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Products, New Product Development Process, Branding

Illustrative Product decisions
a. b. c. d. Corporate product portfolio including mergers and acquisition decisions and changing portfolio SBU product portfolio including design of new product development process and product deletion decision Product line positioning, width and depth of product line, product modification Brand positioning

Factors affecting product decisions - the consumer - the competitors - the environmental factors - firm’s own objectives and resources

Understanding Products

services (musical concert).physical ods (automobiles). perties (Leela Penta Hotel). persons (electoral candida periences (air journey). organizations(hospitals). Products include . events (cricket match). value based price. information(trade ows) and ideas(family planning) .oduct roduct is anything (bundle of benefits) that can be offered to a market satisfy a want or need. tourist places (Kashmir). service mix/quality. An offering consists of the product features / ality.

CUSTOMER VALUE HIERARCHY Analysing the Five Product Levels – Indica Automobile Core benefit .best after sales service even though not required Potential product .possible evolutio for the car of tomorrow .wants beyond expectations .Transport Basic Product .4 wheel closed car Expected product .good performance .all spec in the ad in small letters Augmented product .

government . nondurables/consumables. military. industrial. tangibility basis ²durables.Classification of products 3durability. services 3use basis ²consumer.

Industrial goods ² ² ² raw materials and parts  natural and manufactured raw material. lubricants). semi-knocked down kits capital items  Installations . maintenance/repair items (paint) and maintenance / repair service(Copier repair).buildings and plant  Equipment . business advisory services (legal. components.portable factory equipment and office equipment  turnkey projects supplies / consumables and business services  operating supplies (paper. advertising) . subassemblies/modules. management consulting.

staples (soaps).Consumer Goods Classification Convenience goods . life insurance .cars. heterogenous (textiles.goods with unique characteristics o brand identification . cameras Unsought goods . food mixers price significant). .encyclopedias.non price issues also signficant) Specialty goods .homogenous (fans. furniture . impulse (gum) emergency (umbrellas) Shopping goods .Special selling effort reqd .

Product Hierarchy Need Family: Product Family: Product Class: Product Line: Product Type: Brand: Item: Personal Transport Automobiles 4 wheelers Passenger cars Mid size car Maruti Esteem AX .

PRODUCT SYSTEM – PC +PRINTER+ OPERATING SYSTEM + APPLICATION S/W + MOUSE P&G Product-Mix vs Product line Product Line length for Bar soaps Crest comes in two ormulations and hree sizes and o has a depth of six Deodorants Product Line Tooth length for Toothpaste paste Coffee Gleem Crest Product mix Detergent width .partial s Bar Soap G’s product lines are consistent(closely related each other) in distribution Ivory Camay Lava Kirk’s Zest Safeguard Coast Oil of Olay .

Major elements of managing products Product Life Cycle Product Portfolio Analysis Objectives of Product Portfolio Analysis Product Line Management .

Product Life Cycle .

Making the PLC Operational / Issues to Look at PLC 1. Product Line…. 6. monthly.fad. style. 5. Unit of Analysis – Product Class.. 3. 4. Product Form. cycle-recycle. rupee value Develop PLC on weekly. quarterly or annual data . What is the relevant market to which the PLC applies Relevant Product Market + Relevant Geographic Market What is likely lifecycle pattern to emerge . 2. staple Identifying the product’s stage in the PLC Model Unit of measurement of PLC – unit sales. fashion.

Empirical Generalization: Always (Almost) Looks Like a Bass Curve Adoption of VCR’s Actual and Fitted Adoption VCR's 1 8 -1 9 0 989 1 2000 1 0000 Adoption in Thousands 8 000 6 000 4 000 2000 0 8 0 8 1 82 83 84 Year 85 86 87 88 8 9 Actual Adopt io n Fitt ed Adopt io n .

Color TV Forecast 1966 C o lo r T V 7 000 6000 5000 Sale s (x 1111 ) 4 000 Sales Predic ted 3000 2000 1 000 Peak in 1968 1 2 3 4 5 6 7 8 9 1 0 11 1 2 Ye ar 0 Industry Built Capacity For 14 million units 1 3 1 4 1 5 1 6 1 7 1 8 1 9 20 .

993 1 000 4 1 2000 1 0000 8 000 6000 4 000 2000 0 8 2 8 3 8 4 8 5 8 6 8 7 Year adoption of answering machines Fitted Adoption 8 8 8 9 90 91 92 93 .An Empirical Generalization Adoption of Answering Machines 1 21 t 98 .

