Chapter 9: Managing Brands over Time

Chapter objectives
At the end of this chapter, students should be able to?
 Identify steps to manage brands overtime
 Discuss the adjustment to brand positioning

Why is managing brand equity important over time?

Changing in marketing environment –this includes
a) external forces
 Shifts in consumer behavior
 Competitive strategies
 Government regulations
b) Internal forces
 Changes in strategic focus of the company.

Steps for managing brand over time

1. Reinforcing brands
2. Revitalizing brands
3. Adjusting brand portfolio

Step 1: Reinforcing brands

Brand equity is reinforced by marketing actions that consistently convey the MEANING
of the brand to consumers in terms of BRAND AWARENESS and BRAND IMAGE.
Reinforced marketing actions, along with product development, branding strategies etc.
also help in keeping the brand meaning in terms of products, benefits and needs as well
as in terms of product differentiation intact.

Reinforcing depends on nature of the brand associations

If the nature of brand association is Product related performance associations

Product innovations are critical to reinforce brand equity. Product innovations cover the
following areas:

i. New benefits/attribute
ii. New design
iii. New manufacturing
iv. New merchandising

On the other hand If the nature of brand association is Non-product related

imagery associations Relevance in user and usage imagery is critical to reinforce brand
equity. Potentially easier to change through major advertising campaigns (no product

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innovation may be involved). Too frequent repositioning can blur the image of the brand
and confuse or even alienate the consumers.

The specific actions done to Reinforce brand equity

a) Maintaining brand consistency

Consistency of marketing support is essential for maintaining strength and favorability of

the brand. Shrinking R&D and communication budgets may risk the brand becoming out-
of-date, irrelevant or even forgotten. Consistency to be shown in brand positioning.
Consistency doesn’t mean no any changes at all. “Tactics may change, but strategic
positioning of brand should not change.” Prices may go up or down, product features may
be added or deleted, brand extensions added or withdrawn, ad campaigns may change.
Key elements of the marketing program and brand meaning should be retained and
preserved.

b) Protecting sources of brand equity

While looking at potentially powerful sources of brand equity preserve and defend the
existing sources. Unless there is some change with either consumers, competitors or the
company that makes the strategic positioning of the brand less powerful, successful
positioning should not be deviated from. Key brand associations should not be altered.
E.g. intell Microsoft have been using power and safety as sources of brand equity.

c) Fortifying or Leveraging

There is always a tradeoff between fortifying a brand and leveraging the benefits of the
brand to financial gains. Fortifying means ways of increasing brand equity and furthering
the brand image through continuous marketing and advertising efforts. On the other hand,
capitalizing on existing brand equity to reap accruing benefits in terms of cost savings
(reduced communication expenditure) and revenue opportunities (seeking increasingly
higher premium and introducing brand extensions.)

d) Fine-tuning the marketing support program

Step 2: REVITALISING BRANDS

The two strategies to reversing Brand equity:

i. Recapture lost source of Brand equity/refresh old sources of Brand equity

ii. Identify and establish new sources of Brand Equity

Steps to Reverse Fortunes of Brand

• “Revolutionary “or “Evolutionary “changes?

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• Revisit the basic values of the brands
• Determine current status of sources of Brand Equity
• Ascertain effectiveness of key brand associations
• Decisions on repositioning

Approaches to Revitalization

a. Expanding depth and breadth of Brand Awareness and usage

This approach is accomplished by increasing the quantity and frequency of consumption.
The strategies that should be used to increasing the quantity and frequency of
consumption:

i. New usage Opportunities

This is associated with creating an Appropriate & Advantages of using brands in new
situations and then providing Reminders to use brands in those situations . The reminders
will enable customers to Improve their mind awareness. Avoiding Functional Fixedness
in non traditional situations and Associated with special occasions only is also the
strategies that a marketer should used.

- Retain premium brand association

– Consumer perception of usage differs from the reality of their usage.
– Replacement cycles
– Consumers educated about the merits of regular and increased usage.

ii. Identifying new & completely different ways to use the brand
 New and different usage application
 Only new ad campaigns not enough
 New uses may arise from new packaging

b. Improving Brand Image

Brand Image can be improved through repositioning and changing brand elements.

