enjoying healthy profit margins. Since these brands have been around
for decades, they normally have widespread distribution in many retail channels, and tend
to be supported by fewer marketing initiatives. Thus, these brands are “out of sight and out
of mind” to many consumers. The rise of new generations of consumers—with new ideas
and evolving needs and wants—meant that although these legacy national pride associated
brands retained their distinguishing characteristics from their competitors, their attributes
were no longer relevant. Consumer mind share translates to market share, thus companies
that choose to revitalize brands must commit themselves to developing a comprehensive
marketing and advertising program. This will recall the brand to its heritage customers,
and bring them back to purchasing its products again. It will also begin to create brand
awareness among new generations of consumers.
Brands need to evolve their legacy to make sure the things that differentiate them from
their competitors are complemented by more relevant purchase drivers. They need to
upgrade the different touch points of the business, create new product brands, eliminate
others, and launch new product lines.
Once a sound decision—based on the research—has been made to revitalize, brand
managers can make subtle, or not-so-subtle changes to the brand core attributes if the
research indicates this is necessary. Or, they might opt to change the brand experience at
every consumer touch point to contemporize or make the brand more relevant to today’s
consumers. Packaging, consumer promotions and advertising, as well as customer service
all factor into the creation of the consumers’ total brand experience.
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Related Literature
Before understanding Brand Rejuvenation Strategies adopted by companies, we will try to
understand different terminologies related to it.
Product life cycle
The market is flooded with products or brands with similar physical features and value
promises and to make the condition worse for the modern marketer, there is a very high
level of media clutter and advertising is fast losing its effect over the customers. The high
cost of media and complexity of consumer response to interactive media makes the
marketer to look for new alternatives for brand management. A research has to be carried
out during various phases of a product. A Product goes through four stages namely
Introduction phase, Growth phase, Maturity phase and Decline phase. It is termed as
Product Life Cycle.
The product life cycle analysis is a fluid document which needs to be revisited annually
for planning purpose. Most product life cycles do not follow a straight path, and various
business and political factors could cause less certainty of the product living through its
life stages as planned.
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Research & Development – Your product/service is in beta-testing mode – not
released for general sales yet – pre-launch – beta-testing are the common terms
used here to identify and ATTRACT the right customers – Innovators
Introduction: Promotion targets the Early Adopters. A product launch needs to be
designed to attract this key group. They will help you build product and brand
recognition.
Growth: Product quality is maintained, improvement, updates released.
Second releases are made here based upon innovator and early adopter feedback
from the launch. Distribution channels added. Promotion to a broad audience. Sales
growth very strong. The early majority are the key customer here and are the
largest and usually most profitable market segment.
Maturity: Sales begin to level out. Product features added and enhanced. New
competition. Promotion focused on differentiation
Decline: Rejuvenate the product, new releases and versions add some bells &
whistles that increase reliability, performance and productivity. Reduce costs –
compete on price with competition
Every business owner must review their business against these categories continuously –
understanding the differences and recognize symptoms appearing if your business or
product service is shifting and transitioning.
The bottom part of the graph above talks about the type of customer who is the ideal
customer for your product-service at each phase of the Product Lifecycle. You must
understand the importance of marketing to the right customer mindset during the phase of
the lifecycle you are in.
Types Of Customers:
Innovators- Typically very well informed, in-the-know risk takers who will try a
new product usually at a higher price. It’s about being cool – a trend setter. They
love to tell people the new things they are doing. Critical to begin your product
marketing them on board as leaders in your tribe. Pricing is not an issue with this
group.
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Early Adopters – Based upon the “buzz” and recommendation from the Innovator –
they accept early on take some risk, tend to be more educated. They are definitely
opinion leaders respected for what they do and how they do things.
Early Majority- Careful consumers – avoid risk – purchase after it has been proven
by early adopters. Do seek out and rely on recommendations from early adopters
who have proven the product.
Late Majority- can be skeptical, pragmatic, acknowledge they require proof.
Acquire after it has become commonplace.
Laggards – Avoid change only adopt/purchase when there is no other alternative.
As a prudent marketer, you should pro-actively look to rejuvenating the life cycles of Cash
Cow products, in the BCG matrix, at their matured and declining stages. Some even plan
ahead at the growth stages of their product lines for product life cycle rejuvenation.
Brand life cycle
In a standard product life cycle graph, a product increases in popularity, levels out, and
then declines. But a brand can dramatically influence the shape of your product’s life
cycle. This includes both your company’s brand and your products brands. For the purpose
of understanding how brand changes the shape of a product life cycle we need to first take
a closer look at four stages of a brand’s life cycle.
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Death of the brand
Decline of the brand
Maturity of the brand
Growth of the brand
Birth of the brand
Fig: Standard Brand life cycle
In comparison with Stand Brand life cycle, the following ideologies have to be agreed to
during every stage of the life cycle:
1. Brand Development: the creation of a brand including the brand promise, look and
feel, and other brand elements. Before the birth of the brand, brand development
plays a vital role. What is communicated to the customers is what they buy. Their
buying decision is based on the value that you can or will give to them.
2. Brand Recognition: The growth of the brand is dependent up exposing a brand to
the customer base to increase visibility and ultimately gain brand recognition.
Brand recognition can be done by various ways such as brand elements, value
proposition, and brand building activities.
3. Brand Loyalty: Customers become loyal to a brand and not just one product line.
The growth of the brand is because of its loyal customers.
4. Brand Sustainability / Brand Maintenance: continuing to tweak the brand, increase
brand recognition and brand loyalty.
5. Brand Rejuvenation: When the brand loses its customers it comes to a decline
which has to be taken care of before the brand dies away. Brand rejuvenation and
revitalisation helps revive the brand
When it comes to the product life cycle we are most interested in brand recognition and
loyalty. As brand recognition increases so does product adoption. In other words, the more
the recognition the sharper the curve upward. As brand loyalty increases product decline is
slowed. Essentially, the more loyal customers who are repeat customers the blunter the
curve downward.
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Fig : Brand and Product Life cycle
More important in this discussion, then those two points, is what happens when you have a
declining product with a large brand loyalty base and you use innovation to restart the
Product Life Cycle. The result is a dramatically sharp curve upward of adoption.
Fig : Brand and Product Life cycle with Innovation
Brand does play an important role in the product life cycle. A brand thus ages in the eyes
of its customers and/or its consumers because it loses its appeal, its relevance and usually
all or parto f its identity.
Established brands are resilient, resourceful, and elastic. However such good health is not
a permanent condition. And when brands suffer, there are three key ingredients that can
cause this dilution. They are especially lethal when combined.
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Customers seek meaning in their choices. They need the brands they purchase to
enable them to ‘sleep better at night’ and to ‘say something favorable about
themselves’ to others. When the emotional benefits are lacking, the customer is forced
to expand their consideration set.
Customers seek relevancy in their choices. They need the brands they purchase to
enable them to solve a problem and to satisfy an immediate need. When the functional
benefits are missing, the customer is forced to expand their consideration set.
Customers are consistently and relentlessly introduced to new and improved brands.
Brands are born from competition and they can also die from it. When new brands
reposition or replace existing brands, the customer is forced to expand their
consideration set.
Brand Relaunch
Brand Relaunch is any activity that aims to make consumers reconsider a brand in its
totality versus the launch of individual items or lines. This could be through packaging
changes, product upgrades, a new positioning, or any combination of several changes in
the fundamentals of the brand.
There are many reasons why a brand could be relaunched, including
The availability of new technology,
A desire to upgrade a dated image, or
Competitive actions.
Whatever the reason, relaunches are common, but experience in the real world indicates
that failed relaunches are even more common. Keeping loyal users and Enhancing
customer experience
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Brand Repositioning vs Brand Rejuvenation
Brand positioning is the process involved in creating a unique name and image for a
product in the consumers' mind, mainly through advertising campaigns with a consistent
theme. Branding aims to establish a significant and differentiated presence in the market
that attracts and retains loyal customers.
