Brand Revitalization Managing Brand for the Long Run

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 customer’s 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 saving목적 : formula change (Not so effective in 경쟁사 Levi Brothers attack the weakness 비교광고 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 이 너무 많으면 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 they’re no longer making the desired contribution to maintaining or strengthening brand equity 5) Product-related associations ; 브랜드 연상이 제품과 관련된 경우 • 핵심적인 브랜드 연상이 (Core associations) Product나 Functional benefit에 주로 연관되어 있는 경우 : 제품 디자인 개선 제조/ merchandising : Critical 하다 • 제품 개선이 필요한 경우 Product innovations : critical for Performance-Based brands 주의사항; not to change product too much, Make new prpduct “ better” not “different” Timing of introduction & Announcement도 역시 중요. 6) Non Product-related Associations; 브랜드 연상이 제품이외의 상징적 가치와 연관이 높은 경우 Core association이 non-product-based attributes, symbolic or experiential benefits Relevance in user & Usage Image is critical but too frequent repositioning ; 이미지 혼란 및 소비자 alienate시킴 (blur image/confuse/alienate consumer Case Pepsi Youthful Appeal이 Risky하다는 판단 연령층 확대 시도 back to “ Be Young” Nothing else is Pepsi(연령층 확대 재시도) back to “ Generation Next”( 젊은 층 타겟); 연령층 확대하고자 한 repositioning 노력이 실패로 끝남. 소비자 memory 내 이미 established 된 브랜드 인상을 바꾸는 것은 어려운 일 /dangerous Convincing new brand claims : must be presented in a compelling fashion(저항하기 어려울 정도로 강하게)

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller Revitalizing Brands 성공적인 브랜드 예 : Harley-Davidson, Mountain Dew, Chrysler Case Addidas Revitalization; Saatchi & Saatchi 1993 Teen에 concentrate된 Marketing Efforts : 부모가 선택한 브랜드(나이키, . 리복)를 거부하도록 하는 메시지 Consumer Pull과 유통점의 Push Marketing을 모두 강화. • Pull Performance-oriented product advertising / athlete sponsor Urban, young audience에 target Sponsor World Cup soccer • Push 유통점 shelf space share 증가 M/S 2% 5%로 4년 만에 증가 General Approach Recapturing Lost Sources Identifying / Establishing New Sources of Brand Equity brand meaning을 reinforce 하기 위해서는 evolutionary 변화 보다는 revolutionary가 바람직. • 선행조건 : 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. 즉, 아직도 브랜드의 포지셔닝에 적절한 브랜드 연상이 무엇인지를 찾아내는 것이 중요함. ; ( Extent to which key brand associations are still properly positioning the brand) Brand Audit의 필요성

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller Brand Audit 브랜드에 대한 포괄적인 진단 ; Comprehensive examination of the health of a brand in terms of its sources of band equity from the perspective of the firm and consumer 우선적으로 결정할 사항; Whether to Retain the Same Positioning or To Create a New Positioning 포지셔닝을 위한 고려 요인 : Desirability, Deliverability of differentiated Brand Associations Customer–Based 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 에 대한 guidance를 위한 첫 단계: Understanding what the sources of brand equity were to begin with. 1) Expand depth / breadth of brand awareness (비보조, 보조 인지도 강화) 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 depth는 문제가 아니지만 breadth 문제가 있는 경우 ( recall, recognition 있으나 brand 에 대해 narrow 한 이미지를 형성한 경우 ) 어느 정도의 인지도와 긍정적인 이미지를 형성하고 있다면 Usage 확대 (Increase Usage) : increasing level or quantity of consumption : increasing frequency of consumption A. Identifying Additional & New Usage - 자주 사용할 때의 장점에 대한 커뮤니케이션 - 현재의 이용 상황(usage situation)과 비슷한 상황에서 사용하도록 remind를 시키는 역할 [사례] Maxwell Home Fitter pack simples : 1잔만 마실 수 있도록 하기 위한 package 사이즈의 변화 궁극적으로 이용 상황을 확대 (usage increase) - TPO 상황을 제시 e. g. Holiday event or time of year - regular usage의 merits 을 전달 B. Identifying New & Completely Different Ways to use Case Cheez-whiz : use in microware oven (광고를 통해 간편한 전자레인지 사용에 의한 새로운 이용 용도를 제시 ) Wrigleg’s chewing gum : substitute for smoking (금연 대체재) Tums (위산 억제) : 위산 억제를 위한 제품이나 성분에 다량의 calcium 함유 칼슘 보조제 역할 (supplement)로 소구

