Brand Revival - Why some brands can make a comeback
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Transcript of Brand Revival - Why some brands can make a comeback
WHY SOME BRANDS CAN MAKE A COMEBACK
AND OTHERS CAN’T
October 2014
BRAND REVIVAL
THERE HAVE BEEN SOME SPECTACULAR COMEBACKS IN THE HISTORY OF BRANDS: THINK APPLE, LEGO, OLD SPICE
BUT THERE HAVE BEEN MANY, MANY MORE FAILURES ROVER BEING A PARTICULARLY BRUISING ONE FOR THE BRITISH AUTOMOTIVE INDUSTRY
There is a slim chance that car production
could resume at MG Rover's Longbridge
plant, administrators for the company have
said.
PricewaterhouseCoopers is considering
proposals from five potential buyers, two for
the MG sportscar business and three for the
rest of the business.
However, they warned that Longbridge's
revival would be costly and complex and
remained an "outside possibility".
The company collapsed in April with the loss of
more than 5,500 jobs.
Longbridge viable?
PwC has narrowed down the list of potential
buyers from about a dozen serious contenders
to just five after studying details of how the
interested parties would finance any deal.
Would-be buyers of Rover assets are
considering whether it is viable to begin
production at Longbridge again or whether it is
more cost-effective to relocate elsewhere,
PwC said in a statement.
"While there is still an outside possibility that
some form of car production could
recommence at Longbridge, the cost and
complexity of the challenge should not be
underestimated," said Tony Lomas, one of the
joint administrators.
Property rights
The sale of the manufacturing rights to the
Rover 25 and 75 models to Chinese company
Shanghai Automotive has been seen as a
potential stumbling block to resuscitating the
business.
PwC said that it had studied the ownership of
MG Rover assets and the issue of intellectual
property rights in more detail and a "lot more
positive information" had emerged.
However, it declined to elaborate on what this
meant for a potential rescue of the company.
Two consortiums are interested in buying the
MG TF sportscar, the Financial Times has
reported.
Essex-based engineering consultancy
Chapman Automotive heads one interested
group, while Fraser Welford-Winton, the
former head of Rover's engine arm, heads a
group of former Rover managers also
interested in buying the sportscar.
The paper said that either deal might salvage
several hundred jobs.
PwC will now study the proposals in more
detail and plans to update creditors on the
future of the business on 10 June.
‘Outside chance’ of Rover revival Friday, 20 May, 2005
SO WE WONDERED – IS THERE SUCH A THING AS
““REVIVAL POTENTIAL?”
Using our proprietary tool – BrandAsset® Valuator (or BAV™) we
looked at historical brands that have declined and then made a
comeback, and also at those who didn’t succeed.
And we found something very interesting…
THERE ARE THREE VITAL SIGNS
THAT INDICATE WHETHER A BRAND HAS
A GOOD CHANCE OF REVIVAL
THE THREE VITAL SIGNS OF “REVIVAL POTENTIAL”
Even if it has lost a lot of customers, and become less and less
relevant, if a brand is…
• Still remembered,
• Still liked, and
• Still retains a sense of uniqueness or differentiation
THEN IT HAS A MUCH BETTER CHANCE
TO BECOME POPULAR AGAIN.
A BRAND WITH “REVIVAL POTENTIAL” TYPICALLY HAS THIS
SPECIFIC FOUR PILLAR PROFILE ON OUR BRANDASSET® VALUATOR*
The brand is better known
than it is liked today
The brand is more liked
than it is relevant and used
The brand still stands out
in the minds of consumers
DIFFERENTIATION
A brand’s unique meaning,
energy and dynamism
ESTEEM
How you regard
the brand
KNOWLEDGE
An intimate understanding
of the brand
RELEVANCE
How appropriate
the brand is
* Classic Non-Energised BAV
WHEREAS A BRAND THAT’S GOING TO STRUGGLE LOOKS MORE LIKE THIS….
DIFFERENTIATION
A brand’s unique meaning,
energy and dynamism
ESTEEM
How you regard
the brand
KNOWLEDGE
An intimate understanding
of the brand
RELEVANCE
How appropriate
the brand is
* Classic Non-Energised BAV
DESTINED TO SUCCEED ..... OR DOOMED TO FAIL?