Another Example 35 mm Projectors Actual and Fitted Adoption of 1 5 mm Projectors.q=. m=3 .3 7 3 1 0000 8 1 0000 6 1 0000 4 1 20000 Units 1 00000 8 0000 6 0000 4 0000 20000 0 6 66 67 6 69 7 5 8 0 7 7 7 1 2 3 7 7 7 7 7 7 8 4 5 6 7 8 9 0 Year 35 mm Proj Fitted 8 8 8 1 2 3 8 8 8 4 5 6 .3 7 million. 11 6511 86 .333 . p=.

q=.p=.11 6 -11 7 .33 8 333 3 .Another Example: Overhead Projectors Actual and Fitted Adoption of OverHead Projectors.3 6 million. 1 1 m=. 1 20000 1 00000 8 0000 Units 60000 4 0000 20000 0 1 0 96 1 1 96 1 2 96 1 3 96 1 4 1 5 96 96 Year 1 6 96 1 7 1 96 968 1 969 1 0 97 Overhead Proj Fitted .

1 6K. 1 56 1 sr Quarter 11 7 -1 th 1 K. 1 Quarter 33 85Actual and Fitted Shipments.333 7q=. 3 300 25 0 200 10 5 1 00 5 0 0 Thousands 7 1 7 27 37 1 1 1 21 4 1 31 5 1 5 25 35 9 1 9 29 39 3 1 3 23 33 Quarter 4 K-A 4 K-F 1 K-A 6 1 K-F 6 6 K-A 4 '64 K-F 25 K-A 6 25 K-F 6 4 3 . . p=.DRAMS Norton and Bass: Management Science (1987) Sloan Management Review (1992) Four Generationsof DRAMS: 1 K.33 6 .Capture Law. 6 K.

Capture Law-Mainframes-Beautiful! Generations of M ainframe Computers (Performance Units) 11 7 -1111 1 1 20000 1 00000 8 0000 Sales 60000 4 0000 20000 0 1 2 3 4 5 6 7 8 9 1 0 Year Gen1Actual Gen3 Actual Gen1Fit and Forecast Gen3 Fit and Forecast Gen2 Actual Gen4Actual Gen2 Fit and Forecast Gen4Fit and Forecast 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 .

Generations of PC’s World Wide Sales of Generations of Desktop PC's 1 4 1 2 Unit Sales in Millions 1 0 8 6 4 2 0 7 5 7 6 7 7 7 8 7 9 8 0 8 1 8 2 8 3 8 4 Year 8 Bit 1 Bit 6 32 Bit 8 5 8 6 8 7 8 8 8 9 90 91 92 93 .

Effects of Different Prices GBM -Diffusion Under Two Different Pricing Schemes 2000 1 00 8 1 600 Sales (Adoption) 1 00 4 1 200 1 000 8 00 600 4 00 200 0 1 2 3 4 5 6 7 8 9 1 0 Time 1 % Below Baseline Prices 0 Baseline Price 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 .

Product Portfolio Analysis .

Objectives of Product Portfolio Analysis 1) Resource allocation among products and markets 2) portfolio analysis of competitors leads to a refined understanding of competitive strategy by action – reaction steps 3) Assess the marketing effort for each product to direct it in the product portfolio from one place to another .

Growth share matrix. M A R K E T G R O W T H High STARS PROBLEM CHILD CASH COW Low High DOG Low RELATIVE MARKET SHARE .Boston Consulting Group.

Shell International directional policy matrix
Prospects for sectors profitability Unattractive
Company’s Competitive Capabilities Company’s Competitive Capabilities Company’s Competitive Capabilities

Average Phased withdrawal Custodial Growth




Double or quit Try harder Leader


Phased withdrawal


Cash generation Leader

Competitive capabilities- Market position - Production Capability - Product R &D

Industry attractiveness – Size, Market Growth, Pricing, Mkt. Diversity Competitive Structure, Industry Profitability High Business strength High - Size - Growth - Share - Position - Profitability Medium - Margins - Tech. Position - Image - People Low Investment and growth (G) Medium Investment and growth (G) Low Selectivity/ Earnings

Mc Kinsey/GE Business Array

Investment and growth (G)

Selectivity/ Earnings


Selectivity/ Earnings



Product performance matrix
Company sales Profitability Decline Below target Target Above Target Stable Below target Target Above target Growth Below target Target Above target

Industry sales

MKT share


Dominant average Marginal Dominant average marginal Dominant average Marginal



Product Line analysis Product Line Management Product line length management .

divest. maintain. Memory chips – higher margins Specialties – digital movie equipment – still higher margin Convenience items – monitors. Understand Gaps in product line and understand market segements .Study sales and profits of each item in line. Understanding corresponding competing Products between your line and competitor’s line. harvest. printers –high volume high margin Product Line Analysis Manage each of the above four types of products differently Market Profile: Examine how the line is positioned against Competing lines. to see Which to build. Do ABC Analysis on sales / profits Core products – Basic Computers – low margins Staples – CPUs.

