You are on page 1of 28

Summary of Product Management

Brand Management System On Building A Brand Managing Across Brands


Product Management Summary1

Professor Carl Mela BA 460 Product Management Fuqua School of Business

Agenda
PharmaSim Wrap-up
Insights from the marketing plan Insights from the game

Course Summary Latest Research Project

Product Management Summary2

PharmaSim Wrap-up
Marketing Planning Lessons Strategies and Performance by Group

Product Management Summary3

Marketing Planning Lessons


Situation Analysis
Length
Is it germane to strategy and tactics

Information ->Inferences ->Implications


If no implications, than consider omitting

The plan is also a request for resources


Affects tone

Product Management Summary4

Marketing Planning Lessons


Situation Analysis
Internal consistency
If it is in the situation, is it in the summary? The objectives? The strategy?

Assumptions
Includes growth, competitive reactions, etc.

Objectives - are they attainable?


Bonuses and merit raises Forecasts
Product Management Summary5

Marketing Planning Lessons


Competitor and Customer Analyses
What do the customers want?
Table of benefits by segment or perceptual map

Who provides it?


Table of benefits by competitor or perceptual map

Are there positioning gaps? Who will rush to fill them and what are the threats?
Product Management Summary6

Marketing Planning Lessons


Strategy and Tactics
Link objectives, strategy and tactics Specificity: How many sales people? What ad budget? What allocation of trade promotions?

Pricing Analysis
All teams adopt competitive positioning, but is this profit maximizing?
Product Management Summary7

Marketing Planning Lessons


Promotion Analysis
Caution in reallocating marketing support from core product (e.g., Coke to Diet Coke)

Advertising Analysis
Objective of primary demand is often not commensurate with a line extension or a lower share brand (increases competitors sales)

Product Management Summary8

Marketing Planning Lessons


Product Design Analysis
Articulate rationale Competitors and customers Promotional plan should vary by product

Product Management Summary9

Game Results
Rank Within Industry
Team Cum. Mfr. Sales A B C D E F G H Cum. Net Income 2 1 1 1 3 1 2 1 3 3 2 3 4 2 3 3 Share of Mfr. Sales 3 2 1 2 3 1 1 1 Stock Price 4 2 1 2 3 1 3 2

Groups maximized share and sales as opposed to net income - marketing bias?
Product Management Summary10

Game Results: Team Strategies


Advertising Team Rank A 3 B 3 C 3 D 3 E 4 F 3 G 3 H 3 Promotion Rank 1 1 1 3 3 1 2 5 Sales Force Rank 3 4 4 3 3 3 4 3 Price Rank 2 2 2 2 4 1 2 2 Number of Products 2 3 3 2 2 3 3 3

Product Management Summary11

Game Results
Correlation between teams strategies and teams results
Cum. Mfr. Sales Cum. Net Income Sh. Mfr. Sales Stock Price Cum. Ads -0.03 -0.04 -0.21 -0.08 Cum. Promo 0.64 0.37 0.66 0.68 Cum. Sales F. 0.10 0.41 -0.25 -0.02 Avg. Ret. Price 0.64 0.79 0.29 0.49 No. Products 0.46 -0.04 0.73 0.59

Product Management Summary12

PharmaSim Wrap-up
Experience with marketing planning
Number of lessons with respect to writing a plan

Goal-setting experience
How did you do vs. plan

Experience managing a brand


Most teams did well Correlates of success
Product Management Summary13

Course Overview
Objective - Theoretical and practical grounding in brand management Structure
Brand Management System On Building A Brand Managing Across Brands

Product Management Summary14

Structure
Part I - The Brand Management System
Brands and Brand Management: Class 1
The Nature of a Brand Brand/Product Management An Application to the Pepsi Syringe Scare.
Sophisticated organizational structure Integrated plan Facilitated information flows to and from markets Result: brand not affected

Product Management Summary15

Structure
Part I - The Brand Management System
Organizational Design: Class 2
P&G Case
The brand management system gives brands attention In mature categories, be wary of product proliferation

