Brand Strategies Over The Time By Dr.

Ravindra Pratap Gupta

5/26/12

ISSUED IN PUBLIC INTEREST

Advisable All material in slides need not be understood. Use your current working environment and experience to relate to situations. Errors and omissions regrettable. Subject to 5/26/12 corrections on

Quote-1
Customers are short of time and overwhelmed by the choices available to them. They want strong brands that simplify their decision making and reduce their risks Dr Ravindra Pratap Gupta
5/26/12

Quote-2

Strategies have to be flexible as to maintain the pace with the dynamic environment. Only then it is possible have a successful brand. - Dr Ravindra Pratap Gupta

5/26/12

Strategic Brand Management

Brand Identity Identity Implementation Brand Strategy Over Time Strategic Brand Analysis Managing the Brand Portfolio
Leveraging the Brand 5/26/12

Brand Equity

Managing Brands over Time

maintenance of the brand over time. A brand has to consider changes of the marketing environment and external environment and consumer behaviour. Sustaining the brand or reinforcing it and refers to an important concept which is brand equity. Effective brand management requires taking a longterm view of marketing decisions Any action that a firm takes as part of its marketing program has the potential to change consumer knowledge about the brand. These changes in consumer brand knowledge 5/26/12
A challenge that a marketer has to face is the

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

5/26/12

Keller, Aaker & Kapferer Approach

Authors such as Keller (1998), Aaker (1991) and

Kapferer (1992) devoted their studies on how an organisation reinforces brand equity over time. Keller claims that marketers have two consider two elements: 1. What products the brand represents and which benefits they supply or satisfy. 2. How the brand makes these products superior and which are the associations that exist in consumers minds.

5/26/12

In order to build and maintain the brand, should evaluate these considerations.
Brand Brand Brand Brand

Consistency Communication Perceived Value Loyalty

5/26/12

Brand Consistency
One important concept that has to be taken into

consideration is maintaining brand consistency. Kapferer believes that consistency is not a mere repetition but changes in messages, slogan and positioning occur over a period of time and they demonstrate the evolution of the market and the external environment. To do so the organisation has to invest in research and development to guarantee an evolution of the brand according to the environmental, social, marketing and market changes. 5/26/12 Consistency is a difficult concept because the

Brand Communication
The third element to be considered in managing the

brand over time is investment in communication. It makes the difference when products are similar in the category and the market is highly competitive. Furthermore Kapferer adds that advertising is a barrier to entry and the conjunction of advertising and innovation produces added value. Example Cadburys Chocolates

5/26/12

Brand Perceived Value

Another significant suggestion, given by

Kapferer is recreating a perceived value. The author says that the brand has not to stop innovating, launching new products or new versions. It has been also proved that the decline of a brand begins with a slide in the level of perceived difference between it and the competition and, in particular, with the opinion leader of the product category. To preserve the superior image of a brand, Kapferer suggests to: 5/26/12

Brand Loyalty
Finally, a fourth important factor is loyalty. A company,

in order to maintain or build a strong brand, has to keep loyal customers and Kapferer provides two ways to do that: 1. Defensive action: to give the customer no reason for leaving the brand or the company. Example Johnson & Johnson Baby Products. 2. Offensive action: to create a personalized relationship with the client, the basis of a more intimate and therefore more involving bond. Example-LIC, Privilege Banking Account

5/26/12

Ways to Managing Brands over Time

Reinforcing Brands Revitalizing Brands Adjustments to Brand Portfolio

5/26/12

Reinforcing Brands
Use marketing actions that consistently

convey the meaning of the brand to consumers in terms of awareness and image Fortify the brand by raising awareness and building favorable associations - sponsorships, product placements Generally, we reinforce brand equity by marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness and brand image.
What products does it represent? What benefits

does 5/26/12

it supply? What needs does it satisfy?

Reinforcing Brands
Maintaining brand consistency Consistent marketing support in amount and nature Protecting sources of brand equity Fortifying versus leveraging Trade-off Fine-tuning the supporting marketing program

5/26/12

Brand Awareness What products does the brand represent? What benefits does it supply? What needs does it satisfy?

Innovation in product design, manufacturing and merchandising

Consistency in amount and nature of marketing support

Brand Reinforcement Strategies Brand Image How does the brand make products superior? What strong, favorable, and unique brand associations exist in customers minds?

