Product relaunch and rebranding research paper
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Transcript of Product relaunch and rebranding research paper
Action Project:
Product Re-launch
By: Pawel Puszko
Ian Sheldon
Presented to: Professor Steve Karpenko
Bishop’s University
April 8, 2015
Table of Contents
Introduction ........................................................................................................... 3
Problem Statement ............................................................................................... 3
Rationale for the Research ................................................................................... 4
Statement of Research Objectives........................................................................ 4
Hypothesis ............................................................................................................ 5
Definition of Terms ................................................................................................ 5
Branding ............................................................................................................... 6
Re-Branding .......................................................................................................... 9
Product Launch ................................................................................................... 10
Positioning in the Re-launch ............................................................................... 12
Strategy and tactics ......................................................................................... 13
Product Re-Launch ............................................................................................. 14
The use of the marketing mix in product launch ................................................. 16
Product ............................................................................................................ 17
Price ................................................................................................................ 17
Place ................................................................................................................ 18
Promotion ........................................................................................................ 18
Action Plan .......................................................................................................... 19
Appendices ......................................................................................................... 27
Appendix 1 ...................................................................................................... 27
Appendix 2 ....................................................................................................... 28
Appendix 3 ....................................................................................................... 29
References ......................................................................................................... 30
2
Introduction
Tactfully planned product launch and branding strategies can generate
enormous added value for firms of all sizes. Effective launch and branding
strategies create an emotional relationship between the product or brand and
the consumer. Building an emotional connection between the brand and the
consumer will develop customer loyalty leaving the consumer with a greater
feeling of satisfaction with the product, making them less price sensitive, much
more likely to make a repeat purchase, as well as more likely to recommend
the product or brand to their friends and colleagues (Gurski, 2014). The
research will explore case studies to analyze the successes, as well as the
failures in order to diagnose the do’s as well as the don’ts. This research aims
to highlight re-branding techniques that can increase brand identity as well as
brand awareness, in order to recommend a strategy to help real entrepreneurs
with real issues.
Problem Statement:
Previous research has found a strong link between tactical branding
strategy and customer loyalty, customer loyalty and brand awareness &
recognition, and brand recognition with success. What these studies fail to
produce is a working model for defining a branding strategy, with a real world
application. It has been expressed that branding tacitly to spark emotions can
translate into customer loyalty. However, how does one develop a tactical
branding strategy? What does it entail? To define a branding strategy, one must
first define what a brand is. The research will go in-depth; looking into branding,
re-branding, launches and re-launches. This is of importance, as it will provide a
knowledge base to construct a branding strategy to model the action plan.
3
Rationale for the Research
The purpose of this research study is to develop a functioning strategic
model for a successful product re-launch. The rationale of this study is that for re-
launches to be successful, brand awareness and management must be on point.
If:
A) Implementing intriguing branding strategy leads to increased customer
loyalty
and,
B) Customer loyalty translates to increased word of mouth marketing,
purchasers price flexibility, as well as likeliness to make a repeat purchase
Then,
C) Successful re-launches require a shrewd branding strategy to attain
success.
Statement of Research Objectives:
This exploratory study aims to shine light onto the question “What does a
strategic branding plan entail?” Entrepreneurs can use any advantage they can get
in the market place. To grow in a global economy, all the while staying legitimate,
and resourceful requires keen strategic planning as well as cunning decision-
making skills. These are human capital functions, which can be learned through
the research. The objective of the study is to develop an understanding of the
branding and launching processes in order to produce a model branding strategy
and use it in action, in the action plan section. The study will begin by defining
brands, branding and branding strategy, then it will continue to use this knowledge
base to do a comparative analysis on re-launch case studies. Finally the research
will use the conclusions made to suggest an action plan.
4
Abstract Level
Better Branding Effective Product
Re-launch
Empirical Level
Strategic Brand
Modeling
Increased Chances of Successful Re- launch Campaign
5
Hypothesis:
H1: More strategic brand modeling will result in a more successful re-launch
campaign.
Proposition
Hypothesis
*See key terms definition
Definition of Terms:
i. Branding: The function of creating a company identity through the
dissemination of the founders dream, the identification of the company
vision, and the formation of a captivating brand story.
ii. Re-branding: The function of updating a firms branding strategy.
iii. Customer Loyalty: A result of effective branding which leads to the
consumer developing an emotional connection with the brand.
Figure 1; (Hasted, 2013)
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iv. Launch: Introduction of a new product, which is in line to meet all
the criteria of a successful pre-launch work completed.
v. Re-launch: The action of a launch, re-launch is not abandoning ones
strengths, but rather adapting to a changing environment.
