Brand Revitalization

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
Customer-based brand equity :
Differential effect that consumer knowledge about a brand has on the customers response to mktg. Activity.

Reinforcing
Brands

How to make consumers have the necessary sources of Brand Equity

- Convey the meaning of the brand to consumers.
What product does the brand represent : what benefits does it supply : What needs does it satisfy ?
How does the brand make those product superior ?

1) Maintaining Brand Consistency

e.g . Budweiser, Coca-cola, Hershey : remarkably consistent in their strategies once they achieved a pre-eminent market
leadership position
Marlboro : Western cowboy image : Focused mktg. Comm.
2) Protecting Sources of Brand Equity

Case
P&G : Cascade

Lever Brothers : Sunlight

Cost saving : formula change

(Not so effective in

Levi Brothers attack the weakness

Sun lights fights spots better than Cascade

Immediate Reaction
Change back to original formula

P&G; Inform Lever Brothers of the formula change,

forcing to stop running the comparative ads.

Brand Equity / Key Brand Association of Cascade Virtually Spotless

:P & G fiercely defends their Brand Equity

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

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

Fortifying : mktg. Activities to fortify / contribute to Brand Equity.
Leveraging : mktg. Activities to leveraging / capitalize on existing Brand Equity.
leveling source of equity may become neglected/ diminished
4)) Fine tuning the Supporting mktg. Program
Brand tactics should only be changed when there is evidence that theyre no longer making the desired contribution
to maintaining or strengthening brand equity
5) Product-related associations ;
(Core associations) Product Functional benefit :

/ merchandising : Critical
Product innovations : critical for Performance-Based brands
; not to change product too much, Make new prpduct better not different
Timing of introduction & Announcement .
6) Non Product-related Associations;
Core association non-product-based attributes, symbolic or experiential benefits
Relevance in user & Usage Image is critical
but too frequent repositioning ; alienate (blur image/confuse/alienate consumer

Case Pepsi Youthful Appeal Risky back to Be Young

Nothing else is Pepsi( ) back to Generation Next( );
repositioning .
memory established /dangerous
Convincing new brand claims : must be presented in a compelling fashion( )

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
Revitalizing Brands
: Harley-Davidson, Mountain Dew, Chrysler

Case Addidas Revitalization; Saatchi & Saatchi 1993

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

Performance-oriented product.
product
advertising / athlete sponsor Urban, young audience target
Sponsor World Cup soccer

Push

shelf space share

M/S 2% 5% 4

General Approach

Recapturing Lost Sources

Identifying / Establishing New Sources of Brand Equity
brand meaning reinforce evolutionary revolutionary .
: Profiling brand knowledge structure in order to guide repositioning
: Important to accurately characterize Breadth & Depth of brand awareness, strength, favorability, uniqueness of brand
association held in consumer memory.
, .;
( Extent to which key brand associations are still properly positioning the brand)

Brand Audit

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
Brand Audit
; Comprehensive examination of the health of a brand in terms of its sources of band equity
from
the perspective of the firm and consumer
; Whether to Retain the Same Positioning or To Create a New Positioning
: Desirability, Deliverability of differentiated Brand Associations
CustomerBased Brand Equity Framework ; Provides guidance as to
How to Best Refresh Old Source of Brand Equity
& Create New Sources of Brand Equity

Profiling Brand Knowledge Structure;

Repositioning guidance : Understanding what the sources of brand equity were to begin with.
1)

Expand depth / breadth of brand awareness ( , )

2)

Improve Strength for ability/ uniqueness of brand association

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

1) Expanding Brand Awareness

depth breadth
( recall, recognition brand narrow )

Usage (Increase Usage)
: increasing level or quantity of consumption
: increasing frequency of consumption
A. Identifying Additional & New Usage
-
- (usage situation) remind
[ ] Maxwell Home Fitter pack simples : 1 package
(usage increase)
- TPO
e.g. Holiday event or time of year
- regular usage merits
B. Identifying New & Completely Different Ways to use

Case Cheez-whiz : use in microware oven ( )

Wriglegs chewing gum : substitute for smoking ( )
Tums ( ) : calcium (supplement)

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
2) Improving Brand Image
: to improve strength, favorability and uniqueness
Heritage Brand : ; (trustworthy )
; , . (boring. Uninteresting)
New Products, Ads
Promo, packaging

Must
establish

(relevant usage situations )

user image (contemporary user profile )
(modern brand personality)

Re-Positioning : Target Market repositioining

target mkt. possible segment .
cost-benefit .( - -
)
A. Retaining vulnerable / Recapturing Lost Customers
Oreo : segment regain.
B. Identifying Neglected Segment
P & G Ivory
baby Adult (pure and simple )
&
baby shampoo
C. Attract New Customers
revitalization seg seg
.

