Is a Company Able to Increase Brand Equity for a Product That Is in the Maturity Phase of the Plc?
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A company is able to increase brand equity for a product that is in the maturity phase of the PLC. The maturity phase is characterized by increase competition, established brand recognition and slowing sales growth. In this phase product differentiation and market dominance become more critical (Anderson & Zeithaml, 1984). Brand equity is a set of brand assets and liabilities linked to a brand, its name, and symbol that add or subtract from the value provided by a product (Cravens, 1997). When a product reaches its maturity phase, a company is still able to increase brand equity by improving brand image, expanding brand awareness and entering new markets.
Improving brand image is an important way of increasing brand equity as it can help improving the strength, favorability, and uniqueness of the specific brand. It can be divided into two segments, repositioning the brand and changing brand elements. These segments enable some products that are in the maturity phase to be reintroduced again at an earlier stage of PLC when they have been modified (Donaldson, 1985) by sorting out the positive and negative associations. Repositioning enables companies to seek a change in customer’s perceptions of them in relation to compete other brands or changing customer expectations (Pride et al, 2007) that it requires establishing more compelling points of difference. It is important to reposition the brand on some key image dimensions and is needed to be more contemporary by creating relevant usage situations, a more contemporary user profile, or a more modern brand personality. This is because existing brands in the maturity phase of PLC may be seen as trustworthy to customers but also uninteresting and boring. Moreover, companies should secure a position which is unique and free from their close competitors. According to changes in customer tastes, repositioning the brand may include some combination of new products, new advertising, new promotions or new packaging. However, companies should also consider if their established brand images are already too strong to be repositioned. It is difficult to re-establish brand image if it is already widely known to the current and potential customers and market segment and image cannot be re-established �overnight’. By changing brand elements, the companies can convey new information or signal that new meanings are being taken by the brand. There exist various brand elements that include brand name, logo, character and packaging. Typically, the most important brand element is the brand name. This can be dropped or combined into initials or even shortened. This change reflects shifts in marketing strategy so as to ease pronounce ability or give anew image of the brand. The changes of brand elements should be generally moderated if needed, especially if they play a vital image function or awareness as well as when there is a change in nature.
Another way to increase brand equity during the maturity phase could be achieved through expanding brand awareness. During the maturity phase, it is assumed that the brand is already well established and well known by the general public. The focus here is not actually establishing brand awareness of the product, it should be on how to maintain the awareness and expand the awareness. Sometimes the awareness of a brand can fade, consumers might be fully aware of the existence of the brand but they tend to think of the brand in very narrow ways. This stops the consumers from purchasing the product under the brand as they are blocked with the narrow image the brand pursued. Therefore one effective ways to build up brand equity is to expand brand image or increase the breadth of brand awareness (Keller, 1998). This means communicate with consumers, educate them with all of the aspects of the brand, open up their view towards the brand, and aim ultimately to make consumers whenever thinking of purchasing a product, think of this particular brand first . When dealing with a brand that already has a strong brand image which is generally the case in maturity phase of the product, in order to increase the market share and extent their product life, new products or modification of existing product under the same brand