Why do firms delete brands? Insights from a qualitative study

Large consumer goods firms manage and market an assortment of brands and consistently deal with strategic challenges related to brand portfolio management, such as creating or acquiring brands, growing brand equity, managing brands in the portfolio and deleting brands. There is substantial research on several areas of brand portfolio management except in the area of brand deletion. This situation exists despite the fact that deleting weak brands has important implications for a firm and its brand portfolio. Therefore, it is critical to understand why firms delete brands from their portfolios. This research applies a qualitative approach using semi-structured interviews and thematic analysis in the context of firms that adopt a ‘house of brands’ brand architecture and presents findings guided by the strategic decision-making literature.     

From an aggregate to a brand network: a study of the brand portfolio at L'Oréal

Abstract

Our purpose is to contribute to the understanding of brand-portfolio management by examining the brand-portfolio strategies of a world-leading company. We started to work on a case study with L'Oréal. Our research focused on two questions: (1) what reasons lead L'Oréal to develop a brand-portfolio strategy?; (2) how can brand-portfolio management create a higher and stronger level of competitive advantage for this company? The results show that an aggregation of brands is not in itself a brand portfolio. The juxtaposition of brands is one of, but not the sole, element necessary for the development of a brand portfolio, which is a combination of a brand ensemble and key competences born out of organisational savoir-faire. By analysing the evolution of the L'Oréal brand portfolio, this work shows how the brand combination within a portfolio is a key factor for company development, growth, and risk management. It is a crucial phase to understand L'Oréal's competitive advantage.     

Does market orientation pay off without brand orientation? A study of small business entrepreneurs

Market orientation and brand orientation are usually modelled as distinct antecedents of business performance, and the simultaneous performance effects of these orientations are empirically under-explored. Moreover, studies of market orientation and branding tend to focus on large corporations and the views of managers rather than the views of small business entrepreneurs. Addressing these research gaps, the current study explores market orientation and brand orientation by empirically testing their simultaneous effects on the business performance of small firms. Using primary data from 328 effective responses gathered from small business entrepreneurs, the study finds that market orientation improves the financial performance of a small firm only if it is implemented through brand orientation and eventually translated into brand performance. The results further indicate that older firms benefit more than younger firms from investing in branding, while younger firms benefit from paying attention to the actions of their rivals.     

品牌组合代言溢出效应研究——名人崇拜的调节作用

文章采用心理学实验法,基于拟社会互动关系视角的研究发现：不同水平的名人崇拜对名人多品牌组合代言的消费者评价有正向影响;名人崇拜对品牌代言组合的消费者影响有调节作用,即高崇拜消费者对品牌代言组合的消费者影响不敏感,且保持在一个相对稳定的较高水平;而低崇拜消费者对品牌代言组合的消费者影响大致成倒“U”型曲线结构。文章开拓性地将“名人崇拜”这一社会心理现象与市场中的消费者行为联系起来,揭示了名人崇拜对多品牌组合代言效应的调节作用,为名人多品牌组合代言活动提供了理论依据与实践指导。     

Market orientation and customer-based corporate brand equity (CBCBE): a dyadic study of Indian B2B firms

The relationship between market orientation (MO) and one of its most important consequences – firm performance – has received considerable attention in marketing research. Performance has been largely judged through financial or objective measures. This paper connects assimilation of MO in firms with corporate brand performance since academics have not used judgmental or market-based measures in assessing performance. We have introduced customer-based corporate brand equity to obtain a rounded idea of firm performance. This is achieved through a dyadic study, instead of self-assessment, wherein the marketing chiefs of B2B firms and their respective organisational customers are surveyed to gauge the effects of incorporating MO. We have shown that corporate brand performance is enhanced significantly in the presence of organisational innovativeness. From a practitioner’s perspective, the study details the organisational actions to be taken to assimilate MO and how those can be exploited to enhance corporate brand performance.     

