Product and Brand Management

at is a product?
A product is any oIIering by a company to a
market tat serves to satisIy customer needs
and wants.
It can be an object, service, idea,etc.
ew Product Development
Most new product development is an
improvement on existing products
Less tan 10 oI new products are totally
new concepts.
$uccess rate oI new products
Te success rate oI new products is very
low less tan 5. You ave to kiss a lot
oI Irogs to Iind a prince.
Product obsolescence is rapid wit
improvements in tecnology
$orter PLCs
Product Development $tages
Idea generation
Idea screening
Concept development and testing
Concept testing
Conjoint analysis to Iind out te best
valued attributes by consumers
Business analysis
Te most customer appealing oIIer is not
always te most proIitable to make
Estimate on costs, sales volumes,pricing
and proIit levels are made to Iind out te
optimal price volume mix.
Breakeven and paybacks
Discounted cas Ilow projections
Market testing
Test markets
Test periods
at inIormation to gater?
at action to take?
Commercialization
en? (Timing)
ere? (ic geograpical markets)
To wom? (Target markets)
How? (Introductory Marketing strategy)
Product Levels
Customer value ierarcy
Core beneIit
Basic product
Expected product
Augmented product
Potential product
Customer Deligt
en you exceed customer expectations
Product Hierarcy
eed
Product Iamily
Product class
Product Line
Product type
Brand
Item
Product classiIication
Durable
on durable
$ervices
Consumer goods classiIication
Convenience goods
$opping goods
$pecialty goods
Unsougt goods
Industrial goods classiIication
Materials and Parts
- raw materials
- manuIactured materials and parts
Capital items
$upplies and business services
Product Mix
Te assortment oI products tat a company oIIers
to a market
idt ow many diIIerent product lines?
Lengt te number oI items in te product mix
Dept Te no. oI variants oIIered in a product
line
Consistency ow closely te product lines are
related in usage
Product Line decisions
Product rationalization
Market rationalization
Product line lengt
too long wen proIits increase by dropping a
product in te line
too sort wen proIits increase by adding
products to te product line
Line pruning capacity restrictions to decide
Brand
A name becomes a brand wen consumers
associate it wit a set oI tangible and
intangible beneIits tat tey obtain Irom te
product or service
It is te seller`s promise to deliver te same
bundle oI beneIits/services consistently to
buyers
Brand Equity
en a commodity becomes a brand, it is
said to ave equity.
Te premium a brand can command in te
market
Te diIIerence between te perceived value
and te intrinsic value
Levels oI meaning
Attributes
BeneIits
Values
Culture
Personality
Users
Brand Power
Customer will cange brands Ior price
reasons
Customer is satisIied. o reason to cange.
Customer is satisIied and would take pains
to get te brand
Customer values te brand and sees it as a
Iriend
Customer is devoted to te brand
Brand Equity Competitive
Advantages
Reduced marketing costs
Trade leverage
Can carge a iger price
Can easily launc brand extensions
Can take some price competition
Managing Brand Equity
Brand Equity needs to be nourised and
replenised. e must not Ilog te brand Ior
equity to be diluted or dissipated
$tore brands
Advantages oI branding
Easy Ior te seller to track down problems and
process orders
Provide legal protection oI unique product Ieatures
Branding gives an opportunity to attract loyal and
proIitable set oI customers
It elps to give a product category at diIIerent
segments, aving separate bundle oI beneIits
It elps build corporate image
It minimises arm to company reputation iI te
brand Iails
Brand parity
Consumers buy Irom a set oI acceptable/
preIerred brands
Umbrella Brand
Products Irom diIIerent categories under
one brand
Dangerous to te brand iI te principal
brand Iails
$ometimes te company name is preIixed to
te brand. In suc cases te company name
gives it legitimacy. Te product name
individualises it.
aming te Brand
Product beneIits
Product qualities
Easy to pronounce
$ould be distinctive
$ould not ave poor meanings in oter
languages and countries
Brand strategy
Line extension existing brand name extended to
new sizes in te existing product category
Brand extension brand name extended to new
product categories
Multibrands new brands in te same product
category
ew brands new product in a diIIerent product
category
Cobrands brands bearing two or more well
known brand names
Brand Repositioning
Tis may be required aIter a Iew years to
Iace new competition and canging
customer preIerences
Packaging
Includes te activities oI designing and
producing te container Ior a product
Packaging is done at tree levels
- primary
- secondary
- sipping
Packaging as a marketing tool
$elI service
Consumer aIIluence
Company and brand image
innovation
Designing packaging
Packaging concepts
Tecnical speciIications
Engineering tests
Visual tests
Dealer tests
Consumer tests
Packaging innovations
Environmental considerations
Labels
IdentiIication
Grade classiIication
Description oI product
ManuIacturer identity
Date oI mIg., batc no.
Instructions Ior use
Promotion
Labels as a marketing tool
Labels need to cange wit time or
packaging canges to give it a
contemporary and Ires look