CASE STUDY ANALYSIS:

BRANDING IS FOREVER: A framework for revitalizing, declining and dead brand

1) Summarize key trends in Branding

2) Identify the various alternative solutions that the companies could potentially pursue when brands decline.

3) Analyze and interpret the information in the case using concepts and frameworks of brand positioning, the product life cycle, and strategic planning,

4) Propose your solution to the problem supported by (iii). In proposing a solution, keep the following points in mind: a. Is the proposed solution sensible? Has it been "pulled out of thin air" or does it make sense in light of the material presented in the case and your consumer behavior analysis? b. Consider both the pros and cons of your solution; do not be one-sided in your analysis, "setting up" your solution. c. Choose a specific course of action. Does it follow from your analysis?

5) Expand on the course action (e.g. specifics of the 4 Ps) and discuss implementation issues (e.g. potential problems/concerns and your contingency plans).

Case analyses are key to the development of your abilities to select, evaluate and apply concepts, models and theories of marketing management to effective marketing strategy formulation. The focus of the case studies will be on identifying the problem faced by the company and formulating a solution, in the form of a set of recommendations, supported by thorough analyses of the marketing issues inherent to the case. The business situations presented in the cases are complex and frequently involve a series of interrelated problems.

What I am looking for is your insight into the key problem(s). For example, in discussing a case, draw on your knowledge of consumer decision making, information processing, cultural influences and other topics covered in class. Application of marketing concepts to the case and the interpretation of the key issues in the case in terms of these concepts and frameworks will be rewarded. Some of you may have never done a case analysis before; others may have not done so from a managerial perspective.

A brand is forever! A framework for revitalizing declining and dead brands Sunil Thomas, Chiranjeev Kohli* Mihaylo College of Business & Economics, California State University Fullerton, Fullerton, CA 92834, U.S.A. KEYWORDS Brand decline: Brand death; Brand demise; Brand revival; Brand equity Abstract Over the years, numerous brands such as Oldsmobile, Pan Am, and Woolworth-have met untimely deaths. Many more have steadily declined into oblivion, while others have been revived. When a brand dies, significant investments that were made to build the brand are also lost. Unfortunately, even the strongest brands with high net worth are not immune from brand decline and subsequent death. In today's market, where new product introductions are both expensive and risky, it may be worthwhile to evaluate brands that are declining and invest in revitalizing them. However, there is a dearth of studies that focus on declining brands. In this article, we use findings from academic literature, detailed case studies, and inter- views with marketing executives to provide guidelines in dealing with declining brands. We analyze the conditions that lead to brand decline and brand death, highlight signs that may suggest an impending decline, offer insights into assessing the viability of reviving a brand, and suggest various approaches that can be used to strengthen the brand and give it a second life. 2009 Kelley School of Business, Indiana University. All rights reserved. 1. Revival of a dead brand [By withdrawing Taurus] Ford may have wasted 20 years of investment in a brand name [so we have decided to resurrect the brand name]. Say goodbye to the Taurus. After 21 years and -Alan Mulally, CEO, Ford Motor Company, 2007 sales of nearly 7 million cars, Ford Motor Co. is Launched in 1985, Ford's Taurus quickly became one giving up on what some call the most influential automobile since Henry Ford's Model T. of the company's top selling models (Krisher, 2006). For 3 years in a row, the Taurus held the enviable - Associated Press Online, October 19, 2006 record of being the best selling car in the United States (Jaroff, 1995). However, intense competition from two Japanese brands--the Honda Accord and Corresponding author the Toyota Camry-weakened the brand. When Ford E-mail addresses: sunilthomas@fullerton.edu (S. Thomas). decided to pull the plug on the Taurus in 2006, many ckohliafullerton.edu (C. Kohti). 0007-6813/5 - see front matter. 2009 Kelley School of Business, Indiana University. All rights reserved. doi:10.1016/j.bushor 2009.03.004 Purchased by: Kay Green INFO@DRKAYGREEN.COM on March 03, 2014 378 S. Thomas, C. Kohli news reports mourned the passing of an era. Soon were revitalized, and conducted in-depth inter- after, though, Ford did an about face and reintro- views with practitioners who were knowledgeable duced the Taurus brand; the firm reasoned that the about these brands. brand still had much to offer, and was clearly a better option in comparison to an entirely new and unknown brand. 2. Decline and death of brands While the death of a brand is a complex and sometimes controversial issue, there is ample evi- Branding has been used since ancient times to dis- dence to show that neither the lifespan of a brand tinguish products from different sellers (Aaker, nor its ultimate destiny is predetermined. In fact, 1991). Today the power of a brand lies in its equity brand decline is a reversible process. Consider Har with its customers, and over the years, a more ley-Davidson, which during its tifetime suffered a customer-based brand equity framework has been significant decline and has since been recently developed. Brand equity is defined as "the differ. revived. In the early days of the post-World War II ential effect that consumer knowledge about a period, the brand gained popularity as its motor brand has on the customer's response to marketing cycles became known for their unique designs and activity, and consumer brand knowledge can be engineering (Wells, 2001). After decades of market characterized in terms of brand awareness and dominance, the brand started bleeding in the early brand image dimensions (Keller, 1999, p. 102). 1970s upon the advent of smaller Japanese motor Thus, when a brand has high awareness and con bikes, which created a dent in the brand's sales. To sumers "hold strong, favorable, and unique brand counter this action, Harley-Davidson created its own associations, it is considered to have strong equity line of smaller vehicles; unfortunately, these were (Keller, 1999, p. 102). perceived by loyal Harley customers to be of poor Familiar brands that have demonstrated strong quality, and sales continued to drop. The company brand equity include Coca-Cola, Microsoft, IBM, and was soon facing huge financial losses, and it looked GE (Kiley, 2007). However, brand equity may decline like death was certain for the brand ("Harley-D with the passage of time, sometimes leading to a vidson," n.d.). Rather than throw in the towel, brand's demise. For example, Pan American World however, Harley decided to make a significant in Airways-more commonly known as Pan Am--was an vestment in its quality and distinctive styling. As a iconic American brand. It was one of the oldest result, it is now once again a well-known and re airlines in North America, and the first American vered American brand. airline to operate international flights. For this Reviving a brand is not just feasible; it may very reason, it was promoted as "The World's Most Ex well be a more attractive strategy than launching a perienced Airtine" (Reed, 2006. p. 18). Over the new brand. As Aaker (1991) pointed out, the revi- years, Pan Am faced intense competition which talization of a brand is usually less costly and risky began to impact its bottom line. In 1988, the com- than introducing a new brand, which can cost tens pany faced a devastating crisis when one of its of millions and will more likely fall than succeed airliners was bombed over Lockerbie, Scotland. (p. 242). Sometimes dying or dead brands may still and crashed ("Pan Am," n.d.). Shortly afterward, have significant brand equity in terms of high brand Pan Am went out of business. One of the main awareness and a strong brand image. It was this reasons for Pan Am's death was the significant thinking that motivated Ford's effort to revive the amount of negative publicity associated with the Taurus brand, the brand's equity being the driving plane crash: this created a confidence crisis among force behind this decision. Ford realized that in its customers (Haig, 2003). Today the brand is ex stead of trying to use another brand name that tinct, Save nostalgic memories in the minds of for meant little to the market, it would be better off mer employees and clients. In sum, the Pan Am case utilizing the Taurus brand name, which had 90% is an example of death which followed an extended name recognition and a positive image (Kiley period of struggle. 2007). Thus, shortly after its death, the Taurus A flagship brand for General Motors, iconic was rebom. Oldsmobile was known for its pioneering designs In this article we highlight some examples of and innovations, including chrome plating, fully brand decline, investigate leading causes of brand automatic transmission, and front wheel drive decline, identify signs that are precursors to im (Haig, 2003). Over time, sales started declining pending decline and suggest guidelines to revitalize and GM decided to stop production of Oldsmobile brands. To accomplish this, we reviewed the aca- models in 2004. There were two primary reasons for demic literature and trade publications on this top the decline of the brand. First, Oldsmobile was ic, examined case studies of brands that died or perceived as an "old brand" among consumers. Purchased by Kay Green INFOBDRKAYGREEN.COM - March 28, 2014 A brand is forever! A framework for revitalizing declining and dead brands 379 While GM tried desperately to battle that image brands in certain industries. Finally, for most with the "it's not your father's Oldsmobile" adver- brands, the effectiveness of management actions tising campaign, the firm was ultimately unable to will be impacted by the intervening actions of shake its staid positioning (Haig, 2003, p. 263). competitors. In other words, competitors' actions Second, as GM strived for uniformity in design across act as a mediative force in a brand's evolution. its different brands, Oldsmobile lost its unique iden- Thus, in the context of brands, managerial and tity as an innovator. entrepreneurial activities constitute the genera The aforementioned examples illustrate that tive force, the market environment acts as the even well-known brands can decline as a result of selective force, and competitors' actions and re- a wide variety of factors. While the death of a brand sponses to marketing initiatives constitute the me typically receives a lot of attention, it is often diative force. This is an intuitive and insightful preceded by a slow and debilitating decline over approach of categorizing the key factors in a a prolonged period (Semans, 2004). The academic brand's success or decline. We now elaborate on literature is particularly sparse in addressing this, each of these forces, and explain their role in brand and it is a perplexing issue for practitioners. To decline. address the subject, we outline below the leading causes of brand decline. 3.1. Managerial actions Ron Strauss of Brandzone suggests that brands often 3. Causes of brand decline decline because of "leadership, management, and employees making excuses rather than acting with To understand why brands decline, we draw upon integrity" (R. Strauss, personal communication, theories of brand evolution. The popular product January 24, 2006). Even when environmental fac- life cycle (PLC) framework Identifies four stages: tors and competitive actions remain static, mana- introduction, growth, maturity, and decline. The gerial actions can significantly impact brand health. Simplicity of the PLC framework is appealing, how In our research, we found that such actions can be ever, several scholars point to some of its major classified into five categories: product quality, price drawbacks, including its tautological nature for increases, price cuts, brand neglect, and inability to managers (Hunt, 1976). It uses sales to define stay with the target market. the stages of the life cycle, which in turn are used to predict sales" (Tellist Crawford, 1981, p. 125). 3.1.1. Product quality In fact, the managing partner and president of A successful brand can sometimes tull management Baumwoll International Consulting suggests that into complacency, in this case, the sheer success of excessive reliance on the PLC creates a self-fulfilling a brand becomes its own undoing. When compro prophecy because, when sales decline, "manage- mises in product quality for cost-cutting reasons do ment decides that a brand no longer needs invest- not impact brand loyalty in the short run, managers ment and begins to milk the brand" (J. Baumwoll, mistakenly conclude that consumers are willing to personal communication, January 23, 2006). accept or live with the change. At some point when A more evolved form of the PLC framework, the customers' experiences with the brand do not live product evolutionary cycle (PEC) proposed by Tellis up to their expectations, however, the brand will and Crawford (1981), offers additional insights into start to decline. Cadillac's steady decline over two how a brand grows. According to the PEC, in a decades exemplifies this. Today it is in the midst of a biological context, the evolution of organisms turnaround, more about which will be discussed is affected by three forces: generative (genetics). Later in this article. selective (the environment), and mediative (intervention by other species: Specifically, hu- 3.1.2. Price increases mans). The PEC framework is equally applicable If a company continues to raise prices without of to brands (Holak & Tang, 1990; Tellis lt Crawford, fering a corresponding increase in benefits, sooner 1981). This framework suggests that a brand can or later consumers will start to abandon the brand. evolve, and is not pre-destined to die. After Volkswagen failed with its Rabbit model in the Managerial actions, both strategic and tactical, United States, it replaced the Rabbit with a newer play a vital role in determining a brand's future. model, the Golf. However, Volkswagen was unable These actions act as a generative force in the to control costs and had to keep raising prices, until brand's evolutionary growth. However, managerial it tively drove itself out of the entry-level actions do not take place in isolation. The market segment where it had once been a leader (Serafin, environment serves as a selective force, affecting 1993). 380 S. Thomas, C. Kohli 3.1.3. Price cuts to its grave. On the other hand, by shifting its focus Conversely, when a company cuts prices in despera- mid-way to a more promising younger audience, the tion to increase sales, it can also damage the brand. brand runs the risk of alienating its core customer Lacoste was a popular brand in the United States base. St. John's decision to replace its iconic model, until the 1980s, when sales began to decline; in Kelly Gray (daughter of the founder, Bob Gray), as reaction, parent company General Mills lowered the face of the brand with more rebellious actor. prices and expanded distribution ("Lacoste's Ri- model Angelina Jolie, was aimed at appealing to a poste," 2005). To maintain low prices, the company younger, less conservative audience. Unfortunately, had to in turn use cheaper material. This move consumers were not buying its message and started proved disastrous, and the brand's image ended to turn away from the brand (Wilson, 2006). In June up taking a major hit (Bloom, 2005). 2008, St. John decided that Angelina Jolie was not an appropriate brand ambassador and stopped using 3.1.4. Brand neglect her to promote its products. When a brand becomes popular, inaction creeps in. Even successful brands need constant nurturing. 3.2. Environmental factors However, management can lose sight of this, start looking at its core brands as cash cows, and neglect Markets are dynamic in nature and can be signifi- to invest in them (Aaker, 1991). This is well illus cantly influenced by the larger environment in trated by Black & Decker's handling of the popular which they operate. They can undergo major trans- DeWalt brand, which the company Ignored until it formations, which in turn have an impact on the virtually ceased to exist (Paley, 1995). As the brand various companies in an industry and their brands. manager of DeWalt put it,"managers get wrapped Cigarette brands in the United States have, for up in the inertia of a brand and begin to miss changes example, been affected by changes in the legal in the market" (S. Wiercinski, personal communica environment. The industry is facing an increasing tion, November 2, 2005). A brand could also face number of regulations and strong negative publicity. neglect when organizational shake-ups result in less One brand in particular, R.J. Reynolds Camel, has attention being paid to a strong brand associated been accused of using a cartoon character, Joe with the earlier management, as in the case of milk Camel, and other communication tactics to attract flavoring nutrition product Ovaltine. It suffered children. This led to lawsuits against the company, from corporate neglect "because it wasn't a core and the subsequent negative publicity severely brand of the acquiring pharmaceutical company, dented the brand's image, forced it to scale back Sandoz" (J. Himmel, personal communication, its promotions, and impacted its sales (Haig, 2003). October 19, 2005) Polaroid has been a household name since it popularized instant photography. With its unique 3.1.5. Inability to stay with the target market product offering, Polaroid quickly gained promi- When the target market moves away from the nence. Even today, it retains high brand awareness, brand, the brand can move into decline. In but the company spiraled into decline and went the 1990s, Gap decided to do more to reach out bankrupt as the environment changed and digital to teenagers and young adults because they repre. imaging became popular ("Polaroid," n.d.). The sented a growth segment which offered better very foundation of its appeal, instant results, was rewards ("The Gap. n.d.). The company started no longer unique in an age of digital cameras and to position itself to appeal to this audience but printers. in the process alienated its core customers, who Kodak, another leading photography brand, faced felt neglected as the product strived to become similar environmental changes. George Eastman youthful and trendy (Palmiere, 2004). Paul pioneered film cameras in 1885; his first model, Pressler, President and CEO of Gap. acknowl dubbed "Kodak," began selling in 1888 ("Eastman edged--in hindsight that the firm's ads became Kodak," n.d.). For the next 90 years or so, films too edgy for its key target market (Sellers, 2003), were the standard platform for photography. In the High-end fashion brand St. John is in a similar late 1980s, however, digital cameras started ap- position. St. John is known for its signature knit and pearing on the market. This represented a major traditional styling, with simple silhouettes and challenge for Kodak, which had staked its domi- unique wrinkle-free fabric that holds its shape for nance on film in the camera market. Nonetheless, decades, and rarely shows any signs of wear. But as the firm was quick to realize the implications of this its target market is maturing, so is the brand. Today, environmental factor, and made necessary invest St. John faces a classic dilemma, whereby aging ments in the future. Kodak's actions helped it to with its target market will ultimately lead the brand maintain a leading role in the new market. It was A brand is forever! A framework for revitalizing declining and dead brands 381 one of the first companies to introduce digital cam resulted in considerably lower markups for Dell, eras to the commercial market: the DCS-100, with a creating a savings which the company was able to 1.3 megapixel sensor and priced at $13,000 Kodak pass along to its customers in the form of low prices. continued to take the lead in digital technology It also made smart use of the Internet as a platform While other digital companies such as Hewlett- for its offerings, allowing buyers to customize their Packard and Sony entered the digital camera market PCs. As a result of these innovative changes, Dell and made significant strides, Kodak never allowed became the market leader, while its major compet the transformation of the market to derail its brand,itors-including Compaq-suffered losses in market and avoided possible death in a rapidly changing share. Compaq subsequently merged with Hewlett- environment. Today, it maintains a 16% market Packard, and cost-cutting was a significant motiva share. tion in this decision Blockbuster, a giant in the video rental business, 3.3. Competitive actions was in a strong position with an enviable network of retail stores nationwide. Its fortunes began to slide. In most markets today, a brand faces relentless though, when Netflix threatened this setup by of onslaught from its competitors. This can become fering video rentals delivered via postal mail to the particularly problematic if the competitors have comfort of clients' homes. For customers this meant deep pockets. Puma and Adidas are good examples no more need for trips to the store to rent movies of brands that declined in the face of intense com and no late fees, a business model which proved very petition. While very strong in Europe, both were appealing to Netflix's patrons. As a result, Block- almost completely squeezed out of the U.S. market buster was forced to close 300 stores in 2006 alone. by Nike and Reebok, which were more in tune with It is now fighting back by investing in its own version the trends in the American market. In fact, Nike of online rentals by mail, a program entitled "Total nearly wiped out Adidas in the United States, caus- Access" ("Blockbuster Emphasizes," n.d.). ing the latter firm's market share to drop from 60% to less than 3% in the early 1990s (Smit, 2008). Only recently have Puma and Adidas regained their foot 4. Deconstructing brand decline ing in the North American market, with Puma gain. ing a presence in the active lifestyle gear market The ultimate sign of impending brand death is a and Adidas making inroads in the footwear segment. significant drop in unit sales over a sustained period. For its part, retailing giant Kmart anchored itself While sales can fluctuate in response to market to being a low-priced merchant. During the 1980s. dynamics and competitors actions, a prolonged however, new competitor Wal-Mart proved a formi decline is a clear warning. Some managers counter dable challenger in this arena. Founded in the this by employing quick-fix solutions, including rais- 1960s, the company's real growth occurred 20 years ing prices or introducing brand extensions. Such later; Wal-Mart went from 330 stores in 1980 with actions may push up revenues, but can often mask $1.2 billion in sales, to 1,114 stores in 1985 with $6.4 and compound the real problems. Therefore, billion in sales. During this time span, Wal-Mart to avoid (or reverse) a damaging outcome, it is made cost cutting a science and its operations be. important to deconstruct the decline in terms of came brutally efficient. In contrast to other re. reliable precursors to sales. To do so, we revisit the tailers, which periodically lowered prices on aforementioned concept of brand equity: the dif selected items, Wal-Mart introduced the theme of ferential effect that consumer brand knowledge has "Everyday Low Prices." Today, it boasts sales of over on the customer's response to marketing activity $378 billion. Unable to compete, Kmart was forced (Keller, 1999). Thus, there are three key elements of in 2004 into a merger with Sears Roebuck, in the a brand's equity (as italicized), and a change in hope of leveraging their combined strength to fight one or more of these-such as a decline in brand Wal-Mart (Bhatnagar, 2004: "Wal-Mart. n.d.). knowledge, blurring of the differential effect, or Newer competitors are frequently nimble. They lackluster customer response can signal a brand's are able to leverage novel technologies or market- impending decline. Next, we examine these in more ing approaches to their advantage to challenge well- detail. established market leaders, which are often bound by their legacy. Consider the personal com. 4.1. Differential effect puter market. Historically, retail stores had been the primary sales outlet for PCs. Dell made a funda- In today's competitive marketplace, consumers mental change to this pattern, however, by offering must be provided with a compelling argument as a direct to customer distribution system. This to why they should choose a particular brand from a 382 wide variety of alternatives available to them. It is also important to ensure that consumers have suffi- cient exposure to such a message, so that they are knowledgeable about the brand's assertions. If mar- keters are successful in accomplishing this, they can hope to see a differential effect of this brand knowledge on consumers' behavior toward their brand-evidence that consumers believe their prod- uct is more appealing than competing brands. Mar- keters can pursue two different approaches toward this goal. The first method focuses on the value that the brand provides to consumers. Often, consumers feel that many brands in a product category are very similar. In such situations, a strong case can be made to the consumers to choose a particular brand if it is "value priced"; that is, the brand offers good qual- ity at a low or competitive price. This strategy is particularly feasible when a company has cost ad- vantages. A second approach that is commonly used is to create differentiation from other brands. This can be done on the basis of superior quality, physical attributes, or intangible benefits. If marketers are successful in creating this differentiation, they are in a position to charge a premium for their offering. However, if they pursue the latter strategy, they need to ensure that the brand is well-differentiated, because this becomes the core of any persuasive marketing message to urge customers to buy their brand. Unless a brand is value priced, lack of differenti- ation is likely to lead to decline. As Volkswagen's public relations manager stated, "Brands must offer something different: they can't just be another flavor of vanilla" (T. Fouladpour, personal commu- nication, October 20, 2005). This being the case, marketing managers should not only monitor differ entiation, they should carefully articulate it. This may require some creativity, but meaningful differ- entiation--that which is appealing to customers is necessary. Even some makers of gasoline, often considered a commodity product, have succeeded in creating differentiation. One notable example is Chevron, which emphasizes its trademarked addi. tive, Techron. Many consumers seem to have bought the idea, and base their loyalty to Chevron because of Techron, a detergent that reduces accumulation of deposits in fuel injectors and intake valves. Interestingly, all major brands of gasoline have detergents in them; Chevron has just seized on it as a source of differentiation. 4.2. Brand knowledge For a brand to be successful, consumers should be knowledgeable about it. It is imperative that they understand why it is a more compelling choice than S. Thomas, C. Kohli the other alternatives, whether because it is different from them or represents a better value. We now discuss the two components of brand knowl- edge: brand awareness and brand image. 4.2.1. Brand awareness Brand awareness is the most widely used gauge of brand knowledge. If brand awareness is falling, this could be a serious, long-term problem. Frequently when a brand's market share drops, the company reduces advertising, and consequently finds itself in a Catch-22 situation. Typically, a popular brand will have very high aided recall and high top-of-mind (unaided) recall-both indicators of brand aware- ness. It is noteworthy that, of the two, aided recall levels tend to decline more gradually, this being the case, managers reliance on aided recall can be misleading. Special attention should be paid to top-of-mind recall, as it is a better indicator of a brand's health. As an example, Pan Am will even today still have a respectable level of aided recall, although it may fail to show up entirely in top-of- mind recall measures. Too often, managers are tulled into complacency by past success and contin- ued high awareness levels, prompting them to cut back on advertising even when a brand begins to struggle. 4.2.2. Brand image The image of a brand can change over time. It is important for a brand to maintain "strong, favorable, and unique brand associations" (Keller, 1999, p. 102). However, it is not uncommon to see an innovative brand losing its well-defined and focused image. Volkswagen's public relations manager summarized the brand's experience by admitting that Volkswagen "had failed in the past when we used marketing strategies or introduced new products that strayed from the company's image of being approachable, friendly, and a German brand" (T. Fouladpour, personal communication, October 20, 2005). Levi's is facing image problems of a different nature. Once a market leader in its category, the brand was synonymous with high-quality denim jeans. Over the years, however, the brand began to lose its image leadership as the jeans market moved toward new styles and consumers sought fashion expression beyond utilitarian clothing. Levi's failed to follow this shift in the denim market, and stuck to its classic image. In the mid-1990s, Levi's sales started declining sharply. In an attempt to stimulate sales by capitalizing on the brand's historic equity, it decided to sell its Signature brand through Wal-Mart at prices rang. ing from $18 to $24 a pair, about 35% less than Levi's most popular Red Tab jeans. This association A brand is forever! A framework for revitalizing declining and dead brands 383 with an arguably low-end retailer pushed the im 5. Revitalizing brands age further down-market. To prevent such situations, companies need to A brand's equity is often the single most valuable monitor brand image and look for changes in con asset for a company. The worth of leading brands- sumer perceptions. Unlike (objective) awareness such as Microsoft, Coca-Cola, and Disney runs into levels, though, image is more challenging and ex- the tens of billions of dollars (Kiley, 2007). Lesser pensive to track, because of its inherently abstract known brands can also be extremely valuable. Even nature. Unfortunately, this is also the facet of a when a specific facet of a brand's equity is not brand's equity that is most likely to get hit in the managed well, and it sets the brand into a declining case of a decline. Managers are advised to make an course, other elements often remain intact. For extra effort-especially if a brand seems to be in example, a brand may maintain high awareness decline-to shore up the image if needed, instead of levels even when its image has taken a hit (e.g. milking a weakening brand. Doing so could have Pan Am). Similarly, some brands may not get a helped Levi's avoid the situation it is in today, proper response from customers because of ineffec tive marketing efforts and may slide into a decline, 4.3. Customer response even when brand awareness and brand image num- bers are favorable (e.g., St. John Knits). While sales figures are considered the gold standard Addressing the weak element in such cases can for measuring customer response or lack thereof help capture the equity that remains in the brand to a brand, managers may look to other leading that would otherwise be lost, put the brand in a Indicators such as purchase intentions and brand leadership position, and get appropriate returns loyalty measures. These data are obtainable via from this investment. This is the central tenet of standard questions which are often included in sur our assertion. We suggest that in most cases there vey panels maintained by companies as part of is a significant amount of equity in declining ongoing tracking efforts. Another indicator that is brands, and with proper diagnosis, strategy, and particularly useful, and more easily monitored in execution, a brand can be revived. In today's mar- the case of non-durable products, is brand switching ketplace, where introducing a new brand costs tens behavior. Decline is frequently preceded by height of millions of dollars, revitalizing existing brands is a ened levels of brand switching behavior and, as worthwhile exercise. Our review of the literature such, is a useful leading indicator of a brand's and in-depth interviews revealed some common performance. Before consumers desert a brand, themes, and lead to the following guidelines that they start trying others, and then settle in on their should prove helpful to managers. next brand of choice for a portfolio of their pre- ferred brands). Brand switching may be triggered by 5.1. Is the brand worth reviving? a variety of reasons, such as an increase in the price of the brand, the entry of a new competitor in the Our basic premise is that a brand may be worth market, or negative news about the brand. Regard reviving if there is significant residual value in one or less, it tends to happen only when the bond that the more of the components of brand equity. Therefore, brand has enjoyed with the consumer has already the first step in assessing whether the brand is worth been weakened. Thus, an increase in brand switch- reviving entails examining all three elements of ing provides a meaningful metric and serves as an brand equity-knowledge, the differential effect early warning system for monitoring brand decline of this knowledge, and customer response-to pin (Semans, 2004) point where help is needed. The Chair and CEO of The aforementioned signs of decline must be the Himmel Group states that three critical ques detected quickly if corrective action is to be taken. tions need to be pondered when considering revi All three aspects of equity need to be considered, talization of a brand: (1) Can the brand regain some since they are linked to each other. Measures fo- of its former glory (brand knowledge)? (2) Can its old cused solely on immediate customer response are equity be enhanced through new positioning that is not going to be successful in the long run, unless relevant and will stand out (differential effect)? (3) problems related to brand knowledge and its differ Can the company effectively deal with logistical ential effect have been addressed. For example, issues (put plans in place that will get an appropriate it may be easy to correct declining sales with con customer response)? (J. Himmel, personal commu- sumer promotions, but in the best case scenario this nication, October 19, 2005). A brand audit can help may be a short-term solution: in the worst case answer these questions. It is equally important, scenario, it may exacerbate a brand's problems however, to determine the realistic amount of and hasten the brand's demise. investment that is needed to truly revive the 384 S. Thomas, C. Kohli brand-and, where appropriate, compare that to 4 million in 2007, although still trailing Netflix's the cost of replacing the brand with a new one. subscriber base of about 7 million. The online pro As such, this is both a marketing and a financial gram comprised 10.4% of Blockbuster's total movie exercise, and it must be thorough. rental revenue in 2007, compared to 4.9% in the prior While we feel that most brands can be revived, year. Finally, the Total Access program also helped some may just not be worth the effort. This is generate more cross-channel sales and increased particularly true for brands that suffer from low store traffic (Blockbuster Emphasizes. n.d.). awareness and a negative image, resulting in a lack Marketing research should be an integral part of of motivation for consumers to choose that brand. In this exercise to assess and track brand awareness such a case, it may be better to kill the brand than to and brand image, as suggested earlier. Nutri-Grain invest in it. Most brands that were strong at one understood this and used research to reinforce its point in time tend not to fall into this unfortunate image as a maker "of healthy breakfast and snack position, though. It is interesting to note that many foods" through brand extensions (including singer of the brands which have been successfully revital- and cappuccino flavored varieties), and by fortifying ized were medium to high-priced, with relatively its breakfast cereal bars with calcium and vitamins, high profit margins, and had a limited number of as well as zinc and iron (Keller. 1999, p. 103). shelfkeeping units (Wansink, 1997). In other words, Similarly, DeWalt studied its weaknesses, and suc brands that commanded a premium in the recent cessfully created an image of heavy duty tools for past, and had a singular focus with a well-defined professionals. The brand manager of DeWalt af differentiation, can be revitalized. firmed that "Research was the primary tool used to revive the DeWalt brand" after it suffered years 5.2. Take a long-term perspective of neglect (5. Wiercinski, personal communication, November 2, 2005). Branding is an exercise in patience. Most brands take a long time to build, and a long time to die. Reviving 5.3. Carefully reposition the brand invest a brand is also a long-term initiative, typically in it, and educate the market taking more than a year or two. This is a challenge in a corporate system which rewards managers A brand's promise plays a major role in differenti based on short-term performance, often measured ating the brand from its competitors. If a brand is on a quarterly or annual basis. A long-term perspec- not viewed as unique as compared to others in the tive is imperative, however, even if that means market, its future growth is questionable. Consider taking losses in the interim. This vision then has Oldsmobile: whereas the brand was once synony to be followed by a well-thought-out strategy, and mous with innovation, by the 1980s, customers did its execution. The brand revitalization process can not discern much difference between its models and be kick-started by addressing the causes of the offerings from GM's portfolio of Buick, Chevrolet, decline; understanding the brand's promise and and Pontiac (Brown, 1992; Haig, 2003). While Cher why it may have failed to maintain its relevance; rolet was aimed at the entry-level segment, Buick adjusting this, if necessary; and educating the mar- was targeted at families, and Pontiac was built for ket about it. "excitement, Oldsmobile suffered from a lack of When Blockbuster was under attack by Netflix it clear positioning. The brand did not invest suff was easy to see that the movie rental industry ciently in quality, and was always playing catch- environment had changed to a market that was up with the competition. It also suffered from relying increasingly on the Internet, and Blockbuster a negative image. Consequently, in 2000 when had to adjust to this in order to thrive in the market. Oldsmobile introduced the Aurora, the car did not This meant redefining its existing offering with a even carry on its body the Oldsmobile nameplate. long-term perspective. Toward this end, Blockbust- Soon after this, GM shut down the Oldsmobile divi- er closed unprofitable stores that were in close sion. However, strong brand differentiation can be proximity to others. It then used its profitable phys re-established with a focus on the right positioning, ical store locations to benefit its Total Access online and then emphasizing that consistently in the rental program, which had a more promising future. brand's communication. To quote the public rela- Total Access subscribers were given the option of tions manager of the Volkswagen brand, managers either mailing back a rented movie, or dropping it faced with a declining brand must find what's unique off at the local store in retum for a free movie about their product and hammer it home throughout rental. Blockbuster invested heavily in the program all aspects of the transaction-"before, during, and and saw favorable results: subscribers increased in after the sale" (T. Fouladpour, personal communi- number