BRAND FAILURE AND RE-POSITIONING

PRESENTED BY:ROHIT SHENOYPRABHAV BHAT

RACHAN RAJPAWANVIJWAL

Introduction:

Brand

It is a collection of experiences and associations connected with a service, a person or any other entity.

Brand name

• It is used to specifically denote written or spoken linguistic elements of any product.

• Type of trademark.

Brand failure

• The withdrawal of the brand from the market for any reason

• The inability of a brand to achieve required market share

• The inability of a brand to achieve anticipated life cycle

• Failure to achieve profitability

Brand Positioning

• It is how a product appears in relation to other products in the market

• It is the process by which marketers try to create image or identity in the minds of their target market for its brand

• It is the relative competitive comparison their product occupies in a given market as perceived by the target market

Brand Repositioning

It involves changing the identity of a product; relative to the identity of competing products in the collective minds of the target market.

Brand Depositioning? It involves attempting to change the identity

of competing products; relative to the identity of your own product; in the collective minds of the target market.

Objectives that a good brand will achieve-

• Delivers the message clearly• Confirms credibility• Connects the target market emotionally • Motivates the buyer • Concretes user loyalty

Why brand fails?

• Category• Timing• Cultural factors

Brand Myths-

• If a product is good, it will succeed.• Brands are more likely to succeed than fail.• Big companies will always have a brand

success.• Strong brands are built on advertising.• If its something new, its going to sell.• Strong brands protect product.

Common mistakes that kills brand-

• Inconsistent Corporate Identity• Poor visuals• Not training employees• Failure to track branding efforts• Not using existing customers for branding• Letting marketing materials get stale• Failing to focus branding on the core service

Continued---

• Not having a tag line that is believable• Failing to “grab” the public with a tag line• Not knowing where successful branding starts

Failing to create a successful brand-

• Not thinking analytically.• Not maintaining the brand.• Trying to appease everyone.• Not knowing who you really are.• Not fully committing to branding.• Not sharing the joke.• Not having a dedicated marketing plan.

Continued----

• Using too much jargon.• Trying too hard to be different.• Not knowing when you have got them.

Other branding mistakes-

• Branding on price.• Changing your promise.• Over promising.• Me-too branding.

MARKETING PITFALLSHOW TO AVOID THEM

• “Good marketing is no accident but a result of careful planning and execution” -Philip Kotler.

• Sound marketing strategies and well convinced plans greatly enhance the chances of success.

• Half baked plans and hastily laid out tactics undoubtedly spell doom for the organization.

• Marketing plan operates in two levels:1.Strategic plan: which identifies the target

markets and value proposition to be offered.2. Tactical plan: which focuses on the marketing

mix.• A good strategy if not implemented, is a great

opportunity lost and set the organization back by a few years.

• Merits “small ‘n’ flaccid” campaign:• One of the cigarettes brands in U.S launched a

$450mn ad campaign with a ambitious objective of reaching the top of $800bn cigarette industry.

• Sales fell from 20 million pack to 12 packs per week.

Market fiascos in recent times

• Auto major general motors and McDonald’s had a unpleasant partnership with disastrous consequences.

• August 2006 they came with the sales promotion campaign of giving away 42million toy hummers along with happy meals.

• Parents and environmentalists resisted the promotion as they felt it was ethically incorrect.

McDonalds giveaways

• In July 2003, Reliance launched a monsoon hungama scheme under which postpaid connection and dell phone was sold at a throw away price of Rs.501.

• The result, ten days there were1million subscribers.

• Led to a loss of 1500 crore.

Reliance Infocom

• Coca-cola took over Thums up, which had a imposing share of 60% of Indian cola market in 1993.

• The aim was to promote coke with ready to us distribution network.

• But the result was Pepsi occupied the top position, sales of Thums up declined by 15% .

• But Thums up had its own distinct market.

Global giants and local brands

• “Nothing sucks like an Electrolux”-ad by Scandinavian durables in American magzine.

• “Come alive with the Pepsi generation” became “pepsi will bring your ancestors back from death”.

• Chevy nova introduced by GM in Latin America markets, which was not a success for the simple reason that “no-va” means “a thing which does not move” in Spanish, forcing GM to re-launch this MUV as Caribe.

Cross cultural challenges

• Resist temptation of listening to your heart: One should not allow ones professional arrogance to dominate the decision making process.

• Look at your basics before entering the market or launching a new product.

Frame work for avoiding marketing pitfalls.

• Let all the departments work simultaneously on new product launches:

• There has to be a perfect coordination between various divisions like manufacturing, Logistics, distribution network, packaging, promotion and pricing right from the time the prototype was developed.

• Do not overlook local factors: • Entering the emerging market thinking that the

strategies adopted back home can just be replicated in the new market.

• Emerging markets today are what developed markets was 10years back.(McDonalds, Kelloggs)

• Nokia and Samsung ‘glocalized’ their business with a blend of local talent and best resources back home and were successful.

• Have local consultants assist your communications team:

• companies should be extra careful while designing the local content.

• Product testing and test marketing, advertisements too can be pre tested before they are rolled out.

• Have intellectual honesty to admit your mistakes:

• Admit the mistakes and try to come out of it with quick fix solutions.

• Example: McDonald’s case- “looked at through children’s eyes, the miniature hummers are just toys, not vehicle recommendations or a source of consumer messages about natural resource conservation, green house gas emissions, etc”

• Have long term perspective:• If the organization is in a great hurry to milk

the market, the chances of failure are much higher.

• Understand the local culture, market conditions and consumer preferences and fine-tune ones strategy.

• McDonald’s took 5 to 7 years to establish in Indian market.

Brand Failure of few Companies in India

KELLOGG’S

Mighty brand in U.S and European market.

In the late 1980’s – 40% of market – sales above US $6 billion.

In 1990’s Kellogg’s struggled in the market.

In 1994 stepped into the Indian market.

Confusion in the minds of Indian consumers

The taste of success was for very short time

Bounced back with the idea of establishing brand

equity…!!!

PROMOR international a research firm

APPLE iPHONE

How Apple went into the wrong strategy???

It was not only the price factor which hit the market of Apple in India but also

the communication.

Other Factors

Selling of the products in their own outlets.

Strategy to sell with lock-in. Failed to reach the consumer

confidence.

Great opportunity for the expansion of its market

turned to be failure.

Domino’s Pizza

Failed to reach the local market in India.

The new products launched failed to make the strong mark in a market.

What should have been done to make an impact on the Indian consumers with

the strong base in a market???

CONCLUSION: