Managing Brands

Transcript

1. Managing brands over BLC
2. The concept of the product (or Brand) life cycle is today at about the stage that the Copernican view of the universe was 300 years ago: a lot of people knew about it, but hardly anybody seemed to use it in any effective or productive way. - Theodore Levitt
3. What is BLC?
5. Key Questions Given a proposed new product/service Brand, how and to what extent can the shape and duration of each stage be predicted. Given an existing product/brand, how can we determine what stage it is in Given all this information, how can it be effectively used.
6. Introduction, market development phase Objective: Product/Market Development; Attract customers Corporate Context, Focus NPD Process Brand Positioning Brand Design to build associations Execution to focus on Creating Brand Awareness Category Information, Category Creation, Trial
7. BRAND LAUNCH FAILURES- REASONS Less than 3% of new CPG exceed first-year sales of $50 million in US—considered the benchmark of a highly successful launch. Flaw 1: The company can’t support fast growth. Flaw 2: The product falls short of claims Flaw 3: The new item exists in “product limbo.” Flaw 4: The product defines a new category and requires substantial consumer education— but doesn’t get it. Flaw 5: The product is revolutionary, but there’s no market for it.
8. GROWTH phase Reinforce Brands Maintain Brand Consistency- positioning and communication Protect sources of Brand Equity Invest in marketing investments Fortify or Leverage brands: Fortifying refers to enhancing brand equity in terms of awareness and perception, whereas Leveraging refers to making money from a brand.
9. Objective: Market Penetration: Gain more customers; Switch from competition Focus on Quality Brand Consistency Brand Relevance Availability/ Distribution Communication to build preference
10. MATURITY phase Objective: Build Brand Loyalty to retain customers Revisit Brand Essence (Elements, Personality, Packaging) Re segmentation Brand Variants Repositioning / Evolved Positioning- Reverse/Stealth/Breakaway Positioning Pricing decisions Distribution Control Brand Investment - extensions
11. MATURITY phase Revitalize & Refresh Brands Expand Brand Awareness- recall and recognition Improve Brand Image/ Enhance Brand Associations Reposition Change Design Enter new markets and segments
12. GROWTH & MATURITY phase Refresh old sources of equity Create new sources of equity Expand depth and breadth of awareness and usage Improve strength, favorability, & uniqueness of brand association Increase quantity of consumption (How much) Increase frequency of consumption (How often) Opportunity to use more in same way Opportunity to use in new and different ways Bolster fading associations Neutralize Negative associations Create New associations Retain vulnerable customers Recapture lost customers Identify neglected segment Attract new segment
13. DECLINE Phase Objective: Arrest your customer; Increased usage, uses Internal Reasons Product Quality Pricing (Value) Price Cuts (Discounts) Brand Neglect Target Market Shift Competitive Actions Category Decline
14. DECLINE PHASE Focus Elements Build or Kill Brand Stretch Pricing levers
16. • PLC BLC • Rapid Growth • Slow Growth • Decline • New Entry • Establish at Low contribution • Identify clear niche and cost-benefit analysis • Assess long term continuance • Growing • Invest in market and product. Plan for long term stay • Create uniqueness • Capitalise on strengths. Plan exit in medium term • Established / Old • Revitalise, Relaunch • Harvest • Milk. Plan phased exit SUMMARY: BLC STRATEGY MATRIX
17. Penetrate (Existing Users) Switch users to your brand New users to the category Actual Value Change • Product change/upgrade • Pricing • Brand extension • Line extension • Packaging • Distribution Perceived Value Change • Positioning & Communication • Communication • Design elements
18. Managing brands over BLC