brand revitalization

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BRAND REVITALIZATION BRAND REVITALIZATION AND AND REJUVENATION REJUVENATION

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Page 1: BRAND REVITALIZATION

BRAND REVITALIZATION BRAND REVITALIZATION AND AND REJUVENATIONREJUVENATION

Page 2: BRAND REVITALIZATION

Case-1Case-1Come Back Story of Lacoste, French Come Back Story of Lacoste, French MajorMajor

Page 3: BRAND REVITALIZATION

LacosteLacoste

Locaste founded in France in 1933, became a style icon for its tennis –themed sports-wear and is credited with selling the first polo shirt featuring a crocodile as the logo

Page 4: BRAND REVITALIZATION

History of OwnershipHistory of Ownership• During the 1980s,

when it was owned by Cereal maker General Mills, Lacoste failed to keep up with the prevailing fashion trends and saw its sales drop.

• In response company cut its prices and sold to discounters like WAL-MART and K-Mart , which further damaged the brand’s image.

Page 5: BRAND REVITALIZATION

• Lacoste continued to suffer from slow sales until 2002.

• At that time Mr. Robert Bob Siegel , a former Levi’s executive was roped-in to relaunch the brand Lacoste in the U.S.

The Man Behind Lacoste’s Successful Relaunch

Page 6: BRAND REVITALIZATION

Steps/Measures taken for Re-Steps/Measures taken for Re-launch of Lacostelaunch of Lacoste

1. Prohibited sales in T.J. Maxx and Macy’s Department Stores.

2. Regenerated its fading fashion lines by introducing tighter fitting shirts for women.

3. Opened own-brand Exclusive retail outlets in fashionable shopping areas to showcase its new look .

Page 7: BRAND REVITALIZATION

Outcome of Relaunch Outcome of Relaunch MeasuresMeasures

1. This increased the contribution of Lacoste’s U.S. revenues of Women’s wear from just 7% to 33%.

2. Because of these measures , Lacoste’s U.S. revenue increased more than 280% between 2003 – 2005.

Page 8: BRAND REVITALIZATION

Case-2Case-2

HOW LG EARNED PREMIUM HOW LG EARNED PREMIUM BRANDINGBRANDING

Page 9: BRAND REVITALIZATION

The Story of LG RelaunchThe Story of LG Relaunch• It took 3 attempts in four

years before the Korean Electronics giant LGE successfully to launch its brand in the US market in 2002.

• Five years later it became the top seller of refrigerators and Washing machines , and since then it ahs successfully maintained its lead position in the two home – appliance categories with current market share of about 24%.

Page 10: BRAND REVITALIZATION

The IssueThe Issue• By late 1990s , the

company was marketing its products under the Goldstar brand, which American consumes viewed as low-quality.

• To establish a premium –brand image and to achieve a broader penetration of the US market , the company relaunched its offerings under the LGE brand in 2002.

Page 11: BRAND REVITALIZATION

The Man Who Made it The Man Who Made it Happen!Happen!• Mr. Michael Ahn, former president and

CEO of LGE Americas , took initiatives for the successful relaunch of the brand LGE.

Michael Ahn

Page 12: BRAND REVITALIZATION

Measures taken by Ahn.Measures taken by Ahn.

• Mr. Ahn sought the help of national retailers such as –Best Buy–Home Depot–Lowe’s–SearsTo distribute the

newly launched LGE refrigerators and washing machines.

Page 13: BRAND REVITALIZATION

??But all these retailers refused

to distribute the offering because of unknown quality and customer service of LGE

brand

Page 14: BRAND REVITALIZATION

Ahn’s efforts to sign regional retailers such as

◦P.C. Richard&son◦H.H.Greg

As distributors were also unsuccessful.

Page 15: BRAND REVITALIZATION

Addressing the IssueAddressing the IssueTo address the problem, Ahn invited

a group of the regional retailers’ executives to tour LGE’s production plan in Korea and took care of them.

Ahn used further incentives such as◦ Higher profit margins ◦ Support for marketing and trainingTo persuade the retailers to sell its

offerings.

Page 16: BRAND REVITALIZATION

• Eventaully, regional retailers –P.C. Richard & Son–H.H. Gregg Agreed to distribute its products.

• The retailers enjoyed success in sales of LGE products which made other retailers to approach LGE to become distributors.

• Later on , National retailers such as–Best Buy–Home Depot–Sears Joined as distributors.

Page 17: BRAND REVITALIZATION

Some of Ahn’s colleagues wanted to use discount retailers to such as walmart , K-Mart to increase sales.

Because , their compensation was based on sales volume.

Fearing such move would tarnish the premium brand image of LGE, Ahn refused to do so.

Page 18: BRAND REVITALIZATION

OUTCOMEOUTCOME• Today , 95% of American consumers

view LG as a premium Foreign Consumer Electronics Brand , lagging behind only to Sony in terms of brand recognition

–Based on a study carried out by LG in 2009

• LGE Annual Revenue growth in America grew 20% rising from $ 5.6 B to more than $ 13 B under the leadership of Ahn.

• Project that North America could reach $4 Billion biz in years to come.

Page 19: BRAND REVITALIZATION

Thank You!Thank You!