New Chapter Product and Branding Strategy PowerPoint by : Prof Sameer Kulkarni.

New Chapter New Chapter

Product and Product and Branding StrategyBranding Strategy

PowerPoint by : Prof Sameer KulkarniPowerPoint by : Prof Sameer Kulkarni

ObjectivesObjectives

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.

What is a Product?What is a Product?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas

The Product and Product The Product and Product MixMix

Potential customers judge product offerings according to three elements:

– Product features and quality

– Services mix and quality

– Value-based prices


The customer value hierarchy:

– Core benefit

– Basic product

– Expected product

– Augmented product

– Potential product


ProductClassifications

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




Consumer goods

Industrial goods

Classified by shopping habits:

– Convenience goods

– Shopping goods– Specialty goods– Unsought goods




Consumer goods

Industrial goods

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 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

Brand-building Advertising Brand-building Advertising

Brand: Amul

As per Aaker’s model

And

As per Kapferer’s prism

AMUL : Aaker’s ModelAMUL : Aaker’s Model

Extended

Available

Food

Brand Essence:

Core

Value Taste

IndianQuality

Pride

Variety

Milk

AMUL: Aaker’s ModelAMUL: Aaker’s Model

Brand-building: The StepsBrand-building: The StepsDetermine 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

Physique : Taste, Quality

Personality :Simple, Indian

Self-Image :Proud Indian, Fun loving

Reflection :Value Oriented

Culture :Co-operative, Sharing

Relationship :Sociable

AMUL : Kapferer’s PrismAMUL : Kapferer’s Prism

AMUL

Product-Line DecisionsProduct-Line Decisions

Product-Line Analysis

Product-Line Length

Product-Line Modernization, Featuring, and Pruning

Brand DecisionsBrand 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.”


Brands can convey six levels of meaning:

– Attributes– Benefits– Values– Culture– Personality– User


Brand identity decisions include:

– Name– Logo– Colors– Tagline– Symbol

Consumer experiences create brand bonding, brand advertising does not.


Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.

Valuable and powerful brands enjoy high levels of brand loyalty.


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.


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.


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


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


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


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


Key Challenges

To brand or not

Brand sponsor

Brand name

Brand strategy

Brand repositioning

A brand report card can be used to audit a brand’s strengths and weaknesses.

Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.

Packaging and LabelingPackaging 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.


Developing an effective package:

– Determine the packaging concept– Determine key package elements– Testing:

Engineering testsVisual testsDealer testsConsumer tests


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.

Objective of advertisingObjective of advertising

“Build the business today and build brand value overtime”

All advertising has to pass through this objective test

How does Advertising build How does Advertising build Brands?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

Building Blocks for Building Blocks for Brand-building Advertising IBrand-building Advertising I

Market analysisSize, volume, value, growth, geographic, seasonality

Consumeranalysis

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

Company analysis

•Size, profitability, •distribution, technology

Competitor analysisSize, profitability, strengths, weaknesses

Brand

Advertising StrategyCreative Strategy , Media Strategy

Advertising ObjectiveAwareness , Salience , Image , attitude

Marketing ObjectivesSales , Market Share , Profits

Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis

Marketing StrategyProduct , Pricing , distribution , Service , packaging ,

Advertising & Sales Promotion

Building Blocks for Building Blocks for Brand-building Advertising IIBrand-building Advertising II

How Does Advertising How Does Advertising Work IWork I

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Classic Hierarchy of Effect Model

How Does Advertising How Does Advertising Work IIWork 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 involvementThinking Vs feeling

How Does Advertising Work How Does Advertising Work IIII

FCB Grid FCB Grid

High involvementConsumer 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 (?)

Low involvementConsumer is not involved; tends to see the utilitarian values of the category; routine/quick decision makingE.g.: detergents, fuel, flour, mobile service (?)

How Does Advertising Work How Does Advertising Work IIII

FCB GridFCB Grid

Think Vs feel

ThinkConsumer decides using his

head : ‘Rationality’ drives the choice of product/brand

FeelConsumer decides using his

heart : ‘ Emotionality’ drives the choice of product/brand

THINKING FEELING

HIGH

INVOLVEMENT

LOW

INVOLVEMENT

Advertising to fit FCB Grid Advertising to fit FCB Grid requirementsrequirements

LEARN-FEEL- DO

I) INFORMATIVE

FEEL-LEARN-DO

II) AFFECTIVE

DO-LEARN-FEEL

III) HABITUAL

DO-FEEL-LEARN

IV) SATISFACTION

Category DifferencesCategory Differences

ConsumerProducts

ConsumerDurables Services Corporate

Lower values Higher values Indeterminate No value

Frequent purchase Infrequent Indeterminate Variable

Narrow/BroadTarget customer

Narrow Target Customer

Variable Very wide/variable

Role of advertising in brand-building will tend to vary with category type

Brand-building Advertising Brand-building Advertising FCB Grid - Self-test FCB Grid - Self-test

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

Thinking FeelingHigh

Involvement

Low Involvement

Consumer Products : Consumer Products : What are they?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

Some consumer products could

be high involvement

Perfumes, Cigarettes

Health aids, Baby foods

Consumer Products : TypesConsumer Products : Types

Often low involvement,

routine purchase or

impulse purchase

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

What is the key task?Attracting new users

Retaining existing users

Consumer Product Consumer Product Purchase Behaviour 1Purchase Behaviour 1

Who decides, who buys, who influences

– Map the key influences in the purchase process

– Example :Toothpaste : Housewife (decision maker)

Kid (influencer)

Consumer Product Consumer Product Purchase Behaviour 2Purchase 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’

Consumer Product Purchase Consumer Product Purchase Behaviour 3Behaviour 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

Brand-building Advertising Brand-building Advertising Self Test 3Self 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’ ?

You LearnedYou 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.

End of LessonEnd of LessonYouYou

start Branding start Branding

New Chapter Product and Branding Strategy PowerPoint by : Prof Sameer Kulkarni.

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