In other words Positioning refers to ‘how organisations want their consumers to see their
product’. What message about the product or service is the company trying to put across?
For example car manufacturer Daewoo in the UK, has successfully positioned themselves
as the family value model. Developing a positioning strategy depends much on how
competitors position themselves. Do organisations want to develop ‘a me too’ strategy and
position themselves close to their competitors so consumers can make a direct comparison
when they purchase? Or does the organisation want to develop a strategy which positions
themselves away from their competitors? Offering a benefit which is superior depends
much on the marketing mix strategy the organisation adopts. The pricing strategy must
reflect the benefit offered and the promotion strategy must communicate this benefit.
Ultimately positioning is about how you want consumers to perceive your products and
services and what strategies you would adopt to reach this perceptual goal.
When it comes to Brand repositioning, changing a brand's status in comparison to that of
the competing brands. Repositioning is effected usually through changing the marketing
mix in response to changes in the market place, or due to a failure to reach the brand's
marketing objectives
Brand repositioning is necessary when one or more of the following conditions exist:
Your brand has a bad, confusing or nonexistent image.
The primary benefit your brand "owns" has evolved from a differentiating benefit
to a cost-of-entry benefit.
Your organization is significantly altering its strategic direction.
Your organization is entering new businesses and the current positioning is no
longer appropriate.
A new competitor with a superior value proposition enters your industry.
Competition has usurped your brand's position or rendered it ineffectual.
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Your organization has acquired a very powerful proprietary advantage that must be
worked into the brand positioning.
Corporate culture renewal dictates at least a revision of the brand personality
You are broadening your brand to appeal to additional consumers or consumer
need segments for whom the current brand positioning won't work. (This should
be a "red flag." This action could dilute the brand's meaning, make the brand less
appealing to current customers or even alienate current customers.)
Brands have a life cycle which may consist of a number of phases including inception,
growth, maturation, decline, revitalization, and retirement. Brand Rejuvenation is a process
in which a brand on the verge of retirement is brought back to life to regain markets.
Revitalizing a once-popular dormant brand can be a highly profitable strategy under the
right circumstances.
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Reasons of Rejuvenation
Sometimes rejuvenation/revitalization requires the rebranding of a company from the top
down. That can include a refurbishment of the logo, trademark and trade dress to revamp
the entire corporate brand image. Sometimes it involves an updating of the brand’s
products and specific product attributes with better, demanded features. Rejuvenation can
also require repackaging for a fresher, more contemporary brand look to appeal to new
generations of consumers.
While going for a repositioning, it is important to accurately and completely characterize
the breadth and depth of brand awareness; the strength, favorability, and uniqueness of
brand association and brand responses held in consumer memory; and the nature of
consumer-brand relationships. The brand equity in the minds of the customer has to be
analysed. Revitalization strategies obviously involve a continuum, with pure "back to
basics" at one end and pure "reinvention" at the other end. Many revitalizations combine
elements of both strategies. With an understanding of the current and desired brand
knowledge structures in hand, the customer-based brand equity framework provides
guidance as to how one could best refresh the old sources of brand equity or create new
sources of brand equity and achieve the intended positioning. Two such approaches are
possible
1. Expand the depth or breadth of brand awareness, or both. This can be achieved by
improving consumer recall and recognition of the brand during purchase or
consumption.
2. Improve the strength, favourability, and uniqueness of brand associations making
up the brand image. More favourable responses and greater brand resonance can
result when brand salience and brand meaning are enhanced.
Strategically, lost sources of brand equity can be refurbished and new sources of equity
can be established in the same three main ways that sources of brand equity are created. It
starts with: changing brand elements, changing the supporting marketing program, or
leveraging new secondary associations.
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Making Old Brands New
Many once-strong brands wither away into obscurity because their brand managers lose
sight of the customer, and choose to attack the competition instead. Brand managers need
to focus on the three ways customers interact with a brand. Managers need to understand
how customers perceive, choose, and use the brand. This is because, when most people
buy products, they buy 1 or 2 at a time. They anchor on a low number (like 1 or 2), then
buy more if the product's on sale. When promotions suggest high numbers people shift
their reference point to the higher number, and buy more.
Profit pressures on mature brands lead some companies to focus on the competition at the
expense of the customer. In the face of these pressures, companies can either fight the
competition or shore up the loyalty of existing customers. Increasing customer loyalty has
both short and long term benefits, but companies must understand the interaction points
between customer and brand which talks about how customers perceive a brand.
In mature brands this point is very essential. The product might have fallen out of favour,
or the household might already have the product in inventory and it must be used up before
it will be bought again. In these cases choice can influence perceptions and then usage or
usage can influence perceptions and then choice.
Expanding Brand Awareness
With a fading brand, often it is not the depth of brand awareness that is a problem-
consumers can still recognize or recall the brand under certain circumstances. Rather, the
breadth of brand awareness is the stumbling block-consumers only tend to think of the
brand in very narrow ways. Therefore, one powerful means of building brand equity is to
increase the breadth of brand awareness, making sure that consumers do not overlook the
brand and that they will think of purchasing or consuming it in those situations in which
the brand can satisfy consumers' needs and wants
Exploring New Uses that Revitalize Old Brands
Mature brand manufacturers are increasingly researching and developing ways to market
new uses for their products. In order to increase the frequency of usage, additional
applications of the product, either within the situational category or across category,
provides an ample opportunity for increased sales. Arm & Hammer cleverly rejuvenated
its product and brand when the slow-down in home baking adversely affected sales by
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emphasizing its two greatest attributes: the cleaning and deodorizing properties of its
product. By demonstrating myriad uses for baking soda in the home—personal care, pet
care, and home cleansing and deodorizing—Arm & Hammer turned slumping sales into
major sales increases. Then, the company further leveraged its brand’s cleaning and
deodorizing properties into major brand extensions: oral care and laundry care. These new
category extensions have been successful for the 150-year-old brand, which continues to
enjoy great heritage, even as it continues to attract new and ever-younger generations of
consumers.
Improving Brand Image
Although changes in brand awareness are probably the easiest means of creating new
sources of brand equity, more fundamental changes are often necessary. A new marketing
program may be necessary to improve the strength, favourability, and uniqueness brand
associations making up the image. As part of this repositioning to the existing positioning
any positive associations that have faded may need to be bolstered, any negative
associations that have been created may have I be neutralized, and additional positive
associations may have to be created.
Repositioning the Brand
Repositioning the brand requires establishing more compelling points of difference. This
may simply require reminding consumers of the virtues of a brand that they have begun to
take for granted.
Changing Brand Elements
Often one or more brand elements must be changed to either convey new information or to
signal that the brand had taken on new meanings because the product or some other aspect
of the marketing program has changed. The brand name is the most difficult to change.
Packaging, logo and other characters may be changed.
Entering New Markets
Positioning decisions require a specification of the target market and the nature of
competition to set the competitive frame of reference. The target market or markets for a
brand typically do not constitute all possible segments that make up the entire market. In
some cases, the firm may have other brands that target these remaining market segments.
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In other cases, however, these market segments represent potential growth targets for the
brand. Effectively targeting these other segments, however, typically requires some
changes or variations in the marketing program, especially in advertising and other
communications, and the decision as to whether to target these segments ultimately
depends on a cost-benefit analysis.
Changing Brand image
One of the best examples of the successful corporate revitalization is Samsung. In the mid
1990’s, Samsung Electronics’ chairman and senior management made a landmark
decision. They decided that Samsung would no longer provide commodity electronics
products to the world’s retailers, including WalMart, but would instead focus on the
development of innovative product design and stake out its own claim to become a global
brand. The company focused on product innovation and brand-design strategy, and saw a
meteoric rise in sales and brand value in a few short years. The transformation of
Samsung's image from manufacturer of commodity electronics to a product innovator and
leader has provided global business with a stunning brand revitalization blueprint. In the
2005 Interbrand and Business “Annual Report: Global Brands” ranking, Samsung was
rated as the 20th most valuable brand among the world’s top 100 global brands. The
company’s brand value was assessed at $14.9 billion!