Branding
The brand is the specific message that each individual company
communicates, merely through their existence. The brand is more than just the
firms’ logo, slogan and mission statement. A brand is the definition of that
discrete organization/product. Brands have the power to broadcast images,
ideas, and emotions to the receiver (Jones & Bonevac, 2013). Essentially, the
brand is the meaning behind the sum of the companies’ logo, slogan, mission &
vision statements, core competencies, and products.
Branding is the act of disseminating the companies’ definition or ‘brand
story’ to an audience through a medium. There are three aspects behind
branding; the ‘brand story’, the mediator, and the interpreter (Hestad, 2013).
The brand story being the combination of definition and the legend of the
company, it needs to reflect the values of the target customer base; the mediator
being the type of medium in which the brand story is communicated across (ie:
Poster ad, word-of-mouth, TV ad, etc...); and the interpreter being the audience
that is consuming that message.
The ramifications of a firms branding strategy can have a pivotal impact
on the level of success that a company attains. Creating an engaging branding
strategy can be the difference between being a complete bust and becoming a
cultural icon. This effect is seen in the ‘Betamax Vs. VCR’ case study (Owen,
2005). The number one goal for a branding strategy is to manifest an emotional
connection between the company or product and the patron. Humans are
emotional beings, which base many decisions off of their feelings (Berthoz,
2012). Companies that understand this fact can create a competitive advantage
through manipulating the way consumers feel towards the firm to create
customer loyalty. When a customer feels a sense of loyalty towards a brand or
product they are more inclined to a) spend more on the product, b) buy products
from that brand multiple times and c) even recommend that product or brand to
their family, friends, and colleagues, which is essentially the cheapest and most
effective form of advertisement. (Gurski, 2014). Ipso facto, customer loyalty
prompts brand engagement. “Brand engagement intensifies with emotional
arousal as design benefits change from functional, to hedonic, to symbolic”
(Franzak, Makarem, & Jae, 2014).
Creating an engaging branding strategy begins with defining the brand.
Defining the brand will give the firm a concrete understanding of whom they
are and how they want to be seen in the market. If the firm doesn’t have a grasp
on their own identity, how are they supposed to relay that message to the
consumer? When defining a strategic branding model, these ten key points must
be included:
1. Composing a relatable ‘brand story’
2. Establishing the 4 P’s (product, place, promotion, price)
3. Determining the short-term and long-term goals (Make sure they
are ‘SMART’).
4. Determining the skills needed to accomplish goals
5. Specifying the value proposition
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6. Segmenting the target audience
7. Conducting a market analysis using the ‘SWOT’ model
8. Identifying the stakeholders
9. Designing the image of the brand (logo’s, slogans, label/product
design, etc...)
10. Defining ‘success
The exercise of defining the branding strategy will shed light onto what
resources are necessary to achieve the important milestones (Hestad, 2013).
‘SMART’ goals are goals, which are specific, Measurable, Attainable, Relevant
and Time-bound. The purpose of the ‘SMART’ model is to make sure that the
goals set are realistic. Goal striving is an excellent motivator, but they must be
realistic (Healy, 2014). The value proposition must be clearly defined as it
expresses the experience of the brand and the intended ‘benefits’ received by
association. When conveying the value proposition to the consumer, don’t
market the products specifics, or self-compare against the competition. Instead,
the firm should market the benefits gained from use, the added value to the
customers’ lifestyle and the brand story. Intended benefits can be sorted into 6
different categories;
1. Functional Benefit
2. Emotional Benefit
3. Self-Expression Benefit
4. Experiential Benefit
5. Creative Credibility Benefit
6. Cultural Credibility/ Iconic Benefit
The Functional benefit focuses primarily on pushing the products high level
of performance. The Emotional Benefit ties an emotional story to the product or
brand. With the self-expression benefit, the company associates strong
personality traits with the brand or product, the consumer then wishes to emulate
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these personality traits by supporting the brand. This intended benefit works
better with brands that regularly release new products. The experiential benefit
pitches perks of the product or brand as the experience in which use is
associated with. The creative credibility benefit is marketed as facilitating the
consumer lead a more creative and personalized life. Finally, the cultural
credibility benefit is used when the brand becomes imbedded with a successful
strong personalitied culture. The cultural credibility benefit leverages the
already established iconic brand identity to demand respect and loyalty from the
market (Hestad, 2013). (Please refer to appendix 1 for more detail)
Re-Branding
When a firm’s branding strategy fails or goes stale and ceases to engage,
re-branding may be the only solution. As strenuous as defining a branding is,
defining a re-branding strategy is all that much more difficult due to the simple
factor that must be considered; the consumer. The re-branding process may
cause confusion or spark a backlash from the existing. Keeping this into
account, the firm needs to be utterly convinced that re-branding is the solution
before commitment. Through analyzing various re-branding case studies’ (as
seen in the reference list) and through a review of previous literature on the
matter, the research has derived that the top ten reasons for a firm to re-brand
are as follows:
1. Confusing or nonexistent existing brand image.
2. Loss of market share.
3. The company is entering a new industry.
4. Change in company mission, ideology, culture.
5. Target Segment becomes saturated.
6. New associations are needed to generate growth.
7. Aging target market.
8. New technology makes product obsolete.
9. Pressure from competition.
10. The company would like to broaden its appeal to more segments.
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To implement a successful re-branding plan, the firm must first re-define
their branding strategy. Throughout the re-branding process, the firm should
leverage their brand equity and goodwill in order to keep their loyal customer
base satisfied and informed. Successful redefinitions of a branding strategy
never attempt to navigate the process without a plan or without doing the
necessary market research first. It is essential to plan ahead for strategically
optimal adaptation and ‘rollouts’. A major mistake a firm can make during the
rebranding process is to base the re-branding process off of a single ad
campaign. Instead the firm should base their ad campaign off their re-branding
strategy. Firms that cling too strongly to their history may be left in the past. It
may be proactive to hire “fresh perspectives” to help take the company in a
different direction, with out completely forgetting their roots. The ability to
take the time to test the implementations first is a luxury that re-branding
strategies should take advantage of, which branding strategies cannot.
And the most important rule of all – Don’t bypass the basics; pay attention
to the little details.
Product Launch
In order to have a new product launched successfully it should provide
better solutions to consumer’s problems and needs. An effective product is one
which brings a solution that will make the consumer feel that the product is
either better than anything else available on the market or making the product
being perceived as just what the consumer is looking for.
Some examples of products and services, which were created and were
successful solutions are: “non-stick frying pans, cordless kettles, personal
stereos.”
A case study on Amway demonstrated what happens when the market is
saturated just like in our case with Sweatout. In the case of Amway there were
many cleaning products on the market. When consumers would visit their local
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supermarket and would quickly find the aisle, which is filled with similar
looking cleaning fluids, produced by a relatively small number of companies.
However, most of these cleaning products were single purpose ones and were
produced by manufacturers to standard specifications. Many cleaning products
lacked versatility such as only being useful for one particular task and in one
particular format. Consumers, therefore, bought and stored a whole range of
inflexible products. This was demonstrated by simply examining the range of
cleaning fluids that were stored in customers’ own homes.
Knowing that “today’s consumer does not want to spend valuable leisure
time shopping for dozens of different cleaning products.” (Successful Products -
Successful Solutions, 2014) Amway launched a multi-purpose cleaner called the
“Amway Super Concentrated Cleaning System” allowing a unique and all-in-one
product that would facilitate consumers’ lives. Stating that Amway’ new product
is “The Super Concentrated Cleaning System is a three-in-one unit that saves
time and money.” (Successful Products - Successful Solutions, 2014)
In the current case of Sweatout it is to target sports such as hockey where
the product can be used to eliminate offensive odors associated with sweat in
footwear and sport equipment as much as it can be used for other purposes.
Hence why this case teaches the importance of providing consumer
benefits making it a foundation to any successful product if not the product will
end up just being another product lying on the shelves. A key point here is to be
able to successfully market to consumers is that they are not just buying a
product but they are purchasing benefits. These benefits can simply be sensory
benefits such as the colour and look of your product, the value of your product
such as the price in relation to the quality of the product and convenience which
is the ease of using or storing the product itself.
11
And that’s why Amway understood that “the same sorts of considerations
can be related to cleaning products. The customer will want cleaning products
that: are easy to use and control, have desirable sensory qualities (i.e. look and
smell nice), are easy to store, give good value for money.” (Successful Products -
Successful Solutions, 2014)
Positioning in the Re-launch
In order to make a product launch work, it is essential to think very
carefully about the position that you want the new product to take place in the
market.
The chosen position of Amway is “A revolutionary product system that
provides the ultimate in customer convenience and control by automatically
diluting and delivering the cleaning concentrates with water, providing
customised cleaning at your fingertips, according to the customer’s needs.”
