Management

Management ofof
Products
Products and
and Services
Services
 Product: its nature
Anatomy of a Product Core Offering: value
it offers to the customer Tangible
Specifications: Physical dimensions, other
tangibles
Augmentation:support. Image: brand,
manufacturer; ease of availability etc.
 What is a Product?
The total product
Primary characteristics

Auxiliary dimensions
Core & Augmented
Product

Augmented
product AUXILIARY
CHARACTERISTICS

Core
product

Primary
Characteristics
 Managing of the Product
• Handling the issues related to the product
• Co ordination with the field force to assess the demand
product design to ensure suitability in the marketplace
production/ manufacture to ensure availability
Thus it is at the hub of the organisation
 Changing Environment
• Environment in a state of Constant flux

• Factors responsible: Globalisation Global

economy Technological Change
• Higher level of earnings
• Greater Disposable income
 Consequences of Change
• Higher Level of aspirations
• Availability of much larger variety
• Availability from many more sources
• Constant need of tracking the customer
preference
• Much shorter product life Need of
modifications, re launches
• Need of co ordination within the company
 Strategies to protect
• Filling in the gaps
• Strengthen and synergise communication
• Strengthening and/or extending the network
• Defining the position more carefully
Concentrate on the economy Concentrate
on Premium segment
• Various forms of augmentation Additional
services, Greater Convenience
 Position within the
Company
• As a Functional Operation
• As a Line head

• Single Product
• Product Range
• Multiple Product/Range
 Perspective on New
Domestic Competition
• Emergence of Rural • New Product Variants
Markets • Identifying and capturing
New segments, sub
• Competition for segments
Channels • Improving Distribution&
Service
• Regional Brands
• Dealing with new
• Value for Money competition
segments
• Niche Players
Emerging Focus from Global
Competition
• Well known Brands
• Focus on Quality and Service
• High end Technology
New Product Categories
•
• Financial muscle of MNCs
• Catering to New Segments
• Expanding Range
• New Product Development
• Up gradation; moving to
premium segments
• Strengthen Distribution
• Concentrate on Core
competencies
• Optimum, creative use of
Marketing Resources
 Types of Products
Convenience Shopping Specialty

Example Grocery Clothing Appliances

Motive Availabiliy Choosing to suit Long
personal taste deliberation for
final selection

Prior High Medium Low

Knowledge
Effort Minimal Moderate High/V.Hig
spent
h
Frequency Regular Occasional Variable
 Classifying Consumer
Products

Convenience Specialty
Products Shopping Products
Products

Effort expended
 Product Lines & Product
Mixes

Product item

Product line

Product class
 The Product Portfolio

?
Market growth rate

High PROBLEM
CHILD STAR

DOG CASH COW

Low

Low High
Market share
 Brand, What is it?
• A Brand is a distinguishing name and/or symbol, logo,
trademark or package design) intended to identify the
goods or services of a seller, and to differentiate these
from those of competitors. A brand thus signals to the
customers the source of the product, and protects both
sides from the competitors who would attempt to provide
products apparently identical.
 Relevance and Logic of
BRANDING
• Aims to segment the market
• Starts with a big idea
• Has an enduring value
• Tries to protect the innovation
• Is a living memory
• Should sustain even though the product may die
 Successful Brands :
criteria
• At Product level: Should deliver benefits
• Should offer intangibles besides tangible
benefits
• Benefits on offer should be consistent with
the personality
• Benefits offered must be relevant to the
customer
 Need for Success: Product
Quality
• Performance: How well does a washing m/c clean
• Features: How many channels on TV
• Conformance with specs: Level of defects
• Reliability: Will the mixer work early in the morning
• Durability: How many years will the DVD last
• Serviceability: Efficient, competent & convenient
• Fit & finish: Feel of Quality
 Need for Success:
Service Quality
• Tangibles: Facilities, equipment & personnel
• Reliability : Will the accounting work be done
dependably and accurately
• Competence: Does the service staff have the
required knowledge and skills, do they generate
trust and confidence
• Responsiveness: Is the staff willing to help
• Empathy: Does the bank provide caring
,individualized attention to the customers
 Predicting Success (Delta
Habit Factor)
Changing duration of consumption
• Evolving new occasions for use
• Changing sharing habits
• Changing buying habits
• Doing something new
• Changing the frequency of the consumption
•

DHF: index based upon the above

• <3 easy to have higher trials
•
 Are these cases of
failures?
• Did we learn anything to improve next time
• Did we have reasonable expectations from the market
• Can we recalibrate and try again
• Does the potential of opportunity warrant another try

What do we learn from the answers?

