BRAND REVITALIZATION

PRESENTED BY MA. AHMED PASHA MBA(PHARM),1ST SEM NIPER

FLOW OF PRESENTATION

BASIC DEFINITIONS BRAND REVITALIZATION VS BRAND REPOSITIONING BRANDS THAT NEED REVITALIZATION BRAND LIFE CYCLE VS PRODUCT LIFE CYCLE REASONS FOR BRAND REVITALIZATION RATHER THAN NEW BRAND RIGHT CHOICE POWER GRID STRATEGIES FOR BRAND REVITALIZATION WITH CASE STUDIES CONCLUSION

WHAT IS BRAND?
According

to AMA Brand is a name, term, symbol, design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition"

WHAT IS BRAND REVITALIZATION ?

Brand

revitalization is the process of

re-energizing a brand that is losing consumer resonance and relevance by compelling/preparing new

proposition or idea.

WHAT ARE UGLY DUCKLINGS?

Products with fewer sales and which are on the brink of exit with damaged brand equity can be termed as the Ugly Ducklings. These include old brands supposedly on their last legs; brands with a loyal but shrinking consumer following; unglamorous cash cows; brands that have built the company; modest volume brands which have had the profit; beasts that never quite broke out of the pack; brands that are put at the lower bottom of the reports.

BASIC PRINCIPLE OF BRAND REVITALIZATION :

The

basic principle of Brand Revitalization can be derived from the statement: "Buildings age and become dilapidated. Machines wear out. People die. But what live on are the brands. -Sir Hector Laing, CEO, United Biscuits plc.

BRAND REVITALIZATION VS BRAND REPOSITIONING



People use the term brand repositioning and revitalization interchangeably but they are different. Brand revitalization is when all the brand attributes and overall strategy is still sound i.e. given the competitive set, customers brand values are still valid, marketable and meaningful but required relaunch. On the other hand, if we have a new and different target audience, or benefits that were never part of the original package, then the brand has to be repositioned.

BRANDS THAT NEED REVITALIZATION:

Heritage Brands : These are the brands that were the first ones to come in the markets. They could be referred to as the pioneers of the markets. These products are generally in the last stage or sometimes in the second last stage of their product life cycle However, their image among customers changes from that of a brand to a special brand. E.g. Hindustan Motors car Ambassador. It has become a heritage car with the memories

Orphan Brands : These are the neglected ones.

These are the brands that despite their high recognition factors may suffer from poor market positioning, a lack luster business environment. A major example that could be cited in this regard is that of the ointment Burnol. Boots Company plc ,Knoll AG of Germany Reckitt Piramal , Morepen labs ltd.

Ghost Brands : Ghost Brands are brands that are shadows of their former selves. They may be existing in the market or even sometimes phased out, but they continue to haunt the minds of the consumers. These are the brands were once the top brands in their market, but have now been overshadowed due to any of the various reasons, such as launch of new improved products, or change in the consumer needs or preferences, etc.

The companies, which own these brands, have four options:1) Revive them 2) Milk them 3) Sell them, or 4) Kill them. Reviving, in such cases, could be the best option as milking them wont yield much and eventually it would have to be killed. Also selling would give the producer a much lower price as if he revives it. Hence though revival involves considerable costs to the companies, but it could yield them profits more than their investments compared to the profits that the buyer could make

BRAND

LIFE CYCLE

Customer Based Brand Equity

Maturity Decline/ Harvest

Rejuvenation Growth

Launch

Time

BRAND LIFE CYCLE VS PRODUCT LIFE CYCLE

Brand life cycle

Product life cycle

Brand is generated over a period of time so its life is not clearly visible Many brands exists for many years practically making no lifecycle

In PLC it is very easy to see distinct changes over a period of time You can provide a quick fix to most products out there to improve sales and prolong the lifecycle

REASONS FOR BRAND REVITALIZATION

RATHER THAN NEW BRAND

It

is a big business It is cheaper and less risky than building new brands R&D productivity is at all time low

CONTD
Brand

Revitalization many a times require only brush up the consumers mind Older brands are having reputation of reliability which is very difficult to met by newer ones PLC is shortening quite quickly than ever before

RIGHT CHOICE POWER GRID

High Niche/ BRAND STRENGTH (Differentiation & Relevance)
unrealized potential Ideal for Revitalization

1 New

4
Challenging

low low

Unfocussed

Eroding

High BRAND STATURE (Esteem & Knowledge)

Approaches

To return to its roots and restore the lost sources of brand equity

Establish new sources of brand equity

Expanding the depth or breadth of brand awareness by improving

consumer recall and recognition of the brand during purchase or consumption settings.

Improve the strength, favorability and uniqueness of brand associations

making up the brand image. This approach may involve programs directed at existing or new brand associations.

STRATEGIES

Revitalization of corporate brand

Revitalization of product brand

REVITALIZATION OF CORPORATE BRAND

Change in organization structure Change in organization logo Change in Mission, Vision statement Change in corporate governance

REVITALIZATION OF PRODUCT BRAND

o o

Line Extension Repositioning or indication expansion

o o

Rx to OTC switch Change in packaging

CONTD

Change in Distribution Channel New segmentation Change of marketing mix

LINE EXTENSION :

XATRAL XL (Alfuzosin) from Sanofi Synthelabo (Now Sanofi Aventis) won a award of the best Brand Revitalization of the year 2002 from PMEA

(Pharmaceutical Marketing Effectiveness Awards).

XATRAL is

approved for

indication

of

benign

prostatic hypertrophy. In 2000 it launched a OD form of brand XATRAL XL.

