New Chapter

Product and Branding Strategy

PowerPoint by : Prof Sameer Kulkarni

Objectives
Identify the various characteristics of products.
Learn how companies build and manage product lines and mixes. Understand how companies make better brand decisions. Comprehend how packaging and labeling can be used as marketing tools.

What is a Product?
Goods Services Experiences Events Persons Places Properties Organizations Information Ideas

The Product and Product Mix

Potential customers judge product offerings according to three elements:
Product features and quality Services mix and quality Value-based prices

The Product and Product Mix

The customer value hierarchy:
Core benefit Basic product Expected product Augmented product Potential product

The Product and Product Mix

Product Classifications
Durability and tangibility
Consumer goods Industrial goods
Nondurable
Tangible Rapidly consumed Example: Milk

Durable
Tangible Lasts a long time Example: Oven

Services
Intangible Example: Tax preparation

The Product and Product Mix

Product Classifications
Durability and tangibility
Consumer goods Industrial goods

Classified by shopping habits:

Convenience goods Shopping goods Specialty goods Unsought goods

The Product and Product Mix

Product Classifications
Durability and tangibility
Consumer goods Industrial goods
Materials and parts
Farm products Natural products Component materials Component parts

Capital items
Installations Equipment

Supplies and business services

Maintenance and repair Advisory services

The Product and Product Mix

Product mix dimensions:
Width: number of product lines Length: total number of items in mix Depth: number of product variants Consistency: degree to which product lines are related

Brand-building Advertising

Brand: Amul

As per Aakers model

And As per Kapferers prism

AMUL : Aakers Model

Extended
Pride Value

Core
Available

Brand Essence: Milk

Quality Variety Indian

Taste

Food

AMUL: Aakers Model

Essence

Extended

Core

A Branded Representation

Brand-building: The Steps

Determine the current image with consumers

Define the desired image

Identify focus areas for action Product development/innovation Packaging/delivery systems Advertising/promotions Implement action plan with a monitoring programme
Feedback to action plan

AMUL : Kapferers Prism

Physique : Taste, Quality Personality : Simple, Indian

Relationship : Sociable

AMUL

Culture : Co-operative, Sharing

Reflection : Value Oriented

Self-Image : Proud Indian, Fun loving

Product-Line Decisions
Product-Line Analysis
Product-Line Length

Product-Line Modernization, Featuring, and Pruning

Brand Decisions
The AMA definition of a brand:
A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.

Brand Decisions
Brands can convey six levels of meaning:
Attributes Benefits Values Culture Personality User

Brand Decisions
Brand identity decisions include:
Name Logo Colors Tagline Symbol

Consumer experiences create brand bonding, brand advertising does not.

Brand Decisions
Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.
Valuable and powerful brands enjoy high levels of brand loyalty.

Brand Decisions
Aaker identified five levels of customer attitudes toward brands:
Will change brands, especially for price. No brand loyalty. Satisfied -- has no reason to change. Satisfied -- switching would incur costs. Values brand, sees it as a friend. Devoted to the brand.

Brand Decisions
Brand equity refers to the positive differential effect that a brand name has on customers.
Brand equity:
is related to many factors. allows for reduced marketing costs. is a major contributor to customer equity.

Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name

Advantages of branding:
Facilitates order processing Trademark protection Aids in segmentation Enhances corporate image Branded goods are desired by retailers and distributors

Brand strategy
Brand repositioning

Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name

Options include:
Manufacturer (national) brand Distributor (reseller, store, house, private) brand Licensing the brand name

Brand strategy
Brand repositioning

Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name

Strong brand names:

Suggest benefits Suggest product qualities Are easy to say, recognize, and remember Are distinctive Should not carry poor meanings in other languages

Brand strategy
Brand repositioning

Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name
Varies by type of brand
Functional brands Image brands Experiential brands

Line extensions
Brand extensions Multibrands New brands Co-branding

Brand strategy
Brand repositioning

Brand Decisions
Key Challenges
To brand or not Brand sponsor Brand name

A brand report card can be used to audit a brands strengths and weaknesses.
Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.

Brand strategy
Brand repositioning

Packaging and Labeling

Packaging includes:
The primary package The secondary package The shipping package

Many factors have influenced the increased use of packaging as a marketing tool.

Packaging and Labeling

Developing an effective package:
Determine the packaging concept Determine key package elements Testing:
Engineering Visual

tests

tests Dealer tests Consumer tests

Packaging and Labeling

Labeling functions:
Identifies the product or brand May identify product grade May describe the product May promote the product

Legal restrictions impact packaging for many products.