In which case is it a real failure?
 What are Failures
Absence of the following factors which
could be considered pre requisites:
• A significant price or performance
advantage
• Significant difference
• A new, untried idea
 Benchmarks of Success
• Market Share
• Duration (number of years of stay in the market)
• Profit : Staying Power of the organisation
:Objectives of the organisation

• A combination of these

• Brand Success: the ability to retain a reasonable

market share despite market redefinition
Longevity a measure for
Successful
Product
Brands
Leading In 20s New Century
Batteries Eveready Leader
Breakfast Cereal Kellogg Leader
Cameras Kodak Leader
Razors Gillette Leader
Sewing M/c Singer Leader
Soft Drink Coca Cola Leader
Tea Lipton Leader
Tyres Good Year Leader
Toothpaste Colgate Leader
 Market Redefinition
• Segment Redefinition: Consumers
moving in from high price to low price segments e.g.
Nirma
Reverse also possible, e.g. Titan
• Product Redefinition:
Offering a product in a different form, package,
price point etc. singly or in combination
• Category Redefinition: Completely different
products to become a competitor
 Brand Personality
• What distinguishes a brand from another brand or
product
• Uniqueness critical to ensure the necessary quality of
being distinguished from the crowd
• A sum total of all significant tangible and intangible
assets
• All the symbolic aspects of the brand
• What does it remind you of
 Brand Personality
• What distinguishes a brand from another brand or
product
• Uniqueness critical to ensure the necessary quality of
being distinguished from the crowd
• A sum total of all significant tangible and intangible
assets
• All the symbolic aspects of the brand
• What does it remind you of
 Brand Personality : Image
What image does the brand create in your mind?
• LUX: Cines tar's beauty Soap
• Amrutanjan: Grandma’s care, Reliable, Heritage
• Dabur: Nurturing, Reliable, Dependable, Heritage,
Ayurvedic
• Parle G : Economic, energy giving, Heritage
 Brand Personality (5
Personality Factors)
• Sincerity: Down to Earth, Honest, Wholesome,
Cheerful
• Excitement :Daring, Spirited, Imaginative, Up-to-date
• Competence: Reliable, Intelligent, Successful
• Sophistication : Upper Class, Charming
• Ruggedness : Outdoorsy, Rugged
Stress on the human characteristics of the brand, taking special
care that we are not looking at the customer
Brand Personality (3 Approaches for
development)
• Self Expression : Pulsar Motor Cycle
:Honda City
: Titan Watches
• Relationship : Parle: G
( Dependability and Trust) :Colgate, Surf
• Functional Benefits : Nirma, Mahacola,
: Asian paints, Ruffles
 Another Approach to Brand
Personality
• Ritualistic: Associated with an occasion,
e.g. Marie and Tea

• Symbolic: Logo more important Devil and Onida

• Heritage : Pioneer advantage, setting agenda in the segment or
category, e.g. Mysore Sandal

• Exclusive: Snobbish, e.g. B.M.W.,Provogue

• Belonging: Acceptance; having arrived, e.g. Ray Ban, Levi's
• Legendary : Historical, semi god status, e.g. Lux, Dabur
 Brand Image
• Totality of Impressions about the
brand
physical,
functional and
psychological
aspects of the brand
 Brand Image
• How the Brand is perceived by the
Consumer, thus
Brand Personality
is the cause and
the Image the effect
Brand Image and linkage with Brand
Lifebuoy Soap
Personality
Price Value for Money
Carbolic Hard Working

Honda City Gracious Image

Stylish Comfort

Classic Milds Mild

Gracious Sophistication

Little Hearts Puffed, Heart Shaped, Novel, attractive,

Distinctly packed Romantic
 Brand Images and Celebrities
Aspects of of a Image Celebrity product
Brand

Attractiveness Beautiful Madhuri Lux

Classy Pataudi Raymond

Trustworthiness Dependable Ratan Tata Indica

Reliable Kapil Dev Boost

Expertise Knowledge Sachin Adidas

Qualification Naina Shampoos
 Brand Identity
Sum of the Brand as expressed as a product,
organisation, person or a symbol
Product: Scope, Attributes, Quality/Value, Uses, Users,
Country of Origin
Organisation: Attributes like innovativeness,
trustworthiness, concern for the customer
Personality and relationship with the customer
Symbol: Visual Imagery and metaphors, Brand Heritage
 Brand Extension
• Extension into related categories
a. Category related , new variants, e.g. Cinthol lime
b. Image related, different category but similiar benefits,
e.g. Cinthol talcum

• Extension into unrelated categories

• Variants of flavours and tastes are category related
extensions whereas changes in packaging and sizes
are not.
• Some would consider the first one as a line extension only
 Why Brand Extension
• Energising a brand : increase visibility by introducing
variants
• Expanding to meet new customers : Extension to target
price sensitive customers
• Inhibiting Competition : Covering various price points in a
competitive market
• Managing a dynamic environment: Responding to changes
brought in by competition, client preferences or technology
 Results of Extension of a
Brand Name
The good More good
Name Brand helps to Extension enhances the brand
extend the product name

