discovery life and the rebranding case

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Discovery Life and The Rebranding Case (Dalena) Ton Nu Lan Anh 201403003 Elena Sezionova 201303010 Siyuan Meng 201403001 ByungHee Choi 201200114 SolBridge International School of Business Marketing Communications MKT415 June 5, 2015 Dr. Mahmood A. Awan Running head: DISCOVERY LIFE AND THE REBRANDING CASE 1

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Page 1: Discovery Life and the Rebranding Case

Discovery Life and The Rebranding Case

(Dalena) Ton Nu Lan Anh

201403003

Elena Sezionova

201303010

Siyuan Meng

201403001

ByungHee Choi

201200114

SolBridge International School of Business

Marketing Communications

MKT415

June 5, 2015

Dr. Mahmood A. Awan

Running head: DISCOVERY LIFE AND THE REBRANDING CASE 1

Page 2: Discovery Life and the Rebranding Case

DISCOVERY LIFE AND THE REBRANDING CASE 2

Abstract

The purpose of this project is to analyze the impact of advertising and promotional

activities on the rebranding of Discovery Fit and Health to Discovery Life. The research

initially seeks to clarify the underlining reasons for the transition followed by the renaming

analysis based on Kelly Keller’s three brand-naming elements including simplicity and ease

of pronunciation and spelling; familiarity and meaningfulness; and differentiation,

distinction, and uniqueness. The following stage involves the analysis of promotion

opportunities through the provision of target market and segmentation, competitors insight,

and opportunities analysis. Advertising program and trade promotion tactics are then

generated. Finally, recommendations for a new image management program are proposed.

Page 3: Discovery Life and the Rebranding Case

DISCOVERY LIFE AND THE REBRANDING CASE 3

Discovery Life and The Rebranding Case

“Rebranding is not just about buzzing brand words; it’s about repurposing your lives,

finding your true voice and building an authentic brand that impact lives…” – Bernard Kelvin

Clive. It is a must to keep current customers informed about changes and, at the same time,

acquire new audiences (Gray, 2014). Hence, a comprehensive marketing approach is needed

to communicate the transformation to existing and prospective customers. This paper aims at

exploring Discovery Life’s implementation of marketing communication tools in its brand

revamping process, blending with recommendations for the practice through explaining (1)

the transition from Discovery Fit & Health, (2) promotion opportunities analysis, (3)

advertising program, (4) trade promotion tactics, and (5) a new image’s maintaining program.

Discovery Communications

Discovery communications is the U.S. cable and satellite television networks,

dedicating to satisfy curiosity and entertain viewers through its global television brands. The

company possesses a wide range of brand portfolios reaching approximately 834 million

accumulative subscribers in the U.S. media industry (Discovery Communications, 2015).

Discovery Communications’ brands in America encompass 13 brands including Discovery

Channel, TLC, Animal Planet, Investigation Discovery, OWN: Oprah Winfrey Network,

Science Channel, Discovery Family Channel, American Heroes Channel, Velocity,

Destination America, Discovery en Español, Discovery Familia, and Discovery life

(Discovery Communications, 2015). Each brand targets different segments to ensure that the

firm caters to every single need and want of the audiences. Discovery communications

occupies an entrenched position in the media industry, attaining first rankings for several of

its U.S. networks and receiving positive feedback from viewers (Stewart, 2015).

Discovery Life is a result of the transformation from Discovery Fit & Health to fulfill

the desire of meeting a broader range of audiences (Lefferts, 2014). The new network

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released on January 15, 2015 concentrates on life events including pregnancies, emotional

moments of transitions, relationships and unexpected turning points while retaining some of

Fit & Health’s programs (Lefferts, 2014). The details of the transition will be presented in

the following section.

The Transition from Discovery Fit and Health

Discovery Fit and Health is the channel featuring topics about healthy, medical, and

factual stories (Lieberman, 2014). The channel reached 47 million households, which was

low in comparison with other Discovery’s 10 U.S. networks (excluding the two Mexican

channels) (Lieberman, 2014). Also, the name itself depicts a narrow scope, which in turn

creates a perception of unentertaining topics related to workout, health issues, diets, and so on

(Levin, 2014). That leads to the decision to rebrand Discovery Fit & Health to Discovery

Life. The new channel showcases an unfiltered experience into real relationships from

patient and doctor to husband and wife or parent and child, and at the same time emphasizes

their various tones of emotions (Bibel, 2014). The changes are hoped to broaden the

company’s viewers and bring in a new perception in the mind of the audiences. Besides,

according to Henry Schleiff – group president of Discovery Life and other brands including

Investigation Discovery, Destination America, and American Heroes Channel, “broadening

to Discovery Life Channel will give the brand an opportunity to make bigger, bolder

programming choices while always, central to its brand mission, revealing life at its most

critical turning points.” (Levin, 2014; Bibel, 2014).

