Both products and brands have a finite lifespan. The life cycle of a brand covers the period from its launch to its withdrawal from the market. How do you manage the life of a brand and how do you match the right strategy to its current stage?
The life cycle of a brand is generally longer than the life cycle of its product, since a brand may, after all, introduce several different products and withdraw some of them completely at the same time. For this reason, it is so important to focus on the brand life cycleto prolong its existence on the market.
Brand development stages
The life cycle of a brand, or the moment from its introduction to the market until its withdrawal, comprises four stages: introduction, growth, maturity and decline. At each of these stages, a different marketing strategy is pursued, e.g. brand communication strategy due to different brand awareness, different attitudes of consumers towards it and the changing sales volume of its products. Different stages cover different marketing goals as the market environment is also different.
Stage: introduction
At this stage, as the name suggests, the brand is introduced to the market, so it is completely new and unknown among the recipients. You should therefore introduce intense advertising campaigns that will grab your attention target audience. Promote your brand's features and functions, quality and application of its products, which will encourage customers to try them out. The key is the right brand positioning in the minds of consumers to create a unique one brand identity. Communicate its values to build a positive brand image. It is worth reaching as many potential customers as possible so that as many people as possible hear about your new brand. That is why it is worth organizing fairs and promotions in stores for potential consumers. At this stage, competition is low, so well-conducted promotion usually leads to high sales and a growth phase.
Appropriate brand positioning, which should be preceded by the creation of a detailed one, is extremely crucial in this phase brand strategy. If you're wondering what it looks like, read our article: creating a brand image, and you will learn what specific steps should be taken to consistently create a strong brand. When introducing a brand, ask yourself the following questions: "what target group do I want to target?", "What unique values should my brand have?", "How does my brand stand out from the competition?" Or "what are the opportunities to use my brand's products? ? ” Remember that a properly planned brand positioning strategy is a must at the stage of its implementation. It allows you to draw attention to the brand and highlight unique and distinctive values.
Stage: growth
At this stage, the brand is in the minds of consumers, gaining its supporters, thanks to which sales increase. The market accepts the brand and consumers begin to shape its image in their minds. If you chose the right strategy at the introduction stage, then you can see the first effects of marketing. It is necessary to focus on the further development of the brand: campaigns emphasizing the brand's features and values, distinguishing it from the competition, but also introducing new, innovative features. It is especially important to focus on the benefits offered by the brand and arousing the need of consumers to have your products.
Brand life cycle - maturity stage
At this stage, the competition is very fierce. Consumers have specific opinions about brands in their awareness and choose the ones they prefer. New competitors may struggle to break through the multitude of other brands and stand out with something new. Well-known and reliable brands, in turn, have a significant advantage here. In this phase, the brand is often differentiated according to a specific segment. For example, a company that entered the market as one of the first will position itself as a quality leader.
Next stage: fall
Features of this stage include: falling prices, low competitiveness, the appearance of new products and brands. Our brand is losing importance. However, you can take action to prevent this. One has to catch this moment and act in a timely manner. You can find a new market, change the positioning of your brand or rebrand.
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Division into brand life phases
Some literature claims that brand life cycle is contained in five stages. The above scheme is identical on many points to the the product life cycle. From a scientific point of view brand life cycle are: the brand launch phase, the acceptance phase, the consolidation phase, the development phase and the orbital position phase....
The phase of acceptance, or confirmation, focuses on gaining the approval of buyers for a given brand. The next phase of consolidation is characterized by a decrease in sales, therefore it is necessary to expand the distribution network or inspire respect for the brand among customers. It claims to be a hotspot as many managers will abandon further marketing efforts. This approach results in a further drop in sales and a weakening of the brand among competitors. The development phase is the constant development of the brand and its renewed strength thanks to appropriate marketing activities. However, if the image being built is inadequate to the target group or the brand fails to cope with the crisis, it may lose its position on the market. And the last phase of the orbital position is a strong brand with a strong position in the market.
The role of innovation in extending the life cycle of a brand
In a dynamically changing market, brand life cycle can be shortened if appropriate action is not taken. A key element in prolonging this cycle is to innovate at different stages of brand building. Product innovations, such as new features or enhancements, can refresh a brand's image and attract new customers. Equally important are innovations in communication and marketing, which allow more effective implementation of the stages of brand positioning.
Rebranding strategies in the declining stage of brand building
When the phase of decline in the brand life cycle, it is necessary to take action to refresh it and restore its competitiveness. One effective method is rebranding, which involves changes to the visual identity, communication and product offering. Conducting a rebranding exercise on the appropriate stages of brand positioning allows it to adapt its image to current trends and consumer expectations. Cooperation with a professional branding agency can ensure that the rebranding is carried out effectively, minimising the risk of losing loyal customers.
Brand life cycle - examples
The life cycle of a brand depends on efforts to build its capital, market value and strength. Many brands in the world stand out, some of which can boast a long life cycleSome brands have been around for a long time, others for a short time, yet they have already established a high and lasting position in the minds of consumers. The right branding can make a young brand strong, valuable and capital-intensive.
According to the ranking, the most valuable brands in the world in 2021 are:
- Apple (1976)
- Amazon (1994)
- Google (1996)
- Microsoft (1975),
- Walmart (1962)
- Samsung (1938),
- Facebook (2004)
Analysing the short list above, it can be seen that the top positions are occupied by brands with both long and short the brand life cycle.