Adding value to the product
Another striking example of corporate as well as product revitalization is Cadillac. A long-
loved American luxury automobile brand, Cadillac started dying a slow death in the past
few decades with its stodgy image and lack of consumer relevance. Even mature, affluent
buyers of luxury cars were buying Mercedes, Lexuses and BMWs. Enter in the Escalade—
a powerful SUV loaded with bells, whistles and plenty of edgy urban appeal. Urban appeal
for an affluent, young, hip audience that is willing to shell out $60,000 on average to drive
a Cadillac! Enter in On Star technology to GM’s options package for Cadillac, as well as
its other brands, and there is clearly a perception of additional value, as well as
differentiation from other luxury automobile brands. Once a dying brand, Cadillac is now a
21st century, urban symbol!
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The Process of Rejuvenation
Brands sometimes have had to return to their roots to recapture lost sources of equity. The
meaning of the brand has had to fundamentally change to regain lost ground and recapture
market leadership. Reversing a fading brand's fortunes thus requires either lost sources of
brand equity to be recaptured or new sources of brand equity to be identified and
established.
Fig: Reasons for Brand Rejuvenation
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Process of Brand rejuvenation
Sufficient potential in the brand should be detected in order to revive the brand so as to
justify its rejuvenation plan.
Causes for rejuvenation
The first approach is Brand audit has to be carried out in order to find out that brand is
completely lifeless at that point. This is followed by brand awareness study to establish
whether people still remember the brand and if so under what circumstances.
Ghost Brands are brands that are shadows of their former selves. Ghost brands are once-
famous brand name that remains on sale but is no longer popular. They walk the fine line
between life and death, and are often demoted to the bottom shelf, which is the death row
in many stores. The companies, which own these brands, have four options:1) Revitalize
them, 2) Milk them, 3) Sell them, or 4) Kill them. In case of companies which have truly
become ghosts, the rejuvenation plan may be long and difficult. But it is all the question of
accessing the investment compared to the expected final return. In India, Lakme lost its
base due to competitors like Revlon, Oriflame, L’oreal entered the market due to opening
up of the economy. It affected Lakme but with Lakme fashion week, a national level event
charged with hype, hoopla, and most importantly gargantuan doses of fashion, this glitzy
event helped Lakme re-establish itself as a contemporary, fashionable brand, one which
Indian women would feel proud to use. Strategically, even the bi-annual structure would
have been of some help in this regard, as this brought up a direct link to the fashion events
in Europe, where Spring and Winter collections are the norm.
Second approach is when stakes are high. When the business unit is no longer viable to
continue, it is observed that it is too late and that the effects of ageing are too significant to
be able to be defined, offset and overcome and the brand is left to its sad fate which
occurs in a very short time. General Motors recently reached a conclusion that one of its
divisions Oldsmobile was phasing out and would be discontinued and it would be done
progressively. This decision was taken as the investment would not improve the brand’s
image and subsequently it would hamper then brand image of General Motors.
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Third approach is to sell off the brand by the company. This allows income to flow into the
company and it could help develop other brands.
Determining age of the brand
As we have discussed before Brand or a product has a life cycle. This Life cycle is crucial
for the company to know the age of the Brand. Age is a very interesting notion because for
brands it is as perceived by the other people irrespective of the fact that the brand is old.
This is very difficult to calculate the age by its consumers.
The chronological age is determines only the age of the brand but more importantly we
need to know the biological age. The biological age is based on the health of the brand
which is very subjective hence the criteria to evaluate it hinder the calculation.
The brand manager has to keep in mind while evaluating the brand. An average individual
may believe the brand to be far older than it is in reality and that over and above any
longecity it may have, the individual perceives it primarily as being old. But it also
indicates that a non-average individual may consider the brand to be much younger than it
is in reality and in addition he or she perceives it primarily as being up to date.On other
hand this is undoubtedly the most important point, it means that because this perceived age
is not solely based on objective grounds it may be possible to influence it using an ad hoc
marketing strategy.
Advertising
Brand awareness is built with the help of advertising. Although it is helpful for the
company but sometimes due to incorrect or limited information also results in decline of
the interest of the target market. When Maggi noodles launched in India about two decades
ago, it could not capture the market due to lack of product knowledge. Nestle could not
understand why it sales were not increasing despite the fact it is easy to cook. Hence
concept marketing was born where it tried to explain the process of cooking the Maggi, 2
minute noodle.
We've gotten so comfortable with our old ideas about marketing that we let this one slip
by, but it's a whopper: Brands don't exist, at least not like rocks or tax returns. Brands are
ideas that have no external existence or legitimacy apart from the creative agency of
22
human experience. Brands aren't things but rather conclusions, and therefore have no
voice, reputation, attributes, or actions that aren't the result of somebody doing something
(or something happening to them).
When we track brand perceptions or awareness, we're really taking snapshots of moments
in time, and it supports a really old-fashioned, analog way of understanding branding as
something that will sometime, somehow make people do something. Every assumption of
what those measurements mean a minute, hour, or week after we last checked is less a
causal link and more an inferential hope. There are no brands separate from people
thinking about brands.
This should make it impossible for your brand to talk to consumers. People can do things
because of a brand idea, and in its support or to its detriment, but they can only talk about
your brand, not with it. It's what they always did, only now social media channels are an
immensely powerful enabler of deeper, wider, and more frequent conversations. Changing
your fundamental definition of how you approach your branding would change not only
how you use social media, but also repurpose all of your marketing communications to
make every interaction an opportunity for individuals to say things about your brand.
Target Market
If the product is not selected for correct target audience it fails to keep its presence felt.
The brand should connect to the target audience. Vanilla coke under the Brand
Coco Cola faced this problem. Vanilla Coke was touted as the greatest innovation since
Diet Coke in 1983. The brand went global in 2004.
2004 saw the unusual scream " Wakaw" played across mass media. We all looked up in
awe : a brand new variant from Coca Cola : Vanilla Coke. The brand was targeted at the
metro youth was different. It was different in taste, promotion, package, price etc.
Vanilla Coke was promoted in retro style. The brand had Vivek Oberoi , the then
bollywood flame endorsing the brand in an unusual style. Vivek sported the retro look with
typical combination of Elvis style + Shammi Kapoor style in an Old Lamby Scooter
screaming Wakaw. The ads were surely clutter breaking and backed by 360 degree
branding efforts that ensured good publicity. The creative done by the famed Prasoon Joshi
was discussed in all media and that ensured truckloads of free publicity. The brand also got
into viral marketing. The campaign along with Contenst2win asked the customers to SMS
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Wakaw to 8558 in order to win goodies. According to media reports, the campaign
resulted in 440,000 SMS in just 4 weeks creating a record of sorts.
According to Indiatelevision.com report, the media brief given to the agency was to create
a clutter breaking campaign targeted at youth. The campaign should create a dhamaka in
the market. And rightly so all the client requirements was achieved with in a short span of
time.
But how come a product with such a good start failed so easily. Within one year, the brand
has been taken out from most of the Indian states. The brand is said to be available in
Gujarat, Kolkatta and Delhi. The factors that may have caused the failure of this brand are:
a. The product may have been bad. The TG may not have liked the taste. Although Coke
has test marketed this product, there is always a chance that the customers may have
disliked the taste.
b.The campaign was not targeted at the right segment. This campaign had its fair share of
critics also. I liked the campaign because I have seen the old stars and the lamby etc and
could easily relate the old characters and the concept. But for a twenty year old, he may
not relate or understand the concept. The brand may have lost out in that respect.
c. The brand was priced at a premium over the ordinary coke. This may have discouraged
the TG from checking out the brand. Together with the retro campaign not clicking with
the intended audience may have given a double whammy for the brand.
d. Indian SD industry is a duopoly. Pepsi and Coke rule the roast and there are brand loyal
on both sides. The new variant will be tested first by the Coke loyal and not the Pepsi
loyal. Hence like most of the Product line extensions, the variant will be pitted against the
mother brand. Hence the customers may have compared the new variant with the classic
coke and not as a new drink.