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
3) Balancing New & Old Target market
vs. (Trade-offs between retaining existing customers vs. attracting new customers )
.

Acquiring New customers; relevancy , segment ,

. strong personality user image

A. Multiple Marketing Communication Programs
segment .
[ ] P&G Old Spice; .
Old Spice Revitalization ;. whistling
sailor .
[ ] Budweiser (
) .

B. Brand Extensions and Sub-brands

Introducing line extension or sub-brands; Haagen Daz Extraas; Ben & Jerrys
sub-brand .
C. New Distribution Outlets
Target segment ;
) 1970 sunglass , , teen,
loyalty .

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller
4) Retiring Brands
Some brands are not worth saving; brand equity has dried up or damaging,;
Fading Brand: Reduce the number of its product types reducing the cost for support
support milk cow .
( Unilever Lux ; 15 support M/S 3% . )

5) Obsoleting Existing Products

strength, , obsolete .

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

Brand
Reinforcement
Strategies

Brand Awareness
What product 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

Continuity in Brand
Meaning. Changes in
Marketing Tactics

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

Relevance in User and Usage Imagery

Protecting Sources of
Brand Equity

Trading Off Marketing

Activities to Fortify vs.
Leverage Brand Equity

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

Brand
Revitalization
Strategies
Refresh Old Sources of
Brand Equity

Create New Sources of Brand Equity

Expand Depth and Breadth of Awareness

And Usage of Brand

Increase Quantity
of Consumption
(How Much)

Identifying
Additional
Opportunities to
Use Brand in
Same Basic Way

Increase Frequency
of Consumption
(How Often)

Identify Completely New

and Different Ways to
Use

Improve Strength, Favorability, and

Uniqueness of Brand Associations

Bolster Fading
Associations

Retain
Vulnerable
Customers

Neutralize
Negative
Associations

Recapture
Lost
Customers

Create New
Associations

Identify
Neglected
Segments

Attract
New
Customers

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

Why change identities, positions, or executions?

Rationale 1: The Identity/Execution Was Poorly Conceived

Customer Interest, Brand Perceptions, Brand Attitudes
Sales & Share trends Brand Identity .

Rationale 2: The Identity/Execution Is Obsolete

, , /
Identity change .
: KFC, , Fried , CI
KFC .

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

Brand Identity ,

change .
: Johnson & Johnson Baby Shampoo; .
Arm & Hammer Baking Soda

Rationale 4: The Identity/Execution Is not Contemporary

Brand Identity ,
: GE; contemporary value proposition .

Rationale 5: The Identity/Execution Is Tired

Brand Identity boring ,
identity execution change
repositioning .

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

Why consistency( if Done well) is Better?
Consistency or Change?
IPE(identity/positioning/ execution) ?
Not necessarily. Consistency Brand :
Ivory Soap(purity), Marlboro ( Cowboy, masculine, out-door,),
Maytag( functional benefit of dependability, and emotional benefit of relief from worry)
Black Velvet Canadian Whiskey ( soft and smooth, Black Velvet Lady)
Consistency

Brand I.PE identity (enduring) positioning

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

Ownership of Position

( Marlboro, Maytag )

Ownership of Identity Symbol

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

( Maytag repairman, Marlboro country )

Cost Efficiencies
identity symbol

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

Consistency Over Time: Why is it Hard?
IPE Consistency IPE ,
bias .

Pressure to Change Identification/ Execution

Brand Manager Mindset

Strategic Misconceptions

Problem solver/ Action orientation

High aspirations
Identity/Execution Owned by Predecessor

A New identity/execution is ineffective

A New paradigm requires a new identity/ execution
A superior identity/execution can be found
Customers are bored with a tired or stodgy identity/execution

Pressures Resisted

Consistent Brand Identity, Positions

and Executions

Benefits of Consistency
Own Position
Own identity symbols
Cost efficiencies

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

Consistency Over Time: Why is it Hard?
Mindset of Managers
Problem Solver/ Action Orientation

,
action brand equity driver .

High Aspiration

Brand performance .