In addition, analyzing the rename of Discovery Fit and Health can rely on three

elements including simplicity and ease of pronunciation and spelling, familiarity and

meaningfulness, and finally differentiation, distinction, and uniqueness (Keller, 1998).

Simplicity and Ease of Pronunciation and Spelling

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Simplicity is the core principle for branding, as it is important to stand out from the

crowd and communicate clearly to the customers (Meyer, 2012; Mylonadis, 2015). Life is a

simple word that associates well with customers on the daily basis, making it more accessible

to the audiences (Steinberg, 2014). In comparison with Fit and Health, even though both

demonstrate the ease of pronunciation and spelling, life is shorter, which facilitates

memorization – one of the important elements to create a brand (Keller, 1998). This

simplicity of the brand is also a compelling platform to deliver Discovery Life’s core purpose

of everyday lives’ storytelling – Jane Latman, general manager of the network (Steinberg,

2014).

Familiarity and Meaningfulness

“Brand equity is a composite score based on familiarity, quality, and purchase

consideration” (Discovery Communications, 2009). Some of Discovery Communications’

brands were known to be among the top 100 well-known brands with high equity ranking;

Discovery Health (which is now Discovery Life) was granted number 21 for equity ranking

among TV brands (Discovery Communications, 2009). That phenomenal result will soon

repeat to Discovery Life as the name is easy for customers to perceive the underlining

meaning of the brand, which is the focus on life events including pregnancies, emotional

moments of transition, relationships and unexpected turning points (Steinberg, 2014).

Differentiation, Distinction, and Uniqueness

According to Nielsen’s Advertising and Audiences Report, the average U.S. TV home

received 189 TV channels in 2013 but only 17 channels were actually tuned in (Nielsen,

2014). That highlights the responsibility of content creators and advertisers to deliver quality

channels to customers because “the best way to reach consumers in a world with myriad

options is to be the best options.” (Nielsen, 2014). Possessing familiarity factor eases

Discovery Life to deliver the unique and distinctive ideas to audiences as the brand fills “the

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void in the TV landscape for revealing and powerful storytelling that explores moments of

conflict, passions, family relationships, adversity, tragedy, and healing of life itself,” said

Latman (Steinberg, 2014).

Promotion Opportunities Analysis

Target market and segmentation

Discovery Life operates in the U.S. networks market, targeting women with ages

ranging from 25 to 54 years old (Discovery Communications, 2014). In contrast, Discovery

Fit and Health, the former channel, divided the channel’s target audience into 61 percent

female and 39 percent male with ages ranging from 18 to 55 years old in which the main

viewers were from 18 to 34 years of age (Discovery Fit & Health, 2014). The rebranding of

Discovery Fit and Health to Discovery Life assists the channel in placing emphasis on one

target market- women, generating benefits of giving exclusive and full scale experience for

female customers (Belch and Belch, 2012; Steinberg, 2014). Recall from the previous

section, the purpose of the transition is to acquire new audiences that share the same interests

towards the concept of storytelling on unexpected life events – psychographic segmentation

(Steinberg, 2014).

Competitors Analysis

With the brand overhaul, Discovery Life will be competing against some existing

channels tailoring female viewers. Lifetime Real Women channel, which belongs to the main

Lifetime network, is also geared towards women customers (Lifetime, 2009). The channel

features life experiences, contemporary women’s life, and famous women’s personal stories

(Lifetime, 2009). Another sister channel of Lifetime network is Lifetime Moms channel,

covering different lifestyle topics including daily problems, health, love & sex, beauty &

style, parenting, and other major topics in women’s life, will also be Discovery Life’s

opponent (Lifetime, 2009). Third competitor is ION Life channel, which is operated under

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ION Media network (ION Media Networks, 2015). The channel is dedicated to several

topics including personal relationships, healthy and active lifestyle, stories of inspiration, and

home design (ION Media Networks, 2015). However, ION Life targets both female and

male audiences, giving Discovery Life a competitive edge over a full access to fulfilling the

needs and wants of female audiences. Discovery Communications designates Science

Channel and Investigation Discovery to male audiences; that is also an advantage of

Discovery Communications in giving each segment a complete experience from its channels

(Discovery Communications, 2015).