• Repositioning:
– Establishing more compelling points of difference
– Remind consumers of virtues of brands that have been taken for granted
– Nostalgia and heritage
– Establish a point of parity on key image dimension
– Negative product-related associations due to changes in consumer tastes

Changing brand elements

– Modification of Brand name
– Other Brand Elements – Packaging, logos etc.
– Moderate and evolutionary in nature

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 – Preserve salient aspects of Brand elements

E.g.: Federal Express to

 Changes in Brand Awareness not sufficient

A new Marketing Program
 Old positive associations to be bolstered
 New positive associations to be created
 Negative associations to be neutralized

c. Entering New Markets

 Reach out to new Customer groups
E.g., Johnson and Johnson: Baby Soap, Baby Shampoo
 Reach out to decision making segment instead of the users
E.g., Women as decision makers for men’s products

Tapping the female segment of the market

 New market segments based on cultural dimensions
 Retaining existing Customers and Regaining Lost Customers

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 Step 3: ADJUSTING BRAND PORTFOLIO

Approaches adjustment to brand portfolio

1. Migration Strategy
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 system.

2. Acquiring new customers

 To make up for loss of existing customers

 Important to attract younger customers
 Challenge – Making Brand seem relevant to customers
 Each generation has a different attitude from its preceding generation
 Strategies to encompass both new and old customers

a. Multiple Marketing Program

Separate advertising campaigns and communication programs for each segment

Blurring of images due to media overlap

b. Brand Extensions and Sub- Branding

• New technology, features and attributes

• Needs of new customers or changing needs of existing customers

c. New Distribution Outlets

• Making products more available

3. Retiring Brands

Because of dramatic or adverse changes in the marketing environment, some brands are just
worth saving. Their sources of brand equity may have essentially dried up or, even worse,
damaging and difficult-to-change new associations may have been created.

Options of Retiring Brands

a. Marketing Support (Orphan Brand)
 Reduce number of product types
 Almost no advertising and promotional expenditure
b. Consolidation-merging together two or more brands
 Stronger Brand POWER BRANDS

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  Cut Costs
 Focus marketing Efforts
c. Discontinue product
 Spin off Orphan Brands after a cut off of low sales
 Sell Orphan Brands
 Fade away or discontinue consciously. E.g. – Citra
Abandonment Decisions for Retiring Brands
• Markets prospects
– Rate and type of decline
– Segments of enduring demand
– Reasons for decline
• Competitive intensity
– Competitive advantage of Competitors
– Willingness to exit

– Brand Loyalty of Customers and Price pressures

• Brand Strength
– Strong Associations
– Market share and position in the market
– Brand’s fit in the Strategic Thrust
– Exit Barriers
MANAGING BRANDS OVER GEOGRAPHIC BOUNDARIES AND
MARKET SEGMENTS

Rationale for Going Abroad

1. Slow growth and increased competition in domestic markets
2. Overseas growth and profit
3. Economies of scale
4. Diversify risk
5. Global mobility of customers
Advantages of Global Marketing

• Economies of Scale • Leverage good ideas quickly and

• Lower Marketing Costs efficiently
• Power and Scope • Uniform marketing practices
• Consistency in Brand Image
Disadvantages
• Differences in consumer needs, wants and usage patterns
• Differences in consumer response to 4 Ps
• Differences in brand and product development and competitive environment
• Differences in legal environment

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 • Differences in marketing institutions
• Differences in administrative procedures
Global Branding Decisions
1. Deciding which markets to enter
2. Deciding how to enter the market
3. Deciding on the marketing program
4. Deciding on marketing organization
Selecting Global Markets

Building Global Customer Based Brand Equity

1. Understand similarities and differences in the global branding landscapes

Developed & Developing Markets Landscape of Global Brands
2. Sustained activity in Brand Management Establish Marketing Infrastructure
 Continuous activities 5. Balance Standardization &
 Greater focus on R&D Customization
 Product Life Cycle critical to 6. Local and global control
brand’s growth 7. Establish operable guidelines
3. Integrated Marketing 8. Global BEMS
Communication 9. Brand Elements
4. Brand Partnership