some Indian brands that have declined and some which have revitalized

1. A BRAND IS FOREVER! Revitalizing declining and dead brands " Marketing is easy to teach and understand but difficult to practice" GROUP 1

2. Important Definitions Brand Equity:- The differential effect that consumer knowledge about a brand has on the customer’s response to marketing activity. Brand Decline:- Failure of a brand due to many factors like change in technology , lack of brand awareness etc. It is a Reversible process. Brand Death:- Becomes imaginary , have significant brand equity in terms of high brand awareness and a strong brand image. Brand Revival:- Reviving is not a feasible, as it needs a more attractive strategy than launching a new brand .Less costly , more risky than new brand.

3. CAUSES OF BRAND DECLINE

4. Product Life Cycle Uses sales - define stages of PLC - to predict sales Self fulfilling prophecy : sales decline – no more investment – milk the brand

6. Price Increase

7. Price Cuts

8. Brand Neglect

9. Inability to stay with the target market

10. Brand Extension

11. Mismanagement of Ownership

12. Inadequate Marketing (Distribution, Merchandising)

13. Targeted to wrong segment ii) Selective forces – Market Environment iii) Mediative forces – Competitive Actions & Responses to Marketing Initiatives Intuitive & Insightful approach of categorizing key factors in a brand’s success or decline

14. Product Quality Compromising product quality For cost cutting reasons Not impact brand loyalty in short run Brand start decline when brand do not live to customer expectations Examples:Sunfill Maruti gypsy

15. Contd.. For example Maruti gypsy :- Born in 1985 Positioned :- on ruggedness, sportiest looking SUV Tagline:-" There is a Gypsy in Everyone“ Target customer:- Police and Army vehicle segments Failed because: Apathy of the company in investing in the brand Considered as a tough vehicle -lacked many important attributes. The driving quality and the mileage was awful, lacked space and comfort, underpowered for an off roader. Ridiculous premium which was not justified in terms of the delivery of value, brand was priced Rs 5 lakh.

16. Price Increases Price rise without corresponding increase in benefits Consumers abandon the brand Examples: (i) Tata Sierra 1st Indian SUV - Came too early Sporty beast - Rightly promoted Failed because: Steep price – Rs. 5 lakhs Price didn’t justify the quality proposition No added feature as offered power steering, power windows etc. (ii) Maruti Gypsy

17. Price Cut Cut prices to increase sales Damages the brand Example: Lacoste Sales began to decline in U.S Parent company – General Mills Lowered prices Expanded distribution Used cheaper material Disastrous effect

18. Brand Neglect Constant nurturing required Cash cow stage ,neglect to invest in them Less attention to strong brand Example: Vimal suiting's Handled by Mudra garments Army veterans, experts in various fields were used as models to build the character of the brand Famous personalities like KabirBedi Tagline“ only vimal” Shift in the consumer's preference towards readymade garments Lack of marketing support by Reliance had virtually killed the brand

19. Target on Wrong Segment Example:Vanilla Coke (2004) Coca cola product different in taste, promotion, package, price etc. Promotion: Retro Style using VivekOberoi Old Lamby Scooter screaming Wakaw. Failed because: Bad taste Not targeted at the right segment ”people in twenties could not relate to Elvis Presley”.

20. Inability To Stay With The Target Market Reach out to new segment Alienate core customers Felt neglected Brand decline Example: Nivea (born in 1911) German company marketed in India Famous for face cream for winter Brand element” Blue and White" colour Failed because: JL Morrison tried to extend the brand to soaps Failed to strengthen its positioning as a skin care leader Marketing laziness. Sold in the grey market.

21. Mismanagement Of Ownership Frequent change of hands of ownership Negatively affects Brand Equity Brands decline Examples: (i) Cuticurra (ii) Burnol Indian antiseptic cream – Burn Specialist Brand Owners : Boots – Knoll – Dr. Morepan This constant change over of this brand from one company virtually undermined the equity of this heritage brand Brand regaining with major repositioning campaign

22. Contd.. (iii) Clearasil (Reckitt & Benckiser) Ultimate cream for Pimples and acne Invented by Mr Ivan Combe of USA in 1950 Many ownership changes : Richardson Vicks (1961) – P&G (1985) - Boots Pharmaceuticals (2000) - Reckitt &Benckiser (2006) Lack of brand building efforts Now, Tapping the existing brand equity and trying to create a new space

23. Brand Extension Taking existing brands and launching products with the same name in new categories Sometimes lead to brand decline Example: CeaseFire Fire Extinguishers India's first domestic fire extinguisher Compact, unique, boasted of extinguishing all sorts of fire Brand diversified to Vaccumizer Unsuccessful new product The top ten fastest growing brand in the country to a company referred to BIFR