Owned by Predecessor Identity/ Execution

( ) brand identity
involvement brand identity .

Strategic Misconceptions
New Identity/ Execution is Ineffective
Brand Identity settle-in .
Marlboro man cowboy .

A New Paradigm Requires a New Identity/ Execution

trend . Fad paradigm shift
, paradigm shift identity
.

A Superior Identity/ Execution can be Found

,
.

.
Customers are Bored with a Tired or Stodgy Identity/ Execution
.
,
brand identity . boredom

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

Consistency Over Time: Why is it Hard?
The Panic Attack

,
brand identity .
Miller Lite Case
Light Beer Market Creation
Miller : Created Light Beer Category
Positioning as a beer with great tasting and less filling ( Not as a diet drink )
Heavy Beer Drinkers Appeal
Brand Image Building: Remarkable Success in the 1970s-1980s
Ads: Strong image around Male Camaraderie( ) ( + + fun)
: :
Appealing point: to make the audience feel accepted as part of this group
Miller Lite Customer Relationship .
Decline of Market Share
1980 market share . ( 12.5% 10% )
: Coors Light & Bud Light ; to attract Young beer drinkers
Miller Lite appeal disadvantage .
Miller Reaction
, classic Miller Lite upbeat theme .
Appealing Point: Miller Lite Light Beer , Light Beer
Failure of New Ad Campaign
target audience Miller Lite beer-drinker ,
.

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

Consistency Over Time: Why is it Hard?
What caused decline of Miller Lite?
Brand Equity Questions;
-

Young target ?
Miller Lite identity ? Brand Equity ?
( ) Miller Lite target market( )
? ?
Miller m/s ?
equity MS ?
Brand Identity ?
Brand Essence ?
( Essences: Maleness, acceptance, Fun setting)

Brand Core Identity Execution ,

Brand Identity Brand Identity
.

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

The Search for the Fountain of Youth
Brand Identity Key Elements
.
Heritage Brand ( Heritage Brand : ;)
, , , ,
; , ,
.
1) ( Consumer Brand ( , , 20 )
), 2) High-Tech Brand (
)
Evolving an Identity
Symbols : Symbol Symbol .
Name
: Federal Express FedEx ;
Slogans : Brand identity ,
. (GE case)
New Products : Jell-O: kid/fun association + mom/family ; MTV .
Augmenting the Identity
Jiggler ( kind/fun/ mom equity , fun . )

Identity core identity additional extended elements .

) New Attributes, Different Personality Characteristics, New Market Segment, New User Imagery,
Product Extensions, New Emotional Benefits
Adding User Imagery : Levi Straus
TV : , hip
( , personality )
Product Extension: category , attributes
identity .
Adding an Emotional Benefit: Tasters Choice: Quality Cue

emotional
surrounding
. 3 M/S 3%
Use of Sub brands: Canon Rebel; Agassi , .

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

Providing Links to the Heritage Identity

brand identity dramatic heritage identity
.
heritage identity .

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

Revitalization :
Stagnated Brand Equity + Generate Added Sales + Enhanced Equity
Enhanced Equity : improved recognition, enhanced perceived quality, changed associations,
expanded customer base, increased loyalty

Revitalization Options

2. Finding New
Usage

1. Increasing
Usage

3. Entering New
Markets

Brand
Revitalization

7. Extending
the Brand

4. Repositioning
the Brand

5. Augmenting the
Product Service
6. Obsoleting
Existing Products

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

Increasing Usage
Increasing the Frequency of Use
Reminder Communication:
Position for Frequent or Regular Use:
Make the Use Easier:
Provide Incentives:
Reduce Undesirable Consequences of Frequent Use:
Use at Different Occasion or Locations:
Increasing the Quantity Used
Reminder of related products or service( Cross-selling, Up-selling)
Incentives (promotion)
Affect Usage-level Norm
Address Perceived Undesirable Consequences of heavy consumption
Positive Associations with Use ( through Ads)

Finding New Uses

New functional use for a brand;
Jell-O( dessert) Jell-O Salad
Cereal( with milk) with Ice Cream or Yogurt
Market research
50% .
,

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

Entering New Markets
Van(Use of Commercial Delivery) Consumer Use
Small Refridge ( Home ) Dormitory, Offices
Johnson & Johnson ( Baby Shampoo) Mild shampoo

