Setting Product and Brand Strategy

1
Setting Product and Brand Strategy

• Chapter 7

2
Chapter Outline

• The Product and the Product Mix
• Product Line Decisions
• Brand Decisions

3
What is a Product?

• Goods
• Services
• Experiences
• Events
• Persons

• Places
• Properties
• Organizations
• Information
• Ideas

4
Basic Product Concepts

• A product is a good, service, or idea
• Tangible Attributes
• Intangible Attributes
• Product classification
• Consumer goods
• Industrial goods

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Product

• A product is a bundle of utilities/ benefits/
  features
• e.g., Attributes of a cold drink are flavor,
  taste, quality as a thirst quencher, cool
  refreshment etc.
• But different cold drink s have (emphasize)
  different product attributes intended to meet the
  demands of particular market segments. These
  products are now brands.

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Product Line Product Mix

• A Product line is a broad group of products,
  intended for similar uses and having similar
  characteristics.
• The Product mix is the set of all products
  offered for sale by a company.

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Product Mix Dimensions

• A product mix has Four Dimensions
• Breadth - the number of product lines
• Depth - number of product variants i.e. the
  variety of sizes, colors, and models offered
  within each product line.
• Length total number of items in mix
• Consistency degree to which product lines are
  related is the consistency of the product mix.

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Product Mix - An Example
BREADTH (DIFFERENT LINES)
Lawn mowers
Gardening tools
Lawn furniture
DEPTH (ASSORTMENT WITHIN A LINE)
Power rotary
Rakes
Chairs
Power reel
Hoes
Chaise lounges
Hand-powered
Shovels
Benches
Various sizes and prices
in redwood or aluminium with plastic
webbing
Each in various sizes and prices
Each in various sizes and prices
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Brand Definition

• 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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Brands Characteristics

• Brand is a bundle of images and experiences in
  the customers mind.
• The added value that accrues to a product as a
  result of investments in the marketing of the
  product.
• An asset that represents value created by the
  relationship between the product and customer
  over time.
• A promise made by a particular company about a
  particular product.
• A quality certification.
• Differentiation between competing products.
• The sum of impressions about a brand is the
  Brand Image.

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Brands resulted from
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Brand Equity

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

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Brand Equity

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

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Branding Strategies

• 1- Individual Brands
• 2- Brand extensions
• 3- Line extensions
• 4- Co-branding
• 5- Multi Brands
• 6- Blanket (Family) Brands

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Branding Strategies

• 1- Individual Brands When there is no
  connections among brands.
• Procter Gamble (PG) offered individual brands.
• 2- Brand Extension It means when new and
  improved brands, with additives, new package
  size, new flavors are added in the brand.
• Lifebuoy Lifebuoy Gold, Pepsodent Pepsodent G

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Branding Strategies

• 3- Line extensions/ Combination or tied Branding
  It allows marketers to leverage a companys
  reputation while developing a distinctive
  identity for a line of products.
• Samsung extended the product line of Personal use
  products and now offered iphones in the market.
• 4- Multi Brand (Proliferation) When
  organizations want to increase shelf space and
  market share, catch brand switchers and reach new
  segments
• Sting energy drink offered by Pepsi Co.

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Branding Strategies

• 5- Co-branding It means when two or more brand
  names are used for one package it features two
  or more companies product or brands.
• Ingredient branding Intel Inside
• Cooperative branding NutraSweet and Coca-Cola
• Complementary branding 7 7
• 6- Blanket (Family) Brands It means when Brand
  acts as an umbrella for new products.
• The LG Brands (LG split, oven, washing machine,
  TV, cell phone, camera etc)
• The Sony Brands (Sony laptops, LCD, Camera etc)

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Brand Decisions

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

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

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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

• Varies by type of brand
• Functional brands
• Image brands
• Experiential brands
• Individual brands
• Line extensions
• Brand extensions
• Multi Brands
• Co-branding
• Blanket (Family) Brands

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

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Brand Decisions

• Brand Repositioning means to move to a better
  segment when competition increased in current
  segment.
• When customer preferences changed so the new
  segment opened up in a brand.
• Changes in preferences or the presence of a new
  competitor may indicate a need for brand
  repositioning.
• A brand report card can be used to audit a
  brands strengths and weaknesses.

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

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End of chapter!