(Successful Products - Successful Solutions, 2014)
The main goal for any sustainable product is to become a selling
solution, selling a product with a highest return per unit sold possible and
getting repeat orders from satisfied customers.
Sweatout consumers should benefit from having an innovative product
that benefits them by having a high value product relative to price, convenient,
highly performing and environmentally sustainable.
Once the above are established the company is finally ready for launching
the new product. In the case of multinational organizations like Amway they
“have to consider the best ways of launching products on a global scale. It may
be possible to carry out some aspects of the launch in identical ways in a range of
countries, e.g. by providing an almost identical product in all markets. Other
aspects, however, such as choosing the right sort of media and the language in
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which videos and commercials are produced, will be specifically tailored to a
local market. When carrying out a major launch, it makes sense to start in your
traditional home market (in this case the United States) before rolling out the
launch in stages across the globe. Lessons can be learnt from the early launches
which can then be built into ongoing launches.” (Successful Products -
Successful Solutions, 2014) Letting companies know that once they go
multinational the process of a product launch mostly remains the same.
Strategy and tactics
A strategy is a plan or practical measure designed to achieve certain objectives,
while the tactics are the actions taken to implement the strategy and achieve
these objectives:
Stage 1: to build excitement
Stage 2: to create awareness
Stage 3: to build product knowledge.
“Building excitement usually involves informing the consumer that a new product
will shortly be available. However, providing very few details of what the product
actually is creates suspense. Then, nearer the launch, you start to give the public a
clearer idea of the product and its attributes. Finally, after the launch, you need to
carry out a lot of hard work to build up an understanding of the brand and its
advantages so that you build up a solid base of consumers.”
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(Successful Products - Successful Solutions, 2014)
Following a product launch, it is imperatively important for the company
to assess how well the product has been received by consumers. This can be
done by conducting either research or surveys.
Any product launch of any new product can encounter numerous threats
whether it is competitors copying the product and steal a share of the market
with a similar product. Continuing to develop the product, research the market
and respond to customers’ demands are key elements to survive in the market
place. Always remembering, “new products are often successful if they provide
better solutions to consumer’s problems and needs.” (Successful Products -
Successful Solutions, 2014)
Product Re-Launch
Product re-launch does not mean abandoning ones strengths, but rather
adapting to a changing environment. The business environment faces several
forces or pressures for change including:
Changed legal requirements (e.g. new environmental laws that
reduce unnecessary packaging)
Actions of competitors (e.g. a rival markets a new product)
Shifts in consumer demand (e.g. consumers seeking more sophisticated
products)
(Getting the right message across – the re-launch of Mars, 2014)
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Successful companies therefore use market research as a guide to
ensuring that consumers’ needs are met by having relevant products and
services. To achieve a positive impact, any changes to the marketing mix that
will be later on described in this paper should be communicated clearly to its
consumers.
When making major changes to a product, it is essential to communicate clearly
what changes are taking place, why these changes are taking place as well as
how the public, in particular consumers, will be better off.
Re-launching any product can get expensive, involving changing
production processes, and technologies, packaging methods and
communication. This requires detailed planning throughout. There is no specific
timeline on when a product should be re-launched, as this will depend on the
company’s budget as well as inside information on how well the brand is
currently doing. The same goes for how long a product should be off the market
before it is properly re-launched as most companies have discovered that it is
harder to comeback after negative publicity compared to being remembered as a
well-reviewed product.
However, the case of the re-launch of Mars proves to be money well spent
when the net effect is to re-position the product appropriately grew sales
including a slogan “pleasure you can’t measure - an every day treat for everyone”
(Getting the right message across – the re-launch of Mars, 2014) positioning it as
a daily habit.
Reasons for a re-launch are usually but not limited to confusion, a move
for a brand from the mid-market sector to a growing premium market or to
encourage lapsed users to repurchase and to generate new customers.
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Therefore developing a re-launch strategy extends the lifecycle of a brand.
A re-launch strategy involves reviewing all the ingredients of the marketing mix in
order to differentiate products from competition and thereby provide a more
appropriate market position.
(No 7 The Relaunch of a Brand, 2014)
In the case of No 7 products were perceived as being good quality but old
fashioned, before the re-launch. The re-launched product changed this image, as
it became a higher quality and a better value for money. Not forgetting that
there was also confusion that existed between No 7 and 17 and it was often
referred to as “Boots Own Brand” as found in No 7 The Relaunch of a Brand.
Times 100 Case Studies, 2014.