24. Environmental Factors Dynamic Market Major transformations Environment – Legal (regulations), Technology Cope with rapidly changing environment Example: (i) Bajaj Chetak Realiable & Sturdy High Brand Equity - Had Waiting Period of more than 10 years Failed to understand the changing perception of the customers towards scooters Same look, same quality and style Problem - starting trouble and riding comfort No product development ; R&D – 1% Average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors Bajaj beaten by Customer

25. Contd.. (ii) Onida Tagline:- " Neighbour's Envy, Owner's Pride In 1998 it scrapped its devil advertisement Failedbeacuse: Ownership issues within the company No brand promotion or new product launches Onida is changing its brand elements because of competition from Korean brands like LG and Samsung for which the product speaks for itself No high technology products came from this brand

26. Competitive Action Smart use of Technology & Efficient operations Competitive advantage Change in market dynamics Customization & Innovation Mergers and acquisitions Example: Proline (Batra Group) 1983 Sports/ Leisure wear segment in the Indian market High Equity - Premium International image International players (in 2000) - Brands or icons like Nike , Reebok and Adidas Competition from unbranded players & National Players like Peter England & Colour plus Didn’t find space to fit in – couldn’t stand competition Despite the good brand name, first mover advantage and the memorable positioning, Proline was a brand that could not sustain

27. EXAMPLE OF A PRODUCT DECLINE

28. AKAI (launched in 1995) Handled by Baron international Outbreak players like Videocon, BPL , Philips Onida by greatest marketing practices captured 14% market share within 18 months Marketing strategy : make an offer that no one can refuse. Impressed Indians :- Full page ads, exchange policy schemes, attractive prices, made in Japan Unconventional distribution strategy , distributors paid upfront to get orders, additional margins to dealers , price cut to 40%

29. Contd.. Globally Owned by Ontario, had issues with Barons Due to non-fruitful deals with Aiwa of Japan and Videocon it had an image of low price brand. Heavily spent on advertisements. Didn’t succeed to come up with TCL Chinese brand Low brand awareness But Made two luxury product categories CTV , hi-fi systems affordable to Indian consumers.

32. Innovative methods to reach market

33. Alliance for Distribution

34. Died in 4 years

35. Quality Issues

38. Differentiator

39. Lost visibility due to competition

42. Margo got sidelined.

45. New-entrant

47. New entrants

48. Limited portfolio

49. Messy Organizational Structure

51. Listen to your consumers

52. Creating compelling creative messages

53. Differentiating product from competition

54. Addressing the weak elements that led to the decline

56. Changed market conditions

57. Relatively Cost effective procedure than introducing a new brand

58. Old brands have tremendous asset value & resale value

59. Helps in capturing lost brand equity

61. Differential effect

63. Singular focus

65. Carefully Reposition the brand, Invest in it, & Educate the market Sustainability factors for a brand: - Differentiation - Proper Positioning - Awareness about the product. Example: Melody Problem: - Decreasing visibility of the brand. - Competition from aggressive marketers (PERFETTI) - Not enough spending on the brand. - Improper store placement - Low brand recall. Solution: - New tagline “ Why MELODY is so chocolaty? ” - Positioned itself in the Rs.1200cr Indian Confectionery market. - Retained the famous positioning of "Chocolaty”

66. Correct Mismanagement of Brand Failure to clearly understand the reasons for Brand decline Inability to come up with new strategies Lack of commitment to revitalize the brand Rebuild Quality: Poor Quality kills the brand Quality must be improved despite increase in costs Overcome negative perceptions about the brand Example: Coca-cola Sunfill Problem: - Bad quality concentrate - Not available in stores - Unable to match with the quality of competing brands - Half hearted effort by the company management to sustain the brand - Product dropped from market in 2005 Therefore Sunfill was unable to revitalize the brand due to lack of managerial persistence to carry the product forward and it also faced the competition from Rasna.

67. Resist Temptation to Milk the Brand An aggressive form of milking entails -cutting prices steadily -reflects brand’s weak position Example: Koutons Problem: - Constantly reducing prices - Offers a discounted price of 50%+40% all the year around - During sale seasons offers a discounted rate of 80% Due to this practice KOUTONS is nowadays is considered to be a weak brand, and doesn’t enjoy much brand equity Similarly, is the case with Cotton County, which consistently offers a discounted price to its customers and is hence considered to be a weak brand

68. Pursue a carefully defined target market Carefully defining target market can be a challenging task Risk of shrink in target market Difficult to appeal to two separate target market with same brand Risk alienating the core customers Example : Problem: John Players - Limited target Market - Inability to move forward Solution: Miss Players - A line extension with sub-brand - Utilized the strength of the brand to enter new market -Using “PLAYERS” to support the introduction of New line

69. THANK YOU AMINA AGGARWAL ANKITA GUPTA PARUL GROVER SHIVANI KATHURIA RUPALI ARORA NEHA GUPTA NEHA RANA APURVA MIGLANI AMRITESHWAR SINGH HITU KAURA