Status of Database Marketing in the Dutch Fast Moving Consumer Goods Industry

Brand manufacturers in the fast moving consumer goods industry are under pressure. Due to increased retailer concentration, access to scanner technology, eroding brand loyalty, an increasing number of price promotions and increasing market share of private labels, power is more and more shifting towards retailers. DBM can be an alternative for brand manufacturers in building brands and gaining more knowledge about the customer. In this paper data of 91 Dutch brand manufacturers are used to find the factors that influence the adoption of database marketing (DBM). A distinction between tactical DBM and strategic DBM is made. Tactical DBM has a short-term focus and a transactional approach. Strategic DBM has a long term focus aiming at enhancing brand loyalty, brand awareness and brand associations. Our results show that DBM is relatively undeveloped in the Dutch FMCG-industry. 29% of all respondents adopted DBM. When it is used, it is mainly used tactically. It is also found that DBM adoption is influenced by top management support, the size of the brand portfolio and the adoption of DBM by a competitor.     

Factors Influencing Successful Brand Extensions

Organisations frequently follow brand extension strategies. This paper investigates the impact of category similarity, brand reputation, perceived risk and consumer innovativeness on the success of brand extensions in FMCG, durable goods and services sectors. A set of hypotheses were developed and tested in a study amongst 701 consumers. The findings show that extensions into categories more similar to the original brand tend to be more readily accepted. Likewise, the reputation of the original brand is an important factor influencing the success of the extension. These findings are consistent across FMCG, durable goods and services brands. However, perceived risk about the extension category was only found to enhance acceptability of extensions for durable goods and services brands. Innovative consumers are more positively disposed towards service brand extensions than FMCG and durable goods brand extensions.     

农产品品牌保护策略探析

随着消费层次升级和健康理念的变化,消费者品牌意识不断增强,农产品品牌安全问题成为消费者关注的焦点。面对假冒伪劣品牌对农产品品牌市场的非竞争性冲击,农产品企业仅依靠常规性品牌管理策略已举步维艰,品牌保护策略是破解品牌侵权等难题的关键。本文从农产品品牌特征、内涵出发,解析农产品企业在品牌保护上的现状、困境和成因;从战略品牌管理、法律保护、战略联合保护网络和品牌管理策略等方面,提出了完善农产品品牌保护的思路和对策。     

仿冒品重复消费的动力机制

仿冒品现象已成为商业社会中备受关注的问题,而消费者的重复消费是它盛行的重要形态之一。本文建立消费者的仿冒品满意度整合模型,来明确仿冒品被重复消费的缘由与机制。通过调查和分析得到了以下主要结论:第一,消费者的产品涉入度、奢侈品消费动机、品牌消费认同和诚信意识对于仿冒品的绩效期望和绩效感知分别有较为显著的影响;第二,仿冒品的绩效期望和绩效感知分别对于它的满意度和重复消费有较为显著的正向影响。这些表明,仿冒品的重复性消费以消费者的专业性和诚实性为基础,并受到较高的消费预期和真实的用后感驱动。这些都为知名品牌战略制衡仿冒品提出了严峻挑战。     

A brand preference and repurchase intention model: the role of consumer experience

Consumer brand preference is an essential step towards understanding consumer choice behaviour, and has therefore always received great attention from marketers. However, the study of brand preference has been limited to traditional marketing focusing on functional attributes to maximise utility. But now the shift to experiential marketing broadens the role of the brand from a bundle of attributes to experiences. Technological advancements have helped to increase the similarities between brand attributes and product commoditisation. Consequently, consumers cannot shape their preferences among brands using rational attributes only. They seek out brands that create experiences; that intrigue them in a sensorial, emotional and creative way. This study seeks to develop a model that provides an understanding of how brand knowledge and brand experience determine brand preference and to investigate its impact on brand repurchase intention. Accordingly, exploratory focus group discussions are employed followed by a survey of mobile phone users in Egypt. The findings provide insights into the relative importance of consumer perceptions on different brand knowledge factors in shaping brand preferences. It also demonstrates the significance of consumers’ experiential responses towards brands in developing their brand preferences that in turn influence brand repurchase intention. The model therefore offers managers a new perspective for building strong brands able to gain consumer preferences.     