Product Line Length Management Product line objectives would be to induce both up selling and cross selling High Market share seeking firms will have longer product lines. High profitability seeking firms will have shorter lines of important / more profit product items. .

Omni. Baleno.TVS Scooty --. Esteem.Product line length Management Line stretching Upward – Maruti – 800.TVS SUZUKI Mobike Line Featuring: (oft promoted brand in line) Lux in Soaps for HLL Line modernization – Intel in Microprocessors Line Pruning – First Ruf & Tuf ready to stitch kits.Lexus Downward – Surf – Wheel Two way . Toyota .Rural Transport Vehicle – Ambassador – Mitsubishi Lancer (Hindustan Motors) Line Filling (each item should produce a just noticeable difference) TVS50 --. Later Ruf & Tuf Jeans .

Developing New Products Firm end · New Product Development Process Consumer end · Consumer Adoption Process .

Reactive and Proactive Some reasons for new product failures .New Product Development Process Make or Buy Decision Issues to New Product Development Steps to New Product development Process Factors for success of new product launches New Product Strategies .

Management. Legal and Market feasibility . Superiority of ‘Buy’ technology 3. Timing Considerations 2.Make or Buy Decision Considerations 1. Cost considerations 4.

KILL.Shortage of important ideas .Some Issues to New Product Development many projects to provide .cost of development very high . RECYCLE shortages .Stage Gate System – GO.Cross Functional Venture Team .demands for shorter development time – competition catches up quickly Budgeting for New Product development . . much money to provide for each project . Factors hindering new product development .Fragmented markets .social and government constraints – Pollution standards – implementing them may increase cost relative to what market can bear .how to grapple with failure . New Product Department .how to reward success Organizing for New Product development .New Product Managers. 3.

New product development decision process Coordinate. Prepare Advertisi ng Buy equipme nt And go into full Productio n& distributi on Yes •Idea generation •Is the particular Idea worth considering? Yes Concept Developi ng And Testing Yes Marketin g Strategy develop ment Yes Busines s analysis Yes Produ ct Devel opme nt Yes Mark et Testi ng No Yes Buy Plans Yes Idea screening Commerc Yes ialization No Would it help To modify our Product or marketing Program? No No No No Yes Should we No No Send the idea Back for Product development DROP No . And among company personnel Identify: 1) company factors 2) their weights Develop Alternative product Concepts Prepare: Price Distributio n promotion Prepare: Market analysis Cost analysis Conduct: Engineerin g tests Consumer preference tests Branding Packaging Go into limited Productio n. and search for ideas in external envt. Stimulate.

.Idea Generation Creativity Techniques + Interacting with others Idea Screening Drop Error (Wheel after Nirma) Go Error (Edsel) Weighted Index method of factors to success and relative weights Concept Development Idea converted to a usable proposition with a price for a particular target market. The brand positioning is also used to evaluate the features and benefits the brand should have.dosa etc) and then the idea is used in concept development . Product positioning map is used to find the ideas position in relation to competition (cornflakes with idli.

believability. positioning. rapid prototyping. c. purchase occasion and purchase frequency. target market analysis. sales. virtual reality . gap level (gap between current products and need). b. need level (or intensity).Simple presentation of concepts. user targets.Concept Testing . .Marketing strategy plan is made that consists of a. purchase intentions.use of conjoint analysis technique to test consumer preferences with alternative concepts . Marketing Strategy . distribution strategy and marketing budget for first year long run sales and profit goals and marketing mix over time.check concept on – communicability. perceived value. market share and profit goals in the first few years planned price.

Breakeven analysis .beta testing – refine the prototype after alpha test – test with consumers.Business Analysis . one time.acceleration rate into required horsepower .Rank Order .Risk analysis (optimistic.Estimate Costs and profits .Prototyping – conversion of customer attributes into engineering attributes .Customer testing – either alpha or alpha and beta . several decision makers consumer preferences measured on 3 scales . opinion leaders. pessimistic and likely profit plans) Absolute Product Failure – Variable cost not recovered Partial Product Failure – Fixed Cost not recovered Relative Product Failure – Target ROI not achieved Product Development .Assess Business Attractiveness .Estimate total sales – BASS Model.Monadic rating like a seven point interval scale .Paired Comparison . repeat + replacement sales slide) .alpha testing – test within the firm to see how it performs .

