Product Management Summary–1 Summary of Product Management Professor Carl Mela BA 460 Product...

Product Management Summary–1

Summary of Product Management

Professor Carl Mela

BA 460 Product Management

Fuqua School of Business

• Brand Management System

• On Building A Brand

• Managing Across Brands


Agenda

• PharmaSim Wrap-up– Insights from the marketing plan– Insights from the game

• Course Summary

• Latest Research Project


PharmaSim Wrap-up

• Marketing Planning Lessons

• Strategies and Performance by Group


Marketing Planning Lessons

• Situation Analysis– Length

• Is it germane to strategy and tactics

– Information ->Inferences ->Implications• If no implications, than consider omitting

– The plan is also a request for resources• Affects tone



• Situation Analysis– Internal consistency

• If it is in the situation, is it in the summary? The objectives? The strategy?

– Assumptions• Includes growth, competitive reactions, etc.

– Objectives - are they attainable?• Bonuses and merit raises• Forecasts



• Competitor and Customer Analyses– What do the customers want?

• Table of benefits by segment or perceptual map

– Who provides it?• Table of benefits by competitor or perceptual map

– Are there positioning gaps?– Who will rush to fill them and what are the

threats?



• Strategy and Tactics– Link objectives, strategy and tactics– Specificity: How many sales people?

What ad budget? What allocation of trade promotions?

• Pricing Analysis– All teams adopt competitive positioning,

but is this profit maximizing?



• Promotion Analysis – Caution in reallocating marketing support from core

product (e.g., Coke to Diet Coke)

• Advertising Analysis – Objective of primary demand is often not

commensurate with a line extension or a lower share brand (increases competitor’s sales)



• Product Design Analysis– Articulate rationale– Competitors and customers– Promotional plan should vary by

product


Game Results

• Groups maximized share and sales as opposed to net income - marketing bias?

Team Cum. Mfr. Sales Cum. Net Income Share of Mfr. Sales Stock PriceA 2 3 3 4B 1 3 2 2C 1 2 1 1D 1 3 2 2E 3 4 3 3F 1 2 1 1G 2 3 1 3H 1 3 1 2

Rank Within Industry


Game Results:Team Strategies

TeamAdvertising

RankPromotion

Rank

Sales Force Rank

Price Rank

Number of

ProductsA 3 1 3 2 2B 3 1 4 2 3C 3 1 4 2 3D 3 3 3 2 2E 4 3 3 4 2F 3 1 3 1 3G 3 2 4 2 3H 3 5 3 2 3


Game Results

• Correlation between teams’ strategies and teams’ results

Cum. Mfr. Sales Cum. Net Income Sh. Mfr. Sales Stock PriceCum. Ads -0.03 -0.04 -0.21 -0.08Cum. Promo 0.64 0.37 0.66 0.68Cum. Sales F. 0.10 0.41 -0.25 -0.02Avg. Ret. Price 0.64 0.79 0.29 0.49No. Products 0.46 -0.04 0.73 0.59


PharmaSim Wrap-up

• Experience with marketing planning– Number of lessons with respect to writing a

plan

• Goal-setting experience– How did you do vs. plan

• Experience managing a brand– Most teams did well

– Correlates of success


Course Overview

• Objective - Theoretical and practical grounding in brand management

• Structure– Brand Management System– On Building A Brand– Managing Across Brands


Structure

• Part I - The Brand Management System– Brands and Brand Management: Class 1

• The Nature of a Brand

• Brand/Product Management

• An Application to the Pepsi Syringe Scare.– Sophisticated organizational structure

– Integrated plan

– Facilitated information flows to and from markets

– Result: brand not affected


Structure

• Part I - The Brand Management System– Organizational Design: Class 2

• P&G Case– The brand management system gives brands attention

– In mature categories, be wary of product proliferation

• Live commentary from P&G– Whitewater packaging

– Challenges of implementing decisions (approvals and interactions)