Declining range of Products
The decline of range of products is very often associated with the decline of the category
itself, except in specific and fortunately very rare cases in which the company in question
naively allows the whole of one its ranges to fall into utter neglect. In every case, the cause
of ageing has its roots in a characterstic which is common to all of the products in question
even though the products themselves remain different. It may result in dramatic shift in
fashion that renders the rand and/or category of products entirely out-dated and outmoded.
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Principles for Rejuvenation
Rejuvenating a brand requires new knowledge. The following methodology will provide a
three-dimensional understanding of the current equity in the brand.
Reviewing of the current business strategy: the products and/or services the
company is offering, the number of products and/or services offered, the costs of
producing and delivering these products and/or services and the primary customers
of these products and/or services.
Conduct qualitative research with your current and former customers: How can you
refine your definition of your most desirable customer demographically, psycho-
graphically and behaviorally? What do they think and feel about your brand today?
Why and when do they choose your brand over competing brands? And what are
the sources of trust when customers are choosing a brand in your category?
Conduct a competitive brand audit with your customers: What is the contemporary
consideration set? What is the position each brand owns in the mind of the
customer?
Conduct a visual and editorial audit of current marketing and communications:
What are you communicating to your customer about your brand?
Keeping in mind the causes of Rejuvenation the following can be done:
1. Brand/Product life cycle has to be expanded2. Modifying the brand’s identity3. Dynamizing of advertising4. Renewing the target market5. The expansion of product portfolio
Bottom line: revitalizing a corporate brand when consumer research signals the time is
right, or sales have either come to a plateau, or begun to slump, is an essential component
of ongoing brand management. Revitalizing a brand’s products contemporizes and gives
new life to what could have been perceived as a tired, aging consumer goods line. Finally,
once the corporate brand and product line have been revitalized, rejuvenating the
packaging allows the CPG company to communicate its new, realigned brand message,
prioritize its communication hierarchies and share our firm refers to as its Enjoyment
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Assets™ fully with its customers. And nothing continues to build on the brand’s heritage
and equity with more power than that.
According to the author Larry Light, Former McDonald’s CMO and Joan Kiddon,
President,COO of Arcature LLC, six rules of Revitalisation are
1. Refocus the Organisation
2. Restore Brand Relevance
3. Reinvent the Brand Experience
4. Reinforce a Results Culture
5. Rebuild Brand Trust
6. Realise Global Alignment
When the goals of the company is understood by its employees, they move in the same
direction and hence things fall into place. Organisational alignment provides clarity of
purpose, defines a common brand and business vision, moves the organisation towards the
same destination, sets priorities, ensures brand consistence and defines common goals and
measureable objectives.
We will now see some case studies to understand whether Brand Rejuvenation has worked
for the companies or not.
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Cases of Brand Rejuvenation
Case 1 : Sony
Brand history
Sony Corporation commonly referred to as Sony, is a Japanese multinational
conglomerate corporation headquartered in Kōnan, Minato, Tokyo, Japan. It ranked 73 on
the 2011 list of Fortune Global 500. Sony is one of the leading manufacturers of
electronics products for the consumer and professional markets.
Sony Corporation is the electronics business unit and the parent company of the Sony
Group, which is engaged in business through its six operating segments – Consumer
Products & Services Group (consumer electronics, game & network services),
Professional, Device & Solutions Group (B2B products & services), Pictures, Music,
Financial Services and Sony Ericsson. These make Sony one of the most comprehensive
entertainment companies in the world. Sony's principal business operations include Sony
Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer
Entertainment, Sony Music Entertainment, Sony Mobile Communications (formerly Sony
Ericsson), and Sony Financial. As a semiconductor maker, Sony is among the Worldwide
Top 20 Semiconductor Sales Leaders.
Sony Revival
Sony after a long time, a brand other than Apple is creating a global buzz about the
impending launch of one its product. Sony with the launched PlayStation 3 which seemed
to have stuck a chord with consumers once again after a long hiatus. It was high time that
one of the world’s iconic brands started reclaiming its rightful position as the leader of the
consumer electronics market. Even though PlayStation 3 seemed to have brought back
some energy and zest for the brand, it is an irony that the life of such a strong global brand
has come to depend on a single product. As one of the pre-eminent global consumer
electronics brand which has enjoyed unparallel brand equity and loyalty, Sony is
surprisingly a classic case study for what a brand should not do to erode its own brand
standing in the market place.
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Over the last couple of years, Sony has been gradually but surely slipping from its ivory
tower and failing to keep up with many of its followers turned competitors such as
Samsung, LG and others. What did Sony do wrong? How could such an iconic brand get
into trouble? This article examines the brand lifecycle of Sony and more specifically
address the issue of how Sony can rejuvenate itself and remerge as the global power brand
and a force to reckon with.
Brand and focus
One of the highly discussed topics in branding is the relevance of maintaining consistency
for brands in the current market place which is characterized by diverse cultures,
increasingly empowered consumers and ever changing trends and consumer preferences.
Consistency is often mistaken by brands for complacency or static existence. Consistency
in the branding lexicon refers to the ability of the brand to convey to the consumers in a
single voice across all customer touch points, the fundamental building blocks of any
brand namely the brand identity, brand image, brand personality, brand essence, key
performance indicators such as quality, features, price points and such. But such a
consistency should not come at the cost of the brand refusing to constantly adapt to the
dynamic market structure. Obviously carrying out these two seemingly contradictory
things becomes highly challenging. Such a complex maneuver proves even more difficult
for an established brand such as Sony, as it will have entrenched brand structure, and brand
management practices. Even though there are many specific reasons for Sony’s slide from
the top, at a corporate level, Sony’s inability to manage consistency while constantly
changing appears to be at the root of Sony’s decline.
An analysis of Sony’s ascent to global prominence and the reasons for its slide from the
pinnacle during the last couple of years brings to fore some pressing reasons. Three major
factors contributed to Sony’s ascent to global supremacy in the consumer electronics
sector and they are:
1. Innovation: Innovation, to a great extent, defined the brand character of Sony.
Sony grew to global prominence due to its ability to constantly create products
even before other companies could conceptualize them. Further, Sony had the
ability to sense the hidden consumer demand and create entire product
categories through its innovative products. When Walkman was introduced into
the market, there was no existing market for portable music. But Sony’s
innovative product brought about an entire generation of products and created a
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new category altogether. Such an innovative culture differentiated Sony from
the other consumer electronics brands for a very long time.
2. Visionary leadership: Sony is a classic case to prove the strategic importance
of a visionary leader in carrying a brand to dizzying heights. Sony’s
management team along with the CEO was responsible to create an
environment that nurtured experimentation, and innovation. Further, Sony was
one of the early Asian brands to recognize the importance of branding, which
was again supported and lead by the management team.
3. Pioneer advantage: Given the innovative edge, Sony emerged as the pioneer
in almost every sector that it was operating in. Being the first mover or in many
cases, the inventor of the category, Sony had a great leeway in defining the
rules of the game as it were. It set the expectations for the other companies that
entered the category. Also, the brand image was enhanced every time a
competitor imitated Sony as it became an indirect way to accept Sony’s
leadership position. Being the pioneer also offered Sony an opportunity to
make more mistakes, test new ideas, and experiment with innovative concepts.