The use of the marketing mix in product launch
With the research in progress it has been noticed that in most cases a
foundation of a well-established product is marketing mix also known as the
four p’s. Making it a critical factor that a company gets the balance of these four
p’s so that a product can achieve its critical success factors. Sweatout needs to
develop a mix that will suit the product and the target market as well as meeting
its own business objectives found in the action plan.
16
Product
Understanding the market should be the first step in building an effective
marketing mix. This can be done by doing market research allowing targeting
key market segments which will identify groups of people with the same
characteristics such as: gender, age, lifestyle and possibly attitude. Getting the
knowledge and understanding from the research will help in the development of
a new product. The research can be done by either using “focus groups to listen
to consumers directly, gathering data from consumers through a variety of
different research techniques or simply product testing with consumers in
different markets.” (The use of the marketing mix in product launch, 2015)
Price
Lots of factors will affect the final price of a product companies will want to
maximize their profits and sales without forgetting that the costs of production will
be a major factor. The product’s price also needs to provide value for money in the
market allowing consumers to be attracted to the product and end up buying it.
(The use of the marketing mix in product launch, 2015)
Here are a few pricing strategies a company can use:
Cost based pricing – this can either simply cover costs or include an element
of profit. It focuses on the product and does not take account of consumers.
Penetration price – an initial low price to ensure that there is a high volume of
purchases and market share is quickly won. This strategy encourages
consumers to develop a habit of buying.
Price skimming – an initial high price for a unique product encouraging those
who want to be first to buy to pay a premium price. This strategy helps a
business to gain maximum revenue before a competitor’s product reaches
the market.
On re-launch the price for NIVEA VISAGE Young was slightly higher than
previously. This reflected its new formulations, packaging and extended product
range.” (The use of the marketing mix in product launch, 2015)
17
Place
While knowing where the product belongs the company will need to
determine how the product will arrive to its point of sale by determining the
logistics usually determined by a distributor. As well as where the product
should be sold such as retail outlets well-established stores or kiosks in a mall.
Having an online presence is another possibility that includes other ways in
which companies make products directly available to their target market whether
it is through direct mail or online (The use of the marketing mix in product
launch, 2015).
Promotion
Promotion plays a big factor in getting sales, as it is how it will allow the
company to tell customers that a product is available and convince them to buy
it. Promotions can be done with either above-the-line or below-the-line
promotions. While bigger companies, which have a budget that will allow them
to spend on advertisements, use above-the-line promotions such as directly paid
for television and newspaper advertising. (The use of the marketing mix in
product launch, 2015)
Below-the-line promotions are where the company can use other
promotional methods to get the product message across without sacrificing as
much money as they would in above-the-line promotions. This can be done
through events or trade fairs that will help to launch a product to a wider
audience. These events can vary between being business to consumer or trade
fairs that are business to business. (The use of the marketing mix in product
launch, 2015)
Direct mail is another possibility that can reach a large number of people,
but it is harder than to target specific consumers. As well as having public
relations, which include the different ways a company can communicate with its
stakeholders, through newspaper and press releases. Other possibilities include
18
sponsorship of different event or donations to charity events and participating in
them. Lastly sales promotions and sampling will encourage consumers to buy your
product in the short-term.
**** Please note that the "Action Plan" section of this research paper has been removed due to the
amount of personal and professional information that should not be divulged to the public. Thank
you for your understanding.
Appendices
Appendix 1
Table 1.1 Brand intent and the role of the product
Brand intent Example Story Product's role in
performing the story
Product
dynamic
Functional
ownership
Cif (cleaning
product)
Power to deal with the
toughest dirt every
day (Unilever website)
Product performance High
Emotional
ownership
Godiva Chocolate A timeless beauty, and
as pure as Lady Godiva
An emotional story added to
the product
Low
Identity
credibility
Nike
1
If you have a body,
you are an athlete
Innovative, forward-
looking and
provocative
individualist
Product has strong
personality traits that are
associated with the brand
Frequently release
innovative products
High
Experience Disney I A world of magic One of many touch-points
where the consumer can
experience the brand
High/low
Cultural
credibility
Harley-Davidson Freedom Product iconic
Added cultural story that
explains why it is relevant
Low
Creative
credibility
Facebook Social media platform People are creating the
content/product and the
stories
High
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(2014). Goal Striving and Well-Being in Sport: The Role of Contextual and
Personal Motivation. Journal Of Sport & Exercise Psychology, 36(5), 446-459.
Hestad, M. (2013). Branding and Product Design : An Integrated
Perspective. Farnham: Ashgate Publishing Ltd.
Jones, C., & Bonevac8, D. (2013). An evolved definition of the term
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2(2), 112-120.
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