A Project on Brand Life Cycle

ARTICLE 1:

The concept of brand life cycle has immense potentialities in terms of exploring brand
associations. A brand could have functional, symbolic or sensory propositions depending on
the category of the product and the competitive propositions of several brands competing
with it. In subsequent stages after the brand gets entrenched in the psyche if the consumer,
it introduces variants or gets into related diversification based on the success of associations
on which the brand has been built over a period of time.

For several decades, Lifebuoy has been associated with “germ-killing” and was initially
positioned as a macho soap. The germ killing proposition was extended to a variant” double
action” ,which targeted urban youth and later, another variant “gold” was launched with
young college girls as the target segment. In recent times, the brand has been repositioned
as a family soap on the health platform and has also extended itself into the talcum powder
category. The objective is to probably appeal to the consumers in the semi-urban and rural
areas where the equity of the brand is strong and backed up by the fact that the habit of
using talcum powder is stronger in these markets. Fair and Lovely, the fairness cream which
holds a dominant position in the category, has introduced a herbal variant and the brand
has also extended itself into other cosmetic offerings associated with beauty- anti marks
cream. Pond’s , which was almost a household name decades ago(with its dream flower
talc),has probably been a late entrant in terms of positioning a brand directly against Fair
`and Lovely. Its Fair and Young targets married women.

Cadbury chocolates extended itself to adults with a significant degree of success. Listerine
(in US markets) has branched off into toothpaste based on the strength of its associations.
Fastrack, watch brand from Titan, probably could be developed adequately to enter several
fashion categories if strong associations of the brand are nurtured. There are different and
distinctive stages in the brand life cycle and brands will have to plan accordingly. The
essence of the brand life cycle concept is the brand associations and its extensions are
managed in such a manner that they have a synergy with the functional/symbolic/sensory
needs of consumers.

S. Ramesh Kumar
Interpretation\Analysis of the article by – S. Ramesh Kumar
The case study helps in understanding the difference between a product and a brand. The
current competitive marketing environment during the new millennium is forcing managers
to understand the needs of modern consumers and revaluate the changing opportunities
and threats in an evolving global marketing place. Since inception in late 19th century,
Lifebuoy, was amiable and good citizen brand of India, reaching millions of rural customers
with a promise of ‘health and hygiene’ as a platform of its business. § Its famous advertising
jingle, tandurusti ki raksha karta hai Lifebuoy… was so famous that it enabled the brand
‘Lifebuoy’ to be perceived as a ‘red carbolic soap’ for several decades. The brand passed
through prolonged stages of growth and maturity during most of the second half of 20th
century and was faced with a decline stage during early 21st century with sales falling at the
rate of 15%–20% per year. The downward trend of Lifebuoy carbolic soap sales made
Hindustan Lever Ltd., to withdraw the product category during 2002 and rejuvenate the
brand with prudent marketing strategies by optimally utilising the brand image.

Brand-repositioning is used when the brand has to show multiple uses of the same product.
Like Fair & Lovely used it to target the various segment by introducing herbal varieties and
anti-mark creams. At present Fair & Lovely has also entered the men cosmetic segment with
fair & handsome only for men product. Various companies have used this to introduce new
segments like Pond’s introduced its new variety of cosmetic products and targeted young
college girls.
ARTICLE 2:

Understanding the Brand Life Cycle Model

This is a model I developed in the mid 1990’s to help companies understand how a
particular brand should be positioned and its relation to the company’s overall strategy. I
was helping many senior ad agencies’ executives/planner from New York to Tokyo to use
this to understand their clients’ branding issues. This was based on my extensive study of
US and European companies and their brands in different categories. This model enables
companies to look at their corporate strategies, portfolio of brands and products in a
meaningful way. I have not revisited this since this was published some ten years ago. I
thought you would find this interesting.

The analogy is that all brands basically evolve through four stages. Most of them start as a
Product Brand, and then some are transformed into a Service Brand. Over years of brand
building effort and market presence they gradually become either a Category Brand, which
is defined as having leading market share within a category; or a Personality Brand, which
establishes a strong brand personality that consumers identify with; or an Experience
Brand, which goes beyond traditional service and product excellence with a strong sense of
uniqueness.
Procter & Gamble is not particularly well known among consumers, while its brands—Ariel,
Tide, Pampers, Always, Pantene are all very well known brands within their respective
categories. Another type of brand is an Ingredient Brand, which is actually a co-brand since
it co-exists together with others who might be responsible for physically manufacturing
products or delivering of the service.

Ingredient Brands usually serve the purpose of providing additional trust or confidence and
often signify the use of an exclusive or proprietary technology. Examples include Lycra,
Polartec, Gortex, Windows, Intel, Dolby and Oracle etc. This is the exact opposite of product
brands. By contrast, the technology products communicate at the level of the company
whose credibility and expertise have turned its name into a brand is stressed. The most
successful case is likely Intel. If you buy an IBM computer today (already a powerful brand
name), you will find two other co-brands: Windows and Intel. Twenty years ago we would
not have envisioned the operation system and chip supplier would put their brand side by
side with IBM. Today, however, they are top household names.

