Product And Brand Management
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Transcript of Product And Brand Management
![Page 1: Product And Brand Management](https://reader035.fdocuments.us/reader035/viewer/2022062418/55599151d8b42a14638b503a/html5/thumbnails/1.jpg)
Product and Brand Management
![Page 2: Product And Brand Management](https://reader035.fdocuments.us/reader035/viewer/2022062418/55599151d8b42a14638b503a/html5/thumbnails/2.jpg)
What is a product?
• A product is any offering by a company to a market that serves to satisfy customer needs and wants.
• It can be an object, service, idea,etc.
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New Product Development
• Most new product development is an improvement on existing products
• Less than 10% of new products are totally new concepts.
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Success rate of new products
• The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.”
• Product obsolescence is rapid with improvements in technology
• Shorter PLCs
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Product Development Stages
• Idea generation
• Idea screening
• Concept development and testing
• Concept testing
• Conjoint analysis – to find out the best valued attributes by consumers
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Business analysis
• The most customer appealing offer is not always the most profitable to make
• Estimate on costs, sales volumes,pricing and profit levels are made to find out the optimal price – volume mix.
• Breakeven and paybacks
• Discounted cash flow projections
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Market testing
• Test markets
• Test periods
• What information to gather?
• What action to take?
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Commercialization
• When? (Timing)
• Where? (Which geographical markets)
• To whom? (Target markets)
• How? (Introductory Marketing strategy)
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Product Levels
Customer value hierarchy
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product
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Customer Delight
• When you exceed customer expectations
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Product Hierarchy
• Need
• Product family
• Product class
• Product Line
• Product type
• Brand
• Item
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Product classification
• Durable
• Non – durable
• Services
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Consumer goods classification
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods
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Industrial goods classification
• Materials and Parts
- raw materials
- manufactured materials and parts
• Capital items
• Supplies and business services
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Product Mix
• The assortment of products that a company offers to a market
• Width – how many different product lines?
• Length – the number of items in the product mix
• Depth – The no. of variants offered in a product line
• Consistency – how closely the product lines are related in usage
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Product Line decisions
• Product rationalization
• Market rationalization
• Product line length
too long – when profits increase by dropping a product in the line
too short – when profits increase by adding products to the product line
• Line pruning – capacity restrictions to decide
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Brand
• A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service
• It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers
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Brand Equity
• When a commodity becomes a brand, it is said to have equity.
• The premium a brand can command in the market
• The difference between the perceived value and the intrinsic value
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Levels of meaning
• Attributes
• Benefits
• Values
• Culture
• Personality
• Users
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Brand Power
• Customer will change brands for price reasons
• Customer is satisfied. No reason to change.• Customer is satisfied and would take pains
to get the brand• Customer values the brand and sees it as a
friend• Customer is devoted to the brand
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Brand Equity – Competitive Advantages
• Reduced marketing costs
• Trade leverage
• Can charge a higher price
• Can easily launch brand extensions
• Can take some price competition
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Managing Brand Equity
• Brand Equity needs to be nourished and replenished. We must not flog the brand for equity to be diluted or dissipated
• Store brands
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Advantages of branding
• Easy for the seller to track down problems and process orders
• Provide legal protection of unique product features• Branding gives an opportunity to attract loyal and
profitable set of customers• It helps to give a product category at different
segments, having separate bundle of benefits• It helps build corporate image• It minimises harm to company reputation if the
brand fails
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Brand parity
• Consumers buy from a set of acceptable/ preferred brands
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Umbrella Brand
• Products from different categories under one brand
• Dangerous to the brand if the principal brand fails
• Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy. The product name individualises it.
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Naming the Brand
• Product benefits
• Product qualities
• Easy to pronounce
• Should be distinctive
• Should not have poor meanings in other languages and countries
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Brand strategy
• Line extension – existing brand name extended to new sizes in the existing product category
• Brand extension – brand name extended to new product categories
• Multibrands – new brands in the same product category
• New brands – new product in a different product category
• Cobrands –brands bearing two or more well known brand names
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Brand Repositioning
• This may be required after a few years to face new competition and changing customer preferences
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Packaging
• Includes the activities of designing and producing the container for a product
• Packaging is done at three levels
- primary
- secondary
- shipping
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Packaging as a marketing tool
• Self service
• Consumer affluence
• Company and brand image
• innovation
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Designing packaging
• Packaging concepts
• Technical specifications
• Engineering tests
• Visual tests
• Dealer tests
• Consumer tests
• Packaging innovations
• Environmental considerations
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Labels
• Identification
• Grade classification
• Description of product
• Manufacturer identity
• Date of mfg., batch no.
• Instructions for use
• Promotion
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Labels as a marketing tool
• Labels need to change with time or packaging changes to give it a contemporary and fresh look