Managing Brand for the Long Run : Brand Reinforcement & Revitalization Strategies -Kevin Keller 2) Improving Brand Image : to improve strength, favorability and uniqueness Heritage Brand : 전통성 있는 브랜드의 장점; 신뢰성(trustworthy ) 단점; 재미없고, 흥미를 잃음. (boring. Uninteresting) New Products, Ads Promo, packaging Must establish 타겟 관련성 제고할 수 있는 이용 상황 제시 (relevant usage situations ) 현 이용층에 적합한 user image 제공 (contemporary user profile ) 보다 현대적인 브랜드 개성 제고 (modern brand personality) Re-Positioning : Target Market에 대한 명확한 이해와 경쟁 구도에 대한 정확한 진단을 통해서 repositioining target mkt. 은 모든 possible segment를 포함하는 것은 무리가 있음. 신규 타겟으로 타겟을 확장하는 것은 궁극적으로 cost-benefit 분석을 통해 결정하야만 함. (마케팅 믹스의 변화- 신규 광고…-는 비용 수반하므로) A. Retaining vulnerable / Recapturing Lost Customers Oreo 쿠키 : 제품 사용 중단한 성인층에 향수 불러 일으키는 광고를 통해 사용을 중단한 성인 segment를 regain. B. Identifying Neglected Segment P & G Ivory baby 전용 제품 Adult (pure and simple 이미지로 성인층 공략) 존슨 & 존슨 baby shampoo 역시 성인 대상으로 확대 C. Attract New Customers 노후화된 브랜드를 revitalization하는 것은 불가피하게 기존의 타겟중 일부 seg를 버리고 신규 타겟 seg에서 신규 고객을 창출해야하는 경우 있음.

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 만약 아직도 확보된 고객의 사이즈가 큰 편이라면 마케팅 support를 일시에 중단하여 milk cow 하는 것도 방법. ( Unilever의 Lux 비누; 15년간 광고 support 없이 M/S의 3%를 유지함. ) 5) Obsoleting Existing Products 브랜드의 strength, 시장 상황, 경쟁 상황을 고려하여 obsolete할 브랜드를 선정.

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 등 소비자 인식과 Sales & Share trends 등을 통해 Brand Identity가 변화해야 하는지를 알 수 있다. Rationale 2: The Identity/Execution Is Obsolete 소비자 기호의 변화, 기업 내부 문화의 변화, 경쟁사의 시장 진입/ 철수 등 시장 변화의 요인으로 인해 Identity change 가 필요한 경우. 예: KFC, 건강에 대한 관심 증가, ‘Fried’ 라는 부정적 이미지 쇄신을 위해 메뉴 변경, CI를 KFC로 변경. Rationale 3: The Identity/Execution Appeals to a Limited Market Brand Identity 자체에는 문제가 없으나 시장 자체가 축소하는 경우, 보다 확대된 시장을 타겟으로 하기 위해 change 가 필요. 예: Johnson & Johnson Baby Shampoo; 마일드 샴푸를 원하는 성인층으로 확대한 캠페인. Arm & Hammer의 Baking Soda를 탈취제로 이용하도록 한 것 등 Rationale 4: The Identity/Execution Is not Contemporary Brand Identity 가 관련성, 의미성은 가지나 노후화되거나 지루한 이미지를 가지고 있는 경우 예: GE; 전기에 대한 필요성 등이 진부하므로 보다 contemporary value proposition을 제시함. Rationale 5: The Identity/Execution Is Tired Brand Identity 가 boring 해졌거나 소비자의 관심을 끌기에 어려운 반면, 경쟁사는 새롭고 흥미있는 identity를 소구하는 경우 뉴스거리가 될만한 execution change가 효과적으로 repositioning을 할 수 있음.

Brand Strategies over Time - David Aaker, Building Strong Brands(1996) Why consistency( if Done well) is Better? Consistency or Change? 장기간 존속한 브랜드의 IPE(identity/positioning/ execution)이 반드시 변화할 필요가 있는가? Not necessarily. 오랜 기간동안 Consistency를 지킨 Brand 들의 예: 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) Consistency의 장점 만약 Brand의 I. PE가 변화해야 한다면 그 목표는 보다 효과적인 identity 창출을 통한 지속적인(enduring) positioning을 형성하는 것. Strong Brand의 핵심은 오랜 기간동안 일관적으로 유지된 identity, position, visual imagery, theme or slogan. Ownership of Position 확고하게 형성된 이미지는 경쟁사로 하여금 유사한 이미지 포지셔닝을 불가하게 만든다 (위에서 Marlboro, Maytag 등의 예) Ownership of Identity Symbol 오랜 기간동안의 consistency는 확고한 symbol( visual image, slogan, jingle, metaphor, spokesperson등)을 갖게 함. ( Maytag의 repairman, Marlboro country 등) Cost Efficiencies 오랜 기간동안 확고하게 성립된 identity symbol은 커뮤니케이션에 있어서 비용 절감 효과