Ingredient Brands are not new. Only the term is. It existed hundred of years ago in the form
of country brand. Remember all those “Made in Germany” and “Made in Japan” labels,
symbolizing quality and sound engineering. The chemical and pharmaceutical industries
have also become skilled in using the Ingredients Brand. When Du Pont differentiates its
elasthane it becomes a symbol of quality. Without the Lycra label, consumers might believe
that this fabric was a lower quality material. Lycra gave Du Point so much market power
that the whole industry paid premium prices for this material. Du Pont actually made Lycra
fashionable; how often have you heard of a chemical company who provides the material
that has an impact of fashion trend.

After being extremely successful these brands become cash generating trademarks. They
will then sometimes be moved up one level and become a Corporate Brand (the brand
name becomes the corporation) or a Global Brand, expanding geographically to become a
global dominant leader. These different stances illustrate the major strategic choices
required by each corporation, namely the optimum level at which a brand should be
positioned to capture and create shareholder value. Companies sometimes can successfully
move brands to different strategic levels and become the overall brand if that brand is very
successful.

Sometimes a brand needs to move from one category and become a brand of multi-
categories. This is particularly common in fast moving consumer goods. In choosing a
branding level you position against future competition to enjoy the best competitive
advantage vis-à-vis channel partners and consumers. This is always the key consideration
governing the choice of level.

These catergorizations are not mutually exclusive. A brand can be both a global brand and a
personality brand (Virgin) or a global brand and an ingredient brand (Intel). The model
suggests that the ultimate goal for all companies is to have a global brand. A strong global
brand is a powerful weapon. These days, it is an indispensable one, as the economy
challenges our faith in brands to deliver a profit. All studies suggested the most valuable
brands are all global.
Interpretation\Analysis of the article by – Idres Mootee
A model developed in the mid 1990s by Idris Mootee. It was designed to help companies
understand how a particular brand should be positioned and its relation to the company’s
overall strategy. This model enables companies to look at their corporate strategies,
portfolio of brands and products in a meaningful way.

Birth of the brand: The Brand is introduced into the market Publicity campaigns are
launched to promote its functions, features, quality and usage and attract customers to try
out or buy the products.

Growth of the brand: The brand begins to build up its following among consumers during
this stage. The cumulative effect of marketing begins to show and the market share
expands. The company must further step up its advertising efforts, and the advertising must
highlight the characteristics and value of the brand.

Maturity of the brand: Brands have a considerable market share and have reached their
sales peak, with growth beginning to slow down. Brand influence at this stage is at its height
and the kinds of marketing strategies to be adopted are many.

Decline of the brand: Brand awareness is high but sales are on the decline. Other
characteristics include falling prices, weakening competitiveness and emergence of new
products.

Product Brand – Most brands start as a product brand.

Category Brand - defined as having leading market share within a category.

Personality Brand - This establishes a strong brand personality that consumers identify with.

Experience Brand - This goes beyond traditional service and product excellence with a
strong sense of uniqueness.

Ingredient Brand - This is actually a co-brand since it co-exists together with others who
might be responsible for physically manufacturing products or delivering of the service.

Corporate Brand - After being extremely successful these brands become cash generating
trademarks.

Global Brand - expanding geographically to become a global dominant leader.

ARTICLE 3:

Organizations must strive to acquire and build up their internal competencies on branding.
A strong brand is one of the most sought after strategic capabilities; it allows a company to
compete successfully.

This article describes the Brand Maturity Model, which quantifies the degree of brand
maturity in terms of management, development and promotion of brands within an
organization. Companies can gauge the maturity of their capabilities to deliver strong
brands into the market, using an audit exercise shown in the following model.

The Brand Maturity Model divides companies into seven levels of branding capabilities and
each level normally corresponds with the stage of growth experience by the company. The
more mature and systematic brand management and development becomes within an
organization, the stronger the brand is in terms of its performance and contribution to the
company’s success.

Level 1: COMMODITY PUSHERS

The first basic level is what we label as “Commodity Pushers.” Basically Commodity Pushers
don’t own any brands. These companies may own registered trademarks to their products
but they are not brands. (Brands possess certain market powers than just a name and a
mark.)

Companies typically undertake activities that are related to sales and trading of products or
services in their respective markets.

Level 2: SEED BRAND COMPANY

As the business of a Commodity Pusher grows, branding becomes an accidental activity that
will be featured in the business. Apart from sales and trading activities, marketing comes
into play as part of its activities to help push for better margins and sales. Marketing
activities are also carried out to provide its customers perceived values to its products and
services.

Awareness about its products and services also becomes important to help the company
achieve its sales target. The management of the company realizes the importance of
marketing and brand awareness to help them reach out to their target markets.
Level 3: START-UP BRAND COMPANY

Companies at this stage have strong consistent activities in marketing, promotion and sales.
They have now established a market base and some degree of customer base that
frequently buys from them. The ongoing marketing, promotion and sales activities are
typically planned not on the basis to establish a brand in the market. They are a
continuation or expansion from activities with positive results to sales from past trial and
errors.