Consumer Sales Wave Research – repeated offer of the product at a reduced price noting down the repeat purchase and satisfaction Simulated Test Markets – used for testing advertising effectiveness. local ad and promo effects Market Testing (Limited Market Info – then test. trial rates Controlled Test Markets. What action to take (rollout nationally – yes or no) Variables monitored – trial. Risky products – Then test) Test Markets – How many test cities. Length of Test. What information to collect. Distributor and dealer displays. purchase frequency Industrial Trade shows. Test Marketing . first repeat. adoption.panel of stores are enlisted to check sales. Which cities.

WHEN (TIMING) WHERE (GEOGRAPHY) Commercialization TO WHOM ( among target market. early adopters. opinion leaders) HOW (Introductory Marketing Strategy) . also is it To innovators.

5% innovators 13.5% early adopters Time of Adoption Of Innovations 16% laggards .One time purchased product Infrequently purchased product sales sales Time Time Sales Replacement sales Repeat purchase sales Time Frequently purchased product 34% 34% Early majority Late Majority 2.

Factors for success of new product launches a) top management commitment b) selective top management involvement in the product development process c) development of a continuous new product development system d) multiple product development efforts e) continuous evaluation at each phase f) flexibility in the product development system .

General foods. Number of projects 1 Screening and analysis of new product ideas Development Test market Market introduction Market success 600 2 3 4 5 118 87 40 30 . had the following experience over a 10 year period. for example.

within the organization New Product Strategies Proactive strategies Explicitly allocate resources to preempt Competition and market events .Reactive strategies React to pressures of product development From competition.

Defensive – defend against competitor’s new products e. furniture Peter England after Louis Phillipe. Nescafe vs Bru Imitative Strategy – ‘me too’ strategies in fashion for clothes.g. Visicalc was first Dove was first.g. NIMA after NIRMA Reactive Second but better strategy – copy and improve Lotus 1-2-3 was second. landscaping . Mysore Sandal Gold was later in a local market sense Purposively reacting to customer requests e.

HLL. P&G. At 3M there is a separate division for entrepreneurial new product introductions Acquisitions / Alliances – HLL of TOMCO. AT&T-BT. HP.g.Initiate new R&D projects in a planned manner so new products Are introduced e. Colgate Proactive Entrepreneurial – INFOSYS – Entrepreneur makes it happen. Toyota . IBM. Microsoft especially Windows Marketing – Systematic need analysis and gap analysis to identify Products and services e.g.Kirloskar .

Cross-functional integration in new product strategy s eed rn me sign to e Cus ct d u ro d P R&D Engineerin g Fund requests De sig Pr o rm a nu cess fac ture nee ds r n fo Sales forecast Marketing Inventory Bu dg Fu ets req nd ue st s Budgets Produciton d Bu d n Fu ts ge s est u r eq Finance .4.

Competitive Response too good – Nescape Vs Bru 10. Market too small – Imported cars 2. TVs 8. No real benefit – Savings Deposit Certificates in High Inflation Environment 5. Poor positioning Vs competition – NIMA in soaps vs NIRMA 6. Forecasting errors – Cars. Lack of coordination in functions – R&D designs product not needed by user – IBM PS/2 . Inadequate support from channel of distribution 7. Poor Timing – Microwave Owens in early 1990s 9. Insufficient return on investment – possibly in pharma area 13. Changes in Customer tastes – fashion goods 11. Poor match or fit with company – Unilever Chemical Business 3. Not new / Not different – Relaunch of Godrej-Cinthol 4.SOME REASONS FOR NEW PRODUCT FAILURES 1. Poor after sales service – EDSEL a lemon 12.

Trial. Adoption Consumer Adoption Process . communicability . Evaluation. Early adopters. divisibility.Individual level Awareness. compatibility.Consumer Adoption Process . Early majority.Aggregate level Diffusion process. Diffusion of Innovations Developing New Products dopter Categorization on the basis of Relative Time of doption of Innovations Innovators. complexity. Interest. Late majority Laggards actors influencing rate of adoption Relative advantage.