Which gain an enormous support due to increased patient compliance and lost sales was compensated.

INDICATION EXPANSION :

REQUIP

(Ropinirole

HCl)

was

previously

promoted as a treatment for Parkinson's disease but due to presence of no of other players and well established older brands it was loosing market shares.

GSKs sales reps had noticed several years ago that some doctors were prescribing the drug for RLS, which causes creeping sensations in the legs and an uncontrollable urge to move.

Recently GSK repositioned it to treat a little known condition Restless Leg Syndrome (RLS).

For this GSK required only additional studies to prove it and got approval. It started a TV and print advertising campaign heavily and the result was soaring sales.

CHANGE IN PACKAGING :

Pfizer used new packaging to help to increase the market share for its antibiotic ZITHROMAX

For this PFIZER developed the Z pack, a full course of therapy in a pre packaged box, to eliminate physicians giving out samples for full courses of therapy and to ease the writing of prescriptions by physicians.

The packaging change generate increased sales and provide a fuel to the brand.

NEW SEGMENTATION :
Sometimes just finding a new segment of users for the same brand can help in a successful revival of brand companies in US have revitalized the orange juice industry from being only on the breakfast table to a juice for all occasions. Its also being touted as a healthy alternative since it has vitamin C. With bulk of population in US being elders has broadened the product scope and has helped it make a comeback

GEOGRAPHICAL SEGMENTATION:
Even without new applications or new customer segments, a dwindling brand in one country can find solace in another. Companies are increasingly putting their brands into a new country or geography where they never existed. As there is no prior image of the brand in the new geography, the company can market the brand in a way so as to create the image they want customers to remember the brand as. For example General Motors, who managed to make its passenger car Buick a hit in China when the sales of the brand were not good in the US

RX TO OTC SWITCH :
Ranbaxy's Revital successfully shifted from prescription to OTC and became a market leader. There is more to Revital than just a combination of vitamins, minerals and ginseng. This is one of the top brands from the Ranbaxy that made a successful transition from prescription to OTC markets in India. The careful planning and implementation of the marketing strategy, which had a three fold objective of creating an appeal for the product, moving away from its serious image, and rejuvenating sales for the product made the move successful for Ranbaxy.

CONTD.

Ranbaxy chose Grey Worldwide to work on the brand during the transition of Revital from prescription to OTC. The challenge was to craft an appeal, which would successfully launch Revital in the OTC segment, by moving from a relatively serious image of Revital, without alienating the already huge base of loyal user and at the same time energizing the sales curve with new regular users..

JIYO JEE BHAR KE



Grey Worldwide came up with a series of ads for Revital. First phase of communication had 3 television commercials called the Wake up ad, the bhangra ad and the Govind ad. Each sought to demonstrate the pre & post usage and benefit scenario of Revital, where in intake of Revital helped reduced all signs of fatigue and weakness.

The second phase of television ad the Husmukhbhai campaign, wherein the puppet portrayal of an everyday man named Husmukhbhai is seen able to make the most out of life even after a hectic day of work which his friends and colleagues are unable to because Husmukhbhai is a revital user unlike others.

The third & the current phase of television commercials is Testimonial creatives where a man & a woman talk about how their lives have been enriched with Revital's regular intake because it has helped them remain active throughout the day.

SWITCH STRATEGY :

Shift

from a A of

molecule consumer need gap

Buildingemotional Assurance: In order to develop emotional assurance, the company had to undertake advertising that would help consumers' to make an

towards solution: analysis

the

product

presented Ranbaxy with an unmet need of its target

informed choice. This was an assurance that was based on educating him, creating relevance and familiarity instead of making a blind choice based on

audience. Today's lifestyle is characterized by stress and fatigue and Revital was

positioned as a solution, one that helped in sustaining

prescriptions. 1st phase-Awareness 2nd phase- Relevance 3 rd phase- Familiarity

energy levels and promoting overall well-being.

Creating brand authority: This involved building channels of trust for Revital both professional as well as personal. With a view to induce trials, the target customer was looked at the places where person feels tiredness the most. A consumer contact program was launched in 75 cities across India. Direct consumer promotion was done in anaaj mandis, chemist outlets and high traffic areas

Enhancing With an

Accessibility: to be

intention

accessible and available to the consumers in their moment of need, the distribution

network of the company was expanded.

Today Revital is expanding distribution from chemist

outlets to general stores to make it a part of the monthly grocery purchase.

HARLEY-DAVIDSON, USA
When the USA motorcycle market shrank due to the 1981-82 recession Harley Davidson found itself facing a surge of Japanese imports, which caused a glut of unsold bikes that artificially depressed the market and threatened Harley's viability. The US International Trade Commission found t hat increased imports of heavy weight motorcycles threatened serious injury to the domestic industry, and the President imposed te mporary import relief to allow the industry time to adjust. HD used this time to use design to improve manufacturing efficiency and product quality.

CONCLUSION:
Brands must make the product relevant and meaningful for the target customers. Branding pushes the product into a perpetual realm by integrating what it is. Branding gives reasons to buy and use the products. Brand revitalization gives a second life for a than 80% of the brands that are launched die off, a mere 8% of these brands, which are retiring, try to rejuvenate/ revive the brand.

CONTD

we can decode for a relatively small investment. Today Brand Revitalization is in very high demand as companies realize that building a brand would take ten times more money than reviving an existing brand. New product development tries to create brand equity from a blank sheet of paper. But it can frequently be more rewarding to start with a sheet already written on, with a hidden message

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THANK YOU .