Besides, Discovery Life channel is also facing with international player within the

U.S. market – The Better Health Channel from Australia. The routes to access this Australian

network are through Internet and mobile apps. The development of social media and mobile

apps together with the U.S. high usage of mobile apps makes the competition more

complicated and hard to control (Craft, 2015; Pophal, 2015). The scope of this channel is on

topics related to health, conditions of illness and treatment, relationship and family (Better

Health Channel, 2015).

The competition battleground seems to favor Discovery Life owing to the twist of its

programs’ objectives. Even though all four channels showcase topics related to life events,

Discovery Life wants to connect with the audiences through presenting real and unexpected

stories in extraordinary situations (Steinberg, 2014). That in turn becomes a value

proposition of Discovery Life, setting it apart from these competitors.

Opportunities Analysis

According to a research from ComScore. Inc, mobile devices occupied 55 percent of

Internet usage in the U.S. in January 2014 (O’Toole, 2014). It was the first time the number

of smartphone and tablet apps usage exceeded PCs to access the Internet – Apps made up 47

percent of Internet traffic and 8 percent of traffic came from mobile browsers (O’Toole,

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2014). In light of social media usage by age group, the percentage of online U.S. adults using

social media has been increased steadily (PewResearchCenter, 2014). “For adults ages 18-

29, 89 percent of them used social networking and for adults ages 30-49, 82 percent of them

do.” (PewResearchCenter, 2014). The age group falls into Discovery Life’s target market.

These two opportunities highlight the application of advertising and promotion for Discovery

Life will be based upon social media and mobile apps.

Advertising Program

Communication objectives

The communication objectives of Discovery Life in its revamping process are to

inform the changing image of the channel to existing as well as prospective audiences and to

drive new demand for the channel, which is an ultimate objective of this rebranding case. It

is expected for the brand to reach 85 million households by 2017 (its current subscribers are

47 million).

Appeals and Executional framework

Appeals. In order to achieve its communication objectives, Discovery Life applied

teaser advertising to stimulate curiosity and drive customers in seeking information regarding

the campaign. Teaser advertising is an effective tool of communications because it not only

attracts target customers but also generates interests and educates customers about the

product and positioning (Aaker, Batra, & Myers, 1992; Trehan & Maan, 2012). Discovery

Life also incorporated news appeal to announce the rebranding decision.

Executions. To present the above appeals, Discovery Life utilized the combination of

imagery, information, and music & narrator(s). In concert with image execution, it relies

mostly on the effective use of photography, tonality, and design to communicate the desired

message to the audiences (Belch & Belch, 2012). Observing Discovery Life advertisement

reveals the brand has incorporated imagery to demonstrate the brand program’s categories –

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Discovery life promo (Levin, 2014). In light of information, music, and narrators, music and

narrators are used as a means to support the transmission of information to the audiences in

the case of teaser advertising. Nevertheless, in the case of news appeal, information is

presented through writing format (news or news press).

Integrated Marketing Communications

A dynamic application of marketing communication tools is essential for the success

of most businesses in approaching and coaxing existing and prospective customers (Belch &

Belch, 2012). Discovery Life applied a comprehensive set of new press (publicity), company

website (online display), social media (video upload & sharing), and mobile app to achieve

its communication objectives (iab members, 2015). In the opportunity analysis section, the

finding presents the importance of social media and mobile apps to American customers;

hence these two communication tools will be the bases for recommendations to Discovery

Life’s trade promotion tactics.

(The analysis of this section is based solely on writers’ observation on teaser advertising and

online news from Discovery Life; therefore, references are not presented at a rich level)

Trade Promotion Tactics

Promotional Pull Strategy

Promotional pull strategy is a method in which a company directly involves in

motivating customers to seek for information regarding the products or services (Belch &

Belch, 2012). The continuous development of technology has changed how marketing works

(Ellett, 2014). Oracle Open World coined the term Marketing 5.0, “the era of marketing in

which marketing cloud technology and rich customer data are enabling brands to meet the

expectations of today’s demanding consumers and business customers: Treat me like you

know me and deliver highly relevant personalized experiences at every touch point.” (Ellett,

2014).

