CHAPTER 13 MANAGING BRANDS OVER TIME Krishna Unadkat

CHAPTER 13: MANAGING BRANDS OVER TIME -Krishna Unadkat MEFGI 13. 1

Reinforcing Brands � Generally, we reinforce brand equity by marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness and brand image. 13. 2

Managing Brands over Time � Effective brand management requires taking a long-term view of marketing decisions › Any action that a firm takes as part of its marketing program has the potential to change consumer knowledge about the brand. › These changes in consumer brand knowledge from current marketing activity also will have an indirect effect on the success of future marketing activities. 13. 3

Consumer response to past marketing activities Brand awareness and brand image Consumer response to current marketing activities Changed brand awareness and brand image Consumer response to future marketing activities 13. 4

A. Reinforcing Brands Maintaining brand consistency 2. Protecting sources of brand equity 3. Fortifying versus leveraging 4. Fine-tuning the supporting marketing program 1. 13. 5

Consistency in amount and nature of marketing support Brand Awareness • What products does the brand represent? • What benefits does it supply? • What needs does it satisfy? Brand Reinforcement Strategies Innovation in product design, manufacturing and merchandising 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’ minds? Relevance in user and usage imagery Protecting sources of brand equity Trading off marketing activities to fortify vs. leverage brand equity 13. 6

Revitalizing Brands � Expand the depth and/or breadth of awareness by improving consumer recall and recognition of the brand during purchase or consumption settings � Improve the strength, favorability, and uniqueness of brand associations—either existing or new—making up the brand image 13. 7

Expand depth and Breadth of awareness And usage of brand Brand Revitalization Strategies Refresh old sources Of brand equity Increase quantity of consumption (how much) Increase frequency of consumption (how often) Identify additional opportunities to use Brand in Same basic way Identify completely new and different ways to use Create new sources Of brand equity Bolster fading associations Improve strength, favorability, and uniqueness of brand associations Neutralize negative associations Create new associations Retain vulnerable customers Recapture lost customers Identify neglected segments Attract new customers 13. 8

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Strategies to Revitalize Brands 1. Expanding brand awareness 2. Improving brand image 3. Entering new markets 13. 1 1

Expanding Brand Awareness � Increasing usage › Increasing the level or quantity of consumption › Increasing the frequency of consumption � Identifying new or additional usage opportunities › Communicate appropriateness of more frequent use in current situations › Reminders to use � Identifying new and completely different ways to use the brand 13. 1 2

Improving the Brand Image � Repositioning the brand › Establish more compelling points of difference › In some cases, a key point of difference may turn out to be nostalgia and heritage rather than any product-related difference. › Other times we need to reposition a brand to establish a point of parity on some key image dimension. � Changing brand elements › Convey new information or signal that the brand has taken on new meaning 13. 1 3

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Improving the Brand Image � Go “back to basics” and tap into existing sources of brand equity (e. g. , Harley. Davidson) › › Product strategy Pricing strategy Channel strategy Communication strategy � Create new sources of brand equity (e. g. , Mountain Dew) 13. 1 5

Entering New Markets � One strategic option for revitalizing a fading brand is simply to more or less abandon the consumer group that supported the brand in the past to target a completely new market segment. 13. 1 6

Adjustments to Brand Portfolio � Migration strategies › Example: BMW with its 3 -, 5 -, and 7 -series numbering systems � Acquiring new customers � Retiring brands 13. 1 7