As can be seen, each of these three factors lead into each other thereby creating a virtuous
circle. The combination of these factor pushed Sony into the exclusive club of iconic
brands. But over the last decade, Sony seems to have lost the magic formula. It has been
gradually sliding down from its high seat. Many reasons have contributed to Sony’s
decline:
1. Unrelated diversification: An important and unique factor that has
distinguished several Asian businesses from other Western business is the
extent of diversification. Controlled and managed largely by business families,
companies blow up into conglomerates that does business in very diverse and
unrelated industries. Many Asian companies such as Samsung and LG that
have become global forces to reckon with also started as bloated
conglomerates. But these companies seem to have learnt the importance of
focusing on core competence. As such, Samsung trimmed down its
organization, came out of unrelated industries and channeled its resources
around one or two dominant businesses. But Sony still seems to have stuck up
in multiple businesses. This sort of unrelated diversification not only drains the
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brand's resources to a great extent but also diverts the brand focus from the core
of the brand.
2. Innovation dearth: Case of Apples’ iPod explains this point very well.
Walkman made Sony the undisputed leader in portable music player category.
As is the usual case, success breeds corporate complacency. As such, Sony did
not follow up with any outstanding and innovative product line to sustain the
initial success. Apple came out with iPod that appealed to the younger
generation worldwide and also established its standard iTunes from where
consumers could download songs for a nominal payment. This not only
established Apple as the undisputed leader in mobile music market but also
helped Apple to establish the industry standard. This dented Sony’s brand
reputation. Sony has suffered similar challenges from many brands such as
Samsung, Nokia, LG and others in different product categories. Sony’s lack of
consumer oriented innovation has contributed greatly to its decline in recent
years.
3. Lack of brand evolution: Sony’s past surely contributes an enormous amount
of heritage, history and achievements into the brand identity. But for a brand to
be successful in the current ultracompetitive globalized market place, it has to
make itself very relevant to the current customer segments. Harping back on
past laurels and expecting the customers to still support the brand due to its past
glory will be a grave mistake as has turned out in Sony’s case. Sony has not
been very successful in evolving as the brand for the new masses of the twenty
first century. Apple, Samsung and a few others have hijacked that from Sony.
As such, the brand has not been in with the times as it were and that has
contributed to its slide from the top.
Analysis of the Case Sony
From the case so far, it is clear that Sony has not been very prudent in managing its brand
and its components very well over the last few years. But even then, Sony still continues to
be one of the most valuable brands in the world. What should Sony do to regain its lost
brand supremacy? It seems ironic that for a solution Sony may want to look at a brand that
prides itself on structuring its brand plan based on Sony's - Samsung Electronics. Samsung
Electronics has been hugely successful in creating a brand from scratch and making the
brand one of the top consumer electronics brand in the world. If Sony has to regain its lost
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brand supremacy, then it may want to follow some of the fundamental steps discussed
below:
1. Regain focus: Effects of unrelated diversification has been very pronounced
for many family owned Asian conglomerates. Operating in a number of
unrelated businesses is often justified on the logic of scale and scope
economies. But from a brand perspective, such diversification will be more
detrimental than helpful. Sony, like Samsung, should conduct a due diligence to
evaluate the financial and brand worth of its different business units. Before the
unrelated business units erode the equity of the core Sony brand, it would
benefit Sony to come out of such businesses. Regaining focus and investing in
nurturing and enhancing its core competence will be the first necessary step
towards regaining brand leadership.
2. Elevate marketing/branding to the boardroom: Sony should revamp its
departments that have a direct impact on creating strong customer perception
for the brand - R&D, design, and marketing. For innovation to make any brand
sense, it has to reflect consumer preferences. Innovation has to lead to products
and services that would enhance the relationship between the brand and the
consumer. For this to happen, R&D, design and marketing have to become
more customer-centric. In other words, Sony needs to elevate the marketing
function to the boardroom and enable marketing to take a lead of the business
and the strategy. Marketing and branding can no longer be relegated to a
tactical level handled by marketing managers who hardly have an appreciation
of the larger picture.
3. Brand oriented leadership: Over the last couple of years, many brands have
emerged from Asia that provide tough competition to Sony. Further, with the
resurgence of many American brands, the market place has become extremely
competitive. In such a scenario, Sony’s path back to brand supremacy can
happen only if it is guided by a brand oriented leadership. The CEO and the top
management team at Sony should evaluate the meaning and identity of the
Sony brand to its customers in these changing times and enable the brand team
to innovate and lead the industries in which Sony operates in.
4. Design, features and the cool factor: Given the aggressive strategies of
Apple, Nokia, Samsung and others along with their superiority in design,
customer oriented features and the loyal following of “cool” customers, it
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becomes very important for Sony to regain the cool factor and beef up its
designs and features. Relevance to current customers and the ability to morph
into a brand that can reflect customer needs prove very crucial for Sony as it
charts its path back to the top position.
The brief market euphoria that would follow the launch of PlayStation 3 should not be
confused with long term brand success or the return of Sony as it were. Even though this
latest product will allow Sony a much need breather, it should just be a starting point for
Sony’s resurgence. Sony, by methodically evaluating its brand culture and following the
steps described above, could surely rejuvenate itself in the long run.
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Case 2: Tropicana
Brand History
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost
everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into
one of the most respected beverage brands. Widely regarded as the world's no. 1 juice
brand, it is today available in 63 countries. Since 1998, Tropicana has been owned by
PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in 2008.
Brand Advantage
Tropicana continues to select the best fruit to manufacture high-quality juices and original
products, pioneer innovative processes and explore new markets for its products. It is
committed to fostering healthy lifestyles by ensuring that its products are naturally
nutritious and provide the daily benefits that one needs.
In India, Tropicana was launched in 2004. It comes in two categories: 100% Juices (sold as
Tropicana 100%) and Juice Beverages & Nectars (sold as Tropicana).
Re-Branding
Tropicana's rebranding debacle did more than create a customer-relations fiasco. It hit the
brand in the wallet. The iconic straw in orange, created by Sterling Brands, was replaced
by a generic glass of orange juice, prompting many confused consumers to comment that
Tropicana had lost its identity—it now looked more like an uninspiring, generic store
brand, rather than the premium brand it was. An attempt to modernize a slightly dated look
stripped the brand of its pure, natural, and fresh personality.
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Fig: Old packaging vs New Packaging
The new Tropicana Pure Premium packaging (left) had been on the market less than two
months before the company scrapped the redesign.
After its package redesign, sales of the Tropicana Pure Premium line plummeted 20%
between Jan. 1 and Feb. 22, 2009, costing the brand tens of millions of dollars. On Feb. 23,
the company announced it would bow to consumer demand and scrap the new packaging,
designed by Peter Arnell. It had been on the market less than two months.
A swift reversal
Now that the numbers are out, it's clear why PepsiCo's Tropicana moved as fast as it did.
According to Information Resources Inc., unit sales dropped 20%, while dollar sales
decreased 19%, or roughly $33 million, to $137 million between Jan. 1 and Feb. 22.
Moreover, several of Tropicana's competitors appear to have benefited from the misstep,
notably Minute Maid, Florida's Natural and Tree Ripe. Varieties within each of those
brands posted double-digit unit sales increases during the period. Private-label products
also saw an increase during the period, in keeping with broader trends in the food and
beverage space.
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The entire refrigerated-orange-juice category posted flat unit sales and a 5% decline in
dollar sales during the period. As the leader in the category, it makes little sense that
Tropicana Pure Premium would see such a drastic sales decline while the category
remained relatively flat, industry experts said. Through Feb. 22, Tropicana Pure Premium
accounted for about a third of sales in the refrigerated-orange-juice category.
Tropicana: no connection
A spokeswoman for Tropicana in an e-mail said, "No dots to connect here." The company
did not respond to further requests for comment.
"It surprises me that their performance is so different from the rest of the category," said
Gary Hemphill, managing director-chief operating officer at Beverage Marketing Corp.