Repositioning the Brand

Changing Associations;
Inappropriate Positioning Over Time;
- becomes obsolete over time, target market ages, or association becomes less appealing
V-8 Juice ; Repositioned as a healthy drink/ weight control
Campbells Soup: Lunch Supplementary Main Meal Substitutes for adults
Market research
50% .
,
Adding Value by Differentiating: New Associations
commodity : Reposition as an Upscale Branded Products

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

Augmenting the Product/ Service
stagnating/ declining, commodity ,
,
.
WTP /
. .
Theodore Levitt . commodity
feature .
( Do something better or Do something Extra, Something Different)
- (stimulating a new look)
- channel ( Leggs high-quality hosiery in Supermarket concept + total marketing program)
- Computer-based Info. System Foremost-McKesson; , ,

Customer Involvement
Obsoleting Existing Products with New Generation Technologies
revitalization .
: TV, large-head tennis racket, Yamaha Digital Piano(Disklavier),
CD home audio .
. Challenger
<Gillette Case (1960 )>
- stainless ( , 40% ROI )
- Wilkinson( stainless innovator), Eversharp, Schick innovator M/S 70%
55% . ROI 30% .

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

Revitalization - Milking
Milking Divest :
Brand Prospect 1 unfavorable milking
divest(exiting market) .
- Strength of Brand, Equity, intensity and commitment of the competition,
- Market Demand for the Product Class
Multi brand .
- Withholding resources from some brand or allow brand to die
Milking Option: Avoiding investment and generating additional cash flow
- /
-
Milking Assumption;
1) faltering brand, strong competition, eroding market demand ; Unattractive Market
2) firm has a better use for the funds
3) / ; financially, synergistically
4) milking ( .)
Exit Milking Strategy
1)
2) stable profit
3) customer loyalty ( market segment )
4) ; economies of scale,
support
5) milking strategy
Milking / .
- , ,

.
- , milking .
- milking strategy ; ,

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

Revitalization - Divestment or Liquidation

Divest Liquidate:
Brand Prospect milking exit decision

1) .
2) exit barrier
,
milking
3) SCA

4) superfluous mission
5) exit barriers( , )

Milking / .
- / attachment
- .
: IBM 386 286 286
,
Milkerosion
vs. Exit?
;
1) Brand Strength 286 .
2) Market Demand
3) Competitive Intensity

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

Investment Decision in a Declining Industry: Some Strategic Questions
Market Prospects

Competitive Intensity

1. Is the rate of decline orderly and

predictable?
2. Are there pockets of enduring demand?
3. What are the reasons for the decline
is it temporary? Might it be reversed?

4. Are there dominant competitors with

unique skills or assets?
5. Are there many competitors unwilling to
exit or contact gracefully?
6. Are customers brand-loyal? Is there
product differentiation?
7. Are there price pressure?

Brand Strength &

Organizational Capabilities
8. Is the brand strong? Does it enjoy high
recognition and positive, meaningful
associations?
9. What is the market share position and
trend?
10. Does the business have some key
competitive SCAs with respect to key
segment?
11. Can the business manage a milking
strategy?
12. Is there synergy with other
businesses?
13. Does the brand fit with the current
firms strategic thrust?
14. What are the exit barriers?

Brand Revitalization Keller vs. Aaker

Keller
Expanding Brand Awareness
Identifying Additional & New Usage
Identifying New & Completely Different way to Use

Aaker
Increasing Usage

Finding New Usage

Improving Brand Image

Retaining Vulnerable/ Recapturing Lost Sources
Identifying Neglected Segment
Attract new Customers
Balancing New &
Old Target Market
Multiple Marketing Communication Programs
Brand Extensions and Sub-Brands
New Distribution Outlets

Entering New Markets

Repositioning the Brand

Augmenting the
Product Service

Retiring Brands

Obsoleting Existing
Products

Obsoleting Existing
Products

Extending the Brand

Making old Brand New - American Demographics Dec. 1997

Brand Life Cycle
Grow Mature Decline - Die
Change of Consumer Needs + Heavy Competition

Negative Attitude towards old brand Revitalization

: Lost appeal, identity, overshadowed by competition
Best way to jump start a mature brand : Understanding its Uniqueness and Equity, and making the most of them.
Increase Brand Awareness; Frequent, consistent advertising
Change usage suggestions or Add new usage
Key to effectively advertising New User for an old brand
making new uses appear similar to existing ones;
seg /
.
Quick way to Increase Usage Frequency positioning a brand as a substitute for product in other categories
; ,
, , Altering package design / size