Due to this ongoing and consistent approach in some of the activities performed, the
products and services inevitably establish an accidental brand image in the market.
Companies begin to help shift their customers’ focus on the strengths of their brands. These
strengths are mainly derived from functional aspects about their products or services such
as faster time, more features, etc.

Management of "brands" at this stage takes the form of promoting the functional strengths
of the products and services. Constantly you will be hearing these companies preaching "our
strengths," "our differentiations," "what we have that others don't," etc.

Aside from marketing, the management of these companies begins to establish the
importance of brand communication. Their product catalogues or communication channels
start to become more aesthetically pleasing. These communications however lack strong
identity and are typically not consistent in the way they are being presented across the
organization.

Level 4: CONSCIOUS BRAND COMPANY

The management of the companies at this level begins to realize the need to have concise
and properly defined brand identity. The brand identity will be developed so that it will be
synergistic with the company's marketing and sales efforts. The purpose is to create and
build the desired brand impression on customers and other brand stakeholders.

The management of such companies no longer tolerates haphazard management of the

brand image and begins to scrutinize details of the presentation of the brand image in every
communication channel.

The brand image is no longer an accidental event but that which drives how marketing, sales
and promotions are to be performed. There will be some form of restrictions that will be
imposed upon tactical planning and execution in promoting the brands. These companies
will usually own some form of brand policies or brand identity guide books.
Level 5: MEZZANINE BRAND COMPANY

Branding now takes on greater strategic roles within the company. The management begins
to allocate more funds specifically for brand building and brand research instead of just
apportioning them from their A&P budget.

The management now demands in-depth data on how the brands impact the market.
Intellectual property rights (IPR) become a concern to the company. Companies begin to
explore more than just protecting their IPRs but also how to better manage and
commercialize their potential.

Differentiation in the brands becomes more than just "nice to have" and "nice to see."
Marketing and brand development activities are systematically planned and deployed to
achieve specific strategic purposes. Brand awareness is relatively strong, thus more
resources now are concentrated on developing the brands as the preferred choice in the
market. Companies at this stage also start to begin investing in audit programs to gain
better knowledge on how their brands are consumed and used.

Level 6: MATURE BRAND COMPANY

Branding is the leading thrust that influences every strategy that the company makes. The
management team talks about implementing the brands' promises consistently and across
all business operations. Investments in branding research, tracking, and audits are given
huge budgets, and are usually geared toward making the brand interact better with its
stakeholders.
Company profits and performance are strongly tied to how the brand performs in the
market. Marketing activities are designed from a brand perspective. Brand trust and loyalty
become important matters that are consistently focused upon. Brands now become the
bridge that links customers to the company's financial performance. Matters with regard to
infringement of IPR are taken seriously.

Level 7: LEADER BRAND COMPANY

Brand building means industry leadership for these companies. The brand governs the
company, in what it does or develops how it acts or behaves. Brands at this point have very
high market value and are extremely influential, even across geographical borders.
Consistency and internalization of brands in the company become important. Business
processes and other brand related processes are often redesigned and improved upon to be
synergistic with brand values, image and promises.

Employees and customers wear a proud badge to be associated with the brand. These
brands possessed very strong market powers such as price negotiation powers.

_____________
Interpretation\Analysis of the above –
In this article The Brand Maturity Model is explained. The Brand Maturity Model divides
companies into seven levels of branding capabilities –

1) COMMODITY PUSHERS
2) SEED BRAND COMPANY
3) START-UP BRAND COMPANY
4) CONSCIOUS BRAND COMPANY
5) MEZZANINE BRAND COMPANY
6) MATURE BRAND COMPANY
7) LEADER BRAND COMPANY

Commodity Pushers – This is the 1st stage of a brand maturity. Here companies don’t
categorize themselves as brands. They are just into the sales and trading of products and
services.

Seed Brand Company - As the company grows, they start undertaking the marketing aspect,
so as to increase their sales as well as their financial returns. Marketing activities are also
carried out to provide its customers perceived values to its products and services. Brand
awareness is also created in this stage of maturity.

Start-up Brand Company – This is the stage where the actual brand identity is created. As
the company increases its sales of goods and services, they acquire a fixed group of buyers
who purchase their services. Companies begin to help shift their customers’ focus on the
strengths of their brands. Their product catalogues or communication channels start to
become more aesthetically pleasing.

CONSCIOUS BRAND COMPANY - The purpose is to create and build the desired brand
impression on customers and other brand stakeholders. The management pays extra
attention in building up the brand because that would help them increase their sales by
entering into new and undiscovered areas of the market. The management does not allow
any haphazard to take place and all the steps are scrutinized.

MEZZANINE BRAND COMPANY - The management begins to allocate more funds

specifically for brand building and brand research. Intellectual property rights (IPR) become
a concern to the company. Companies at this stage also start to begin investing in audit
programs to gain better knowledge on how their brands are consumed and used. More
resources are put into the development of the brand, and brand preferences are created
among the customers.

