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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