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2006
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Source: BrandAsset® Valuator UK; Base: All Adults
BRAND STATURE (Esteem & Knowledge)
BR
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GT
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Diffe
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APPLE HAD A “REVIVAL PROFILE” BACK IN 1997... ESPECIALLY AMONGST INNOVATORS
Source: BrandAsset® Valuator UK; Base: All Adults
Differentiation Relevance Esteem Knowledge
All Adults Innovators
2000
2002
2008
2011 2014
1993
Steve Jobs returned to
Apple in 1997 1st iMac launched 1998
iPod launched 2001
iPad launched 2010
iPhone launched 2007
BRAND STATURE (Esteem & Knowledge)
BR
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Diffe
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Re
leva
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)
BACK IN 2006 NINTENDO HAD “REVIVAL POTENTIAL” BEFORE THE RISE OF THE Wii, AND EVEN IN THE EYES OF OLDER ADULTS
Age 35 Plus
2006 2006
2008
2008
Differentiation Relevance Esteem Knowledge
2006 2008
Source: BrandAsset® Valuator UK; Base: All Adults
IN 2011 THE ICONIC SWATCH ALSO SHOWED “REVIVAL POTENTIAL” AND IS MAKING GROUND SINCE ITS OFFICIAL COMEBACK
Source: BrandAsset® Valuator UK; Base: All Adults
Even in an economic downturn, people are still checking to see what time it is. Swatch Group, the world’s
largest selling watchmaker, is on-pace to post its most successful year to date. Granted, its lofty expectations
are based on just two months of sales, but its encouraging January and February numbers are hard to ignore.
However, it’s not the United States and Japan – the usual suspects – that are fueling the watch company's
resurgence. The United Kingdom, Russia, Australia, Scandinavia, Canada, and Mexico have all contributed to
Swatch’s impressive sales numbers.
Despite a decade-long slump for watchmakers, any market analysts claim that Swatch’s success
in 2010 is hardly surprising.
“I like the stock – the management turn every penny, the company has a dominant position in
the watch industry and an excellent position in China," said Kepler Capital Markets analyst,
Jon Cox. “The company always does an excellent
job in managing costs and if it can keep hold of a
lot of them in 2010 it bodes very very well for the
group as watch sales rebound."
Additionally, Swatch is hopeful that their Omega
watches, which are the official timekeeper for the
Vancouver 2010 Olympics, will only help its case.
The Canada-red Omega Seamaster Professional
300m special addition watch is expected to sell
out despite the exorbitant $3,800 price tag.
Regardless of the Olympics results, Swatch is
certainly expecting to take home the gold.
Only Time Will Tell if Swatch’s Comeback Continues Posted by Ben Berkon on February 9, 2010
Source: http://kearth101.cbslocal.com/2010/08/12/retro-watches-make-comeback/
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As Heidi Klum would say, “One day you’re in, and the next
you’re out!” Well good news for this iconic 80′s line of
watches… you’re back in!
These vintage watches are all the rage this season– some
selling for over $1,100! That’s right, do you have a money-
maker collecting dust in your drawer?
Swatches are back!! The Swiss line of watches known for
their loud quirky designs are the hot ticket this season.
Retro Watches Make Comeback August 12, 2010
Source: http://www.brandchannel.com/home/post/2010/02/09/Only-Time-Will-Tell-If-Swatchs-Comeback-Continues.aspx
UNSURPRISINGLY SIGNS OF REVIVAL
POTENTIAL DO NOT GUARANTEE A
SUCCESSFUL COMEBACK
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IN 2008 OLD SPICE HAD “REVIVAL POTENTIAL”… HOWEVER THE MARKETING APPARENTLY WASN’T ENOUGH TO LIFT SALES
Source: BrandAsset® Valuator UK; Base: All Adults
Guess nobody wants to smell like “The Man Your Man
Could Smell Like.”
