Product and brand management ppt @ bec doms 2009


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Product and brand management ppt @ bec doms 2009

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Product and brand management ppt @ bec doms 2009

  1. 1. Product and Brand Management
  2. 2. Product and Brand Management
  3. 3. 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.
  4. 4. New Product Development Most new product development is an improvement on existing products Less than 10% of new products are totally new concepts.
  5. 5. 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
  6. 6. Product Development Stages Idea generation Idea screening Concept development and testing Concept testing Conjoint analysis – to find out the best valued attributes by consumers
  7. 7. 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
  8. 8. Market testing Test markets Test periods What information to gather? What action to take?
  9. 9. Commercialization When? (Timing) Where? (Which geographical markets) To whom? (Target markets) How? (Introductory Marketing strategy)
  10. 10. Product Levels Customer value hierarchy Core benefit Basic product Expected product Augmented product Potential product
  11. 11. Customer Delight When you exceed customer expectations
  12. 12. Product Hierarchy Need Product family Product class Product Line Product type Brand Item
  13. 13. Product classification Durable Non – durable Services
  14. 14. Consumer goods classification Convenience goods Shopping goods Specialty goods Unsought goods
  15. 15. Industrial goods classification Materials and Parts - raw materials - manufactured materials and parts Capital items Supplies and business services
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. Levels of meaning Attributes Benefits Values Culture Personality Users
  21. 21. 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
  22. 22. Brand Equity – Competitive Advantages Reduced marketing costs Trade leverage Can charge a higher price Can easily launch brand extensions Can take some price competition
  23. 23. 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
  24. 24. 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
  25. 25. Brand parity Consumers buy from a set of acceptable/ preferred brands
  26. 26. 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.
  27. 27. Naming the Brand Product benefits Product qualities Easy to pronounce Should be distinctive Should not have poor meanings in other languages and countries
  28. 28. 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
  29. 29. Brand Repositioning This may be required after a few years to face new competition and changing customer preferences
  30. 30. Packaging Includes the activities of designing and producing the container for a product Packaging is done at three levels - primary - secondary - shipping
  31. 31. Packaging as a marketing tool Self service Consumer affluence Company and brand image innovation
  32. 32. Designing packaging Packaging concepts Technical specifications Engineering tests Visual tests Dealer tests Consumer tests Packaging innovations Environmental considerations
  33. 33. Labels Identification Grade classification Description of product Manufacturer identity Date of mfg., batch no. Instructions for use Promotion
  34. 34. Labels as a marketing tool Labels need to change with time or packaging changes to give it a contemporary and fresh look