MATURE BRAND COMPANY – Brand impression, brand trust, brand preference, brand
loyalty and IP management likely become the only major concern for the management of
the organisation. The management team talks about implementing the brands' promises
consistently and across all business operations. Brand trust and loyalty become important
matters that are consistently focused upon. Brands now become the bridge that links
customers to the company's financial performance.
LEADER BRAND COMPANY - Brands at this point have very high market value and are
extremely influential. Brand innovation, brand trust and brand culture play a huge role in
the organisation when they reach this stage of the cycle. Providing services and increasing
sales being the most important area for the firm, branding also become equally important.
ARTICLE 4 :

EXTENDING THE BRAND

Managing the lifecycle of a brand means anti cipati ng and preparing for
brand "aft er-life". Line extensions, innovati ve methods of delivery, next
generati on products are fast becoming the new "aft er-lifeblood" of the
industry. Let’s not forget the importance of the one element that will remain
constant throughout the lifecycle of a brand: the brand name.

Positi oning, packaging and communicati ons are all subject to variance and
change but the brand name will endure. A great name encapsulates the
brand, ignites consumer recogniti on, helps defi ne personality, and
diff erenti ates from competi tors in the marketplace. As the fi rst public act of
branding, the brand name can be leveraged to create awareness and start to
build product pull. Equally, in seeking to extend the life of existi ng brands,
equity that has been established in a brand name during its on-patent life
can provide a solid platf orm for line extensions, new indicati ons and new
formulati ons.

Equity in the brand name, therefore, should not be underesti mated, as

companies seek to maximize ROI by evolving and extending established
brands—whether through new formulati ons, new dosage forms or drug
delivery systems. Consider, for example, Avandia, whose "verbal equity" has
been leveraged successfully in the subsequent evoluti ons of the brand, in
the forms of Avandamet and, more recently, Avandaryl—a balanced blend of
the equity of the brand names Avandia and Amaryl.

As equity in the brand name can be leveraged, so can equity in the brand
identi ty as a whole, including the visual components of the brand, such as
use of color and shape. AstraZeneca’s "purple pill" migrati on from Prilosec
to Nexium can be seen to have become a benchmark example of this within
in the industry. While on-patent life is subject to expiry, trademarks are
renewable—a fact oft en neglected by brand managers. All forms of
intellectual property, therefore, from patent, to trademark and "get-up"
should be protected vigorously.

Nor should equity in the corporate brand be underesti mated. For the most
part, the corporate brand in the pharmaceuti cal industry is a blank canvas,
whose added-value, whose benefi t propositi on is yet to be arti culated in the
hearts and minds of prescribers and pati ents. One could envision customer
loyalty becoming considerably deep-rooted to a company that has built up a
reputati on around developing brands that are "senior-friendly" (for example,
through proprietary delivery systems or innovati ve forms of packaging), or
to a company that has established a level of excellence in customer service.
Once clearly defi ned and eff ecti vely arti culated, corporate brands could
start to create a new level of endorsement, of brand lifecycle added-value.

Conclusions
Branding represents a real competi ti ve advantage, but the questi on remains
as to whether we are making the most of that advantage. Ulti mately, brands
in the pharmaceuti cal industry are the means by which the science is
translated into a commercially viable reality. A good product will always be a
good product, but with other good entrants to market, an integrated,
consistent and sustained approach to developing and managing strong,
disti ncti ve brands will be what helps to translate a good product into a great
brand. In the worst of ti mes (in the struggle for share of voice, in the batt le
against brand exclusivity and in the engagement with the entry of generics),
brands can aff ord us the best of ti mes.

We are witnessing change slowly, but surely, with companies starti ng to

embed brand at a more fundamental level within their organizati ons. We are
beginning to see some companies insti ll best practi ces in brand
development, in terms of Standard Operati ng Procedures, that specify
criti cal endpoints and benchmarks from the initi ati on of early-stage branding
to the fi nalizati on of a ready-for-launch brand. A select few are now starti ng
to make the transiti on of applying those principles to the enti re lifecycle of
the brand. However, the inherent brand mindset within the industry is
fundamentally one of managing the life of a brand, rather than managing a
brand for life.

The industry, as a whole, sti ll has a way to go to shake off the shackles of
traditi onal approaches—to evolve from the way it’s always been done to the
way it can be done. However, this will only happen when we fully accept that
brands, which have long been powerful wealth creators in every other
industry, can have real and long-term value in the pharmaceuti cal industry.
Brands are valuable assets, but only if developed, managed and maintained
as such. As long as we conti nue to see the product life cycle in terms of the
beginning of the end—as long as we conti nue to limit our percepti on of
innovati on to drug discovery—brand life cycle management will, for many
companies, remain a myth.

Only when we recognize the value of maintaining, extending and evolving a

brand, will we succeed in keeping our most valuable assets, brand new, and
in making brand life cycle management a reality.