The interactive effects of product and brand portfolio strategies on brand performance: Longitudinal evidence from the U.S. automotive industry

Product and brand portfolio extensions are effective marketing strategies to meet customer needs and to create a competitive advantage in the marketplace. Nevertheless, product and brand portfolios can get out of control easily leading to a loss of market focus and market share. This study examines how product portfolio and branding decisions affect brand performance (unit sales and market share). Prior research in marketing has investigated the effects of product portfolio and branding strategies on firm performance in isolation. However, these decisions are rarely isolated events. Usually, for multi-product and multi-brand companies, product portfolio decisions are determined in conjunction with branding decisions. Using a dynamic panel generalized method of moments estimation on a comprehensive dataset from the U.S. automotive industry between 2007 and 2013, this study examines the extent to which product and brand portfolio characteristics interact to affect brand performance. Findings reveal that while brand portfolio scope augments the positive effects of portfolio depth and innovativeness on brand performance, it attenuates the positive effects of product portfolio breadth on brand performance. Also, brand positioning in auto industry enhances brand performance only when considered jointly with product portfolio breadth, depth, and innovativeness. Finally, the present study discovers critical managerial trade-offs between product and brand portfolio decisions, as product and brand portfolio decisions are intertwined and a careful examination of the existing product and brand portfolio characteristics seem to be warranted to maximize brand performance.     

调节定向在品牌忠诚动态形成过程中的作用

现有基于消费者—品牌关系对品牌忠诚影响因素的实证研究发现,品牌信任和品牌情感是品牌忠诚的决定因素。尽管很多学者认为应该从动态的视角认识忠诚的概念,却没有随着时间推移来研究消费者品牌忠诚的发展过程的文献。为了弥补现有营销文献中这一理论的不足,文章提供了一个关于品牌情感和品牌信任同时影响品牌忠诚形成过程的动态研究。通过一个纵向情境模拟实验研究发现随着时间的推移,品牌信任和品牌情感在品牌忠诚的形成过程中作用在不断变化,并且消费者自我调节定向与品牌信任或品牌情感的的匹配会增强其在品牌忠诚形成过程中的作用。     

体育用品品牌延伸风险与规避策略研究

本文认为,品牌延伸是品牌管理的重要组成部分,也是市场营销的重要手段。体育用品品牌延伸在给体育用品制造企业带来利益的同时,又具有较大的风险。文章提出,为规避体育用品品牌延伸风险,提高体育用品品牌延伸效益,应从实际出发,借鉴国内外企业规避品牌延伸风险的成功经验,正确认识现有体育用品品牌,选择强势体育用品品牌进行延伸;进行市场定位,界定体育用品品牌的适用范围;确保品牌延伸产品的相关性和兼容性,提高品牌延伸成功率;有效控制体育用品品牌延伸,避免品牌延伸过度。     

Evaluating marketplace synergies of ingredient brand alliances

This research examines the marketplace performance of ingredient brand alliances (IBAs). In this type of alliance, a component or feature of a primary or focal brand is branded using a secondary brand. Performance is affected by both the primary and secondary brands, each of which has functional and emotional associations. Drawing on concept combination theory, the authors examine congruent and incongruent effects in both associations as a means of achieving synergy in the brand. While the extant literature largely focuses on consumer perceptions of ingredient brand alliance products as an outcome, the authors examine the market share and revenues for 126 ingredient brand alliances in 49 product categories of consumer packaged goods over 14?years. A generalized estimation equation shows that, on average, each brand's associations have positive main effects on ingredient brand alliance performance. However, congruent associations (such as the perceived functional associations of both brands) attenuate these effects, while incongruent associations (the perceived functional association of one brand with the perceived emotional association of another) were not significant. The article concludes with a simulation showing that managers can do better by picking a partner brand whose associations are more incongruent, rather than merely what seems to be the strongest partner on both associations.     

