Product and Branding Strategy

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Product and Branding Strategy
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MARKETERS ARE INVOLVED IN
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Product
GOODS soaps, cars, computers
SERVICES airline, hotels, hospitals.
INFORMATION encyclopedias, internet, magazines
EXPERIENCES scuba diving, trekking, safari, an
evening with Ash
PROPERTIES real estates, bonds stocks
ORGANIZATIONS corporate communications Richard
Branson /Virgin
EVENTS the Olympics, Miss Universe, trade
fairs
PERSONS celebrity marketing, Sachin
PLACES Ganapatipule, Ooty,
IDEAS Consulting, Legal
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The Product Levels
Product levels
Core benefit
Core
Basic product
Expected product
Augmented product
Potential product
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Products satisfy needs
Maslows Hierarchy of Needs
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Satisfied Customers !!

• Satisfaction Perceived Benefit
• ------------------
• Perceived Sacrifice
• Delighted Ratio far gt 1
• Dissatisfied Effect on next purchase?

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Customer Value

• TOTAL
• CUSTOMER
• VALUE
• Product
• Services
• People
• Channel
• Image

• TOTAL
• CUSTOMER
• COST
• Monetary
• Time
• Energy
• Psychic

Customer Delivered Value
-
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Consumer Buying Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase
Post-Purchase Behavior
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Successive Sets Involved in Customer Decision
Making
Total Set
Awareness Set
Consideration Set
Choice Set
Decision
Philips LG Samsung Sansui Onida Videocon Sony BPL
Hitachi Akai National Aiwa
LG Samsung Sansui Onida Videocon Sony BPL Akai Ai
wa
LG Samsung Sansui Onida Videocon Aiwa
Sansui Onida Videocon
?
FISHBEIN MULTI-ATTRIBUTE MODEL FOR BUYING
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Inside the Product !!
After-sales
Warranty
Features Style Design Packaging Branding
Installation
Training
Credit
Delivery
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Differentiation Variables
FEATURES vs BENEFITS STYLE Aesthetic
appeal DESIGN Functionality
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Packaging

• Packaging Dilemma Cost or 5th P in Marketing
• Packaging Decisions
• Aesthetics
• Convenience
• Material
• Packaging a Strategic Weapon !!!

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Branding Challenges

• Branding Decision To Brand or Not to Brand?
• Brand Name Selection
• Branding Strategy

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To Brand Or Not To Brand ?

• ADVANTAGE BRANDING?
• Branding aids the consumer purchase process
• Branding makes it easier for the seller to
  process orders and track down problems
• Branding gives the seller the opportunity to
  attract a loyal and profitable set of customers.
• Branding helps access to segment markets.
• Branding makes it easier to launch new brands
• Branding allows to leverage with trade.

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To Brand Or Not To Brand ?

• DISADVANTAGE BRANDING?
• Branding is an expensive proposition
• Branding put pressure on seller to sell
  consistent quality product
• Branding pre-empts entry into market as an
  extension when mother brand has failed

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Brand Name Selection

• Desirable qualities for a brand name
• It should be easy to spell, pronounce, recognize,
  and remember
• It should be distinctive
• It should not carry poor meanings in other
  countries and languages
• It should allow for associations with the
  products benefits
• It should suggest the product category

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Branding Strategy

• Three available strategies
• Individual brand name
• Family/ Umbrella brand name
• Corporate brand name

HLL vs PG Branding of Bath soaps ??
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The Product Classification
TANGIBLE
Soaps Toothpastes Shirts Furniture Computers Cars
Hotel Airlines Banking Insurance Education Consult
ancy Medical Diagnosis
INTANGIBLE
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Consumer Goods

• Convenience Shopping Specialty Unsought
• goods goods goods goods

Homogeneous shopping goods Heterogeneous
shopping goods
Staples Impulse goods Emergency goods
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Industrial Goods

• Supplies and Services
• Maintenance/Repair items
• Operating supplies
• Maintenance/Repair services
• Business advisory services