Brand Strategies over Time - David Aaker, Building Strong Brands(1996) Consistency Over Time: Why is it Hard? 브랜드의 IPE에 있어서 Consistency가 바람직함에도 불구하고 IPE의 변화를 시도하는 많은 경우, 불가피한 상황이기 때문이기보다는 브랜드 관리자의 bias에 의한 결정이 많다. 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? The Panic Attack 변화가 필요다는 인식 시장에서 변화가 필요한 것 같고, 특히 매출이 감소하게 되면 브랜드 매니저들은 당황하여 즉각적인 변화를 추구하고자 하지만 실제로 오랫동안 지켜온 brand identity를 변화시키는 것에 대해서는 재고가 필요함. 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 Drinkers에 Appeal Brand Image Building: Remarkable Success in the 1970 s-1980 s Ads: Strong image around ‘Male Camaraderie(남자들의 우정)’ ( 남성적 이미지 + 유머 + 스포츠 관련 fun) 광고 모델: 은퇴한 유명 스포츠 스타: Appealing point: to make the audience feel accepted as part of this group Miller Lite 브랜드와 Customer Relationship을 설정하는 근간. Decline of Market Share 1980년대 후반부터 market share의 급격한 하락이 시작됨. ( 12. 5% 10% 미만) 경쟁사: Coors Light & Bud Light ; to attract Young beer drinkers Miller Lite의 은퇴한 중년의 스포츠 스타는 젊은 층에 appeal 하기에 disadvantage가 됨. Miller의 Reaction 새로운 광고 대행사 기용, classic Miller Lite 캠페인을 버리고 활기있고 upbeat의 광고 theme 으로 소구. Appealing Point: “ Miller Lite가 Light Beer의 효시이며, 따라서 가장 좋은 Light Beer 이다” Failure of New Ad Campaign 그러나 젊은 층의 target audience는 Miller Lite가 처음 출시 되었을때 아직 beer-drinker가 아니었고, 따라서 광고 캠페인에 전혀 반응하지 않음.

Brand Strategies over Time - David Aaker, Building Strong Brands(1996) Providing Links to the Heritage Identity 오랜 기간동안 형성된 brand identity를 dramatic 하게 변화시킨다면 heritage identity는 점차 약화되거나 영향력이 감소하게 됨. 어떻게 하면 heritage identity를 강화하면서 변화를 유도하는가가 관건.

Revitalizing the Brand - David Aaker, Managing Brand Equity(1991) Revitalization : Stagnated Brand Equity에 활력+ 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 research를 통해 소비자들이 그 브랜드를 어떻게 사용하고 있는지에 대해 알아볼 것 • 근육통에 사용하는 파스 50% 이상이 관절염 통증에 사용함. 광고에 관절염을 앓고 있는 스포츠 선수 기용, 매출 신장

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 를 원하는 성인용으로 확대 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 • Campbell’s Soup: Lunch Supplementary Main Meal Substitutes for adults Market research를 통해 소비자들이 그 브랜드를 어떻게 사용하고 있는지에 대해 알아볼 것 • 근육통에 사용하는 파스 50% 이상이 관절염 통증에 사용함. 광고에 관절염을 앓고 있는 스포츠 선수 기용, 매출 신장 Adding Value by Differentiating: New Associations • 성숙기에 접어든 제품이 commodity화를 방지하는 방법: Reposition as an Upscale Branded Products

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 firm’s strategic thrust? 14. What are the exit barriers?

Brand Revitalization – Keller vs. Aaker 비교 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 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 필요성 대두 : 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; 새로운 seg를 타겟으로 하여 이용층을 확대하더라도 기존의 브랜드 연상/ 이미지와의 연계성을 잃지 않도록 하는 것이 중요함. Quick way to Increase Usage Frequency positioning a brand as a substitute for product in other categories 사용 확대의 방법; 대체재로서 포지셔닝하는 것, 제품 패키지, 디자인, 크기의 변화 Altering package design / size