New product portfolio performance in family firms

This study investigates the relationship between top management team (TMT) innovation orientation and new product portfolio performance in small and medium-sized family firms by exploring two family firm-specific sources of TMT diversity as moderators: the number of generations involved in the TMT and the ratio of family members in the TMT. Results indicate that family-induced diversity in the TMT has opposing moderating effects. Although a positive relationship exists between TMT innovation orientation and new product portfolio performance when multiple generations are involved in the TMT, TMT innovation orientation and new product portfolio performance experience a negative relationship when the ratio of family members in the TMT is high. The study discusses theoretical and managerial implications of the findings and develops avenues for future research.     

You ruined our love story,but I just cannot hate you—A moderation–mediation analysis of past experienced brand love and brand hate

The development of the consumer–brand relationship is crucial for brands as it reflects how well a consumer is emotionally connected with the brand. However, due to unacceptable behaviour, brands have become susceptible to negative consumer–brand relationships. Given the recent importance of the negative consumer–brand relationship and its consequences, little is known about the role of previously experienced brand love. Studies support the link between strongly remembered events and experiences, customer knowledge, brand association, and consumer congruence with brands in creating long-lasting influence and deep emotion towards the brand. The study examines moderation–mediation analysis of past experienced brand love and brand hate. This research, anchored in consumer brand relationship literature, builds on an analysis of data from 207 respondents. We conducted a research survey in a South-Western European country and performed the SPSS Hayes Process macro 58 to analyse the moderating role of past experienced brand love alongside the mediating role of brand hate to test our hypotheses. The moderation results show that past experienced brand love significantly moderated the link between brand hate causes (corporate wrongdoings) and brand hate. However, there is no significant moderation influence of past experienced brand love on the consequences of brand hate causes. The study also demonstrates that brand hate mediates the link between corporate wrongdoings and violations of expectations with negative word of mouth, consumer complaints, and patronage reduction/cessation. The current study is unique in that it highlights new avenues in existing research by extending the domain in consumer–brand relationships. The findings of the study have theoretical and empirical implications for brand managers.     

What are the Building Blocks of Customer Brand Loyalty in Department Stores? A Multi-Level Mediation Analysis

Building customer brand loyalty through branding strategies to sustain competitiveness in the retail industry has gathered momentum among researchers. The purpose of this study is to examine the role of brand personality and consumer brand identification on customer brand loyalty via the mediating variables of perceived service quality, perceived value, brand trust, brand commitment, and word-of-mouth communication among Malaysian department stores' customers. Using a self-structured questionnaire, 381 usable responses are considered for data analysis by applying a covariance-based structural equation modeling approach. The results of exploratory factor analysis show that sincerity, followed by sophistication and competence, are the most significant dimensions used to predict brand personality in department stores. The outcomes also reveal that brand personality indirectly influences customer brand loyalty via consumer brand identification. Furthermore, perceived service quality, perceived value, brand trust, word-of-mouth communication, and brand commitment mediate the effects of consumer brand identification on brand loyalty. Finally, the proposed competing model implies that the indirect impact of brand personality and consumer brand identification is inevitable in building department stores' brand loyalty.     

The effect of activity identity fusion on negative consumer behavior

Negative consumer behavior is an important research topic as it explores consumer behaviors that threaten a brand's image and financial stability. However, prior research offers conflicting findings on whether a strong consumer‐brand relationship hurts or protects a brand after a market disruption or a brand transgression. To provide clarity on this issue, this work argues that disrupting the consumer‐activity relationship motivates consumers to reaffirm and protect their identity, thereby leading to negative consumer behavior. The data reveal that, after a brand‐initiated market disruption, consumers with high activity identity fusion are more likely to spread negative word‐of‐mouth, boycott the brand, and avoid repurchasing the brand in the future. Moreover, the data suggest that high brand identity fusion protects the brand during market disruptions; therefore, prior conflicting results may be due to the fact that the consumer‐activity relationship was not accounted for. Theoretically, this work establishes that consumers' relationship with their consumption activities has significant impacts on consumer behavior. Brand managers and marketers are urged to develop strategies that focus on strengthening the consumer‐brand relationship and not the consumer‐activity relationship.     

