CHAPTER 13:

MANAGING BRANDS OVER TIME

Keller (2008)

13.1

Introduction

Changes in internal and external environment challenges brand management: e.g. shifts in consumer behavior, competitive strategies, government regulations, etc. These changes requires proactive strategies designed to maintain and enhance customer based brand equity to manage brand equity overtime:

Reinforcing the brand meaning (if necessary) making the adjustment to the marketing program

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

Figure 13.1 Understanding the Longterm effects of marketing actions on brand equity

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

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. Questions marketers should consider are: Brand Meaning: What product does the brand represent, what benefit does it supply? And what needs does it satisfy? E.g. Nutri-grain has expanded from cereal into granola bars makers of healthy breakfast and snack foods Product Differentiation: How does the brand makes those products superior? What strong, favorable, and unique brand association exist in the mind of customers? ; e.g. Black and Decker is now seen as offering innovative designs in its small appliances product

A. Reinforcing Brands

13.5

Reinforcing Brands (contd.)

1.
2. 3.

Maintaining brand consistency Protecting sources of brand equity Fortifying versus leveraging

Trade-off

4.

Fine-tuning the supporting marketing program

13.6

1. Maintaining Brand Consistency

a)

a)

Consistent marketing support in amount and nature to maintain the strength and favorability of brand associations Brand with shrinking R&D and communication budgets run the risk of becoming technologically disadvantaged, obsolete, out of date, irrelevant or forgotten Market Leaders and Failures inadequate marketing support is dangerous when combined with price increases. Consistent brand such as Coca-cola, Budweiser, Sony etc maintain their market leadership position Consistency and Change being consistent doesnt mean avoiding any changes in marketing program. Be creative but certain key elements are retained and brand meaning consistent over time (e.g. KFC Colonel Sanders with new thinner & Apron look)

Maintaining Brand Consistency

13.8

2. Protecting Sources of Brand Equity

Despite brands should always look for potentially powerful new sources of brand equity, top priority is to preserve and defend existing source of Brand Equity Ideally, key source of brand equity are of enduring value Examples: P&G Cascade made a minor change for cost efficiency, Sunlight fight and eliminate the virtually spotless association for cascade they returned it to the original formula and tell Sunlights producer; Lever Brothersto stop the ad- defends the brand equity

3. Fortifying versus leveraging

Trade off between fortifying Brand Equity vs. leveraging/capitalizing existing Brand Equity to reap some financial benefit Fortifying: whatever brand you have, try to increase the Brand Equity (by doing Marketing activities/different ways to raise brand awareness and create strong, favorable and unique brand association Leveraging: whatever brand and its Brand Equity you have, try to capitalize on that (bring max benefit without thinking to make another marketing effort)

e.g. Wonder Bread

1930s

1970s

2006 (after 2004 bankruptcy)

13.11

4. Fine-tuning the supporting marketing program

a)

Marketers should only change tactics only when its clear they are no longer making the desired contributions to maintaining and strengthening BE Product-related performance associations
For brand with core association are primarily product related; performance attributes/benefits, innovation in product design, manufacturing and merchandising is/are important to maintain and enhance Brand equity e.g. TIMEX, after Casio and Swatch has launched Indiglo, glow-in-the-dark watch succeed in revived the brand, TIMEX also buy Guess and Monet for upper class and distributed through upscales depertment stores expand their portfolio ;

b)

Non-product related imagery associations

For brand with core association non product related attributes and symbolic/experiential benefit, relevance in user and usage imagery is critical. Because its intangible nature, the association might easier to be changed (e.g. Through Marketing activities: ads); e.g. Pepsi have several user-imagery slogan: Generation Next/New Generation

Diagram 13.1 - Brand Reinforcement Strategies

Brand Awareness
What products does the brand represent? What benefits does it supply? What needs does it satisfy? Brand Image

Consistency in amount and nature of marketing support Continuity in brand meaning; changes in marketing tactics Protecting sources of brand equity Trading off marketing activities to fortify vs. leverage brand equity

Brand Reinforcement Strategies

Innovation in product design, manufacturing and merchandising

How does the brand make products superior? What strong, favorable, and unique brand associations exist in customers minds?

Relevance in user and usage imagery

13.13

B. 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 associationseither existing or newmaking up the brand image

13.14

Strategies to Revitalize Brands

1.

Expanding brand awareness

Breadth challenge
Repositioning the brand Changing brand elements

2.

Improving brand image

3.

Entering new markets

13.15

1. Expanding Brand Awareness

Increasing usage

Increasing the level or quantity of consumption (Yakult: two times a day!) Increasing the frequency of consumption (Pepsodent: morning and night/Oral B Toothbrush indicator; Lifebuoy 5 times a day)

Identifying new or additional usage opportunities

Communicate appropriateness of more frequent use in current (or different) situations Reminders to use (Mosquito Repellent during rainy season)

Identifying new and completely different ways to use the brand

e.g. (Arm and Hammer Baking Soda, deodorized, cleaner)

13.16

Expanding Brand Awareness e.g.

13.17

2. Improving the Brand Image

Repositioning the brand (e.g. New Coke; Kellogs with slogan try them again for the first time ); Samsung form Korean & Low quality become Global and Innovative 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 (e.g. Kentucky Friend Chicken into KFC) Convey new information or signal that the brand has taken on new meaning (should be moderate and evolutionary)
13.18

3. 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 e.g. Johnson&johnson baby and adult

13.19

Diagram 13.2 Revitalizing Brands

Expand depth and Breadth of awareness And usage of brand
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 Retain vulnerable customers

Brand Revitalization Strategies

Refresh old sources Of brand equity

Create new sources Of brand equity

Bolster fading associations Neutralize negative associations Create new associations

Improve strength, favorability, and uniqueness of brand associations

Recapture lost customers

Identify neglected segments Attract new customers 13.20

Adjustments to Brand Portfolio

1.

Migration strategies
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 by entry level brand Example: BMW with its 3-, 5-, and 7-series numbering systems

2.

Acquiring new customers

Tradeoffs in their marketing efforts between attracting new customers and retaining existing ones Firms must proactively develop strategies to attract new customers, especially younger ones (Dove bar soap, to target youth develop other beauty care) Some alternative approach:

Multiple marketing communication programs Brand extensions and sub-brands New distribution outlets

3.

Retiring brands
An orphan brand: once popular brand with diminished BE that a parent company allows to decline by withdrawing marketing support Obsoleting existing products
13.21

Investment decision in a declining industry

Market Prospects

Is the rate of decline orderly and predictable? Are the pockets of enduring demand What are the reason for decline? Is it temporary? Might it be reversed? Are the dominant competitors with unique skills or assets? Are there many competitors unwilling to exit or contract gracefully? Are the customers brand-loyal? is there product differentiation? Are there price pressure? Is the brand strong? Does it enjoy high recognition and positive, meaningful associations? What is the market share position and trend? Does the business have some key sustainable competitive advantages with respect to key segments Can the business manage milking strategy? Is there synergy with other business? Does the brand fit with the firms current strategic thrust? What are the exit barriers?

Competitive intensity

Brand Strength and organizational capabilities