– P&G continually adapts its structure


Structure

• Part II - Building Brands– Pricing: Class 3

• Kodak– Strategic choice between share, margins, and equity– Innovation is necessary to increase all three– Price points and flanker (fighter) brands

• Pricing– Price-quality inferences– EDLP– The effect of pricing on equity (JMG 1999)

• Red Hat’s Director of Marketing– Product v. brand– Flanker brands


Structure

• Part II - Building Brands– Distribution: Class 4

• Goodyear case and video– Channel cares about price and store equity (not brand)

– Manufacturer cares about brand equity (not store)

– Intensive v. exclusive distribution and equity

– Push v. pull and equity

– Channel is front line to customer and has large impact on equity

– Video: dealing with the media

• Brand Elements– Name, logo, characters, slogans, and jingles

– Memorable, meaningful, protectable, transferable, adaptable


Structure

• Part II - Building Brands (Cont.)– Private Label and Promotion: Class 5

• Private Label– Change quality, change price, add low quality brand, or do nothing (Hoch)– Recall, these are Kodak’s options

• Sales Promotion– Event marketing (raise awareness and leverage secondary associations, but weak

payoffs and unforseen consequences)– Sales promotion (trade and consumer)

» Short term gains, long term costs

• Craig Stacey (VP from IRI) discusses the use of scanner data information to build brands.


Structure

• Part II - Building Brands (Cont.)– Promotion: Class 6

• Marketing in the NHL – Promotion of event rather than game

– Grass roots marketing

• Hurricanes Director of Communications, Ken Lehner

– Live survey on marketing the NHL and building the Hurricanes brand

– Promotional design


Structure

• Part II - Building Brands (Cont.)– Advertising: Class 7

• Advertising– Integrated communications (awareness and brand associations)

• Intel Inside Interactive CDROM. – Process of developing advertising strategy

• Live Commentary and Discussion with Michael J. Ganey, Director, Howard, Merrell & Partners,Inc.

– How to use an agency– Effect of advertising on brands


Structure

• Part III - Across Brands and Markets– The Marketing Plan: Class 8

• The Marketing Plan– Plans serve to coordinate and formalize research and

decisions– Planning process– Planning format

• Tom O’Guinn, Visiting Professor discusses Brand Communities.

– Consumers are now empowered by the internet and increasingly difficult to manage


Structure

• Part III - Across Brands and Markets– Product Extensions: Class 9

• Product Extensions– Tremendous efficiencies

– Consumer confusion

– Issues of fit

• The Black and Decker Case and Video– Demonstrates effect of extensions on parent brand

– Strategies to mitigate negative brand associations

» Rebrand

» Inimitable points of differentiation (service, sales relationships)


Structure

• Part III - Across Brands and Markets– Global Branding: Class 10

• The Heineken Case– Messages can transcend culture

» Think global (message)

» Act local (design)

– Local v. global control

• Global branding– Efficiency v. customization

• The Fuqua MBA with Jim Gray, Associate Dean, Fuqua.


Structure

• Part III - Across Brands and Markets– Branding on the Internet: Class 11

• Deborah Kania (Lens Express and author of branding.com) and Beth Yakel (Sciquest)

– Brands are increasingly important on the web

– Traditional brands have greater awareness but carry traditional “baggage.” The opposite is true for e-brands

– Branding on the web implies personalization and community


Structure

• Part III - Across Brands and Markets– Wrap-up and PharmaSim Summary:

Class 12• You are here!!


Course On a Page

• Part 1 - Brand Management System– Brands and Organizational Design

• Part 2 - On Building A Brand– Price to Image– Distribution Presents Image– Christen and Nathaniel Arrive!– Promotion to Develop Image– Product is Image (Private Label)

• Part 3 - Managing Across Brands & Regions– Marketing Plan– Product Lines Interact– Global v. Local Associations


Good Luck!

• Stay in touch– Guest speaking– Examples– Feedback regarding preparation– Vexing issues faced this summer or next

year

• Thank you for making this a great and enjoyable course!!

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