"It's a little tough to draw conclusions over such a short period of time. But I would say
that's unusual."
Mr. Hemphill said typically when a beverage brand undergoes a rebranding it signals
increased marketing expenditures and leads to improved performance, at least in the short
term. "It gets people to look at the brand again and brings some kind of news and
excitement around the brand," he added. Tropicana had certainly sought to create
excitement around the Pure Premium rebrand, announcing Jan. 8 a "historic integrated-
marketing and advertising campaign ... designed to reinforce the brand and product
attributes, rejuvenate the category and help consumers rediscover the health benefits they
get from drinking America's iconic orange-juice brand."
'Black eye'
Beverage experts were hard pressed to think of another major brand that had pulled the
plug on such a sweeping redesign as swiftly as Tropicana. "It's a black eye when you have
to backtrack that quickly," said Bob Goldin, exec VP at Technomic. "There must be
another example but nothing comes to mind. Tropicana is a big brand, and it was a big
restage. This is something that I'm sure they were not happy about."
While it's impossible to say whether Tropicana has permanently lost share, as a result of
the blunder, competitors are likely taking note. "We think the Minute Maid brand has
opportunity for growth, and we're working hard to make that happen," said Ray Crockett, a
Coca-Cola spokesman.
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Case 3: Onida
Brand History
Household name in television Onida was founded in 1981 and by1982 the company had
started assembling television sets at its own factory. Superior products backed up by
distinctive design, cutting-edge advertising and purposeful marketing made Onida a
household name in India. In addition to televisions, the company has recently made a foray
into other household appliances, including air-conditioners, washing machines, DVDs and
home theatre systems. For business and industry, Onida has introduced state-of-the-art
multimedia presentation products.
Advertising blunder
Onida, is still well known for its brand mascot ‘The Onida Devil’ and its punch line
“Neighbor’s Envy Owner’s Pride”. In the 1980s when owning a television set was
considered a luxury, Onida launched its advertising campaign on the platform of envy, to
promote its television range.
A green-horned devil with a long pointed tail was the spokesperson in all its ad campaigns
till the 1990s. The ‘Devil’ helped Onida gain substantial market share and brand recall
among the customers and become one of the top three television brands in the country. In
1998, Mirc Electronics (the owner of Onida brand) decided to abandon the “Onida Devil”
in its communication campaigns as the brand mascot no longer appealed to the Indian
consumer.
However over a decade now the brand is suffering..
In1998, Onida withdrew the mascot citing the same reasons that they have given now. The
explanation given in 1998 was that Indian consumers no longer find Devil, who
symbolizes Envy, relevant. So they scrapped the famous tagline ” Neighbour’s Envy,
Owner’s Pride ” together with the Devil. But ever since it changed the tagline and mascot,
Onida never found a powerful positioning. After six years of drifting around, Onida
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brought back the Devil with much fanfare in 2004. Media and brand enthusiasts welcomed
the move and eagerly awaited the Devil in a changed modern avataar. But the comeback
was damp squib. The brand suffered heavily due to ownership issues within the company.
There was no brand promotion or new product launches worth talking about since 2004. If
at all there were launches, promotions were not sufficient enough.
Reasons for Onida Ailing as a Brand:
Internal management Problems: One of the main reasons for this is the fight
between the brothers : Gulu and Sonu Mirchandani and their brother -in- law Vijay
Mansukhani over the control of the Onida group. The fight has severely eroded the
share of the brand and even the marketing of Onida. Onida was staging a recovery
after the successful re-launch of the brand and the return of the Devil. But the
family feud has made things difficult for the brand.
Frequent change in Advertising: What is interesting about Onida is the branding.
The creative duty of the brand has partly moved from one marketing agency to
another i.e. from Rediffusion to McCann Erickson. But as usual, when the agency
changes, the entire brand elements changes. For Onida, the change till now
unfortunately is always for the worse. When O&M took the brand from Avenues,
the famous tagline “Neighbor’s Envy, Owner’s Pride” and the Devil was taken off.
The brand suffered for almost 10 years and has never recovered since .The change
of agency from O&M to Reinfusion again changed things and Devil returned in a
new avatar and a new tagline “Nothing but the truth” has now come into existence.
The new arrangement is not making things better. In 2007, Onida launched a new
campaign for its A/C and with a new tagline “It can change your life”. Now the
new campaign for the air conditioner features a new Devil and the tagline has again
changed to “Experience the desire”. Onida which already is in deep trouble is
moving on to further confusion with an unnecessary change in the positioning
strategy. The brand has not been able to consolidate the earlier theme based on
‘truth’. Even before establishing it, the brand has repositioned again.
Aging customer base: The customers of Onida have grown older with times and the
brand has failed to connect itself to the current generation. The “devil” in the
advertisements in not helping it either.
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The following factors have diluted Onida’s Brand Equity:
Onida is proving to be a case study about ” How to Mess up a wonderful brand “.
As a marketer, the ownership of the brand should be with the Company and not the
agency. But what is seen is that the brand managers ‘outsource’ the strategy to the ad-
agency. Things are consistent till the agency handles the account. But when the agency
moves on, the new agency resist continuing the existing strategy since it was crafted by the
competitor. So whatever be the quality of the existing branding strategy, the new agency
will try to change it. This has resulted in many brands drifting from time-tested successful
themes to uncharted territory and often sink in confusion. Onida which already is in deep
trouble is moving on to further confusion with an unnecessary change in the positioning
strategy. The brand has not been able to consolidate the earlier theme based on ‘truth’.
Even before establishing it, the brand has repositioned again. Onida has spent about Rs 40
crore on advertising and promotions in 2008 and its ad spends are estimated at Rs 60 crore
for the current year. Mindshare will handle the media duties for Onida.
Brand amnesia: For old brands, as for old people, memory becomes an increasing
issue. When a brand forgets what it is supposed to stand for, it runs into trouble.
The most obvious case of brand amnesia occurs when a venerable, long-standing
brand tries to create a radical new identity, such as when Onida tried to replace its
original tagline with new one. The results were disastrous.
Brand fatigue: Some companies get bored with their own brands. This can
happen to products which have been on the shelves for many years, collecting dust.
When brand fatigue sets in creativity suffers, and so do a sale which was and is the
case with Onida.
Brand paranoia: This is the opposite of brand ego and is most likely to occur
when a brand faces increased competition. Typical symptoms include: a tendency
to file lawsuits against rival companies, a willingness to reinvent the brand every
six months, and a longing to imitate competitors.
Comparison with competitors:
Market characteristics
1. The consumer goods market in India is of USD 4.87 Billion.
2. Around 45 companies cater to this market. Onida is having a very small share of
this market.
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3. In the Indian market space, Brand loyalty is giving way to “value-for-price”
contest.
4. There is an intense competition on price.
5. The companies are Companies focusing on product differentiation, value added
offerings and exchange offers.
The MNCs like LG, Sony, Samsung, Phillips and Videocon command a high market share.
These brands score high on following factors:
Product Line: These companies (LG, Sony, Samsung, Phillips and Videocon) have
a wider product range compared to Onida to target customers from all segment.
Positioning: Their Image of a multinational company in the minds of consumer
helped them to grab market share instantly. It gave a perception that these
companies have better technology. Videocon on the other hand leveraged its MNC
image by it tagline of “Indian MNC”.
Advertisements: LG has Abhishek Bachhan, Samsung Has Aamir Khan, Videocon
had Amithabh Bachhan and now Sharukh Khan, and All these players have used
celebrity to a good effect to endorse their brands. On the other hand Onida has an
inconspicuous young couple which does not make an impact…the devil in this case
would had been very powerful.
Visibility: The companies are associated with events and sponsorships. Like LG
and Videocon are associated with cricket. This has resulted in better brand
visibility.
