a brand is forever ! a framework for revitalizing declining and dead brands
TRANSCRIPT
Afer 21 years and sells of 7 million car Fourd's giving up. Launched in1985, Ford's Taurus quickly became one of the company's top selling models for 3 years in a row, the Taurus held the enviable recourd of being the best selling car in united states due to tough competition with japenese brands - the Honda Accord and the Toyota camry weaken the brand. When they decided to pull the plug on 2006.
Revival of Ford's Taurus
Product life cycle (PLC) framework
It identifies 4 stages 1. Introduction2. Growth3. Maturity4. Decline
Product evolutionary cycle (PEC)
It identifies 3 forces 1. Generative2. Selective3.Mediative
Managerial action
Brands decline because of leadership,management and employees making excuses rather than acting with integrity
Actions can be classified into 5 categories
Enviroment factor can undergo major transformation,which in turn have an impact on the various companies in an industries and their brands.
Environmental factors
Polaroid
Polaroid with its unique product offering quickly gained prominence.But the company bankrupt as the enviroment changes and the digital imaging became popular.
Competitive actions
A brand faces relentless onslaught from its competitors.This can become problematic if competitors have deep pockets
The ultimate sign of impending brand death is a significant drop in unit sales over a substained period.
Differential effect
Consumers must be provided with a compelling argument as to why should choose a particular brand from a wide variety of alternatives available to them
Brand image - Levi's
Levi's is facing image problem. Once a market leader in its category, the brand was synonymous with high quality denim jeans. Over the year brand began to lose its image. Levi's failed to follow fashion as stuck to its classic image. In mid 1990s Levi's sales started declining sharply. Company decided to sell its signature brand through Wal-Mart prices this pushed image further down.
Consumers response
consumers responseis taken via standard questions which are included in the survey panels.
Is the brands worth reviving?
Brand may be worth reviving if there is significant residual value in one or more of the components of brand equity
Take a long term perspective
Most brand take a long time to build, and a long time time to die. Reviving a brand is long term initiative take more than 2 year
Rebuilt equity
Harley-devidson used japanese management principles to improve quality, extended its product around
If the brand is to revived, management must invest in the brandConsider APPLE , which by the turn of century has positive image but losing top of awareness after struggle in pc market. Company made significant investment in mp3 player technology and launched ipod.The sleek design of ipod strunk the chord and the brand name came to forefront once more.
Let the revitalization begin !
Manager needs to constantly watch for signs of brand decline, in form of problem with brand knowledge brand differentiation, and customer response.