Live commentary from P&G


Whitewater packaging Challenges of implementing decisions (approvals and interactions) P&G continually adapts its structure
Product Management Summary16

Structure
Part II - Building Brands
Pricing: Class 3
Kodak
Strategic choice between share, margins, and equity Innovation is necessary to increase all three Price points and flanker (fighter) brands

Pricing
Price-quality inferences EDLP The effect of pricing on equity (JMG 1999)

Red Hats Director of Marketing


Product v. brand Flanker brands
Product Management Summary17

Structure
Part II - Building Brands
Distribution: Class 4
Goodyear case and video
Channel cares about price and store equity (not brand) Manufacturer cares about brand equity (not store) Intensive v. exclusive distribution and equity Push v. pull and equity Channel is front line to customer and has large impact on equity Video: dealing with the media

Brand Elements
Name, logo, characters, slogans, and jingles Memorable, meaningful, protectable, transferable, adaptable
Product Management Summary18

Structure
Part II - Building Brands (Cont.)
Private Label and Promotion: Class 5
Private Label
Change quality, change price, add low quality brand, or do nothing (Hoch) Recall, these are Kodaks options

Sales Promotion
Event marketing (raise awareness and leverage secondary associations, but weak payoffs and unforseen consequences) Sales promotion (trade and consumer) Short term gains, long term costs

Craig Stacey (VP from IRI) discusses the use of scanner data information to build brands. Product Management Summary19

Structure
Part II - Building Brands (Cont.)
Promotion: Class 6
Marketing in the NHL
Promotion of event rather than game Grass roots marketing

Hurricanes Director of Communications, Ken Lehner


Live survey on marketing the NHL and building the Hurricanes brand Promotional design

Product Management Summary20

Structure
Part II - Building Brands (Cont.)
Advertising: Class 7
Advertising
Integrated communications (awareness and brand associations)

Intel Inside Interactive CDROM.


Process of developing advertising strategy

Live Commentary and Discussion with Michael J. Ganey, Director, Howard, Merrell & Partners,Inc.
How to use an agency Effect of advertising on brands

Product Management Summary21

Structure
Part III - Across Brands and Markets
The Marketing Plan: Class 8
The Marketing Plan
Plans serve to coordinate and formalize research and decisions Planning process Planning format

Tom OGuinn, Visiting Professor discusses Brand Communities.


Consumers are now empowered by the internet and increasingly difficult to manage
Product Management Summary22

Structure
Part III - Across Brands and Markets
Product Extensions: Class 9
Product Extensions
Tremendous efficiencies Consumer confusion Issues of fit

The Black and Decker Case and Video


Demonstrates effect of extensions on parent brand Strategies to mitigate negative brand associations Rebrand Inimitable points of differentiation (service, sales relationships)
Product Management Summary23

Structure
Part III - Across Brands and Markets
Global Branding: Class 10
The Heineken Case
Messages can transcend culture Think global (message) Act local (design) Local v. global control

Global branding
Efficiency v. customization

The Fuqua MBA with Jim Gray, Associate Dean, Fuqua.


Product Management Summary24

Structure
Part III - Across Brands and Markets
Branding on the Internet: Class 11
Deborah Kania (Lens Express and author of branding.com) and Beth Yakel (Sciquest)
Brands are increasingly important on the web Traditional brands have greater awareness but carry traditional baggage. The opposite is true for e-brands Branding on the web implies personalization and community

Product Management Summary25

Structure
Part III - Across Brands and Markets
Wrap-up and PharmaSim Summary: Class 12
You are here!!

Product Management Summary26

Course On a Page
Part 1 - Brand Management System
Brands and Organizational Design

Part 2 - On Building A Brand


Price to Image Distribution Presents Image Christen and Nathaniel Arrive! Promotion to Develop Image Product is Image (Private Label)

Part 3 - Managing Across Brands & Regions


Marketing Plan Product Lines Interact Global v. Local Associations
Product Management Summary27

Good Luck!
Stay in touch
Guest speaking Examples Feedback regarding preparation Vexing issues faced this summer or next year

Thank you for making this a great and enjoyable course!!


Product Management Summary28