PRODUCT AND BRAND MANAGEMENT

MODULE 1
A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or a need. Product may be physical goods,
services, experiences, events, persons, places, properties, organizations, information,
and ideas. Products have an identity or personality of their own.

LEVELS OF PRODUCT- Core benefit, basic product, expected product, augmented

product, potential product

1.1 PRODUCT MANAGEMENT AS BASIS FOR MARKETING ORGANISATIONAL

STRUCTURE

Product management is an organizational lifecycle function within a company, dealing

with planning, forecasting and marketing of products at all stages. Often, product
management is divided into inbound (product development) and outbound (product
marketing) functions. As discussed earlier, the division into these categories depends on
the type of product and the nature of the organization. Inbound product management
deals with absorbing information about the potential product like analysing market
research data and discussion of market trends and market sensing or market intuition.
Outbound product management on the other hand concentrates on the way in which the
product is marketed and involves distributing information and targeting the product at
consumer segments. In other words, inbound product management is the “pull” phase
wherein information is absorbed and outbound product management is the “push”
phase wherein information is channelized externally. Product management has become a
key function in the organizational structure and occupies a place of prominence in the
organizational hierarchy. The reasons for this are not hard to find since the business
landscape in the present times needs astute and agile product management. Indeed, the
success or otherwise of the products being launched can make or break the prospects of
the company as a whole. It is for this reason that product managers need to be especially
shrewd and smart.
1.2 ROLE OF PRODUCT MANAGER
• The product manager is often responsible for analysing market conditions and
defining features or functions of a product.
• A product manager investigates, selects, and develops products for an organization
• Creating a product plan on an annual basis.
• Developing demand planning and forecasting for the product category. And
discussing the forecast with production department and agreeing on schedules. •
Creating innovative marketing strategies
• Responsible for product line extensions or stretching.
• New product identification and working on the development process. •
Preparing communication strategies.
• Define product vision, strategy and roadmap
• Proposing sales promotion plans
• Establishing sales force training management.
• Setting up controls to monitor performance.
• Technical product knowledge
• Act as product’s leader within company
• Develop positioning for the product.
 1.1 SKILLS REQUIRED FOR PRODUCT MANAGEMENT
1. Written and verbal Communication skills 2. Leadership 3. Risk
management 4. Teamwork skill
5. Problem solving 6. Time management 7. Critical thinking/analytical skills 8.
Decision making 9. Planning 10. Technical skills

1.3PRODUCT MIX AND PRODUCT LINE STRATEGIES

A product line is a group of products that are closely related, because they perform a
similar function, are sold to the same customer groups, are marketed through the same
channels. E.G.: line of soap includes detergent, shampoo, gel, surf etc

Strategies: Line expansion (stretching up, stretching down and stretching both ways),
line contraction, product line modification, product differentiation

PRODUCT MIX/PRODUCT ASSORTMENT: That is the total number of product lines

that a company offers to its customers. Any company’s product mix has four dimensions.
They are:

a. Breadth/Width: refers to the number of Product Lines marketed by a firm.

b. Length: the total number of products or items in the mix, that is the number of
items in each product lines
c. Depth: refers to the number of product items and variations (like size, packaging,
colours, etc.) in product line
d. Consistency: is the degree of similarity between product lines with respect to end
use, technology, production techniques, and distribution channels.

STRATEGIES FOR PRODUCT MIX:

1. product line expansion: Adding more product under one line

2. product modification: changes in existing product
3. product elimination: Eliminating a product that does not generate profit
4. Product differentiation

1.4 TYPES OF PRODUCTS

1. Based on use
1.1Consumer goods
• Convenience: Purchased frequently, immediately, and with a minimum effort.
Eg: Ice cream, cold drinks, magazines etc. Further classified into: a.
Staples: goods consumers purchase on a regular basis. Eg: Bread, Milk,
Sugar, Newspaper etc.
 b. Impulse goods: purchased without any planning or search effort. Eg:
Chocolates, candy bars, potato chips etc.
c. Emergency goods: purchased when a need is urgent. Eg: Umbrella
and Rain coats, sweaters and shawls.
• Shopping: Are goods that less frequently purchase, consumers compare
carefully on suitability, quality, price & style. Eg: Furniture, Clothing, major
appliances etc. Types: Homogenous and heterogenous
• Speciality: Have unique characteristics or brand identification for which a
significant group of buyers are willing to make a special purchase. Eg:
Mercedes, Rolls Royce, Harley Davidson, Rolex Watches etc. Specialty
goods don’t require comparisons;
• Unsought: Consumer either does not know about or does not normally think
of buying. It is unsought, until the customer become aware of it. Eg: Safety
equipment, life insurance, encyclopaedias, fitness equipment, blood
donation etc.
1.2 industrial goods: Purchased for further production. Manufactures, Govt agency,
businesses buy these. (Capital goods, raw material, component parts, major
equipment, business services).
If a consumer buys an air conditioner for use at home, the air conditioner is a
consumer product. If the same consumer buys the same air conditioner for use in his
factory, it is an industrial product
2. Durable and non-durable
3. Tangible and intangible