The Internet has fallen in love with Isaiah Mustafa, the
hunky face of Old Spice body wash. His television
commercials went viral, as did a two-day YouTube
ambush of video replies to fans. Mustafa’s first ad
even won the Film Grand Prix at Cannes.
But buzz did not add up to sales, according to
advertising news service WARC. Red Zone After
Hours body wash sales have fallen seven percent,
despite the ads. Yet BNET argues that Mustafa is
such a media darling that nixing the campaign
would be a PR disaster. So why are sales down?
Jezebel argues the brand sent mixed messages. The ad’s tagline was “Smell Like a Man, Man,” yet Mustafa
opens the ads with “Hello, ladies.” Who was supposed to actually buy the body wash? Plus, Old Spice has
long been associated with our grandfathers, and it’s going to take more than a shirtless, funny man
to change that perception.
Even though the perception is hard to beat, NewsFeed would be crushed if The Man Your Man Could Smell
Like left our TV (and computer) screens. We need not fear, though — Mustafa has signed a talent deal with
NBC.
INTERNET
Old Spice’s Viral Ads Got Attention, Not Sales By Megan Friedman @megancarol | July 20, 2010
Source: http://newsfeed.time.com/2010/07/20/old-spices-viral-ads-got-attention-not-sales/
Differentiation Relevance Esteem Knowledge
2006 2008
IN 2006 LITTLE CHEF SHOWED SOME “REVIVAL POTENTIAL”
...BUT A HIGH-END CELEBRITY CHEF WASN’T THE ANSWER
Source: BrandAsset® Valuator UK; Base: All Adults
Will pickled onion atomisers tempt you back to the roadside diner? See the new menu
and tell us what you think of Heston's changes on the food blog.
Heston Blumenthal Revamps Roadside Diner’s Menu
By Amy Fleming | The Guardian, Thursday 27 November 2008
Source: http://www.thedrum.com/news/2013/06/23/little-chef-drops-heston-blumenthal-dishes-prove-unpopular-roadside-diners
Little Chef has dropped brand ambassador Heston Blumenthal after six years.
Blumenthal approached Little Chef in 2007 after rival Jamie Oliver made an inquiry about buying the chain, he was
then recruited by the roadside change to help revamp its image and had dishes in 10 Little Chef locations across the
UK.
The celebrity chef's attempt to spice up Little Chef were captured by Channel 4 as part of the 2009 TV series 'Big
Chef takes on Little Chef', which focused on his attempts to revamp the A303 branch at Popham, Hampshire.
Despite being awarded three Michelin stars the Little Chef crowd have been less than impressed with Blumenthal's
offerings which included ox cheeks and breakfast options such as strawberry and orange flowerwater yoghurt.
After working on the Popham branch as part of the three-part series Blumenthal's menu and redesign were rolled out
to other locations including Amesbury in Wiltshire and Podimore and Ilminster in Somerset.
Little Chef spokesman, Richard Hillgrove, is quoted as saying: "The problem is that no one wants his food. None of his
dishes are popular. As of Monday, we've dropped all his dishes from the ten restaurants where his food was
available…He's been wiped off the menu. Little Chef needs to get back down to earth and that's what we're doing."
Little Chef Drops Heston Blumenthal as dishes
prove unpopular with roadside diners 23 June 2013 | By Gillian West
Source: http://www.theguardian.com/lifeandstyle/2008/nov/28/food-and-drink-heston-blumenthal-little-chef
AND SOME BRANDS SIMPLY
LACK “REVIVAL POTENTIAL”
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1993 2014
KODAK MAY HAVE AN UPHILL STRUGGLE TRYING TO REVIVE ITS BRAND
AS AFTER BANKRUPTCY IT HAS NEVER SHOWN “REVIVAL POTENTIAL”
Source: BrandAsset® Valuator UK; Base: All Adults
Eastman Kodak has gained court approval to
come out of bankruptcy as a much smaller
digital imaging company.
The company, once the biggest name in
photography, had planned to come out of
bankruptcy in July.
Eastman Kodak was founded in New York more
than 100 years ago and pioneered the use of
film in cameras.
US bankruptcy judge Allan Gropper agreed to
the company's plans, meaning it should be back trading in about two weeks.