_____________
Rebecca Robins is Global Marketi ng Director of Interbrand Wood Healthcare
and co-author of Brand Medicine: The role of branding in the pharmaceuti cal
industry. She can be contacted at: rrobins@interbrandwood.com ; tel: 44 207
554 1341.
Interpretation\Analysis of the article by – Rebecca Robins
The life, death and resuscitation of brands

The Authors

Jonathan Groucutt, Senior Lecturer at the Business School, Oxford Brookes University, UK.
He can be contacted at either jgroucutt@brookes.ac.uk or jgroucutt@aol.com

Acknowledgements

By using the metaphor of the human life cycle this article examines some of the longevity
issues of branding. It also explores how brands can be resuscitated (or rejuvenated) when in
declining health or indeed on the edge of death (brand heart attack). Linked to this is the
Darwinian view of adaptability where brands have extended and, indeed, developed their
market position through innovation and re-positioning.

Abstract

Purpose – By using the metaphor of the human life cycle this paper examines some of
the longevity issues of branding. The paper also explores how brands can be
resuscitated (or rejuvenated) when in declining health or indeed on the edge of death
(brand heart attack). Linked to this is the Darwinian view of adaptability where brands
have extended and, indeed, developed their market position through innovation and
re-positioning. Equally, it considers the outcomes when there is little or no hope of
resuscitating the brand, and the future of the organization. Mini cases studies are
provided throughout that illustrate some of the issues in the life, death and
resuscitation of brands. Design/methodology/approach – While using a metaphor the
paper is designed to consider real issues that brands face within dynamic highly
competitive environments. If brands do not adapt (through innovation and re-
positioning) they risk premature decline and death. Findings – The “health” of a brand
is determined by numerous internal and external factors. Some within the control of
the organization others not. Simple errors of judgement can have a catastrophic impact
on the brand. However, though continual monitoring organizations can adapt the
brand to evolve within changing environments. Research limitations/implications –
There is potential for future research in two core areas: developing the human life
span further as a metaphor for brand existence; and considering the ‘vital’ signs for an
ailing brand. This may then lead to a better diagnosis of failing brands and more
informed ways of rejuvenating such brands. Practical implications – Organizations
must seek to continually monitor the ‘health’ of the brand in relation to its changing
environments. Life expectancy can be increased through evolving the brand
(innovations and re-positioning). However, organizations must also recognize when
the brand had genuinely reached the end of its life span. Brands that have a lingering
decline do little for the brand or the organization. The difficulty for many
organizations is really knowing when the brand can no longer be resuscitated.
Originality/value – The objective of this paper was to explore the idea of the human
life cycle being a metaphor for a brand’s existence. By taking such an approach it may
assist managers in determining: the potential longevity of their brand; and rejuvenate
ailing brands. Thus the article has a practical application.

The year is 2005. Many of the major global brands (originated in the USA, Western
Europe and Japan) that have graced virtually every part of our lives at the start of the
century have long since gone. Superseded by a new generation of brands. We are not
talking of local brands – but those that have been available for decades, famous names
and logos. They will leave a legacy – but perhaps that is all.

Fact or fantasy? In the past few years we have already witnessed the demise of well-
known brand names, for instance:

 Retail “bricks and mortar” stores: Woolworth and Kmart (in the USA), the
jewellery chain Ratners and the department store chain Allders (in the UK).
 The explosion and self-destruction of “dot com” brands.
 The car brands MG Rover (in the UK) and Oldsmobile (in the USA).
 The accountants: Arthur Andersen.
 Energy provider: Enron.
 Telecommunications: MCI.
 Airlines: Swissair, Sabena and Pan Am (although the brand name has survived
in various configurations. See later commentary).

The reasons for their demise may be many and varied. However, they nonetheless
demonstrate that visually recognizable brands can virtually disappear overnight.

What’s in a name?

Traditionally, brands have been defined as “a name, term, symbol or design (or
combination of them) which is intended to signify the goods or services of one seller
or groups of sellers and to differentiate them from those of the competitors” (Kotler,
2000). However, this definition is limiting. Dibb et al. (1997) suggested that branding
is a component of a product’s tangible features – the verbal and physical cues that
assist the customer in choosing one product over another. However, this is not just
applicable to a “product”. Services also communicate verbal and physical cues. A
five-star hotel while providing a range of services “transmits” a range of verbal and
physical cues to potential customers. They are all part of the hotel’s brand.

Moreover, the actions of people, the processes involved, the packaging and the
psychology behind the operations all contribute to the branding of a product or
service. It is really a combination of these factors that, in reality, drive branding.

Using metaphors
The development of a product or service is often discussed in terms of a “life cycle”.
Here the same metaphor is used to link the concept of branding to the human
condition. However, it is acknowledged that this is far from a “perfect” fit, as will be
clearly seen in the later discussion on “terminally ill brands”.

On this basis it is not impossible that some of the major brands that currently adorn
our homes and offices will face decline and death in the future. Of course these are
brands with long, and for the most part, a distinguished history. They leave various
legacies. However, this states nothing of the “minor” brands that come and go,
virtually everyday, almost at a blink of an eye.

