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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
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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?
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Investment
Product Orientation
Tried & Tested
Complacency
Cause #3
• Single Product (Ambassador)
– No portfolio
– No extensions
• Problem?
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Visibility
Stature
Decline in segment
Decline in product
Cause #4
• Excessive Pricing (Daewoo Cielo)
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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)
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Low levels of communication
Wrong message
Low impact
Brand Ambassador
Production values
Cause #7
• Channel management (CrossWord)
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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)
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Cluttered market
No USP
No competitive advantage
‘Me Too’ Branding
Cause #10
• Tough Consumer
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Less emotional
Lowering levels of loyalty
Flirtatious attitude
More knowledge driven
Connected via media
Exercise: Failed Indian Brands
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Weikfield Jelly
Maruti Zen Estillo
Yamaha RX-100
Roohafza
Margo Soap
Kinetic Scooter
Fiat
Moti Soap
Savlon
Milkfood