Objective of advertising
Build the business today and build brand value overtime

All advertising has to pass through this objective test

How does Advertising build Brands?

Building brand salience Unaided awareness - aided awareness

Building brand appeal

Intention to try - trial Reinforce usage - increase usage

Building brand imagery Usage imagery - user imagery

Building Blocks for Brand-building Advertising I

Market analysis
Size, volume, value, growth, geographic, seasonality

Consumer analysis
Size, demographic,

Company analysis

Brand

geographic Usage, depth, width

Size, profitability, distribution, technology

Competitor analysis
Size, profitability, strengths, weaknesses

Building Blocks for Brand-building Advertising II

Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis
Marketing Objectives Sales , Market Share , Profits

Marketing Strategy
Product , Pricing , distribution , Service , packaging , Advertising & Sales Promotion

Advertising Objective Awareness , Salience , Image , attitude

Advertising Strategy
Creative Strategy , Media Strategy

Classic Hierarchy of Effect Model

Purchase

How Does Advertising Work I

Conviction Preference Liking

Knowledge Awareness

How Does Advertising Work II

Hierarchy of effect model tends to assume that advertising works the same way for all product categories Work on understanding Consumer Behaviour revealed that advertising would work differently for different products

Several new models were developed in the eighties and the nineties
One such model was the FCB Grid

The Grid categorised products as

High

involvement Vs low involvement Thinking Vs feeling

How Does Advertising Work II FCB Grid

High involvement
Consumer is involved with the product category; identifies with it and often takes time to decide which brand to use E.g.: TV, car, perfume, clothes, insurance (?)

Low involvement
Consumer is not involved; tends to see the utilitarian values of the category; routine/quick decision making E.g.: detergents, fuel, flour, mobile service (?)

How Does Advertising Work II FCB Grid

Think Vs feel
Think Consumer decides using his head : Rationality drives the choice of product/brand Feel Consumer decides using his heart : Emotionality drives the choice of product/brand

Advertising to fit FCB Grid requirements

THINKING I) INFORMATIVE
HIGH INVOLVEMENT

FEELING II) AFFECTIVE

LEARN-FEEL- DO

FEEL-LEARN-DO

III) HABITUAL
LOW INVOLVEMENT

IV) SATISFACTION

DO-LEARN-FEEL

DO-FEEL-LEARN

Category Differences
Consumer Products Lower values Frequent purchase Narrow/Broad Target customer Consumer Durables Higher values Infrequent Narrow Target Customer Services Corporate

Indeterminate Indeterminate Variable

No value Variable Very wide/ variable

Role of advertising in brand-building will tend to vary with category type

Brand-building Advertising FCB Grid - Self-test

Thinking
High Involvement Low Involvement
Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile

Feeling

Consumer Products : What are they?

Low value, repeat purchase, consumption products
Male target : Cigarettes, soft drinks, colognes Housewife: Soaps, shampoo, cooking oil, detergents Teenagers: Soft drinks, confectionery, stationery Repeat usage/purchase: everyday, every week, every month

Consumer Products : Types

What is the consumer issue facing the brand? Often low involvement, routine purchase or impulse purchase

Poor awareness leading to poor trial

Poor repeat usage after high trial Lack of desired image perceptions

Some consumer products could be high involvement

Perfumes, Cigarettes
Health aids, Baby foods

What is the key task? Attracting new users Retaining existing users

Consumer Product Purchase Behaviour 1

Who decides, who buys, who influences
Map the key influences in the purchase process Example :
Toothpaste

: Housewife (decision maker) Kid (influencer)

Consumer Product Purchase Behaviour 2

Limited level of information search by consumers

Often a routinised purchase or an impulse purchase

Extended problem solving only in the case of innovation

Cream for foot cracks

Consumer Product Purchase Behaviour 3

All India Household Category penetration
Soaps Washing cake Toothpaste Hair oil 99% 93% 44% 77%

Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI

Consumer Product Life Cycle : What stage is the product ? Introduction / Growth / Maturity / Decline

Brand-building Advertising Self Test 3

Consumer panel data shows the following: aaaabaacbabcbabbb

a, b, c are three brands Draw three inferences from the data What should be the role of advertising for Brand a ?

You Learned
To identify the various characteristics of products.
To learn how companies build and manage product lines and mixes. To understand how companies make better brand decisions.

To comprehend how packaging and labeling can be used as marketing tools.

You start Branding

End of Lesson