Internal and external environmental factors

Brands are affected by a combination of internal (micro) and external (macro)

environmental factors. It is useful to briefly consider some of these factors. By
understanding these influencing factors an organization can review their brands
position within the marketplace. Moreover, they can aim to forecast or scenario-plan
possible outcomes for their brand – in other words the future “health” of the brand.
For example, a tobacco brand facing increasing global restrictions in terms of
promotion and distribution may seek to diversify into other business areas. However,
they may be able to build on their existing brand name. Therefore they can re-energize
the brand by developing these new market opportunities.

Darwinian approach to brand development and survival

The stereotypical product life cycle is depicted in Figure 1. Normally it is segmented

into four key components – introduction, growth, maturity and decline. Of course,
additional components are often added, such as birth with death at the other end of the
spectrum. The same process can easily be equated to brands.

Some brands have lasted for decades, even centuries. However, it cannot and should
not be assumed that during that time frame the brand has been frozen in time. Perhaps
the very reason why some brands outlast competitors in the “age” stakes is that they
have not been stationary. On the contrary the brand has “moved with the times” it has
adapted to or evolved with the changing environment in which it finds itself. This is
not far removed from Darwin’s view of how various animal species, including
ourselves, have adapted to our changing climatic, rural and urban environments over
hundreds of years.

How a brand adapts to the changing environment is largely in the hands of the brand
managers, their team and the company as a whole. A company can, and many do, bury
their collective heads in the sand, become complacent and fail to realize (except when
it is too late) that their brand is about to become extinct.

Adaptation
Adaptation can take time. McDonald’s is an example of a corporate brand that has
needed to adapt in order to develop and survive mounting criticism. These adaptations
have been driven by:

 The need to understand local cultural demands – often linked to religious

beliefs. Therefore, the adaptation of products has needed to match the local
cultural perspective, such as vegetarian meals.
 There is mounting concern throughout North America and Europe over
increasing obesity, especially in children and adolescents. This has resulted in
the reduction of proportions such as the super-size meal in the USA.
 Food sources and perceived disease risks from factory-farmed produce.
 Requirements for organic rather than factory-farmed produce on both ethical
and quality grounds. Adaptations have included the introduction of salads, low-
fat, low calorie and organic-sourced ingredients.

The process of rejuvenation

The process of rejuvenation can be achieved through two core activities: innovation
and re-positioning of the brand. These are not mutually exclusive activities and can
often be seen operating in concert.

Innovation

This does not necessarily mean radically enhanced changes. Innovations can be small
incremental steps in the development of a product. Consider, for example, minor on-
going improvements to a product or service. Take, for instance, the enhancements to
first and business class cabins on major international airlines.

On the other hand, there have been radical innovations to the mobile phone brands.
Gone are the days when a mobile phone looked and weighed like a household brick
and had a very limited range. Through technical innovation mobile phones are now
lightweight, multifaceted and can pick up signals virtually anywhere. Today the major
mobile phone brands compete in a highly dynamic, and some may say, volatile
environment. While price plans may differentiate over the short term, it will be
innovations over the longer term that will truly differentiate the mobile phone brands
from each other.

With the Darwinian view, brands are adapted through minor and major innovative
refinements. In some cases, while the brand name has remained the same the actual
product or service has evolved into something radically different. This is very true of
corporate brands that have become the “umbrella” for a collection of major/minor sub-
brands. Just think for a moment of how the Ford Motor Company, as a powerful
automotive brand, has evolved through innovation since Henry Ford opened his
factory gates in the early years of the twentieth century producing just one brand of
car – the Model T. Yet it is clear that if Henry Ford had not sought innovation, and
thus evolution, the Ford brand would have been yet another car brand landing on the
scrap heap.

The Ford brand has outlasted many of its younger rivals. But it, too, cannot afford to
become complacent. The international car market is saturated; there are many more
international players and several companies have merged to pool their resources in
order to survive.

The car brands are facing new challenges such as the impact of global warming,
global dimming and changing consumer preferences. Thus new innovative paths must
be followed for the companies to rejuvenate their brands. This rejuvenation should, in
turn, contribute toward gaining competitive advantage. However, it must be
remembered that gaining a competitive advantage is only one part of the equation. The
challenge is to sustain that advantage over the longer term.

Re-positioning the brand

This can be defined in two integrated ways:

1. The physical re-positioning of the brand in relation to current and potential

future competitors. Indeed, by physically re-positioning the brand contact will
be made with new competitors.
2. The re-positioning of the brand in the mind of the consumer. It is the consumer
that has to be persuaded that the brand is right for them.

The following provides two illuminating examples of how brands can be re-
positioned.

Lucozade

In 1927 in the Northeast of England an energy drink – Gluozade – was introduced. By

1929, it was re-branded as Lucozade and for some 50 years was marketed as a
“convalescent drink” for those who were ill. During the 1950s and 1960s it was
Beecham’s largest brand. However, with increased market pressures it was
repositioned in 1985 as an “every-day replacement energy drink.” This allowed the
company to broaden its market.

