We will approach this case in the following manner: first of all, we discuss the main problems the brand faces, secondly, we explain why we haven’t picked neither Eric’s, nor Beth’s solution, we analyse the current situation, suggest a course of action with more stages and then go through the brand resonance pyramid, explaining what is missing and needs to be implemented in order to build a strong brand. In the end, we introduce some future directions, such as launching the new product family or internationalizing in order to increase sales.
La Shampoo brand has many problems: the brand has lost its significance, the message is out of date, and the product is obsolete and perceived by some customers as low-quality because it lacks floral and herbal extracts and the sales have kept going down leading to a decrease in market share. We consider that, in this situation, neither cutting the price, nor implementing another branding campaign would be useful.
Eric’s solution has many disadvantages. First of all, the competition can lower the prices too, so this action would not bring them any advantages. Secondly, some customers already think that La Shampoo is no longer a quality product and a price cut will encourage that perception. On the other hand, Beth’s solution is not appropriate for this situation because it would entail spending a lot of time for developing a brand campaign. Moreover, past repackaging and marketing efforts have had no positive effects on sales.
Next, we consider appropriate to analyse the “building blocks” (Keller, 2008) that are missing from the La Shampoo brand strategy. We will explain the development stages the brand needs to go through in order to become a strong brand, with the aid of the brand resonance pyramid.
Concerning the depth of brand awareness, we consider that La Shampoo is not a “top of mind” brand but the customers can recall it unaided. Caroline should aim at becoming a “top of mind” brand after launching...