16.

bRAND MIGRATION & NAME CHANGESS

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bRAND Migration

..TRIGGERS

Portfolio Re-organization

Reduction In Number Of bRANDS

Re positioning

Purchase Of A bRAND
Acquisition & Mergers

Closure Of Some Businesses

Global Expansion
2

bRAND Migration

..INSIGHT

The Vast Choices Available To

Consumers Means That They

Are Keener To Develop Deeper Relationships With A Smaller

Number OF bRANDS
3

bRAND Migration

A bRAND Is more than a name What do you transfer ?

A bRAND A Product Both ? Consumers

Never underestimate the Emotional Attachment Of consumers to bRANDS

4

bRAND Migration

..Reasons

Globalisation Of Media
Stimulating Global Demand and Global Supply-chains Satisfying It.

Large Companies Focussing On Lesser Number Of bRANDS

Trade Consolidation
Means bRANDS Have To Be powerful To Maintain In-store Presence.

Media Fragmentation And Inflation

Making It prohibitive To Support Large bRAND Portfolios
5

bRAND Migration

..Reasons

P&Gs principal bRANDS are down to about 60. Its top 10 brands provide 50% of sales Danones top 5 bRANDS contribute 60% of sales

Colgates strategic focus is on 6 global bRANDS which provide 70% sales

50% of Nestles sales come from 5 bRANDS LOreal has concentrated its efforts on ten major global bRANDS which are responsible for 87% of cosmetic sales

bRAND Migration

..Reasons

Migration is not about killing bRANDS off, Migration is about Building Power bRANDS

Keeping consumers happy

7

bRAND Migration

..Principles

1. 2.

Start with the Future : the bRAND Vision

the name change/migration must have a financial benefit

To migrate consumers overnight is wishful thinking To migrate bRANDS overnight is always possible
In the short term bRAND migration is Anti-consumer as it breaks an established relationship or contract (based on familiarity and trust) between consumer and bRAND

3.

Check bRAND Equity,

both for migrations and name changes
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bRAND Migration

..Principles

4.

Convince the consumer

that the change is to their advantage. Name changes alone will not achieve growth

5.

Consumers need to be Migrated Up

with new and/or additional tangible benefits, for consumer migration to be successful. Use Innovation

bRAND Migration

..Principles

6.

Communication is Vital.
Growth is dependent on the receiver bRAND having great communication

Great communication and innovation is dependent on

great insight

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bRAND Migration

..Principles

7.

Use Research

To Really Understand The Issues In changing The bRANDS. To understand why people feel the way they do about the migration. Do not use research to get consumer approval for what you are trying to do: they will rarely be happy that the bRAND Is changing.

11

bRAND Migration

bRAND Migration Is About

Converging The Elements Of 2

Or More bRANDS into one new

powerful

POSITIONING
12

bRAND Migration Date: 1990-1998 WHIRLPOOL

& PHILIPS MERGED

Key Learning:
Co-branding builds awareness of new brand.
WHIRLPOOL was strong in USA, bought PHILIPS to gain reliable heritage it lacked in Europe Co-branding used to build WHIRLPOOL brand PHILIPS name only removed when awareness of WHIRLPOOL had reached 97%
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bRAND Migration

..Principles

Packaging shape formats & Designs play a key role in bRAND Transfers & Migrations
14

bRAND Migration

..Principles

Packaging options in bRAND Transfers & Migrations

1.

Use both names for a while before removing the old name
Wrap in a sleeve: former name on an outside sleeve that can be removed to reveal the new name bearing the old name

2.

3.

Ask consumers to suggest the new name

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MIGRATION COMPLEXITY

There are 3 main types of migration with varying levels of complexity

Same Brand Name Different Brand Name Re-name Re-position and Re-name Same Positioning Different Positioning

Power brands

Re-position

Simple Migrate 1. Rename Short time frame, few stages 2. Repositioning 3. Rename & Repositioning

Complex Migrate

16

Long time frame, multiple stages