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Mobile devices and social media are the two most vibrant technology sectors,

contributing to shape marketing communications (Craft, 2015). In light of mobile devices,

mobile apps are the perfect channel for user engagement (Pophal, 2015). According to

Nielsen, the U.S. Android and iPhone users eighteen years old and older spend up to 30 hours

and 15 minutes a month on apps (Pophal, 2015). It signifies an opportunity for Discovery

Life to develop an interactive platform, which is executed by opening up discussions,

receiving customers’ inquiries with regards to the shows, and instantaneously responding to

them. Mobile app is an effective way to keep traffic on Discovery Life channel by providing

schedule of the programs and 24/7 interactive communications. With respect to social media,

the integration of viral marketing and consumer-generated content is a good tactic to

implement (TriangleDirectMedia, 2015). Discovery Life can hold contest in which

customers develop ideas to form new shows through making a 30 second commercial and

sharing the video on social network- Facebook; prize will be granted to the most outstanding

video. That is called viral video, which has set a new standard in conducting marketing

campaign as it magnifies customers’ awareness and brings an entirely new group of potential

customers to the firm (TriangleDirectMedia, 2015).

Promotional Push Strategy

Promotional push strategy, on the other hand, is the method of indirectly interacting

with customers through pushing products or services through the channels of distribution like

resellers or trade (Belch & Belch, 2012). In the case of Discovery Life, the approach is

illustrated through the trade allowances with Time Warner Cable and National Cable

Television Cooperative (NCTC) (The Deadline Team, 2015). In 2013, Discovery

communications achieved long-term contract with Time Warner Cable- the second largest

cable producer in the U.S.- to enable the audiences a full access to Discovery’s U.S. networks

(DiscoveryCommunications, 2013). In 2015, trade allowance with NCTC presents a

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multiyear deal to not only offer viewers a full experience to Discovery’s 13 U.S. networks

but also demonstrate strong partnership with an independent distributor (The Deadline Team,

2015). These partnerships encourage cable producers to launch sales promotion strategy to

drive in demands for the channel. One recommended sales promotion strategy is the

synchronizing package of TV, Internet, laptop, and phone that consumers can view channels

and shows through the above devices without separate payments when settling contracts with

the above exclusive cable producers.

(Information provided in this section is group recommendations for the company’s practice;

therefore, references are not presented at a rich level)

Maintaining a New Image

A strong brand identity helps the company to stay on top of the customers’

consideration set (Hunt, 2014). Hence, it is a must to continuously maintain a brand image to

demonstrate consistency and be able to differentiate from the clutter (Holmes, 2014). One of

the ways that Discovery Life can execute is to deliver consistent products aligning with the

company’s mission to the audiences. Recall from the promotional pull strategy section,

Discovery Life can utilize social media as a channel to hold contests for customers to

contribute their ideas in developing the channel’s contents. This approach can be applied

twice a year since Discovery Life is still in the developing stage, accumulating ideas is

essential especially from the audience’s point of view. Besides, the integration of TV

channel and mobile apps is essential. After the end of each show or program, the link to

access mobile apps is provided, customers will then log into their Discovery Life app to

receive and join weekly discussions related to the shows. The idea is to generate topics for

the purpose of cultivating discussions from the customers as well as resolving customers’

inquiries about the presented topics.

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DISCOVERY LIFE AND THE REBRANDING CASE 12

(Information provided in this section is group recommendations for the company’s practice;

therefore, references are not presented at a rich level)

Conclusion

“When I get all focused on songwriting, I get into all the marketing and promotion

that we do to make it happen. Then the right song comes along and blows it all out of the

water. The right song will do it for you every time.” – Ronnie Dunn. Designing an

appropriate advertising program and promotional tactics are essential for most businesses.

It helps the firm achieve communication objectives and stand out from the clutter of other

brands (Belch and Belch, 2012). Understanding this fundamental principle, this project is

developed upon the analysis of Discovery Life’s advertising program and recommends trade

promotional tactics together with a new image maintaining program based on social media

and mobile apps in hopes of providing readers insight into a rebranding case and helping

Discovery Life achieve its purpose from the transformation of Discovery Fit and Health.

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