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 Aaker’s model And As per Kapferer’s prism

AMUL : Aaker’s Model
Extended
Pride Valu e

Core Brand Essence: Milk
Quality Indian Food Available Taste

Variety

AMUL: Aaker’s Model

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 : Kapferer’s 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  Brand strategy  Brand repositioning  Advantages of branding:
– Facilitates order processing – Trademark protection – Aids in segmentation – Enhances corporate image – Branded goods are desired by retailers and distributors

Brand Decisions
Key Challenges
 To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning

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

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

 Line extensions  Brand extensions  Multibrands  New brands  Co-branding

Brand Decisions
Key Challenges
 To brand or not  Brand sponsor  Brand name  Brand strategy  Brand repositioning  A brand report card can be used to audit a brand’s strengths and weaknesses.  Changes in preferences or the presence of a new competitor may indicate a need for 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,

Brand

Company analysis
•Size, profitability, •distribution, technology

geographic •Usage, depth, width

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

How Does Advertising Work I
Classic Hierarchy of Effect Model
Purchase 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
HIGH INVOLVEMENT

FEELING II) AFFECTIVE FEEL-LEARN-DO

I) INFORMATIVE LEARN-FEEL- DO

III) HABITUAL
LOW INVOLVEMENT

IV) SATISFACTION DO-FEEL-LEARN

DO-LEARN-FEEL

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