Product and brand management

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