Recommendations to Revitalize Brand Onida:
In order to revamp its position and brand value in the market Onida should use the
following strategies:
Better positioning: Onida should stick with a uniform positioning strategy rather
than changing it with time as they did.
Celebrity Endorsement: The Company should go for a better advertising. The
company can rope in a celebrity to endorse its brand. This way the brand can be
benefited from celebrities brand equity. We suggest rope in a sports icon or a
bollywood star rather than the inconspicuous couple(as per the current ads) where
the recall value is poor .
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Association with events: The Company has lost its place in the minds of customers.
Also, the loyal customers of Onida have grown older. To regain old customers and
to regain visibility, Association with events can help. Onida’s problem of low
visibility will be solved with its sponsorship of event like rock shows, games,
marathons etc.
Line Extension: The Company should go for line extension in value segment so as
to target more customers in the lower segment. They should introduce more
variants in 14”, 20” and 21” segment. These products will target the young and first
time buyers. These buyers will have an emotional attachment with the brand and as
they graduate to the high end segment, Onida can target them with its high end
products. Onida is now in one of the most difficult times. The brand needs to come
out with a product that will change the game. Changing the mascot is secondary at
this point of time.
Marketing Mix: Onida is facing a marketing problem and more than a branding
problem. Everything is fine with the brand. People recognize the brand. The issue
is on a larger perspective. It needs to concentrate on its entire marketing mix not
just the brand elements. Onida needs to convince the consumers that its products
are better designed and technologically superior. It is about managing
perception .Features can be copied by competitors easily but changing perception is
a difficult task.
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Case 4: Wal-Mart, Revitalising beats Re-Positioning
Mark Ritson's latest column in Marketing covers Wal-Mart's remarkable success in
bucking the credit-crunch blues. The US retailer recently announced an impressive 7.5%
increase in sales for the first three quarters of 2008.
This is some turnaround. Only a year ago most people were saying that Wal-Mart was in
trouble, after several years of stagnant sales, and a so-so share price that lagged low-priced
competitors such as Target (Wal-Mart is the lowest line on the chart on the right; Target is
the turquoise one towards the top).
See here for a typical article from 2007, called "5 ways to fix Wal-Mart". Mark himself
wrote about Wal-Mart's woes.
The risk with re-positioning
One problem Wal-Mart had was the flurry of negative press stories relating to working
conditions. But Wal-Mart's was also making a flawed attempt to re-position the away
from low prices and make itself more aspirational. The brand signed endorsement deals
with Destiny's Child and country singer Garth Brooks, ran an eight-page ad campaign in
US Vogue and even had a runway show at New York Fashion Week. They also started
selling $500 bottles of wine and expensive jewelry.
In trying to make the brand more aspirational, Wal-Mart had forgotten what made it
famous. Perhaps the company had even started believing the negative press, and lost
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confidence in the brand. Therefore, the re-positioning lacked credibility. It was a good
example of "putting a mini-skirt on your grandma".
Revitalisation as a route to growth
As Mark reports, Wal-Mart's leadership changed approach last year. They focused on
revitalising the brand, rather than trying to re-invent it. As covered in an earlier post on the
James Bond brand, this involves:
- Looking back: what made the brand famous? When was it hot?
- Looking forward: what changes in society and competitive landscape do we need to react
to?
The result is a positioning based on the idea of "Save money, live better". This builds on
the brand's heritage of offering low prices (sausage). It adds some emotional appeal
(sizzle) by talking about the end-benfit of being able to spend the savings to live better.
This positioning goes right back to the roots of the brand and the philosoply of the founder
Sam Walton:
“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an
opportunity to see what it’s like to save and have a better life.”
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This direction has a better chance of working for Wal-Mart. It was also perfectly timed to
position the company as we headed into the doom and gloom of 2008. Middle and upper
class shoppers are discovering the benefits of being savvy savers.
And what about that Wal-Mart (blue) share price against the more aspirational Target
(red)? The picture below is indeed worth a thousand words...
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Case 5: Nokia
Known as the project Nokia's new strategy of rejuvenation causing the public opinion to be
in an uproar, besides changing in management and operation framework, most central part
is that the sum Microsoft reaches extensive cooperation, regards the latter's Windows
Phone as Nokia master intellectual mobile phone platform for this strategy, this is the part
letting the industry be shocked most too. In the intersection of staff and street
demonstration and stock price slump and one sing, decline in the, Nokia move ahead while
being brave under new strategy, no matter its strategy is to start from the reason with
objective science to judge, or struggle on the basis of the personal accidental factor or
faction of board of directors, what Nokia should solve at first is probably interior
employee's morale problem, let the whole group twist into the resultant of forces under
new strategy, it makes one to be really superior the intersection of Windows Phone7 and
products, style competent.
Choose Windows Phone to be reason
Think, move the intersection of Internet and world, capture the intersection of one party
and the mighty goal and speech all over the world as to Nokia, choose Microsoft to be still
optimum. Declare, this is only a kind of assumption, the science decision of supposing this
of Nokia chooses importantly to be based on objective reason and judged at first. This
assumption must be based on three prerequisites: First, Nokia open the platform to fully
assess to Android and even, the open platform is not suitable for the most advanced
intelligent terminal; Second, MeeGo or products that Nokia places the great expectations
before this overly advance, or the maturing status waits to improve; Third, the intersection
of function and mobile phone or existing the intersection of Symbian and products support
Nokia, spend some time while being difficult.
A lot of views think Nokia should be selected the open valley song Android but it should
be close Window Phone going from bad to worse. I disagree with this view. Since Nokia
did not choose to embrace Android, but bought Trolltech (very interesting science and
technology) of the cross platform two years ago ,And devoted to MeeGo and increase
income in the platform by cooperating with Intel and it means Nokia assesses Android to
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some extent, whether can move towards opening to assess to the mobile phone operating
system finally.
Though does not approve the view that Nokia should follow the trend and put into Android
camp, hope even more Nokia adheres to original Symbian +MeeGo strategy. Because it is
reported, in every case contacted the person of MeeGo, offered favorable comment to it
and is full of expectation, lie in promise oneself at the connectivity that good at especially,
there are very great advantages, thought to be a piece of subverting products.
However, the formal issue of MeeGo products is postponed constantly, prove respects
such as its stability,etc. have some questions. Get rid of Nokia, think MeeGo products may
still forward end very much at market orientation either, Nokia needs pressing close to at
present further the demand for the intellectual mobile phone of the existing shape put out
the products, this just makes it chosen Microsoft Windows Phone.
Besides the valley song Android, Nokia can also choose the black strawberry of RIM, HP
platform of purchase Palm for the target of cooperating, but the speech but to moving the
world of Internet and capturing this mighty goal all over the world of one party, choose
Microsoft to be still optimum. Software shop of developer, Nokia of resource of
geographic location, Microsoft of search and advertising business, Nokia of Microsoft, all
these let both sides have much complementation, can be moving the field of Internet and
lifting the great waves, direct at rivals such as the valley song, apple,etc..
The pro-American force controls Nokia
No matter whether the staff of Nokia are willing, because a stream of pro-American forces
are controlling Nokia, just later on have so much dramatic strategy transfers.
This is only a kind of inference too, this kind of inference looks that there are conspiracies
that talks about inclination, but it is not a groundless rumour, it is in more than ten in the
world of Nokia like pestilence to spread between the Wan staff, a very great unstability is
plain.
"How? Is Nokia CEO flicker newly elected? ! " This is that an author saw Nokia and
united the first response after strategy with Microsoft, because the one that explored
meaning making the transition to the Internet firm Nokia in recent years by this strategy
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was totally denied, like European enterprise Nokia style this, scalp the intersection of
Nokia and new the Jin Dynasty angstroms of general (Stephen Elop) Lip river, Steve of
CEO, of strategy this It is exactly the paratrooper coming over from Microsoft.