MODULE 3

3.1 CATEGORIES OF NEW PRODUCT

A new product is one which is really innovative, which is significantly different from
existing products, that are new to the company.

CATEGORIES:
1. New-to-the-world Products: The alternative expression for new-to-the-world
products already indicates that this is what most people would define as a new product.
These products are inventions that create a whole new market. Examples: Polaroid
camera, the iPod and iPad, the laser printer and so on.
2. New-to-the-firm Products (new Product Lines): Products that take a firm into a
category new to it. The products are not new to the world, but are new to the firm. The
new product line raises the issue of the imitation product: a “me-too”. Examples: P&G’s
first shampoo or coffee, Hallmark gift items, AT&T’s Universal credit card and so on.

3. Additions to existing Product Lines: These are simple line extensions, designed to
flesh out the product line as offered to the firm’s current markets. Examples: P&G’s Tide
Liquid detergent, Bud Light, Special K line extensions (drinks, snack bars, and cereals).

4. Improvements and Revisions to existing Products: Current products made better.

Examples: P&G’s Ivory Soap and Tide power laundry detergent have been revised
numerous times throughout their history, and there are countless other examples.
5. Repositioning: they can be considered as new products, as the firm undertakes a new
products process. Repositioning are products that are retargeted for a new use or
application. Examples: Arm & Hammer baking soda repositioned as a drain or
refrigerator deodorant; aspirin repositioned as a safeguard against heart attacks. Also
includes products retargeted to new users or new target markets. Marlboro cigarettes
were repositioned from a woman’s cigarette to a man’s cigarette years ago.

6. Cost Reductions: Cost reductions refer to new products that simply replace existing
products in the line, providing the customer similar performance but at a lower cost.
May be more of a “new product” in terms of design or production than marketing.

3.1 CONSUMER ADOPTION PROCESS (BUYER DECISION PROCESS FOR NEW

PRODUCTS)

The adoption process for a new product is the mental process through which an
individual passes from first learning about an innovation to final adoption and adoption
as the decision by an individual to become a regular user of the product. Innovation
refers to any good, service, or idea that is perceived by someone as new.”
For adopting a new product, at first, the consumer becomes aware of the new product
but does not have information about it. The consumer shows interest and searches for
information about the new product. In the third stage, the consumer evaluates whether
trying the new product is worthwhile. After that, the consumer tries the new product on
a limited scale to improve its value assessment. At the last stage, the consumer decides
to make full and regular use of the new product.

Factors affecting adoption process: people’s readiness, personal influence, innovation

3.1 DIFFUSION OF INNOVATION

Theory by Everett Rogers in 1962. It explains how, why, and the rate at which a product,
service, or process spreads through a population or social system. In other words, the
diffusion of innovation explains the rate at which new ideas and technology spread. The
diffusion of innovation theory is used extensively by marketers to understand the rate at
which consumers are likely to adopt a new product or service. The spread of an
idea/innovation from its source to the ultimate consumer.
ADOPTER CATEGORIES
A sequence of categories that describes how early (or late) a consumer adopts a new
product in relation to other adopters.

