Page 282 - Marketing Management

CREATING BRAND EQUITY | CHAPTER 9 259

Discover Communications In the
hypercompetitive marketplace of cable TV channels, having a
consistently clear but evolving identity is critical.One of the most
successful cable TV programmers, Discovery Communications,
operates 13 channels in the United States with such signature
shows as Deadliest Catch and MythBusters (Discovery Channel),Whale Wars
(Animal Planet), and the once-popular, now-defunct Jon & Kate Plus 8 (TLC).
Positioning itself as the number one nonfiction media company in the world,
Discovery Communications is dedicated “to satisfying curiosity and making a
difference in people’s lives with the highest quality content, services and
products that entertain, engage and enlighten—inviting viewers to explore
their world.” For example, by recognizing that nature and animals harbor
mystery and danger, Animal Planet has developed into a more aggressive
and compelling brand. New channels in the works include a women’s chan-
nel with Oprah Winfrey, a kid’s channel in partnership with Hasbro, and a
possible series of science shows with director Steven Spielberg. Discovery is
also increasing its global expansion—including China and India—and now
reaches more than 1.5 billion subscribers in 170 countries, generating a
third of the company’s revenue from overseas. 55

Marketers must recognize the trade-offs between activities that for-
tify the brand and reinforce its meaning, such as a well-received prod-
uct improvement or a creatively designed ad campaign, and those that
leverage or borrow from existing brand equity to reap some financial
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benefit, such as a short-term promotional discount. At some point,
failure to reinforce the brand will diminish brand awareness and
weaken brand image.
Deadliest Catch has become
a defining program for the
Brand Revitalization Discovery Channel.
Any new development in the marketing environment can affect a brand’s fortunes. Nevertheless, a
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number of brands have managed to make impressive comebacks in recent years. After some hard
times, Burberry, Fiat, and Volkswagen have all turned their brand fortunes around to varying degrees.
Often, the first thing to do in revitalizing a brand is to understand what the sources of brand
equity were to begin with. Are positive associations losing their strength or uniqueness? Have
Pabst Blue Ribbon beer has
negative associations become linked to the brand? Then decide whether to retain the same posi-
revitalized itself by tapping into
tioning or create a new one, and if so, which new one.
its authentic brand roots via
Sometimes the actual marketing program is the source of the problem, because it
creative grassroots marketing.
fails to deliver on the brand promise. Then a “back to basics” strategy may make
sense. As noted previously, Harley-Davidson regained its market leadership by doing
a better job of living up to customer expectations as to product performance. Pabst
Brewing Company did it by returning to its roots and leveraging key brand assets.

Pabst The beginning of the 21st century was not kind to 165-year-
old Pabst Brewing Company. Revenue from its portfolio of legacy brands—
including Pabst Blue Ribbon, Old Milwaukee, Lone Star, Rainier, Stroh’s,
and Schlitz—declined from an overall barrelage of 9.5 million in 2000 to
6.5 million in 2005. In response, new management set the company on a
new course, including contract brewing with carefully selected partners and a new em-
phasis on its distributor network. Perhaps the most important strategic asset and ad-
vantage, management felt, was the company’s trademarks: “Without a doubt our great-
est asset is our brands. They have strong residual awareness. They have equity. They
are authentic. We have brands that have stood the test of time. New brands don’t have