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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
 Places
 Services
 Properties
 Experiences
 Organizations
 Events
 Information
 Persons
 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
 Materials and parts
–
–
–
–
Farm products
Natural products
Component materials
Component parts
 Durability and
tangibility
 Capital items
 Consumer goods
 Supplies and business
services
 Industrial goods
– Installations
– Equipment
– 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
Core
Pride
Value
Available
Brand
Essence:
Taste
Milk
Quality
Indian
Variety
Food
AMUL: Aaker’s Model
Essence
Extended
Core
A Branded
Representation
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
Relationship :
Sociable
Reflection :
Value Oriented
Personality :
Simple, Indian
AMUL
Culture :
Co-operative, Sharing
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
Company
analysis
Consumer
analysis
Brand
•Size, demographic,
geographic
•Usage, depth, width
•Size, profitability,
•distribution,
technology
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
I) INFORMATIVE
FEELING
II) AFFECTIVE
HIGH
INVOLVEMENT
LOW
INVOLVEMENT
LEARN-FEEL- DO
FEEL-LEARN-DO
III) HABITUAL
IV) SATISFACTION
DO-LEARN-FEEL
DO-FEEL-LEARN
Category Differences
Consumer
Products
Consumer
Durables
Services
Corporate
Lower values
Higher values
Indeterminate
No value
Frequent purchase
Infrequent
Indeterminate
Variable
Narrow/Broad
Target customer
Narrow Target
Customer
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
Feeling
High
Involvement
Low
Involvement
Plot: car, TV, detergents, perfumes, flour, clothing,
insurance, mobile
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,
•
Poor awareness leading
to poor trial
•
Poor repeat usage after
high trial
•
Lack of desired image
perceptions
routine purchase or
impulse purchase
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.
End of Lesson
You
start Branding