• Innovators: Innovators are those who want to be the first to acquire a new product
or service. They are risk-takers, price-insensitive, and are able to cope with a high
degree of uncertainty. Innovators are crucial to the success of any new product or
service, as they help it to gain market acceptance. For example, individuals who
stay overnight outside a movie theatre to be the first to purchase the first
showing to a movie are considered innovators.
• Early adopters: Early adopters are those who are not quite as risk-taking as
innovators and typically wait until the product or service receives some reviews
before making a purchase. Early adopters are referred to as “influencers” or
“opinion leaders”, and are often regarded as role models within their social
system. They are key in helping the spread of a product or service achieve
“critical mass”. Individuals who wait a couple of days and spend some time
reading reviews before going to see a movie are regarded as early adopters.
• Early majority: Early majorities are not risk-taking and typically wait until a
product or service is tested or used by a trusted peer. These individuals are
prudent and want to purchase things that are proven to work. Individuals who go
to a movie after it’s been out several weeks and gotten good reviews and made
profits at the box office are early majorities.
• Late majority: Late majorities are the last large group of consumers to enter the
market. They are deemed conservative and are often technologically shy, very
 cost-sensitive, sceptical, and cautious in making a purchase. In addition, late
majorities are often peer pressured into purchasing the product or service.
People who wait for a movie to become available online or on Netflix are
regarded as late majorities.
• Laggards: Laggards are the last to adopt a new product or service. They resent
change and may continue to rely on traditional products or services until they are
no longer available. In other words, they typically only adopt the new technology
when virtually forced to. E.G.: Waiting for movie to come on T.V

PROCESS

3.2 STAGES IN NEW PRODUCT DEVELOPMENT

3.3 NEW PRODUCT FAILURE AND SUCCESS

SUCCESS

• Proper use of technology

• Effective Product development strategies
 • Top management support
• Correct timing of launching
• New product development speed
• Efficient personnel
• Proper pricing and advertisements
• E.G: Uber, Oyo, iPhone

FAILURES

Product’s inability to establish itself well and persist in the market which could be a
result of poor performance or poor marketing of the product. Product flops lead to the
withdrawal of the product from the market due to different reasons.

• Overestimation of Market Size.

• not being able to realize the required market share
• Lakh of uniqueness
• Failure to understand needs and wants of customer
• Poor planning
• Product Design Problems
• Product Incorrectly Positioned, Priced or Advertised.
• Costs of Product Development.
• No access to the market.
• Bad timing
• Poor demand, low performance and profit

EG.: Kellogg’s, Colgate frozen meals

3.4 PRODUCT LIFE CYCLE STRATEGIES

 3.5 MARKETING METRICS
Marketing Metrics are a key indicator of how well your marketing efforts for your
individual product or service are delivering. That is, marketing metrics are a means to
analyse our effort vs results in a qualitative and quantitative way enabling us to make
decisions for improving productivity as well as profitability. Product metrics are
quantifiable data that a business tracks and analyses to measure the success of its
product.

1. Market share: percentage of total sales generated by a company in the industry 2.

ROI: gain or loss incurred on an investment in relation to amount invested 3.
Customer Acquisition Cost: gross amount needed to acquire new customer 4. Net
Promoter Score: Measure of the likelihood that customer might recommend a
 product or service to friends/colleague.
5. Customer Retention: company’s ability to hold onto its customers over a specific
period
6. Churn rate metrics: measures the rate at which company loses customer over time
7. Customer Engagement: interaction between external customer and organisation

EMAIL MARKETING METRICS:

1. Open rates: no. of people opening mail

2. Click through rates
3. Unsubscribe rates

SOCIAL MEDIA METRICS

1. Reach: No. of people who view content

2. Conversion: no. of people who develop from being user of site to actual paying
customer

WEBSITE METRICS

1. Traffic rates
2. Average time on page
3. Bounce rate: No. of people who are leaving site after visiting

Revenue, sales effectiveness

MODULE 4

4.1 STRATEGIC BRAND MANAGEMENT PROCESS

Brand is a name, term, sign, symbol, or design, or a combination of them, intended to

identify the goods or services of one seller or group of sellers and to differentiate them
from those of competitors. A brand must make the product relevant and meaningful for
the target consumers. It must enhance the product over and above the basic generic
level.
Brand tangible attributes are colour, shape, price, packaging, labelling and Intangible
attributes are quality, image, culture, values.

Strategic brand management process is important for creating and sustaining brand
equity. Developing a strategy that successfully sustains or improves brand awareness,
strengthens brand associations, emphasizes brand quality and utilization, is a part of
brand management. This process creates a wide awareness of the brand and strengthens
the brand association. Proper branding helps the company in differentiating its products
from other competitors. It helps in attracting more customers and persuades them to
buy the product. All this assists in developing a better relationship with the target
market and builds a loyal customer base.

