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Declining Brands

Declining Brands. 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)

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Declining Brands

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  1. Declining Brands

  2. Defying Newton

  3. 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

  4. Top 10 Reasons for Declining of Brands

  5. 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

  6. 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

  7. Cause #3 • Single Product (Ambassador) • No portfolio • No extensions • Problem? • Visibility • Stature • Decline in segment • Decline in product

  8. Cause #4 • Excessive Pricing (Daewoo Cielo) • Premium pricing • High margins • Entry of Competition • Feeling of being cheated • Private Labels

  9. Cause #5 • Wrong extensions (ICFAI Learning Centers) • Bad products • Crowded categories • Lower image products / segments

  10. Cause #6 • Communication (Kelvinator) • Low levels of communication • Wrong message • Low impact • Brand Ambassador • Production values

  11. Cause #7 • Channel management (CrossWord) • Attitude of Sales Team • Margins • No push • Emergence of alternate channel

  12. Cause #8 • Ageing (HMT Watches) • Old age • No makeover (Product / Communication) • Perceived as ‘Not for me’

  13. Cause #9 • Lack of differentiation (Acer Computers) • Cluttered market • No USP • No competitive advantage • ‘Me Too’ Branding

  14. Cause #10 • Tough Consumer • Less emotional • Lowering levels of loyalty • Flirtatious attitude • More knowledge driven • Connected via media

  15. Exercise: Failed Indian Brands • Weikfield Jelly • Maruti Zen Estillo • Yamaha RX-100 • Roohafza • Margo Soap • Kinetic Scooter • Fiat • Moti Soap • Savlon • Milkfood

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