PowerPoint by Yu Hongyan Business School of Jilin University

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Chapter 11 Setting Products and Brand Strategy
PowerPoint by Yu Hongyan Business School of Jilin
University
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Objectives

• 11.1 The Product and the Product Mix
• 11.2 Product Lines Decision
• 11.3 Brand decisions.
• 11.4 Packaging and labeling

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11.1 The Product and Product mix (Contd)
Product Level
Example
Core benefit
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11.1 The product and Product mix (contd)

• Theodore Levitt note
• The new competition is not between what companies
  produce in their factories, but between what they
  add to their factory output in the form of
  packaging , service, advertising, customer
  advice, financing, delivery arrangements
  warehouse, and other things that people value.

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11.1 The product and Product mix (contd)

• 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 hair cut or cell phone service

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11.1 The product and Product mix (contd)

• 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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11.1 The product and Product mix (contd)
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11.1 The product and Product mix (contd)

• 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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11.1 The product and Product mix (contd)

• Product Mix
• A product mix is the set of all products and
  items that a particular seller offers for sale

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Product Mix
Width - number of different product lines
Length - total number of items within the lines
Depth - number of versions of each product
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Gillettes Product Lines and Mix
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PG???????
???????5 ???? ???????????25???,????
???5??? ?????????????3???,?????????
??????????6?
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11.2 Product-Line Decisions
Product-line analysis
Product-line length
Product-Line Modernization, Featuring, and
Pruning
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Two-Way Product-Line Stretch Marriott Hotels
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11.3 Brand Decisions

• What is brand?
• Brand equity
• Branding challenges
• Brand reposition ?

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11.3 Brand Decisions (contd)

• 1. What is Brand?
• 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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11.3 Brand Decisions (contd)
give me a brand and try to describe it
User
Level of brand meaning
Culture
Personality
Attributes
Benefits
Values
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????????

• attributes ?????,?????
• benefit ????,????
• value??????(???????)
• culture ??????????????
• personalityRonald ???????????
• user?????

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Discussion Scenario

• Think about Haier for a moment.
• Discuss the various levels of brand meaning
  (attribute, benefits, values, culture,
  personality, user) that you associate with the
  Haier brand.

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11.3 Brand Decisions (contd)

• Brand building
• Managers should clarify and use their corporate
  value to support the brand
• They need to engage all employees and managers in
  living the value proposition
• Companies need to create positive customer
  experiences at every contact point
• Companies should define the brands basic essence
  to be delivered in every market
• Firms must use the brand value proposition to
  drive their strategy operation and produce
  development
• Companies need to measure brand building results
  according to measures such as customer retention
  and customer advocacy

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11.3 Brand Decisions (contd)

• 2. Brand equity
• Not known by buyers
• Brand awareness
• Brand acceptability
• Brand preference
• Brand loyalty

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Brand Equity
Devoted to Brand
David A. Aaker
Values the Brand (brand as friend)
Satisfied Switching Cost
Satisfied Customer (no reason to change)
No Brand Loyalty (customer will change)
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11.3 Brand Decisions (contd)

• Brand equity
• Brand equity refers to the positive differential
  effect that a brand name has on customers.
• Brand equity
• Enduring asset
• Brand equity is customer equity
• Extending loyal customer lifetime value

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Brand Equality

• Brand equity brand assets brand liabilities
• Assets
• Brand awareness
• Market leadership
• Reputation for quality
• Brand relevance
• Brand loyalty
• Brand liabilities
• Customer dissatisfaction
• Environment problem
• Product failure or recall
• Questionable practice

Roger Best , Central Missouri State University
Roger Best ,2005
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11.3 Brand Decisions (contd)
3. Branding Decisions
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11.3 Brand Decisions (contd)

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

• Advantages of branding
• Easier for the seller
• Trademark protection
• Aids in segmentation
• Enhances corporate image
• Branded goods are desired by retailers and
  distributors

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11.3 Brand Decisions (contd)

• 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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11.3 Brand Decisions (contd)

• 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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11.3 Brand Decisions (contd)

• Individual names????
• Blanket family name for all product????
• Separate family names for all product????
• Company trade name combined with individual
  product names?????????

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11.3 Brand Decisions (contd)

• Individual name
• ??
• ????????????????????????
• PG???????????????????
• ??
• the firm does not tie its reputation to the
  products
• if the product fails or seems low quality,
  the companys name or image is not hurt
• ??
• ???????

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11.3 Brand Decisions (contd)

• Individual name
• ??? 200?????
• ??? 80?????
• ??? 20?????
• ?? 10?????

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Why to use Individual name
????

• ?????????
• ????????,?????????????????????????????,???????????
  ???
• ???????,???????????,?????????????????????

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• ????????,?????????
• ?????????????
• ?????????(PG)???????,?40??,????(Tide)????????195
  0????Cheer????
• Cheer??????????????,??????????????????????????????
  ??????,?????????????????,???????????,?????????????
  ????,????????????

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11.3 Brand Decisions (contd)

• ??????????
• ??????????????
• ???????????????????????

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11.3 Brand Decisions (contd)

• Blanket family name
• ?????????????????
• ?????
• ??DVD
• ?????

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11.3 Brand Decisions (contd)

• ??????
• ??
• 1.????????????????
• 2.??????????????,??????
• ??
• ???????????????????
  
