The Homa Files

Excerpted from Brandchannel, “Brand Darwinism: When & Why Brands Falter & Die” By Barry Silverstein, Dec 22, 2008
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Much like living organisms, brands have a lifecycle…While some brands stand the test of time, others fade away soon after they come to market. What happens when it’s time for brands to die, and why?

A primary reason for brand fragility is the very nature of the brand world. Consider this: in 2006, over 20,000 new products were introduced just in the food and beverage category…While many new products may be extensions of an existing brand, imagine the number of new brand names embedded in that statistic… Fewer than 10% of all new products and services produce enough return on a company’s investment to survive past the third year…

Despite these enormous challenges, there are timeless brands that not only survive but thrive for decades. These brands remain relevant to consumers, and they consistently capture enough market share to prosper, even in tough economic times. But what about the brands that falter?

Some companies intentionally kill off older or weaker brands as part of their brand strategy. Ice cream maker Ben & Jerry’s is a case in point…the company regularly discontinues ice cream flavors in an effort to keep their stable of brands fresh and relevant…Ben & Jerry’s may treat the brand lifecycle with irreverence, but marketing managers at other companies who are forced to kill off a brand are likely not amused. After all, they invest considerable corporate resources in the brand launch. And their budgets—or maybe even their jobs—could become vulnerable when a brand dies…

The same kinds of painful decisions will soon by made by recently bailed-out American automobile manufacturers. The Big Three currently market over 100 different car and truck models through 15 different brands in the US…The problem for G.M. and other companies that must eliminate popular, long-standing brands is complex. While consumers may intellectually understand that brands don’t last forever, they get emotionally attached to them…

Another major reason brands die is the continuous upheaval that occurs in the brand world…when business conditions change. One of the most notorious contributors to brand mortality is business mergers and acquisitions…Each time a merger or acquisition occurs, a brand with a history, a significant market presence and a loyal following may disappear…

Whether it is declining sales, poor economic conditions or corporate mergers, brands will continue to die off, and some consumers will grieve their loss.

A recent he latest branding wrinkle is the marketing opportunity dead brands represent. In 2008, for example, Kellogg reintroduced a cookie brand called Hydrox, a competitor to Oreo that was discontinued in 2003…Kellogg may have decided it was less expensive to revive an old cookie brand with name recognition than launch one anew.

Apparently, reintroducing dead brands is a legitimate business…So don’t be surprised if, when a brand dies, you see it come to life again someday.

Edit by SAC

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Full Article:
http://www.brandchannel.com/start1.asp?fa_id=455

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