New Chapter

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New Chapter

• Product and Branding Strategy

PowerPoint by Prof Sameer Kulkarni
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Objectives

• Identify the various characteristics of products.
• Learn how companies build and manage product
  lines and mixes.
• Understand how companies make better brand
  decisions.
• Comprehend how packaging and labeling can be used
  as marketing tools.

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What is a Product?

• Goods
• Services
• Experiences
• Events
• Persons

• Places
• Properties
• Organizations
• Information
• Ideas

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The Product and Product Mix

• Potential customers judge product offerings
  according to three elements
• Product features and quality
• Services mix and quality
• Value-based prices

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The Product and Product Mix

• The customer value hierarchy
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product

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The Product and Product Mix

• Product
• Classifications
• Durability and tangibility
• Consumer goods
• Industrial goods

• Nondurable
• Tangible
• Rapidly consumed
• Example Milk
• Durable
• Tangible
• Lasts a long time
• Example Oven
• Services
• Intangible
• Example Tax preparation

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The Product and Product Mix

• Product
• Classifications
• Durability and tangibility
• Consumer goods
• Industrial goods

• Classified by shopping habits
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods

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The Product and Product Mix

• Materials and parts
• Farm products
• Natural products
• Component materials
• Component parts
• Capital items
• Installations
• Equipment
• Supplies and business services
• Maintenance and repair
• Advisory services

• Product
• Classifications
• Durability and tangibility
• Consumer goods
• Industrial goods

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The Product and Product Mix

• Product mix dimensions
• Width number of product lines
• Length total number of items in mix
• Depth number of product variants
• Consistency degree to which product lines are
  related

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Brand-building Advertising

• Brand Amul
• As per Aakers model
• And
• As per Kapferers prism

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AMUL Aakers Model
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AMUL Aakers Model
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Brand-building The Steps
Determine the current image with consumers
Define the desired image

• Identify focus areas for action
• Product development/innovation
• Packaging/delivery systems
• Advertising/promotions

Implement action plan witha monitoring programme

• Feedback to action plan

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AMUL Kapferers Prism
AMUL
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Product-Line Decisions

• Product-Line Analysis
• Product-Line Length
• Product-Line Modernization, Featuring, and
  Pruning

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Brand Decisions

• The AMA definition of a brand
• A name, term, sign, symbol, or design, or a
  combination of these, intended to identify the
  goods or services of one seller or group of
  sellers and to differentiate them from the
  competition.

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Brand Decisions

• Brands can convey six levels of meaning
• Attributes
• Benefits
• Values
• Culture
• Personality
• User

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Brand Decisions

• Brand identity decisions include
• Name
• Logo
• Colors
• Tagline
• Symbol
• Consumer experiences create brand bonding, brand
  advertising does not.

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Brand Decisions

• Marketers should attempt to create or facilitate
  awareness, acceptability, preference, and loyalty
  among consumers.
• Valuable and powerful brands enjoy high levels of
  brand loyalty.

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Brand Decisions

• Aaker identified five levels of customer
  attitudes toward brands
• Will change brands, especially for price. No
  brand loyalty.
• Satisfied -- has no reason to change.
• Satisfied -- switching would incur costs.
• Values brand, sees it as a friend.
• Devoted to the brand.

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Brand Decisions

• Brand equity refers to the positive differential
  effect that a brand name has on customers.
• Brand equity
• is related to many factors.
• allows for reduced marketing costs.
• is a major contributor to customer equity.

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Brand Decisions

• Key Challenges
• To brand or not
• Brand sponsor
• Brand name
• Brand strategy
• Brand repositioning

• Advantages of branding
• Facilitates order processing
• Trademark protection
• Aids in segmentation
• Enhances corporate image
• Branded goods are desired by retailers and
  distributors

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Brand Decisions

• Key Challenges
• To brand or not
• Brand sponsor
• Brand name
• Brand strategy
• Brand repositioning

• Options include
• Manufacturer (national) brand
• Distributor (reseller, store, house, private)
  brand
• Licensing the brand name

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Brand Decisions

• Key Challenges
• To brand or not
• Brand sponsor
• Brand name
• Brand strategy
• Brand repositioning

• Strong brand names
• Suggest benefits
• Suggest product qualities
• Are easy to say, recognize, and remember
• Are distinctive
• Should not carry poor meanings in other languages

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Brand Decisions

• Key Challenges
• To brand or not
• Brand sponsor
• Brand name
• Brand strategy
• Brand repositioning

• Varies by type of brand
• Functional brands
• Image brands
• Experiential brands
• Line extensions
• Brand extensions
• Multibrands
• New brands
• Co-branding

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Brand Decisions

• Key Challenges
• To brand or not
• Brand sponsor
• Brand name
• Brand strategy
• Brand repositioning

• A brand report card can be used to audit a
  brands strengths and weaknesses.
• Changes in preferences or the presence of a new
  competitor may indicate a need for brand
  repositioning.

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Packaging and Labeling

• Packaging includes
• The primary package
• The secondary package
• The shipping package
• Many factors have influenced the increased use of
  packaging as a marketing tool.

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Packaging and Labeling

• Developing an effective package
• Determine the packaging concept
• Determine key package elements
• Testing
• Engineering tests
• Visual tests
• Dealer tests
• Consumer tests

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Packaging and Labeling

• Labeling functions
• Identifies the product or brand
• May identify product grade
• May describe the product
• May promote the product
• Legal restrictions impact packaging for many
  products.

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Objective of advertising

• Build the business today and build brand
  value overtime
• All advertising has to pass through this
  objective test

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How does Advertising build Brands?

• Building brand salience
• Unaided awareness - aided awareness
• Building brand appeal
• Intention to try - trial
• Reinforce usage - increase usage
• Building brand imagery
• Usage imagery - user imagery

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Building Blocks for Brand-building Advertising I
Market analysisSize, volume, value, growth,
geographic, seasonality

• Company
• analysis
• Size, profitability,
• distribution, technology

• Consumer
• analysis
• Size, demographic, geographic
• Usage, depth, width

Brand
Competitor analysis Size, profitability,
strengths, weaknesses
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Building Blocks for Brand-building Advertising II
Market AnalysisConsumer Analysis Company
Analysis Competitor Analysis
Marketing Objectives Sales , Market Share ,
Profits
Marketing Strategy Product , Pricing ,
distribution , Service , packaging , Advertising
Sales Promotion
Advertising Objective Awareness , Salience ,
Image , attitude
Advertising Strategy Creative Strategy , Media
Strategy
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How Does Advertising Work I

• Classic Hierarchy of Effect Model

Purchase
Conviction
Preference
Liking
Knowledge
Awareness
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How Does Advertising Work II

• Hierarchy of effect model tends to assume that
  advertising works the same way for all product
  categories
• Work on understanding Consumer Behaviour revealed
  that advertising would work differently for
  different products
• Several new models were developed in the eighties
  and the nineties
• One such model was the FCB Grid
• The Grid categorised products as
• High involvement Vs low involvement
• Thinking Vs feeling

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How Does Advertising Work IIFCB Grid
Low involvement Consumer is not involved tends
to see the utilitarian values of the category
routine/quick decision making E.g. detergents,
fuel, flour, mobile service (?)

• High involvement
• Consumer is involved with the product category
  identifies with it and often takes time to decide
  which brand to use
• E.g. TV, car, perfume, clothes, insurance (?)

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How Does Advertising Work IIFCB Grid

• Think Vs feel

Think Consumer decides using his head
Rationality drives the choice of product/brand
FeelConsumer decides using his heart
Emotionality drives the choice of product/brand
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Advertising to fit FCB Grid requirements

I) INFORMATIVE
II) AFFECTIVE
LEARN-FEEL- DO
FEEL-LEARN-DO
III) HABITUAL
IV) SATISFACTION
DO-LEARN-FEEL
DO-FEEL-LEARN
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Category Differences
Consumer Products
Consumer Durables
Corporate
Services
Lower values
Higher values
Indeterminate
No value
Frequent purchase
Infrequent
Indeterminate
Variable
Narrow/Broad Target customer
Narrow Target Customer
Variable
Very wide/ variable
Role of advertising in brand-building will tend
to vary with category type
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Brand-building Advertising FCB Grid - Self-test
Thinking
Feeling
High Involvement
Low Involvement

• Plot car, TV, detergents, perfumes, flour,
  clothing, insurance, mobile

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Consumer Products What are they?

• Low value, repeat purchase, consumption
  products
• Male target Cigarettes, soft drinks, colognes
• Housewife Soaps, shampoo, cooking oil,
  detergents
• Teenagers Soft drinks, confectionery, stationery
• Repeat usage/purchase everyday, every week,
  every month

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Consumer Products Types

• What is the consumer issue facing the brand?
• Poor awareness leading to poor trial
• Poor repeat usage after high trial
• Lack of desired image perceptions

• Often low involvement, routine purchase or
  impulse purchase

Some consumer products could be high
involvement Perfumes, Cigarettes Health aids,
Baby foods
What is the key task? Attracting new
users Retaining existing users
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Consumer Product Purchase Behaviour 1

• Who decides, who buys, who influences
• Map the key influences in the purchase process
• Example
• Toothpaste Housewife (decision maker)
  Kid (influencer)

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Consumer Product Purchase Behaviour 2

• Limited level of information search by consumers

• Often a routinised purchase or an impulse purchase

• Extended problem solving only in the case of
  innovation
• Cream for foot cracks

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Consumer Product Purchase Behaviour 3

• All India Household Category penetration
• Soaps 99
• Washing cake 93
• Toothpaste 44
• Hair oil 77
• Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI
• Consumer Product Life Cycle What stage is the
  product ? Introduction / Growth / Maturity /
  Decline

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Brand-building Advertising Self Test 3

• Consumer panel data shows the following
• aaaabaacbabcbabbb
• a, b, c are three brands
• Draw three inferences from the data
• What should be the role of advertising for Brand
  a ?

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You Learned

• To identify the various characteristics of
  products.
• To learn how companies build and manage product
  lines and mixes.
• To understand how companies make better brand
  decisions.
• To comprehend how packaging and labeling can be
  used as marketing tools.

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End of LessonYou start Branding