Product and Brand Management-By Av

7/30/2019 Product and Brand Management-By Av

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Product and Brand ManagementBy-AV chaudhary


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What is a product?

A product is any offering by a company to amarket that serves to satisfy customer needs andwants.

It can be an object, service, idea,etc.


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New Product Development

Most new product development is animprovement on existing products

Less than 10% of new products are totally newconcepts.


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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 tofind a prince.

Product obsolescence is rapid withimprovements 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 alwaysthe most profitable to make

Estimate on costs, sales volumes,pricing andprofit levels are made to find out the optimalprice 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 companyoffers 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 aproduct in the line

too short when profits increase by addingproducts to the product line

Line pruning capacity restrictions to decide


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Brand

A name becomes a brand when consumersassociate it with a set of tangible and intangible

benefits that they obtain from the product orservice

It is the sellers promise to deliver the same

bundle of benefits/services consistently tobuyers


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Brand Equity

When a commodity becomes a brand, it is saidto have equity.

The premium a brand can command in themarket

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 getthe 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 andreplenished. 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 productfeatures 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 brandfails

Sometimes the company name is prefixed to thebrand. In such cases the company name gives it

legitimacy. The product nameindividualises 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 newproduct categories

Multibrands new brands in the same productcategory

New brands new product in a differentproduct category

Cobrands brands bearing two or more wellknown brand names


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Brand Repositioning

This may be required after a few years to facenew competition and changing customer

preferences


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Packaging

Includes the activities of designing andproducing 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

Product and Brand Management-By Av

Documents

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