Your SlideShare is downloading. ×
  • Like
12. prod mix,branding
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

12. prod mix,branding

  • 115 views
Published

prod mix,branding

prod mix,branding

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
115
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. STRATEGIC CONCEPTS IN MARKETING Product Mix & Branding
  • 2. Product & Product Mix  Product is the key element of a company’s marketing plan  Types of goods Consumer Goods Industrial Goods  Convenience goods - Capital goods  Shopping goods - Raw Materials  Specialty goods - Supplies  Unsought goods  Elements of a Product Quality—Features—Design—Product Mix Branding…Brand name, Brand sponsor, Brand strategy
  • 3. PRODUCT MIX Product Mix An organization with several product lines has a product mix----a product mix thus consists of all the product lines & items that a particular seller offers for sale. What is a product line ?
  • 4. PRODUCT LINE  Products that are closely related and serve similar needs of the customer segment e.g Product lines & Brands of HLL Personal wash…Lifebuoy, Lux, Liril, Rexona, Dove Fabric wash…Surf, Wheel, Rin, Sunlight Household care…Vim Oral care…Close-Up, Pepsodent Shampoos…Sunsilk, Clinic, Organics, H&S Hair oils…Clinic, Nihar Skin care…Fair & Lovely, Perfumery…Denim after shave
  • 5. Elements of Product Mix  Product width…How many different product lines the company carries  e.g HLL carries 8 in the Home & Personal care category  Product length…Total number of items in the mix or within a line number of brands  e.g Personal wash…the various brands will represent the length of the personal wash line  Product depth… number of variants offered of each product in the line  e.g Lipton Tea… Lipton Taaza, Lipton Green Label, Lipton Yellow label & in various sizes 100/250/500gm  Product consistency… how closely related the product lines are in end use  E.g Consumer segments, distribution channels
  • 6. Product Mix Strategy  Analyze the existing product mix in terms of  Meeting sales/profit objectives  Satisfying customers current & emerging needs  Responding to competitive moves—proactively or reactively  Utilizing resources  As a strategy a company could do any of the following  Build, maintain, divest or harvest product lines  Reposition existing products/brands  Add new products to fill gaps.
  • 7. Branding  One of the outcomes of building or maintaining a product line is to invest in BRANDING---the art & cornerstone of marketing.  A brand is a sellers promise to deliver a specific set of features, benefits, services consistently to the buyers.  A product is something that is made in a factory, a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated, a successful brand is timeless. …….. Stephen King, WPP Group, London
  • 8. What is a successful Brand  At the product level it should deliver benefits  It should offer some intangibles besides tangible benefits  The benefits it offers must be consistent with it’s personality  The benefits offered must be relevant to the customer  A significant price or performance advantage  Some significant difference from the existing brands
  • 9. Some successes that turned sour….  PROMISE Toothpaste---after a successful launch with clove oil positioning, Promise changed it’s positioning to freshness and thus lost its differentiation to Colgate.  VELVETTE Shampoo---Revolutionized the sachet market & thus offered a price-value benefit that gave the brand an edge but change is distribution & loss of excise benefits as also lack of resources led to the brand’s eventual failure What does a brand mean to the Consumer ?
  • 10. Brand : a source of value for the consumer  A brand is seen as overcoming the risk of purchase, whenever the perceived risk is high e.g edible products, durables; where differentiation is minimal or where price is high e.g in the case of high involvement products.  Functions that a brand performs for the consumer:*  Identification…quick identification of sought after products  Guarantee…same quality, no matter where/when bought  Ethical…responsible behavior  Practicality…saves time & energy in repeat purchase  Characterisation…confirmation of buyers self image or the image buyer wishes to convey  Continuity…satisfaction through familiarity & intimacy * Jean-Noel Kapferer…Strategic Brand Management
  • 11. Brand : a source of value to the company  Financial standing…branding removes the risk of investment  Consumer loyalty…stability of future sales  Reputation of brand… image of quality justifies premium pricing  Dominant brand… entry barrier  Prestige…can generate royalties through licensing or franchising  Recognition…ease of entry into new markets & categories
  • 12. Meaning of a brand  Attribute…TATA suggests reliability, quality  Benefit…translate the attribute into a benefit e.g reliability means low perceived risk  Values…produces values, a TATA product stands for performance, safety  Culture…Effect of organisational culture e.g professionalism, commitment to quality  Personality…Can project a certain personality e.g MARLBORO a macho personality  User…Association of the consumer with the brand e.g Macho man rather than a woman smoking a Marlboro
  • 13. What is Brand Equity ?  A set of brand assets & liabilities linked to a brand, it’s name & symbol that add to or subtract from the value provided by a product or service to a firm and/or to the firm’s customers Committed buyer Likes it & Considers it a friend Satisfied buyer with Switching costs Satisfied habitual buyer No reason to change Switcher,price Sensitive, no loyalty Loyalty Pyramid
  • 14. Branding Strategy Strategic Choices  Line extension…existing brand name in existing categories  Brand extensions…brand name extended to new product categories  Multi Brands…new brands in same product category  Co-brands…brands bearing 2 or more well known brand names
  • 15. Brand Extension Brand extensions can be of two types  Extension into related categories e.g Cinthol soap to Cinthol Talcum Powder  Extension into unrelated categories e.g Tata Steel to Tata Tea
  • 16. Some rules of Brand Extensions -Al Ries & Jack Trout  Expected Volume…small volume products should & not potential winners  Competition…In a crowded field as opposed to a vacuum  Advertising support…small budget brands should as opposed to big budget brands  Significance…commodity products should  Distribution…items using push strategy should