Servbrand Framework: A Business-To-Business Services Brand Equity Framework

ABSTRACT

Purpose: The research reported on here set out to develop a tailored branding model for business to business (B-to-B) services by applying the brand resonance pyramid to a selected B-to-B services context.

The brand resonance pyramid was developed based on research that was predominantly consumer product or individual brand oriented, though one of the objectives when the model was developed was that “the model had to be versatile and applicable to all possible kinds of brands and industry settings. As more diverse applications of branding continued to emerge for products, services, organizations, people, places, and so forth, the model needed to have far-ranging relevance”. The brand resonance pyramid therefore had to be applicable to any context, including B-to-B services contexts. However, consumer goods branding strategies are not directly transferable to B-to-B or services markets and there are documented differences between the B-to-B and business-to-consumer (B2C) markets and products and services contexts. There is also doubt regarding the validity of the contention that the brand resonance pyramid should be applicable to the B-to-B sector.

Methodology: Using an interpretivist qualitative research approach and an exploratory research strategy, the Servbrand framework was developed empirically by applying the brand resonance pyramid to a selected B-to-B services context. Fourteen useful in-depth interviews were obtained from appropriate and information rich participants that represented more than 14 of the 89 organization that were included in the selection frame. Some of the participants were responsible for the relevant decisions of more than one organization.

Findings: The results from the study reported on here (summarized as Figure 5) prompted the inclusion of a people dimension and elevated the importance of relationships in an amended B-to-B services brand equity framework. The people brand-building block includes the dimensions of attitude and demeanor, personality and values, personableness, product knowledge and client knowledge. Relationships, as the ultimate aim of the framework, concern both interpersonal relationships and partnerships.

The article presents a conceptual framework to guide effective brand building strategies in a selected B-to-B services context. Researchers can use the framework to test its applicability in other contexts, which will contribute to the amendment of a significant brand equity management framework.

The Servbrand framework can assist marketing practitioners to improve the effectiveness of strategic brand management for B-to-B services.

Contribution: The empirical research contributes to three areas of brand equity research, namely: 1) the offering type – by investigating service offerings rather than product offerings; 2) the brand level – by investigating organization-level brands rather than product-level brands; and 3) context – by investigating a B-to-B context rather than a B2C context. A revised brand resonance pyramid is proposed and called the Servbrand framework.     

The battle for commercial hearts and minds and the internal brand within a charity shop network in Ireland

ABSTRACT

Charities are increasingly adopting commercial branding strategies to capture consumer hearts and minds for competitive gain, with little attention on the internal organisational battle for hearts and minds within a not-for-profit context. This paper explores the internal brand of a charity that currently operates 227 charity shops on the island of Ireland, using Hankinson’s 2004 framework that focuses on functional, symbolic, behavioural and experiential components. An exploratory case study was developed based on a survey of organisational members (n = 138), interviews with six regional shop managers, observation in retail stores and supplemented by organisation documentation. Findings indicate a clarity of perception on mission, purpose and core values for the charity, but more ambiguity around perception of the charity shop brand and identified issues relating to communication of policies and procedures, managerial practice and the workplace environment. The study also reveals a gap between the charity’s organisational identity and the brand identity for the charity store network, a clarity in the perception of core values that does not underwrite the store brand and resistance to the implementation of commercial practice within a volunteer-led charity. Trust may be the key in the internal battle for hearts and minds within the charity and may be crucial for the charity to realise its’ potential and successfully meet its’ mission for maximum societal gain.