1. Identification of planning process: Company needs to understand the values of

strategic planning. Company should focus on achieving its mission and vision.
Planning process must be effective to carry forward.
2. Identify and establish brand positioning and value: Brand should be capable
of distinguishing the company among its competitors and should affect target
customers’ minds.
3. Plan and implement brand marketing programmes: Company must create a
brand that is acceptable to consumers. Choose and design elements of brand
(logo, symbol, image, slogan). Marketer will use these elements to promote the
brand. Also create strong brand associations which support marketing
programme and activities.
4. Measure and interpret brand performance: This step measures, the
effectiveness of brand marketing programs. Company understands value chain
and analyse financial impact.
5. Growing and sustaining brand equity: aims at maintaining and expanding the
established brand equity. It is a continuous process and a challenging task for
maintaining brand equity.

4.1 BRAND EQUITY

It is the value that a company generates from its product. It the commercial value
derived from customer perception of the brand name. If there is high brand equity, it
means higher value and customers are willing to pay more. Brand equity’s objective is to
estimate the value of a brand. A brand affirms to provide apt quality and performance to
influence the customer’s choice among other brands.

Google, Apple, Microsoft are the topmost valuable brands on the Forbes’ list. Apple
products, due to its consistently outstanding performance, always has high expectations,
rumours and mass excitement surrounding the launch of any new product or opening of
Apple stores.

SOURCES

1. Brand awareness: The probability of customers remembering the brand in

different situations is called brand awareness. It serves as an anchor to which
everything else about the brand is linked. Brand recognition, brand recall. E,g:
Coke

2. Brand Loyalty: The degree of commitment shown by consumers towards a

particular brand is called brand loyalty. In spite of marketing pressure generated
by competing brands, brand loyalty is displayed when consumers stick to a brand
and continue repeating purchases. Increased loyalty levels give the benefit of
decreasing marketing expense. E.g.: Apple

3. Perceived quality: Perceived quality is the customer’s understanding of the

overall supremacy and quality of a commodity or service. To evaluate quality, the
customers consider the performance of the brand based on the parameters
important to them and makes a comparative judgment by assessing competitor’s
offerings in terms of quality. E.g.: Apple packaging
4.Brand association: The traits of a brand that pop in the minds of the consumers
when the brand is talked about are called brand associations. Brand association is a
link associated in the minds of the customer about the brand. A positive brand
association works a long way for the company.

Managing Brand Equity involves two parts: Brand Reinforcement, Brand Revitalization
 5.2 REINFORCING BRANDS- REVITALIZING BRANDS

Activity associated with getting those consumers who have tried a particular brand to
become repeat purchasers along with attracting new users. Concerned with maintaining
brand equity. Helps in creating brand awareness. Managing brand for long run.

WAYS TO REINFORCE BRAND

1. brand consistency: This helps to enhance brand’s positive reputation with

customers and without it, the meaning of the brand would vary across its several
touch points. Brand consistency leads consumers to get familiarized with the
brand and enhance their perception about brand uniqueness, resulting in brand
reputation.

2. Protecting sources of brand equity: Though brand should always try to defend
the existing sources of brand equity, they should also look for potentially
powerful new sources of equity. However, there is very little need to deviate from
a successful positioning, unless the current positioning is being affected by some
internal or external factor which is making it less powerful.

3. Fortifying vs. Leveraging: Fortifying refers to enhancing brand equity in terms of

awareness and perception, whereas leveraging refers to making money from a
brand. Failure to fortify a brand might result in brand decay and there would be
no leveraging from the brand any more. Therefore, there should be a proper
balance between fortifying and leveraging brands.

4. Fine-tuning Supporting Marketing Program: This could be done through

improving product related performance associations and non-product related
imagery associations. This should also be done, only when the current ones are
no longer creating the desired results to maintain and strengthen brand equity

5.2 REVITALIZING BRANDS

It is the market strategy adopted when the product reaches the maturity stage of
product life cycle, and profits have fallen. Attempt to bring product back into the market
and secure the sources of equity. Revitalizing is done because of competition, invention
of new technology, change in preference and tastes, legal obligations.

Ways to revitalize: augmenting products, extensions.

1. By defining new or additional usage opportunities, for example entering the

untapped market.