• Materials/Parts
• Raw Materials
• Fabricated materials
• Fabricated parts

• Capital items
• Installations
• Equipment

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The Product Mix

• Product mix (Product Assortment)
• Product mix has a certain
• Width
• Length
• Depth
• Consistency

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Product-Mix and Product-Line Length for Procter
Gamble
Product Line Length Product-Mix Width Product-Mix Width Product-Mix Width Product-Mix Width Product-Mix Width
Product Line Length Detergent Toothpaste Personal Care Diapers Shampoo
Product Line Length Ariel 5 Kg 2 Kg 1 Kg ½ Kg Gain Tide Crest Whisper Pampers Luvs Organics Pantene H S Rejoice
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Product-Mix and Product-Line Length
Why have a wide or narrow product mix? What
conditions influence length/depth decisions ?
Lifebuoy Soap (Carbolic version) was the mother
brand of the series of extensions. Lifebuoy was
always positioned on the health platform. HLL
then launched extensions viz Lifebuoy Plus,
Lifebuoy Gold, Lifebuoy Antibacterial liquid and
recently Lifebuoy Talc. The company has also
recently launched Ayush Soap also on the health
platform. That apart the company has many other
premium and popular bath soaps. Comment on the
Product mix strategy of HLL
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The Product Length
Surf Excel Surf Ultra

• Product-line length
• Line Stretching
• Downmarket Stretch
• Upmarket Stretch
• Two-Way Stretch

SURF
RIN
WHEEL
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The Product Life Cycle

• Product hierarchy
• Need family
• Product family
• Product class
• Product line
• Product type
• Item

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The Product Life Cycle
A life cycle plots sales of an offering or a
product class over a period of time.

• There are FOUR main stages
• Introduction
• Growth
• Maturity (Saturation)
• Decline

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The Product Life Cycle
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LIFECYCLE STRATEGIES
INTRODUCTION GROWTH MATURITY DECLINE
Marketing Objective Market Development Build Brand Loyalty Convert the Competitors Customer Reduce Inventory
Sales Low High High Low
Costs High Moderate Low Low
Profits Low Moderate High Low
Competitors Very Few Increasing Many Few
Product Basic Product Differentiate Line Extensions Reduce Variants
Price Penetration/ Skimming Maintain Prices Lower Prices Lower Prices
Place Selective Distribution Extensive Distribution Extensive Distribution Selective Distribution
Promotion High Advertising Sales Promotion Moderate Advertising PR/Publicity High Advertising Trade Promotion Low
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New Product Development
Six categories of new products

• New-to-the-world products

• New product lines

• Additions to existing product lines

• Improvements and revisions of existing products

• Repositioning
• Cost reductions

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NEW PRODUCT DEVELOPMENT PROCESS
Idea Generation
Caution Go Error / Drop Error
Idea Screening
Concept Development
Category concept / Brand Concept
Concept Testing
Marketing Strategy
Business Analysis
Product Development

• How many test cities? Which cities?
• Length of test?
• What information?
• What action to take?

Market Testing
When / Where / Whom / How ?
Commercialisation
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Product-Idea Rating Device
Relative Weight Product Score Product Rating
Key Success Factors (a) (b) (c a x b)
Level of Differentiation .35 7 2.45
Value for Money .25 8 2.00
Marketing strength .25 6 1.50
Competitive Intensity .15 6 .90
Total 1.00 6.85
Rating scale 0 - 3.0 poor 3.1 - 6.0 fair 6.1 - 8.0 good. Minimum acceptance rate 6.1 Rating scale 0 - 3.0 poor 3.1 - 6.0 fair 6.1 - 8.0 good. Minimum acceptance rate 6.1 Rating scale 0 - 3.0 poor 3.1 - 6.0 fair 6.1 - 8.0 good. Minimum acceptance rate 6.1 Rating scale 0 - 3.0 poor 3.1 - 6.0 fair 6.1 - 8.0 good. Minimum acceptance rate 6.1
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New Product Innovation Diffusion
Awareness
Interest
Trial
Evaluation
Adoption
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New Product Adoption
RATE OF ADOPTION AFFECTED BY

• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

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New Product Adoption
ADOPTER CATEGORIES