Combinations

1, This is the most sensitive area as brand replacement depends on market

volatility and maturity.
The budget is to be spent on two parallel tasks—careful withdrawal of the old brand
without
allowing the competitor to fill up the vacuum and building up of a new brand.

466 Strategic Financial Management

2. This refers to a long-term, hardcore research and development activity. Market

sensitivity is
less, compared to combination (1).

3. A total reincarnation could be less uncertain but definitely more expensive. The
expenses are for
research and development, market development, new brand development and striking a
sensible —
balance between the brand’s strength and product’s profile.

4, Partial replacement has to be planned and implemented very cautiously as wrong

replacement —
would be very dangerous. Replaced features must quickly merge into the brand and
the product. _

Those who create a brand and nurture it become very sensitive about it. Such
emotional involvement
in the brand would be very disadvantageous as it would create unnecessary hurdles
in the brand’s —
enrichment and growth. A rational parameter to judge the strength and survival of
the brand must be
developed and used. One such parameter could be its phase-wise valuation exercise.
Look at the —
following figure: