Defying Newton What is a declining brand? A brand which has over a period of time been losing both...

Defying Newton

What is a declining brand?

• A brand which has over a period of time been losing both market share and mind share amongst its target consumers

Top 10 Reasons for Declining of Brands

Cause #1

• Decline in quality– Cost-cutting (Maruti 800)– Increasing volumes (IIMs) – Relaxation in QC Measures (Café Coffee Day)– Perceptual Decline: Price, Channel, Sensorials,

Advertising, Packaging

Cause #2

• Resistance to Change– Product Oriented (Robin Blue)– Need Oriented (Nirma Detergent)– Consumer Oriented (Dabur Chavanprash)

• Why resistance?– Investment– Product Orientation– Tried & Tested– Complacency

Cause #3

• Single Product (Ambassador)– No portfolio– No extensions

• Problem?– Visibility– Stature– Decline in segment– Decline in product

Cause #4

• Excessive Pricing (Daewoo Cielo)– Premium pricing– High margins– Entry of Competition– Feeling of being cheated– Private Labels

Cause #5

• Wrong extensions (ICFAI Learning Centers)– Bad products– Crowded categories– Lower image products / segments

Cause #6

• Communication (Kelvinator)– Low levels of communication– Wrong message– Low impact– Brand Ambassador– Production values

Cause #7

• Channel management (CrossWord)– Attitude of Sales Team– Margins– No push– Emergence of alternate channel

Cause #8

• Ageing (HMT Watches)– Old age– No makeover (Product / Communication)– Perceived as ‘Not for me’

Cause #9

• Lack of differentiation (Acer Computers)– Cluttered market– No USP– No competitive advantage– ‘Me Too’ Branding

Cause #10

• Tough Consumer– Less emotional– Lowering levels of loyalty– Flirtatious attitude– More knowledge driven– Connected via media

Exercise: Failed Indian Brands

• Weikfield Jelly• Maruti Zen Estillo• Yamaha RX-100• Roohafza• Margo Soap• Kinetic Scooter• Fiat• Moti Soap• Savlon• Milkfood