In 1986 the product line was extended to include orange and lemon variants. The
product line was further enhanced, in 1990, with the introduction of a new tropical
flavored variant. Although changes had already been implemented, by 1996 there was
a need for a major repositioning within the market. The brand was re-launched with a
newly shaped 300ml bottle (later replaced by a 380ml PET bottle), a new logo and
fresh inventive advertising. Further revitalization came in the form of the computer-
generated adventure character Lara Croft, the heroine of the game Tomb Raiders. Lara
Croft was the focal point of the advertising and reinforced the drink brand’s position
as an “iconic energy drink.”
Since these acts of revitalization Lucozade has become on of the world’s best known
energy drinks with major markets in the UK, Ireland, Mexico and Hong Kong.

Benetton

Re-positioning may be undertaken on a local, regional and indeed international level.

For example, in 2000 the international clothing retailer Benetton sought to increase its
presence in the USA. At that time it only had a New York outlet so Benetton signed a
major deal with the nationwide Sears group. This would, over time, provide Benetton
with some 800 outlets within Sears’ stores. Simultaneously, Benetton’s radical
marketer Toscani was developing another controversial advertising campaign. This
time the campaign focussed on advertisements that featured prison inmates on US
Death Row, which proved to be too controversial.

Opponents were able to create a word-of-mouth storm that lead to Sears terminating
the contract (estimated to be worth several million dollars). This was devastating for
Benetton in the USA and significantly damaged their brand image in that region. The
consequence was a separation. Toscani left Benetton and the company sought another
approach to their international marketing. Since then, they have been able to re-
position themselves within the US market in a new attempt to build market share.

But do brands really last forever?

Although it may seem that brands last forever, that is only because of the relatively
short life of brands in the human time experience. For instance, certain brands, such as
the UK bank Lloyds TSB can be traced back to the eighteenth century. However, the
vast majority of “everyday brands” are a creation of the twentieth century.

Brands come and go, some far more rapidly than others. While companies may seek to
rejuvenate and/or adapt their brands there will arise circumstances where the brand no
longer matches the expectations of either the company or the market. In such cases the
company may decide to either sell the brand to another company, with the sale
including all associated resources, such as employees and plant. Equally, the company
may deem that the brand is “terminally ill” and as such seeks its closure.

This is perhaps the weakest point of the metaphor or analogy with the human
condition. So far, few countries allow the termination of life or euthanasia on health
grounds. Yet the life cycle of a brand may be prematurely terminated. In cases where
a brand cannot be rejuvenated – and thus becomes a drain on a company’s resources –
there may be little alternative but to withdraw it from the marketplace. For historical
and thus perhaps emotional reasons some companies “hang onto” a brand, in hopes
that the brand will suddenly be resuscitated. However, this prolongation may do more
harm than good for the company concerned, such as draining resources that would be
more effective if invested into a new brand.

There are cases where companies have clearly failed to disengage themselves from
failing brands, which has, in turn, crippled the company.
Brand heart attack or catastrophic failure

Brands can also suffer a catastrophic failure, perhaps likened to a human heart attack
or stroke. As in the human condition, such a catastrophe may be recoverable or they
can be fatal. Here are two examples of a brand suffering a catastrophic failure that can
be likened to a heart attack: Ratner was a leading jewellery chain in the UK and Pan
Am was one of the most respected globally renown airlines in aviation history.

During the 1980s Ratner became a highly successfully UK high-street jewellery chain.
The business had rapidly developed though a combination of organic growth and
prudent acquisition. However, this brand was soon to implode. During a business
reception the CEO and founder of the company Gerald Ratner made an “off the cuff”
remark about the quality of the company’s products in relation to their price. It was
meant as light-hearted humor. However, the media printed Ratner’s comment word-
by-word. These two relatively short sentences were to be repeated across the media.
Both investors and customers took note of the comments. Within days sales were
down and so was the share price. The brand was now in meltdown – it had suffered
severe heart attack.

Ratner resigned from the company in the hope that the rift between
investors/customers and the brand would be healed. No matter what Ratner or his
marketing team did they could not resuscitate the brand. Within months the company
was divesting businesses and even attempted to re-brand itself. Yet the illness was
fatal.

Survival of a different kind

From the 1930s Pan American World Airways (commonly known as Pan Am) was the
USA’ principal international airline. Through many groundbreaking innovations Pan
Am helped shaped the international airline business that we now take for granted.
However, by the early 1970s the brand was beginning to suffer from a series of events
that were to signal its downfall.

A combination of external factors (high fuel costs and oversupply within the
marketplace due to the US government offering routes to other airlines) and internal
factors (lower demand for air travel and investment in new aircraft) lead to reduced
performance. It also sought to build a US internal route network, which took several
attempts before permission would actually be granted. Pan Am finally developed this
internal route network through the acquisition of the National Airline brand. However,
that acquisition came at a high price, and pushed the company further into debt.