5% early adopters Time of Adoption Of Innovations 16% laggards .5% innovators 13.One time purchased product Infrequently purchased product sales sale s Time Time Sales Replaceme nt sales Repeat purchase sales Time Frequently purchased product 34% 34% Early majority Late Majority 2.

BRANDING Definition of a Brand Issues in Brand Equity Devising a Branding Strategy .

David Aaker A Brand is the sum of how consumers feel about a product ………….. Tom Peters A brand should represent a program in addition to products ………. Ogilvy and Mather . Hook or crook ……….. live and disappear but brands endure …… Jean Noel Kapferer Branding means nothing more and nothing less than creating a distinct personality… and telling the world about it ..What is a Brand Products come to life. Jean Noel Kapferer A company’s brand is the primary source of its competitive advantage and a valuable strategic asset ………….

Why are brands built ? .

Marlboro Tobacco moved into Marlboro brand classic jeans to gain on advertising for Marlboro brand as there was legal restraint on advertising tobacco.g. Identify goods/services of one seller or group Differentiate goods / services of one seller / group from competition Reduce risk of uncertainties in demand through promise of a set of features / attributes / benefits delivered with consistent quality. applying thought (generation of ideas). Similarly WIPRO originally stood for Western India Vegetable products. today it stands for integrity. Palmolive originally stood for Palm products. today Palmolive stands for softness. 2.1. E. . 6. The brand is a promise of the offer. Similarly Wills cigarettes and Wills Sports Makes an emotional connection with the customers and among customers Move from descriptive reality to abstract reality. 3. Makes product less price volatile Leverage across markets – e. 4.g. 5.

9..brand naming through registered trademarks .Why are brands built 7.cont In a modern technological world.manufacturing process through patents . branding is a way of simplifying decision making and a way of reducing risk of consumers Branding offers legal protection for unique features of a product : . . ….packaging and designs through copyrights Brands are thus valuable pieces of legal property Brands can develop associations with a certain level of quality 8.

values. else it is shallow. sign. term. benefits. personality. A brand is a perceptual entity that is rooted in reality that reflects the perceptions and perhaps even the idiosyncrasies of consumers Branding is all about creating differences. 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 competitors A brand conveys meaning about attributes.AMA definition of a brand: Brand is a name. culture. . When the meaning is properly and fully conveyed it is deep. Brand differences can be often related to attributes or benefits of the product (Gillette). It can also arise creating relevant and appealing images around the product by understanding consumer motivations and desires (Coca-Cola). user.

Energy : Hardworking. aiming for excellence : Upwardly mobile middle class culture : Winner : Healthy and hardworking child . Mentally alert.Brand : Bournvita Ingredients Attributes Benefits Values Cultural Meaning if any Brand Personality Phrase Brand User : Cocoa : Chocolate Taste : Nourishing.

If Colgate Dental Cream is anchored at the benefit level of strong teeth. When the brand identity is anchored at the benefit level and is representing a single benefit it tantamounts to the Unique Selling Proposition. Normally brand identity is anchored at one or more levels of brand meaning (as shown in the previous slide). then that Could be its USP. .Brand Identity is the meaning of what the brand represents and stands for and what the brand promises to customers.

Issues in Brand Equity .

something more than the expenditure that has been incurred by the seller. Subjectively brand equity represents a surplus meaning attached to the brand.Greater Loyalty .Defining Brand Equity Brand Equity is a brand value endowed to products / services that helps protect and nurture product / services.Increased marketing communication effectiveness .Larger margins .Greater trade cooperation and support .Improved Perception of Product Performance .Less vulnerability to Competitor marketing actions and crisis situation . Marketing Advantages of Strong Brands .Additional Brand Extension opportunity .

Building Brand Equity .

characters. packages and signage . WIPRO – colored sunflower. adaptable as times change (e.brand elements should be easily recognized and recalled and can reduce the burden on marketing communication to build awareness and brand associations . transferable to brand extensions.firms use more than one of above elements e.choice of each element on criteria that includes memorable. Lifebuoy – which retains its core proposition of health). Applying thought – slogan.Logos as important as brand names – LIC with folded hands covering a lamp. symbols. likeability. Parachute Oil with a coconut tree. protectible (legally) . . slogans.g. logo. WIPRO name based on earlier acronym . URL. Brand Equity Initial choices for the brand elements or identities making up the brand . spokespeople. jingles.

Leveraging secondary associations – Coke with music concerts.Personalization of marketing efforts e.Internalization – everyone in the company lives the brand – good internal marketing as it would reflect in brand contacts .Sum total of all brand contacts put together. .Building Brand equity . Adidas with cricket (Sachin Tendulkar).Integration of marketing efforts to the customer.Experience with the product or service . In a long term time frame this could mean reputation . especially integrating communications .g. High end banks .