2. By identifying new and entirely different ways to use the Brand. (e.g., entering a
New Segment)

3. Repositioning a Brand seldom requires the company to establish more gripping

points of difference irrespective of the target market segment

4.2 STEPS OF BRAND BUILDING

1. Determine target audience 2. Position the product and business

3. define company’s personality 4. Choose logo and slogan

4.3 BRAND POSITIONING

A place that a brand occupies in the minds of customers and how it is distinguished from
competitors. It can be defined as the positioning strategy of the brand with the goal to
create a unique impression in the minds of the customers and at the marketplace. Brand
Positioning has to be desirable, specific, clear, and distinctive in nature from the rest of
the competitors in the market.

Develop USP, understand competitors, give message (mission, vision)

3.4BRAND PERSONALITY

Set of characteristics attributed to a brand name. Brand personality is a framework that

helps a company or organization shape the way people feel about its product, service, or
mission. A company's brand personality elicits an emotional response in a specific
consumer segment, with the intention of inciting positive actions that benefit the firm.
Customers are more likely to purchase a brand if its personality is similar to their own.
Five Types of brand personality are:

1. Excitement: carefree, spirited and youthful

2. Sincerity: kindness, thoughtfulness and orientation towards family values

3. Ruggedness: rough, tough, athletic, outdoorsy

4. Competence: successful, accomplished, and influential

5. Sophistication: elegant, prestigious

4.5PRODUCT V/S CORPORATE BRANDING

MODULE 5

5.1 BRAND EXTENTION- ADVANTAGES AND DISADVANTAGES

A brand extension is when a company uses one of its established brand names on a new
product or new product category. It's sometimes known as brand stretching. The
strategy behind a brand extension is to use the company's already established brand
equity to help it launch its newest product. The company relies on the brand loyalty of
its current customers, which it hopes will make them more receptive to new offerings
from the same brand. An existing brand that gives rise to a brand extension is referred to
as parent brand.

Advantages: 1. It makes acceptance of new product easy. 2. It increases brand image. 3.

risk perceived by the customers reduces. 4. An established brand name increases
consumer interest and willingness to try new product having the established brand
name. 5. The efficiency of promotional expenditure increases. Advertising, selling and
promotional costs are reduced. 6. can now seek for a variety. 7. There are packaging and
labelling efficiencies. 8. The expense of introductory and follow up marketing programs
is reduced.

Disadvantages: 1. Brand extension in unrelated markets may lead to loss of reliability if

a brand name is extended too far. An organization must research the product categories
in which the established brand name will work. 2. There is a risk that the new product
may generate implications that damage the image of the core/original brand. 3. There
are chances of less awareness and trial because the management may not provide
enough investment for the introduction of new product assuming that the spin-off
effects from the original brand name will compensate. 4. If the brand extensions have no
advantage over competitive brands in the new category, then it will fail.

5.3 BRAND FAILURES

It’s not an overnight process, Instead, it usually happens slowly, over a period of time,
until one day customers suddenly feel like a stranger to the brand. A failed brand
manifests itself in many ways. It becomes outdated. It loses relevance in the market.
Consumers get confused about or lose faith in what it stands for.
Reasons for brand to fail: weak competitive analysis, brands can get stuck in their comfort
zones, failure to innovate, failure to monitor brand, not keeping up with market changes,
fooling customers, service not upto mark.

5.4 CO-BRANDING AND CELEBRITY ENDORSEMENTS

Co-branding is a marketing strategy that utilizes multiple brand names on a good or

service as part of a strategic alliance. Also known as a brand partnership, it encompasses
several different types of branding collaborations, typically involving the brands of at
least two companies. Each brand in such a strategic alliance contributes its own identity
to create a melded brand with the help of unique logos, brand identifiers, and colour
schemes. The point of co-branding is to combine the market strength, brand awareness,
positive associations, and cachet of two or more brands to compel consumers to pay a
greater premium for them. It can also make a product less susceptible to copying by
private-label competition. Co-branding is a useful strategy for many businesses seeking
to increase their customer bases, profitability, market share, customer loyalty, brand
image, perceived value, and cost savings. Many different types of businesses, such as
retailers, restaurants, carmakers, and electronics manufacturers, use co-branding to
create synergies based on the unique strengths of each brand

Celebrity Endorsement refers to a marketing strategy whose purpose is to use one or

multiple celebrities to advertise a specific product or service. The primary goal, in this
case, is to reach a greater audience, represented by the celebrity’s fan base. It can benefit
customers by direct sales, awareness, loyalty, confidence

5.5 TOP TEN BRANDS IN INDIA

Tata, LIC, Infosys, Reliance, HDFC, Airtel, SBI, Jio, Flipkart, Paytm, SBI