By the early 1980s the company was selling assets to save the brand. Then the terrorist
attack that brought down a New York-bound flight over Lockerbie in Scotland
virtually sealed the fate of the once glorious brand. Then came the Gulf War.
Passengers avoided transatlantic flights. Even with its now limited routes, the Pan Am
brand could no longer take the strain. In August 1991 Pan Am filed for bankruptcy
and operations ceased in October.

This was not the final chapter, however, as the brand would be resurrected twice. In
1996 a new operation was initiated with the objective of providing a low-cost service
between US cities and major Caribbean destinations. However, a combination of rapid
expansion and market difficulties lead to another bankruptcy in 1998. A second
incarnation of the airline occurred that very same year when the railroad company,
Guilford Transportation Industries, acquired the brand. But the Pan Am operations
under Guildford Transportation ceased in November 2004 only to be transferred to
Boston-Marine Airways.

In one more attempt, a Pan Am service was resumed in February 2005. While the Pan
Am brand lives on it is a very different entity than the brand that once graced the
skies.

Conclusion

Organizations must seek to continually monitor the “health” of the brand in relation to
its changing environments. Life expectancy can be increased through evolving the
brand (innovations and re-positioning). However, organizations must also recognize
when the brand has genuinely reached the end of its life span. Brands that have a
lingering decline do little for the brand or the organization. The challenge for many
organizations is knowing when the brand can no longer be resuscitated.
Figure 1Murphy’s measures for forecast evaluation represented as a decision matrix
ANALYSIS OF THE ARTICLE By: Jonathan Groucutt

In this article the author Jonathan Groucutt has compared the brand life cycle with that
of human life cycle. This article of his also explores how brands can be resuscitated
when in declining stage or on the edge of death. The development of a product or
service is often discussed in terms of a “life cycle”. Here the same metaphor is used to
link the concept of branding to the human condition.

Brands are affected by a combination of internal (micro) and external (macro)

environmental factors. By understanding these influencing factors an organization can
review their brands position within the marketplace. Moreover, they can aim to
forecast or scenario-plan possible outcomes for their brand – in other words the future
“health” of the brand. For example, a tobacco brand facing increasing global
restrictions in terms of promotion and distribution may seek to diversify into other
business areas. Normally the brand life cycle is segmented into four key components
– introduction, growth, maturity and decline. However, two additional components
may be added, such as birth with death at the other end of spectrum.

Birth:- The brand is introduced in the market.

Introduction: - Publicity campaign are launched to promote its function, features,

quality and usage and attract customers to try out and buy the product.

Growth: - The brands begins to build up its following among customers during this
stage. The cumulative effects of marketing begin to show and the market share
expands.

Maturity:- Brands have considerable market share and have reached their sales peak,
with growth beginning to slow down. Brand influence at this stage is at its peak and
the kind of marketing strategies to be adopted are many.

Decline:- Brand awareness is high but the sales are on decline.

Death:- the brand cease to extinct.

But there are some brands that have lasted for decades even centuries. The very reason
why some brand have lasted more than the others is because they have adopted to or
evolved with the changing environment in which it find itself. But the process of
adaptation or evolution cannot take place overnight. Adaptation can take time.
McDonald’s is an example of a corporate brand that has needed to adapt in order to
develop and survive mounting criticism. Life expectancy of a brand can be increased
through evolving the brand (innovations and re-positioning). An innovation does not
necessarily mean radically enhanced changes. Innovations can be small incremental
steps in the development of a product. On the other hand repositioning means
repositioning of the brand in the mind of the consumer. That is, establishing the new
and improved idea about the brand on customer mind or changing the perception of
the consumer about a particular brand. It is the consumer that has to be persuaded that
the brand is right for them. It is often been said that some brands last forever, but that
is only because of the relatively short life of brands in the human time experience. The
vast majority of “everyday brands” are a creation of the twentieth century. Brands
come and go, some far more rapidly than others. While companies may seek to
rejuvenate and/or adapt their brands there will arise circumstances where the brand no
longer matches the expectations of either the company or the market. In cases where a
brand cannot be rejuvenated – and thus becomes a drain on a company’s resources –
there may be little alternative but to withdraw it from the marketplace. For historical
and thus perhaps emotional reasons some companies “hang onto” a brand, in hopes
that the brand will suddenly be resuscitated. However, this prolongation may do more
harm than good for the company concerned, such as draining resources that would be
more effective if invested into a new brand. The perfect example of this would be Pan
American World Airways.

“NOTHING IS PERMANENT IN THIS WORLD” weather its a human or a

particular brand. Organisation must seek to continually monitor the health of the brand
in relation to its changing environment. Life expectancy can be increased through
evolving the brand (innovation and re-positioning). However, organizations must also
recognize when the brand has genuinely reached the end of its life span. The difficulty
for many organizations is really to know when the brand can no longer be
resuscitated. The objective of this article was to explore the idea of the human life
cycle being a metaphor for a brand’s existence. By taking such an approach it may
assist managers in determining: the potential longevity of their brand; and rejuvenate
ailing brands. Thus the article has a practical application.