Continuity in brand meaning; changes in marketing tactics Relevance in user and usage imagery Protecting sources of brand equity Trading off marketing activities to fortify vs. leverage brand equity

5/26/12

Revitalizing Brands
Recapturing lost sources of equity Returning to values of original brand Improve the strength, favorability, and uniqueness

of brand associationseither existing or new making up the brand image Repositioning Expanding awareness and image-expand the depth and/or breadth of awareness by improving consumer recall and recognition of the brand during purchase or consumption settings

5/26/12

Expand depth and Breadth of awareness And usage of brand Brand Revitalization Strategies Refresh old sources Of brand equity Create new sources Of brand equity

Increase quantity of consumption (how much) Increase frequency of consumption (how often)

Identify additional opportunities to use Brand in Same basic way Identify completely new and different ways to use

Bolster fading associations Improve strength, favorability, and uniqueness of brand associations Neutralize negative associations Create new associations

Retain vulnerable customers Recapture lost customers Identify neglected segments Attract new customers

5/26/12

Strategies to Revitalize Brands

Expanding brand awareness Breadth challenge Improving brand image Repositioning the brand Changing brand elements Entering new markets

5/26/12

Expanding Brand Awareness

Increasing usage Increasing the level or quantity of consumption Increasing the frequency of consumption Identifying new or additional usage

opportunities

Communicate appropriateness of more frequent

use in current situations Reminders to use

Identifying new and completely different ways

to use the brand

5/26/12

Improving the Brand Image

Repositioning the brand Establish more compelling points of difference In some cases, a key point of difference may turn out to be nostalgia and heritage rather than any product-related difference. Example Mens Hair Dye Other times we need to reposition a brand to establish a point of parity on some key image dimension. Example KTM/Kawasaki Ninza bikes as Sports Bike. Changing brand elements Convey new information or signal that the brand has taken on new meaning Example Baralgan from Sanofi-Aventis
5/26/12

Improving the Brand Image

Go back to basics and tap into existing
Product strategy Pricing strategy Channel strategy Communication strategy

sources of brand equity (e.g., Harley-Davidson)

Create new sources of brand equity (e.g.,

Mountain Dew)

5/26/12

Entering New Markets

One strategic option for revitalizing a fading

brand is simply to more orless abandon the consumer group that supported the brand in the past to target a completely new market segment. Example VIP Luggage

5/26/12

Adjustments to Brand Portfolio

Migration strategies
A corporate or family branding strategy in which

brands are ordered in a logical manner could provide the hierarchical structure in consumers minds to facilitate brand migration. Example: BMW with its 3-, 5-, and 7-series numbering systems

Acquiring new customers

Tradeoffs in their marketing efforts between

attracting new customers and retaining existing ones Firms must proactively develop strategies to attract 5/26/12 customers, especially younger ones. new

Managing Products and Brands Over Time in PLC Stages

Development Stage Introduction Stage Growth Stage Maturity Stage Decline Stage

5/26/12

Stages of the Product Life Cycle

5/26/12

Development Stage
No sales revenue during this stage Components of the product concept:
An understanding of desired uses and benefits A description of the product The potential for creating a complete product line An analysis of the feasibility of the product concept

Customer needs should be discerned before

developing marketing strategy

5/26/12

Introduction Stage
Begins when development is complete Ends when customers widely accept the

product Marketing strategy goals during this stage:

Attract customers by raising awareness and interest Induce customers to try and buy Engage in customer education activities Strengthen or expand channel and supply

relationships Build on availability and visibility Set pricing objectives

5/26/12

Growth Stage

(1 of 2)

Be ready for sustained sales increases Rapid increase in profitability early in the

growth stage that decreases at the end of this stage Length depends on nature of product and competitive reactions Two strategies:
Establish a strong, defensible marketing position Achieve financial objectives that repay investment

5/26/12

Growth Stage

(2 of 2)

Marketing strategy goals in this stage:

Leverage the products perceived differential

advantages Establish a clear product and brand identity Create unique positioning Maintain control over product quality Maximize availability of the product Maintain or enhance the products profitability to partners Find the ideal balance between price and demand Keep an eye focused on the competition
5/26/12

Maturity Stage

(1 of 2)

Typically, no more firms will enter the market Still an opportunity for new product features

and variations Typically the longest stage in the product life cycle

5/26/12

Maturity Stage
Generate cash flow Hold market share Steal market share

(2 of 2)

Four general goals in this stage:

Increase share of customer

Four options to achieve these goals:

Develop a new product image Find and attract new users to the product Discover new applications for the product Apply new technology to the product
5/26/12

Decline Stage
Two options:
Attempt to postpone the decline Accept the inevitability of decline Harvesting Divesting

Factors to be considered during this stage:

Market segment potential The market position of the product The firms price and cost structure The rate of market deterioration

5/26/12

Strategic Considerations During the Product Life Cycle

5/26/12

Quote-3 A problem well stated is a problem half solved. - Charles F. Kettering

5/26/12

Question
Q17. In order to build and maintain the brand,

Which considerations the brand should evaluate? Q18. Discuss the ways to manage brand over time ? Q19. Discuss managing products & brands over time in PLC stages?

5/26/12

Thanks

5/26/12

See you next week!

5/26/12