Eastman Kodak Co. filed for bankruptcy protection last year, pushed out of business by the
emergence of digital photography which killed off mass demand for film.
Since then, the company has sold off a number of its business and patents. It now plans to
specialise in printing.
Eastman Kodak Gains Approval to Come Out of Bankruptcy 20 August 2013
Source: http://www.bbc.co.uk/news/business-23774639
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IT MAY ME WISE FOR MICROSOFT TO DROP NOKIA AS THE BRAND LACKS “REVIVAL POTENTIAL”
Source: BrandAsset® Valuator UK; Base: All Adults
Microsoft's handsets won't be called Microsoft Mobile, but they
won't use the Nokia name for much longer either - and not even
Stephen Elop knows what they'll end up being called.
The former Nokia CEO has revealed that it's not yet clear at
Microsoft what brand the company's phones will use, following
Microsoft's purchase of Nokia's handset division.
After the deal closed on Friday, Microsoft documents indicated
that the division was being called Microsoft Mobile, but Elop has
suggested that this is merely a holding name.
"Microsoft Mobile Oy is a legal construct that was created to
facilitate the merger," he said in an online Q&A session. "It is
not a brand that will be seen by consumers."
"The Nokia brand is available to Microsoft to use for its mobile phones products for a period of
time, but Nokia as a brand will not be used for long, going forward, for smartphones," he added.
"Work is underway to select the go-forward smartphone brand.”
Microsoft will drop Nokia Brand for mobile devices By Nicole Kobie | 28 April 2014
Source: http://www.pcpro.co.uk/news/388411/microsoft-will-drop-nokia-brand-for-mobile-devices
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ALTHOUGH STILL HIGHLY RELEVANT AND LIKED…
WOOLWORTHS LACKED THE NECESSARY DIFFERENTIATION FOR A “REVIVAL”
Source: BrandAsset® Valuator UK; Base: All Adults
High Street legend Woolworths has buckled under
its debt and is set to go into administration, BBC
business editor Robert Peston has learned.
The move will put tens of thousands of jobs at its 815 stores
under threat.
The board of Woolies — one of the UK's oldest store groups —
is meeting to take the formal decision.
Deloitte will be appointed as administrators to the store chain
and also to Entertainment UK, which supplies DVDs to supermarket groups.
However, Woolworths joint venture with BBC Worldwide, publisher 2 Entertain, will not go into
administration as it is owned by Woolworths' parent company. And all stores will remain open and
keep trading, at least for now. Money has been ring-fenced so that salaries will be paid to staff as
normal on Friday, a spokeswoman added.
Woolworth’s set for administration Wednesday, 26 November 2008
Source: http://news.bbc.co.uk/1/hi/7751064.stm
WHICH WAS EVIDENT IN OUR DATA
DUE TO INCREASINGLY LOW DIFFERENTIATION LEVELS
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1993 2000 2005 2008
Source: BrandAsset® Valuator UK; Base: All Adults
SO WHY SHOULD BRANDS CARE?
BECAUSE ONCE IN DECLINE THE CHANCES* OF A SUCCESSFUL TURNAROUND ARE SLIM
66% 7%
Source: BrandAsset® Valuator UK; Base: All Adults
* 66% of brands lost Strength between 1993-2000, but only 7% were able to notably recover from 2000-2014
AND THE POTENTIAL FINANCIAL* IMPACT IS HUGE
Apple
Market Capitalization Shifts
$2.3 billion (1997) $590 billion plus (2014) So… 257 times greater
*Source: http://www.wikinvest.com
Eastman Kodak Company
$23.8 billion (1997) $1.45 billion (2010) So… 0.06 times smaller
Bankruptcy (2012)
SO ASK…
• DO YOU KNOW WHAT YOUR BRAND’S PILLAR PATTERN LOOKS LIKE?
• IS IT SHOWING SIGNS OF DECLINE?
• WHAT STRATEGIES COULD HELP YOUR BRAND TURNAROUND?
TO FIND OUT – PLEASE CONTACT:
[email protected] Head of Analytics & Insight, EMEA
[email protected] Chief Strategy Officer, EMEA