• 
  

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Family brand ??????
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11.3 Brand Decisions (contd)

• ????????????
• (1)?????????? ????)
• ?????????????????????,????????????????????????,??
  ??????????????,????????,??,?????????????????????,?
  ???????????????????,???????????????????
• (2)??????????
• ???????????????????????????(??????????)???????????
  ??????,??????????????????????,?????????????

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11.3 Brand Decisions (contd)

• (3)?????????????????
• ?????????????????,??,??,?????,??????,???????????
  ?????????,?????????????,??????????????????????,???
  ????????
• (4)??????????????(???)
• ????????????,?????,???????,??????????????????????
  ?????,??????????

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11.3 Brand Decisions (contd)

• ??????????
• ???????????????????,??????
• ?????????????

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11.3 Brand Decisions (contd)

• separate family names for all product
• ????()????????????????????
• ??Panasonic, national, Technics

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11.3 Brand Decisions (contd)

• ???????

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11.3 Brand Decisions (contd)

• ??????????
• ????????????????????
• ???????????????????????

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11.3 Brand Decisions (contd)

• Company trade name with individual product names
• ????????
• ????????
• ???????????
• ????????
• ?????????
• GE Capital GE Applicances
• ???? ????

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11.3 Brand Decisions (contd)

• ????????
• ??
• ??????????????????
• ?????????
• ??????????????????

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Good Brand Names
Distinctive
Lack Poor Foreign Language Meanings
Suggest Product Benefits
Suggest Product Qualities
Easy to Pronounce Recognize Remember
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Name Research

• Association test
• What images come to mind?
• Learning test
• How easily is the name pronounced?
• Memory test
• How well is the name remembered?
• Preference test
• Which names are preferred?

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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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5. Brand Strategies
New Brands
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11.3 Brand Decisions (contd)

• ??????(5???)
• 1 brand extensions
• ???????????????????,??????????????????????????????
  ???????,?????,??,??,???,???,?????

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11.3 Brand Decisions (contd)

• Reddy, Holak, Bhat(1994)??????????(?34????75?????2
  0?????????
• ????????????????????
• ????(symbolic)??????????????
• ??????????????????
• ?????????????????,????????
• ????????????????????????
• ????????????????????????
• ?????????????????????????????????????

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2 ????(brand extension)

• ????????????????????????(new-product category)?
• ???????????
• ????????????????????????????????????????????????(?
  ???)
• ????????????,?????????????????????????????????????
  ????
• ??????????????????,?????????????

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?????????

• ?????????
• ????????????????????????
• ???????????????
• ?????????????????????,??????????????
• ????(brand dilution)??
• ???????????????????????????????????????????????,??
  ?????????

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3 ???(multi brand)

• ?????????????????
• ?PG???????9????
• ????????
• ???????????????????,????????????
• ????,???????????
• ????????????????

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?????
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??

• (1)??????
• ?????????,???????????????,?????????????????(??????
  ?),??????????????????,????,?????????????????,?????
  ?,?????????????,?????????????

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(2)???????

• ?????????????????????,???,?????????????????,??????
  ??,??????????,??,???????????,?????????????????,???
  ???????,???????????????????,?????????????????,????
  ?????????

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(3) ????

• ???????????????????????,?????????,????????????
• ?????????????(?????????????)????????????,?????????
  ???????

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(4)????????

• ??????????,???????????,??????????,???????????????
• ?????????????????????,??????????,??????????,??????
  ???????????,???????????

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(5)???????

• ?????????,????????????????,????????????,??????????
  ??????,????????,???????????,????????????????,???
  ???????????,?????

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4 ???(new brands)

• ????????????????(new category)???????????
• ??????
• ???????????,????????????????,???????????????????,?
  ????????
• ?????????????,?????????????????????????????

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???????

• ??????????????
• ????????
• ????????????????
• ??????????????????????
• ?????????,????????

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5 ????(Cobrands)?????(Dual brands)

• ????????????????????????
• ???????????
• ???????(component cobranding)
• FujitsuIntelMicrosoft
• ????????(same-company cobranding)
• ??????(Joint-venture cobranding)
• ??????
• ????????(multiple-sponsor cobranding)
• WILL????NEC??3???

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?????????

• ??????????????????????????????????????????????????
  ?????

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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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5 ????????

• ????????????????1972???????
• ???????????(?????????)????????
• ????????
• ??????????????????,?????????????????
• ????????????????????,???????????
• ??,????????,????????????

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• ???
• ??????,?????????400?, ?????130??
• ??????????,??????????
• ??
• ???????C????(????)?
• ???????,??,????????
• ??????
• ?????????????????????????,??????????????????????
  ?????????(???,???)???????? ?????????????? ?
• ??????????? ?
• ??,??,??????????????? ?????????,???,?????(????????
  ???????)?

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??????

• ???????????,????????????????????????
• ?????????
• ????????????
• ????????????
• ?????????????

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10.4 Packaging and Labeling

• Packaging
• Labeling

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1. Packaging

• Packaging includes the activities of designing
  and producing the container for a product
• Primary package
• Second package
• Shipping package

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Packaging
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Why Package Crucial as a Marketing Tool

• Self-service
• Consumer affluence
• Company brand image
• Opportunity for innovation

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2. Labels
Promote
Describe
Identify
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Labeling
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Review

• Product Characteristics
• Building Managing the Product Mix Product
  Lines
• Brand Decisions
• Packaging Labeling

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Five Product Levels
Core benefit
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Product Mix
Width - number of different product lines
Length - total number of items within the lines
Depth - number of versions of each product
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Branding Decisions
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Thank you very much!
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