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Mikheev I. V.,

Senior Analyst at «Ashmanov and partners» company

Rebranding as an effective marketing tool

 

The market economy demands ability to work in a new fashion not only from production workers, business executives, businessmen, but also from students and teachers, scientists and experts, economists and engineers, ordinary employees and heads who in literal sense are put before necessity to pass relevant curriculum.

Therefore presence of the knowledge associated with working out of marketing strategy and strategy of development of brands now have the special importance. It is associated by that the problem of increase in quantity of marks and decrease in essential differences between them well-known to consumers of the goods and services in the countries of the developed market economy becomes now more and more actual. Some number of categories of the goods (such as sausages, beer, oil and etc.) or services (for example, insurance, tourist business, commercial medical services and etc.) so expand that domestic buyers cease to find distinctions between the offered goods or services. It forces manufacturers to improve quality of the goods (services), to increase advertizing expenses, to stimulate sales of the goods (services), to think out original names and to improve container and packing. When the majority of competitors do the same, it is necessary to search for new effective ways of not price competition, here again the major means is creation and development of a strong brand.

«Brand» — all set of forms, ideas, images, associations etc. about a concrete product which has developed at consumers and which speaks to them: «Yes, it just that I should buy». It is possible to tell that the brand is a prestigious, well-known mark.

Effective branding realization — business completely not simple. Its productivity depends not only on professional knowledge and enterprise culture of the advertiser and advertizing agency with which it cooperates, but also from their ability to work with intellectual property, trademarks, design, texts.

The rebranding should be understood as process of entering of external changes in registration of a trade mark and positioning, however, in a number of branches at a rebranding the product offered to consumers is touched and reformed in itself. One of such products is the periodical press.

It is possible to name a rebranding only the fact of total revision almost all attributes of brands. In many other cases we deal with branding in itself.

It is necessary to notice that in the marketing literature questions of a rebranding are consecrated poorly and rebranding procedures aren't presented even in the general view as well as questions of research of expediency of its realization.

«The top of 10 inscriptions on fences» – similar headings was famous magazine «Hooligan» some years ago. But that was an entertainment for teenagers and edition of «Hooligan» for the publishing house «Gameland» became a headache - monthly incomes of magazine were lowest. In the autumn of 2005 «Hooligan» had a new publisher who has led the edition towards format magazine «alternative fashion». Except definitive disposal of «Hooligan» of marginal image before it there was a problem of repositioning of magazine under more solvent audience. The first number with the updated logo and the maintenance left in February, 2006. For strengthening of the «fashionable» status «Hooligan» has sponsored «Russian Fashion Week» and has founded the award «Hooligan Awards».

As a result, magazine advertising revenues went up. Updated «Hooligan» attracted hitherto not available the most powerful advertisers.

In the end of two-thousand years the magazine «Uslugi I tseni» has started to lose positions intensively. Audience loss has led to outflow of advertisers, to reduction of incomes, decrease in the general circulation of the edition. Losses of market positions have demanded search of the marketing measures capable to improve these positions. Among such measures possibilities of a rebranding were estimated. By the analysis results of edition’s position the basic possibilities and directions of a rebranding have been formulated, the part from which has been accepted. The stop of falling of audience and advertising incomes became result of the edition rebranding.

The publisher of one of the oldest Russian political magazines «Profil», has been compelled to recognize in 2009 that in 2007-09 the edition has undergone at first to stagnation, and further to outflow of audience and as consequence lack of advertisers. Under the influence of crisis the weak trademark began to lose positions more intensively than other players of a segment and «Profil» has put the owners before a choice: death of trademark or a rejuvenation. Last place in a segment and a tendency to a decline obviously didn't suit «Publishing House Rodionova». The publishing house has brought set of changes in a content (the maintenance of materials and their format), and also has subjected to renewal the face of magazine – its cover. Following the results of a rebranding for first three months the magazine shifted from 5 to 3 place in the segment having put competitive pressure on incomes of advertizing magazines «The Russian reporter» and «Kommersant Vlast». Losing during first 3 quarters 2009 of 1,8 % from a share of the segment, as a result by December the magazine not only hasn't lost anything, but also has increased a market share by 1,5 % that became amazing jerk especially in the conditions of a proceeding economic crisis.

In our opinion (with reference to the press market) it is possible to limit all process of a rebrending to nine stages.

1. Assessing the problem.

At this stage, marketing experts identify problems faced by the publication in its life cycle. The essential problems may include: chronic circulation publication sales drop, reducing the audience publications and (or) his income. The result can be a stage on the need to find options for rebranding and repositioning of the publication.

2. The situation analysis in the market.

At this stage, the scale research which purpose is the understanding of a current condition of the basic indicators of the market and also the tendencies already developing or predicted is conducted. Structure of stages:

2.1 Definition of the list of players of the market;

2.2 Carrying out of preliminary segmentation;

2.3 Estimation of volume of segments and the market;

2.4 Estimation of the advertizing market and its structure;

2.5 Audience analysis.

3. Assessment of actual and potential competition field.

This stage is one of the most labor-consuming. It is necessary to conduct a content analysis of all publications of the market for an accurate understanding of what a different thematic focus each of the players that in the future accurately determine the competitive environment.

4. Research of necessity and possibilities of updating of a brand.

At the given stage marketing experts estimates real necessity of carrying out of a rebranding, and also search for possibilities, estimating each variant strictly proceeding from enterprise resources.

5. Preparation of the list of concrete variants of conceptual changes.

The given stage is necessary for a concrete definition of possibilities of a rebranding. Experts in the field of marketing prepare the concrete list of variants with the description of how it is necessary to change the edition.

6. Market segmentation according to new possibilities.

After preparation of the list of variants of conceptual changes of the edition there is a possibility to segment the market and to present, as though it looked after acceptance of each of variants. As a whole, research and the analysis spent with 1 on 6 stages, form the marketing report which can be given company management for acceptance of concrete decisions on development ways.

7. Decision-making.

The given point is administrative and concerns only company-publisher managements, or other responsible persons. All offered variants are considered for acceptance of one of them or full refusal of any actions.

8. Rebranding realization

This stage is technical. In case of acceptance by company management of one of rebranding variants its actual introduction begins.

9. An efficiency estimation

Is the final stage of all process on which marketing results of all work are brought. The data of zero (preliminary) gaging is compared to results after the essential calendar period (half a year, year).

For understanding what factor was reflected in results of a rebranding expediently to carry out the labor-consuming factorial analysis which demands high qualification of the marketing expert. As a whole, the factorial analysis is extremely useful, but isn't obligatory. Frequently experts are limited to an expert estimation or the analysis of the most powerful factors.

For various reasons some tens editions have been subject last years to a rebranding that has generated the present tendency in the periodicals market. However, it is necessary to notice that results of the given actions had and have absolutely various consequences.