Effects of extending
a brand to a new product

The bad The Ugly More Ugly

Fails to help the brand name is damaged Opportunity to create
extension new brand equity lost
 What to Extend into
Same Product in a different form : Shaving cream to cake
•
Distinctive taste/ ingredient : Chocolate Horlicks
•
Companion Product : Toothbrush to the paste
•
Customer franchise : Powder to soap
•
Expertise: Bajaj from scooters to bikes
•
Benefit/ Attribute/ Feature: Liril freshness soap to
•
talc
Designer/ ethnic image : Park Avenue to men’s
•
toileteries
 Preferred Extension
Product Category
• There has to be relationship between prospective
extension and the parent brand
• In some case the consumer can accept extension
into any category. This would happen only in case
of the extreme credibility of the parent brand;
e.g. Tata, G.E. etc.
• Brand has to be strong in the beginning.
• What woul happen if the brand is very strong and
has very close associations?
 Positioning
• Place occupied in a given market
• Mental perceptions towards the offering
• Conscious effort to stress differentiation
• Other decisions follow this basic decision
• Affected by the following:
a. the product b. the company
c. the competition d. the consumer
 Positioning
• Place occupied in a given market
• Mental perceptions towards the offering
• Conscious effort to stress differentiation
• Other decisions follow this basic decision
• Affected by the following:
a. the product b. the company
c. the competition d. the consumer
 Differentation
Strategies employed
Features Santro, Sony Wega, Talking washing m/c

Performance Dove beauty soap, Wet ones

Exclusivity Tanishq, Charagh Din

Service ICICI bank, Xerox

Range, Variety Lakme cosmetics, Ray-ban

 Value - Strategy key
Functional
links
Continuous upgrading require

Social Long term relationship, stable only when established,

reinforcement reqd

Emotional Periodic reinforcement to build on intimate relationship

Conditional Niche opportunities to be taken advantage of, cross

promotions and quick response desirable
 Value of Brand
Associations
Associations result in:
• Differentiate/ Position
• Reason to Buy
• Create Positive Attitudes / Feelings
• Help Process/ Retrieve information
• Basis of Extensions
 Repositioning
Different kinds
• Increasing relevance to the consumer
• Increasing the occasions for use
• Search for a viable position
• Making the brand serious
• Falling Sales
• Bringing in new customers
• Making the brand contemporary
• Differentiating from others
• Changed market conditions
 Increasing Relevance
• Lipton Yellow Label
Exotic & British
Exotic & Indian
• Visa Card
World’s most Prefered Card
Visa Power
• Bourn Vita
Extra Nutrition, Extra Taste
Nutrition, Mental Stimulation
 Increasing Occasions
• Cadbury’s Drinking Chocolate
Good Night Cap
Happiest time of the day
• Monaco
Perfect salted biscuit
Excellent plain, terrific with toppings
• Vicks Cough Drops
Cough Drops
Adult Candy
 Making the Brand
Serious
• Cadbury’s 5 Star
Togetherness Bar
Energiser for Young Achievers
• Saffola
Good for Heart
Heart not safe without Saffola
 Bringing in New
Customers
• Red Eveready
Focus on Battery
Focus on the User
• Johnson’s Baby Oil
Babies
Babies & Mothers
• Cinthol
Deodorant Soap
Soap for Macho Men
Freshness Soap
 Making the Brand
Contemporary
• Dabur’s Chyawanprash
Traditional
Traditional & Nutritional
• Onida
Neighbour’s Envy Owner’s Pride
World’s Envy India’s Pride
 Changed Market
Conditions
• Horlicks
Milk Additive
Nutritive
• Milkmaid
Whitener
Tastiest Milk
Topping for Puddings
Making of Desserts
 Brand Equity
• A product is something made in a factory, a brand is
something that is bought by a customer. a product
can be copied, a brand is unique. A product can be
quickly outdate, a successful brand can be timeless.
• A set of assets & liabilities linked to the name and
symbol that add to the value provided by offering to
the customer
 Brand Equity (cont’d)
Five categories that sum up to the Brand
Equity
• Brand Loyalty
• Name Awareness
• Perceived quality
• Brand Associations in addition to quality
• Other proprietary brand assets-patents,
trademarks, channel relationships, etc.
 Brand Equity
(contributions)
Providing value to customer by enhancing the
following for the customer:
• Interpretation Processing of information
• Ease of making choice decision
• Confidence in the purchase decision
• Use Satisfaction
 Brand Equity
(contributions)
Provides value to the firm by enhancing:
• Efficiency and effectiveness of the marketing
programme
• Brand Loyalty
• Prices/Margins
• Brand extensions
• Trade Leverage
• Competitive Advantage
 Value of Brand Loyalty

• Reduced Marketing Costs

• Trade Leverage
• Attracting New Customers:
a. Brand Awareness Created
b. Reassurance to New Customers
• Time to respond go Competitive Threats
 Value of Brand
Awareness
• Anchor to which other Associations
can be attached
• Familiarity to lead to Liking
• Signs of Substance/ Commitment
• Brand to be Considered
 Top
Mind

Brand
Recall

Brand
Recognition

Unaware of the
Brand