The Canadians Stephen Elop not joining Nokia until last September have subverted the
management culture of Nokia in many aspects: He is that in Nokia's history the first is not
Finns' CEO, and a rare airborne high tube in recent years too. Its predecessor's health
banks up triumphant (Olli-Pekka Kallasvuo)s with earth ,Work in Nokia in 1980,
predecessor CEO namely the incumbent Nokia's chairman's Ollila (Jorma Ollila) again
Also joined Nokia in 1985. Such management culture, encounter the impact of typical
U.S.A.'s professional manager's culture: Stephen Elop is not old Microsoft, he was not less
than two years until operation time in Microsoft, held a post in Juniper network and Adobe
system company yet before this, it is a typical professional manager.
Is it Nokia which resolves the reform that embrace U.S.A.'s management culture
voluntarily? Have not seemed. " Finnish Business " had reported, Ollila originally chose to
serve the veteran Anssi Vanjoki in twenty-year of Nokia and take over Kang PeiKai last
September, but " this kind plans to seem to receive the opposition of American investors
" ,Later on Anssi proposes leaving office, and then Ollila shows too that would leave the
board of directors of the company after the expiration of one's term of office in 2012 by
oneself. Easy to guess, no matter whether the staff of Nokia are willing, a stream of pro-
American forces have controlled Nokia, just later on have so much dramatic strategy
transfers.
The task of top priority calls mind back
It is the people that Nokia should be stable at present: It is the staff at first, secondly it is
cooperative partners, then consumers. Should say, the competition of the mobile
communication field is the European force and competition of U.S.A. force, if the
European camp defeats in the contention taking moving the communication skill as main
competition content the past, in a new generation taking moving Internet as representative
moves and employs the contention of market, the North American force is occupying the
upper hand, because Internet is Americans' leading world at all times.
Since Nokia proposed from traditional communication terminal enterprise to the Internet
firm made the transition 3 years before, Nokia goes on a road to challenge oneself weak
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spot, it is to challenge oneself to embrace U.S.A.'s culture on culture. Do not dare to say
this kind of challenge will certainly not succeed, but it is not the winner's posture after all
to be self-confident and insufficient. And if Nokia have sure to challenge, succeed in
oneself before the 3 year, succeed in the intersection of transition and what of Internet
firm, today's Nokia, demonstrate from the policy-making level self-confidently and
insufficiently at least.
Stephen Elop has published an internal memorandum before announcing the new strategy
of rejuvenation " Our platform has caught fire " . This is said by a speech that totally
ignores Nokia's capability, even if the description of apple, valley song and Asian new
force three-strand competition force is totally correct among them, do not completely
analyze from Nokia's inherent advantage and status in the article, ambition, others of
excessive growth, make a humble estimate of one's abilities, it seems to be should one take
up an official post the intersection of airborne and CEO for several month should make in
half public occasion either at managing tactics. Even as an outsider, will all be thought to
talk and " say " in this speech ,What's more love the staff of Nokia of the company?
So, no matter Nokia leads along rejuvenating the plan and is based on the rational
judgement of Microsoft by hand, some other conspiracy theories exist, the cooperation
with Microsoft is not the a bundle of negatives making the very unwise move, opposite can
really bring the complementary advantage to both sides and lead the hope which move
Internet. The most important one is, cause people are, if has lost people's support, what
kind of decision must be the decision failing. So, it is the people that Nokia should be
stable at present: It is the staff at first, secondly it is cooperative partners, then consumers.
In the field of movable termination, a product vitalizes situations of a company too many,
Nokia has such capability, there is such glamour too in Microsoft Windows Phone7.
However, it is difficult to make a section of superior advanced products, it is that persons
who research and develop are full of enthusiasm and sincere cooperation of self-confident
Herba Cistanches to be required, until strategy shake and under all change, is there such an
environment?
People that grow up in hero's culture, hope the unparalleled hero he is even if lonely even
if late in one's life, it is not the ordinary person's energy to return the total energy finally
according to oneself, demonstrate this spirit that has of heroes. Nokia is the unparalleled
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hero in the mobile field, Microsoft is the unparalleled hero in the field of Internet, we are
cherishing the same hope.
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Case 6: Lakme
According to popular wisdom, a good brand is supposed to be one that sticks in the mind
of the consumers, one which spells out a clear message and has its own unique space in the
targets mind. However, sometimes you find that the niche positioning which you have
worked so hard to get is becoming redundant. At this stage, it becomes important to ask
yourself – Do I need to inject some fresh vitality into my brand? Is there something more I
need to add which the customer is not getting currently?
A good example of this is brand Lakme. Lakme started out about the same time as India,
and at a time when the rest of the country was just waking up to the idea of consumer
industry, the prescient executives at Lakme tapped into the nescient beauty segment, and
for the next few decades, Lakme would go on to own the segment. Lakme came to signify
the beauty of the Indian woman. Interestingly enough, the name is a derivative of the
Indian name Lakshmi, which stands for the goddess wealth, who was also renowned for
her beauty.
However, even with this name behind them, Lakme faced many issues stepping into the
nineties. For one thing, with the economy opening up, there were a plethora of new brands
entering the market. Revlon, Oriflame, Avon and Amway all turned up the heat on Lakme,
and with cheap Chinese brands eating into the mass market, it was indeed a turbulent time
for the brand. One of the main weaknesses was that the brand was being seen as an “old”
brand; it had been the bastion of the beauty industry, but with the arrival of the new
brands, there was an urgent need for it to adopt a more contemporary outlook, or else risk
losing its not insignificant customer base.
Enter Lakme Fashion Week. A national level event charged with hype, hoopla, and most
importantly gargantuan doses of fashion, this glitzy event helped Lakme re-establish itself
as a contemporary, fashionable brand, one which Indian women would feel proud to use.
Strategically, even the bi-annual structure would have been of some help in this regard, as
this brought up a direct link to the fashion events in Europe, where Spring and Winter
collections are the norm.
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Conclusion
Rejuvenation of a brand is a challenging task. It requires commitment to the brand purpose
and brand promise. It requires willingness to change belief systems and practices. It
requires the ability to reject outdated views of marketing. And more important it requires
leadership.
When a brand becomes so successful that no one wants to risk a change it is committing
brand suicide. Remember that avoiding change, accepting complacency and resting on
your laurels is a formula for eventual failure. Brand consultant Martin Lindstrom, author
the book Buy-o-logy, says that, “Brands need to grow with their customers and pay heed to
their ever changing needs, whatever those needs may be”. What got a brand to where it is
today may not get the brand to where it needs to go tomorrow. You need to know what to
keep and what to change.
Introducing a rejuvenated brand is distinct from the introduction of a new brand in three
key ways.
Brand strategists understand that it is easier to put a new idea into the mind of a
customer than it is to change one that is already there. The primary task is to
manage the meaning of your brand as you transition it from its current state to the
desired future state.
Position your rejuvenated brand in the category in which you compete by
repositioning the other brands in that category. This ‘rearrangement’ of the brands
will impact both the customer’s consideration set and their purchasing behavior.
Leverage the heritage of the brand. Remind customers that you have made and kept
your promise in the past. Ensure them that you have the skills to do so today.
If the rejuvenated brand exists in a family of brands, its new strong and favorable
associations can enhance the equity of the other brands in that family.
Finally, while adhering to best brand strategy practices is essential, the ability to imagine
the future is most desirable.
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All companies must regularly re-examine their business practices and their brands . In a
dynamic and complex world staying with successful past approaches may not yield
tomorrow’s superior results.
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Bibliography
1. Six rules for Brand Revitalisation by Larry Light & Joan Kiddon
2. Ebscohost server
3. Marketing Management by Philip Kotler
4. Brand Rejuvenation by Jean Marc
5. www.businessdictionary.com
6. www.citeman.com
7. www.beasuccessfulentrepreneur.com/product-lifecycle
8. www.tropicana.com
9. www.brandchannel.com
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