BRAND MANAGEMENT

Why is managing brand equity

important over time?
Changing marketing environment (external
forces)
Shifts in consumer behaviour
Competitive strategies
Govt. regulations
Internal forces
Changes in strategic focus of the
company.

STEPS FOR MANAGING BRANDS OVER

TIME
a. Reinforcing brands
a. Revitalising brands
a. Adjusting brand portfolio

REINFORCING BRANDS

Reinforcing brands
Brand equity is reinforced by marketing actions
that consistently convey the MEANING of the
brand to consumers in terms of BRAND
AWARENESS and BRAND IMAGE.
Reinforced marketing actions, along with product
development, branding strategies etc. also help in
keeping the brand meaning in terms of products,
benefits and needs as well as in terms of product
differentiation intact.

Reinforcing depends on nature of the

brand associations
Product related performance associations
Product innovations are critical.
Change in product may not be drastic, as brand
meaning may be associated with the product
characteristics.
Non-product related imagery associations
Relevance in user and usage imagery is critical.
Potentially easier to change through major
advertising campaigns (no product innovation may
be involved). Too frequent repositioning can blur the
image of the brand and confuse or even alienate
the consumers.

Reinforcing of brands can be

through
1. Maintaining brand consistency
2. Protecting sources of brand equity
3. Fortifying or Leveraging
4. Fine-tuning the marketing support
program.

Maintaining brand consistency

Consistency of marketing support is
essential for maintaining strength and
favorability of the brand.
Shrinking R&D and communication
budgets may risk the brand becoming outof-date, irrelevant or even forgotten.
Consistency to be shown in brand
positioning.
Consistency doesnt mean no changes at
all.
Tactics may change, but strategic
positioning of brand should not
change.
Prices may go up or down, product
features may be added or deleted,
brand extensions added or
withdrawn, ad campaigns may
change .
Key elements of the marketing
program and brand meaning
should be retained and preserved

Protecting sources of brand

equity
While looking at potentially powerful sources of brand
equity, preserve and defend the existing sources.
Unless there is some change with either consumers,
competitors or the company that makes the strategic
positioning of the brand less powerful, successful
positioning should not be deviated from.
Key brand associations should not be altered.
E.g. Maggis new introductions.

3. Fortifying versus
Leveraging
There is always a trade off between fortifying a brand and
leveraging the benefits of the brand to financial gains.
Fortifying means ways of increasing brand equity and furthering
the brand image through continuous marketing and advertising
efforts.

On the other hand, capitalizing on existing brand equity to reap

accruing benefits in terms of cost savings (reduced
communication expenditure) and revenue opportunities (seeking
increasingly higher premium and introducing brand extensions.)

REVITALISING BRANDS

Expand
depth/breadth of
awareness and
usage of Brand
Refresh old
sources of BE

Increase quantity
of Consumption

Increase
frequency of
Consumption

BRAND
REVITALISING
STRATEGIS
Create new
sources of BE
Improve strength,
favorability, and
uniqueness of Brand
Associations

Bolster fading
associations
Neutralize
negative
Create new
associations

New
opportunities
New and different
ways of use

Retain vulnerable
Customers
Recapture lost
Customers
Identify neglected
segments
Attract new
Customers

Reverse Fortunes of Brands

Recapture lost
sources of Equity

Identify and establish new

sources of Brand Equity

Steps to Reverse Fortunes

of Brand
Revolutionaryor
Evolutionarychanges?
Revisit the basic values
of the brands
Determine current status
of sources of Brand
Equity
Ascertain effectiveness of
key brand associations
Decisions on
repositioning

Repositioning
(RI)
Marketing Program (B2B)

Back 2
Basics

Marketing Program
Failures
Insufficient
Consumers
Less Damaging
Enforce positive
Associations

Continuum

Reinvention

Positioning Failures
Sufficient but
dissatisfied
Consumers
Extremely damaging
Difficult to overcome
negative
associations

Approaches to
Revitalisation
Expanding Brand Awareness

Improving Brand Image

Entering New Markets

Expanding Brand Awareness

Expand Breadth
Increased Usage
Quantity
Difficult to change
Function of particular
beliefs
Exception Impulse
Consumption
(availability)
Frequency
New opportunities
New Ways

New usage
Opportunities
Identifying new &
completely different
ways to use the brand

Repositioning

2. Improving Brand Image

Changes in Brand
Awareness not
sufficient
A new Marketing
Program
Old positive
associations to
bolstered
New positive
associations to be
created
Negative associations
to be neutralized

Changing Brand
Elements

Repositioning

Repositioning

Establishing more compelling

points of difference
Remind consumers of virtues of
brands that have been taken for
granted
Nostalgia and heritage
Establish a point of parity on key
image dimension
Negative product-related
associations due to changes in
consumer tastes

Changing brand elements

Modification of Brand
name
Other Brand Elements
Packaging, logos etc.
Moderate and
evolutionary in nature
Preserve salient
aspects of Brand
elements
E.g.: Adidas, Federal
Express, GE

3. Entering New Markets

Reach out to new Customer
groups
Johnson and Johnson:
Baby Soap, Baby
Shampoo
Reach out to decision
making segment instead of
the users
Women as decision
makers for mens
products
Tapping the female
segment of the
market
New market segments
based on cultural
dimensions
Retaining existing
Customers and Regaining
Lost Customers

ADJUSTMENTS TO BRAND
PORTFOLIO

Approaches adjustment to brand

portfolio
Migration Strategy
Acquiring new customers
Retiring Brands

1. Migration Strategy
Entry-Level
Brands Critical
in bringing new
customers
Logical ordering
Hierarchical
structure in
consumers mind.
E.g. BMW with
3,5,7 Series

2. Acquiring New Customers

To make up for loss of
existing customers
Important to attract
younger customers
Challenge Making
Brand seem relevant to
customers
Each generation has a
different attitude from its
preceding generation
Strategies to encompass
both new and old
customers

a. Multiple Marketing
Program

Separate advertising
campaigns and
communication programs
for each segment
Blurring of images due to
media overlap

b. Brand Extensions and

Sub- Branding

New technology, features

and attributes
Needs of new customers
or changing needs of
existing customers

c. New Distribution Outlets

Making products more

available

3. Retiring Brands
Options
Marketing Support (Orphan
Brand)
Reduce no. of product types
Almost no advertising and
promotional expenditure

Consolidation
Stronger Brand
Cut Costs
Focus marketing Efforts

Discontinue product
Spin off Orphan Brands after a cut
off of low sales
Sell Orphan Brands
Fade away or discontinue
consciously. E.g. - Citra

Abandonment Decisions for Retiring

Brands
Markets prospects

Rate and type of decline

Segments of enduring demand
Reasons for decline

Competitive intensity

CA of Competitors
Willingness to exit
Brand Loyalty of Customers and Price pressures

Brand Strength

Strong Associations
Market share and position in the market
CA w.r.t. key Segments
Brands fit in the Strategic Thrust
Exit Barriers

MANAGING BRANDS OVER TIME

REINFORCING BRANDS

REVITALISING BRANDS

Maintaining brand consistency

Protecting sources of brand equity
Fortifying or Leveraging
Fine-tuning the marketing support program.
Expanding Brand Awareness
Improving Brand Image
Entering New Markets

ADJUSTING BRAND PORTFOLIO

Migration Strategy
Acquiring new customers
Retiring Brands