from approximately 3 million in 2006 to cation, October 20, 2005). A brand is forever! A framework for revitalizing declining and dead brands 385 Although GM failed with Oldsmobile, it managed with a 100,000 mile service warranty to overcome to successfully turn around its Cadillac brand. Dur- persistent negative consumer perceptions regarding ing the latter quarter of the 20th century and into the same. In 2006, Hyundai was rated above Mer the early 21, Cadillac experienced a steady de cedes Benz in J.D. Power and Associates initial cline, while competing Japanese and German quality survey (Praet, 2006). brands gained strength. Nonetheless, Cadillac was committed to going head-to-head with the compe 5.4.2. Resist temptation to "milk" the brand tition and repositioning itself as providing a driving To reiterate: If a brand is to be revived, manage- experience as good as any offered by rival brands, ment must invest in the brand. Consider Apple, while undercutting them on pricing. To accomplish which by the turn of the century had a positive this, it invested $4 billion in the quality of its cars in image, but was losing top-of-mind awareness after a make-or-break overhaul, redesigned them for the its struggles in the PC market. The company made global market, and offered more models like the significant investments in MP3 player technology CTS, the STS, and the DTS-each positioned to and launched the iPod. The sleek design and fea- compete directly with the bestsellers in their tures of the iPod struck a chord with younger Amer- respective categories. Having learned from its icans, and the Apple brand name came to the Oldsmobile experience, GM came up with distinctive forefront once more. An aggressive form of "milk- and daring designs for Cadillac, and committed ing" entails cutting prices steadily, a reflection of itself heavily to strengthening the brand. In early the brand's weakened position. Once a market 2008 the efforts paid off, and Cadillac was rated leader, Levi's entry into Wal-Mart with its lower more favorably than the best German or Japanese quality Signature jeans has hurt the image of the brands (reson, 2008). As part of its long-term strat- brand's entire line. Such actions should be avoided. egy, the company plans to continue rebuilding the We would suggest that Levi's needs to make addi- brand's image tional investments in updating its styling and strengthening its brand image. 5.4. Correct mismanagement of the brand 5.4.3. Pursue a carefully defined target As previously mentioned, managerial actions are market probably the most common cause of brand decline. Honing in on a carefully defined target market can One of the main problems that our study identified, be a particularly challenging task. Target markets however, is the failure to clearly understand brand can mature or shrink over time. When that happens, decline and the commitment to do what is necessary managers face a very difficult choice. Moving with to reverse the trend, and change strategies that the dwindling target market is not an appealing weakened the brand in the first place. Following are option, but neither is abruptly switching to another three ways to address some consistent themes that target market, as this risks alienating the core have emerged in declining brands. customer base; remember Gap's experience in the 1990s. 5.4.1. Rebuild quality It is also very difficult to appeal to divergent In the short run, compromises on quality may go targets with the same brand. When this does occur, unnoticed, and customers may stick to the brand out it is time to critically assess the brand's target of fondness or loyalty. Poor quality rarely goes markets. There is evidence in the literature le.... unnoticed for long, though, and at some point cus- Munthree, Bick, & Abratt, 2006) that in such sit- tomers will begin to abandon the brand. If poor uations, a line extension with a sub-brand can be a quality is a problem, this needs to be fixed. Man very effective strategy. For example, St. John agement will have to determine if it is a worthwhile might introduce "Youth by St. John" to target the exercise. Once a decision has been made to revive growing younger market. In so doing, it could use the the brand, expensive as this might prove, quality St. John brand as a bridge to support introduction of issues must be addressed. the new line, and continue to cater to its older Harley Davidson used Japanese management audience while still courting a new demographic. principles to improve quality, extended its product Once the Youth brand is established, the St. John line, and subsequently achieved a complete turn- name can be withdrawn from it. around. It reversed its strategy of cost-cutting- During the 1980s-when it was still a strong Today, the company's motorcycles sell to the brand-Levi's adopted such a strategy. It success high-end market ("Harley-Davidson," n.d.). South fully used the strength of its brand name to launch Korean car maker Hyundai also undertook a signifi- Dockers and enter a new market; that is, business cant financial investment in quality, and backed this casual clothing. Once Dockers became well-known, 386 S. Thomas, C. Kohli Levi's removed its name, and Dockers became a stand-alone brand. In the aforementioned scenario, however, St. John would have to maintain an em- phasis on quality in its new line, as that's the core of the brand's positioning, 6. Let the revitalization begin! Many brands in today's market have been referred to as "ghost brands," because they were once strong but are now almost non-existent (Wansink, 1997, p. 53). Given the high cost of launching new brands, companies are increasingly looking to revitalize dying or dead brands in their portfolio. History shows that this is possible. 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