Developing Product and Brand Strategy

7/27/2019 Developing Product and Brand Strategy

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Chapter 5:

Developing Product

and Brand Strategy

Strategy?! Marketing?!

Introduction to Marketing planning

Chapter 1: analysing the current situation

Chapter 2: understanding markets & customers

Chapter 3: planning segmentation, targeting, positioning

Chapter 4: planning direction, objectives & marketing support

Chapter 5: developing product & brand strategy

Chapter 6: planning pricing strategy

Chapter 7: developing channel & logistics strategy

Chapter 8: developing marketing communication & influence strategy

Chapter 9: planning metrics & implementation control

Content

Research &

analyse the

current situation

Understand

markets &

customers

Plan

segmentation,

targeting,

positioning

Plan direction,

objectives,

mark. support

Develop

marketing

strategies &

programmes

Plan metrics &

implementation

control


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1. Planning product strategy Goods, services & other products

Features, benefits and services

Quality & design

Packaging & labeling

2. Product development and management New product development

Product lines and the product mix

3. Planning branding Branding and positioning

The power of brand equity

Content

Product strategy is critical to the success of the overall

marketing strategy.

Value is captured in two key areas:

Product Strategy Existing and proposed products.

Branding

Value enhancement through awareness and image.

Introduction



Quality & design






Content


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Products can be:

Tangible Goods.

Services.

Places.

Ideas.

Organizations.

People.

1. Planning product strategy

Designing a Service

Features: Specific attributes that enable a product or

service to perform its function.

Benefits: Need-satisfaction outcomes.

Features and Benefits


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Mass Customization: Creating products,

on a large scale, with features tailored

to the needs of individual customers.

Product Targeted

Segment

Need Feature Benefit

Cordless drill Do it yourselfers Drill holes

without

electricity

Extra battery

pack included

Drill can be used

for long periods

of time

Mortgage loan First-time home

buyers

Obtain money to

buy a home

Low down

payment

Less money

needed up front

to buy a home

Laser printer Small business

owners

Print documents

economically

Draft-quality

printing mode

uses less toner

Toner cartridge

lasts longer,

saving money

Sample Needs, Features, and Benefits

Quality: How well the product

satisfies customers.

Basic functionality is only the price

of entry.

Superior quality attracts business.

Poor quality can lead to negative

word-of-mouth.

Quality & Design
http://www.jouwheineken.nl/http://store.nike.com/be/en_gb/product/blazer-mid-id-shoes/?piid=27453&pbid=10463154


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Design: Quality comes from design,

components/ingredients andprocesses.

includes emotional quality the

impact of design on how it makes the

customer feel.

Keeps products safe.

Helps companies enhance their brand imagery and

highlight points of differentiation.

Packaging

Communicates product contents, uses and warnings.

Conforms to national, regional and local laws.

Helps attract attention, stand out from retail clutter.

Labeling


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Quality & design






Content

The Product Life Cycle

2. Product development & mgt

Steps in the Product Development Process:

Idea generation.

Screening of new ideas.

Initial concept testing.

Business analysis.

Prototype design.

Market testing.

Commercialization.

Monitoring customer reaction.


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Product Mix: The overall assortment of all product or services offered.

Product Lines: A group of products that are all similar in some way.

Product Mix Width: Number of lines offered.

Product Line Depth: Number of products in a line.

Product Mix and Product Lines

Line Extension: Putting an established brand on a new product and

adding it to an existing product line.

Example: A low fat version of Lays potato chips.

Brand Extension: Putting an established brand on a new product in

a different category for a new customer segment.

Example: Snickers brand ice cream

Example : Pampers Kandoo

Line Extensions & Brand Extensions

DECISION RESULT

New product Lengthens product line

Line extension Lengthens product line

New line Widens product mix

Brand extension Widens product mix

Product deletion Shortens product line

Line deletion Narrows product mix

Product Line and Mix Decisions
http://www.youtube.com/watch?v=JvfIDwkIe0o&NR=1


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Quality & design






Content

Giving a distinct identity using: words, designs, and symbols.

In terms of branding, a product may carry:

Company name and individual brand.

Individual name.

Private-label brand.

Multiple brands (co-branding, ingredient branding).

Planning Branding

Meaningful.

Recognizable and memorable.

Capable of being legally protected.

Suitable for international markets.

Brands Should Be.


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Branding not only identifies a particular product,

but also sets it apart from the competition (both

direct and indirect).

Branding and Positioning

Positioning: What the target group perceives about your

brand relative to how they perceive the competition.

Positioning


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Brand Equity: the extra valuecustomers perceive that enhances

their long-term loyalty to a brand.

Can insulate a company against

competitive threats.

Can help new products achieve

acceptance.

The Power of Brand Equity

The Value of Strong Brands:

Encourages brand loyalty.

Boosts customer lifetime value.

The total amount that a

customer spends on a brand or

with a company during the lifeof their relationship.

The Power of Brand Equity

Pyramid of Brand Equity

Developing Product and Brand Strategy

Documents

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