Reactions should be swift and sincere.Brand reinforcement to ensure that the brand value does not depreciate in time.Consistency of the marketing support to the brands – HLL in soaps. Kmart failed in this to find its equities dwindling . Cadbury India on account of worms in chocolates. especially LUX. Lifebuoy .Reinforce brand equity through constant innovation and relevance.g.Revitalization finds elements of both of the above.Managing Brand Equity . -Brand Revitalization . Palmolive on softness.Establish a brand’s abstract reality and reinforce this reality (e.g. .Go back to basics of consumer needs and wants – finding gaps in FMCG market or at the other end of spectrum – go for reinvention (Intel). Brand Crisis Cola crisis in India on account of high level of pesticides. . Nivea on skin care and personal care). through suitable line extensions and category extensions . to refresh existing sources or find new sources of brand equity e.

Issues in Branding Strategy .

Parent Brand – ICICI (financial products) Sub Brand – ICICI Prudential Life Insurance Family Brand – Parent Brand in multiple product categories – GE as in GE Medical Systems.Category Extension – WIPRO Hydraulics – originally WIPRO consumer products Brand Line – All products – both original and line and category extensions sold under a particular brand e. GE Lighting. GE Plastics Brand Extension . Colgate product Brand Mix – the set of all brand lines that a seller makes e.g.Line Extension – Colgate with Active Salt in toothpaste line . Colgate and Palmolive Branded Variant – Specific brand lines made available to specific retailers or distribution channels – NIKE FOR FOOTLOCKER Licensed Product – AMCO .g.YUASA .

An overview of Branding Decisions Branding Decision Brand-Sponsor Decision •Manufacturer brand Brand-Name Decision *Individual names *Blanket family name *separate family names * Company – individual names Brand Repositi Brand-Strategy oning Decision Decision •Brand extensions – Line or category Multi-brands New brands •Co brands •Reposi tioning •No repositi oning Brand No brand •Distributor (Private) Brand *Licensed brand .

New Brands – new brand in new product category – GoodKnight CoBrands – WIPRO-GE. ICICI-HP credit cards . Distributor brand – Sears Kenmore Appliances from Whirlpool. Blanket Family Name – TATA. Palmolive Shave Cream. Separate Family Names – Colgate Toothpaste. GE. Pierre Cardin and Christian Dior – licensed names for clothes of Hart Schaffner and Marx. Company Individual Names – Kellog’s Rice Krispies.. Category Extension – WIPRO consumer products. Colgate Gel. Hamam. Multi-brands – HLL in soaps such as – Lux. Dove. Nilgiris Licensed brand – AMCO-YUASA. Food-world Brand . WIPRO Computers. Kellog’s Raisin Bran Brand Strategy Decision Line Extension – Colgate Dental Cream.Brand Sponsor Decision Manufacturer Brand – NIRMA. Brand Name Decision Individual Names – Lexus.

likely stands for values such as comfort. e. Kellogg. caring. E. Sachin – Adidas Brand Associations – Coke sponsors music concerts to build brand association with music. Woolworth (retailer) Brands that are based on value tend to live longer and is easier to extend across Product items. nutritious.g. Nestle stands for warm. Roles of Celebrity – Endorsements. Sprite. healthy. Levi’s s today is an umbrella brand for trousers not just jeans – Levi.Product based brands vs Value based brands Brands that are associated with a product are called product based brands.g. Dockers. Spokesperson. . Benefit – performance quality. style. Peripheral route to persuasion e. quality. Celebrity endorsements tend to increase value of a brand when there is a good fit Between the celebrity endorser and the benefits the brand is supposed to possess.g. Slates.

Brand Extensions .

It can Also increase market coverage.g.Brand Extensions are a useful way to leverage across markets. gel to cater Different segments and thereby increase coverage). Nestle Move away from product markets – Tata trucks to Tata Indica Dilemma for category extensions is to maintain the identity of brands while playing The rules of game for the new category One type of brand extension is to keep brand name and product category but Change product item to suit lifestyle e. (Rexona deodorant in stick. Useful to reduce rising cost of multi-brand portfolios Create Mega Brands e. Lifebuoy – carbolic to noncarbolic Brand extension helps own a concept – Palmolive today stands for softness .g. spray. It can facilitate new product acceptance Brand Extensions can create positive feedback effects for the parent brand.