Download Branding

10-1
Product & Brand Management
Dr. Sanjeev Varshney
10-2
Different Levels of Benefits (Laddering)
Expected
Generic or Core
product
Product or Service or Service
(Must)
(Satisfiers)
Augmented
or
Enhanced
Products
or Services
(Delights)
Potential Product
or Service
(True insights)
The Rings Model of Product/Service Attributes (Levitt)
10-3
Product Mix and Product Line



The product mix is the set of all products offered for sale by a
company.
A product mix has two dimensions:
– Breadth - the number of product lines carried.
– Depth - the variety of sizes, colors, and models offered
within each product line.
A product line is a broad group of products, intended for
similar uses and having similar characteristics.
10-4
Dabur Strategy
Oral
Care
Hair
Care
Home
Care
Food
Health
Digestives
Baby
Red
Toothpaste
Binaca
Toothebrush
Lal Dant
Manjan
Babool
Meswak
Promise
Dabur Hair
Oil
Vatika Hair
oil
Vatika
Shampoo
Anmol
Shampoo
Anmol Hair
Oil
Odomos
Odonil
Odopic
Sani fresh
Real
Real
active
Coolers
Hommad
e
Lemone
ez
Capsica
Health
supplments
Natural
Cures
Digestives
Hajmola
Pudin hara
Hingoli
Anardana
Dabur
Lal Tail
Dabur
Baby
Olive oil
Dabur
Janma
Ghuti
10-5
Colgate-Palmolive Product Assortment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-6
Product Mix Strategies

Positioning the Product
–
–

Product-Mix Expansion
–
–

In Relation to a Competitor
By Price and Quality
Line Extension
Mix Extension
Altering of Existing Products
–
–
Product Alteration
Packaging Alteration
10-7
Product Mix Strategies (Con’t.)

Product-Mix Contraction
–
–

Thinner/Shorter
Concentration on Fewer Lines
Trading Up/Trading Down
–
–
Trading up: Adding a higher-priced product to a line to attract a
higher-income market and improve the sales of existing lowerpriced products.
Trading down: Adding a lower-priced item to a line of prestige
products to encourage purchases from people who cannot afford
the higher-priced product, but want the status.
Why Would a Company want to increase its product mix breadth?
Why would it want to decrease it?
10-8
Adopting Product Breadth to Meet
Changing Consumer Demand
How do firms decide which products to add or subtract
from their product mix?
10-10
Product Line Substitution Effect
From - To
Core Brand
Multi-grain
Reduced
Fat
Core Brand
X
10%
25%
Multi-grain
5%
X
20%
5%
X
Reduced Fat 10%
Product Line extension add to the
sales & profit of the Product Line
10-11
Product Line Scale Effects


Scaling effect in terms of fixed manufacturing
expenses
Leveraging fixed Marketing Expenses
associated with sales & distribution
Net Marketing Contribution = Sales Revenue X % GP – Marketing exp
Marketing ROS: Net Marketing Contribution/Sales X 100%
Marketing ROI: Net Marketing Contribution/Marketing expenses X 100%
Or
Marketing ROI = Marketing ROS/Marketing expenses X 100%
10-13
"Products are made in the
factory, but brands are created in
the mind."
Walter Landor
10-14
What Makes a Brand?
URLs
Brand
name
Branding
Logos and
symbols
Jingles
Slogans
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Characters
10-15
Value of Branding for the Customer and
the Marketer
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-16
Brands
Reasons for not branding
No promotion
Do not need consistent quality
Product can not be
physically differentiated
10-17
Selecting a Brand Name
Suggest
benefits
or
use
Adaptable
to
product line
additions
Easy to
pronounce
spell
remember
A
Good
Brand Name
Distinctive
Can be
registered
and legally
protected
10-18
Brand Equity
Brand
Perceived
Value
Brand
Awareness
Brand Equity
Brand
Loyalty
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CRM
Programs:
Are they able
to create
Brand
Associations
Brand
Association
10-20
Protecting a Brand Name
Product
counterfeiting
Generic usage
Xerox
10-21
Measuring Brand Equity



Brand Audits: Consumer Focused exercise
Brand Tracking
Brand Valuation
Brand
Asset
Score
-
Brand
Liability
Score
=
Brand
Equity
10-22
Brand Asset Score Card
Brand
assets
Rltv
Imp
Very
Low
(0)
Below
avg
(25)
BA
20%
EC
10%
BL
20%
PLE
30%
X
15
PP
20%
X
10
OBA
100%
BA – Brand Awareness
EC- Emotional Connectedness
BL – Brand Loyalty
PLE – Product Line extensions
PP – Price Premium
Avera Above
ge (50) Avg
(75)
X
Very
High
(100)
Brand
Assets
Score
X
20
5
X
15
65
10-23
Brand Liabilities Score Card
Brand Rltv
Liabilit Imp
ies
Very
Low
(0)
Below
avg
(25)
Avera Above
ge (50) Avg
(75)
Very
High
(100)
Brand
Assets
Score
CD
20%
X
4
PF
10%
X
4
QP
20%
PRSI
30%
NA
20%
OBL
100%
X
X
10
0
X
CD- Customer Dissatisfaction
PF – Product failures
QP – Questionable Practices
PRSI – Poor Record on Social issues
NA – Negative Associations
4
22
10-24
Branding Strategies
Manufacturer
or National
Brand
Brand
Ownership
Store or
Private
Label
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Generic
10-25
Naming Brands and Product Lines
Corporate
or Family
Brand
Brand
Names
Corporate
& Product
Line Brand
Examples for Each
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Individual
10-26
Brand Extension
Name well
established
Boost sales
of the core
brand
Brand known
for high
quality
Benefits of
using
same brand
name
Synergy
among
the products
Marketing
costs
are lower
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-27
Brand Dilution
Evaluate the fit between
the product class
of the core brand
and the extension.
Evaluate consumer
perceptions of the
attributes of the core brand
and seek out extensions
with similar attributes.
Refrain from
extending the brand
name to too many
products.
Is the brand
extension distanced
enough from the
core brand?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-28
Brand Repositioning







New design
New message
New faces
New audience
New image
New packaging
New uses
Identify a Brand that needs repositioning. How would you
reposition the brand
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-29
Packaging


Primary package
Secondary package
Example: of Packaging that has helped the brand
successful
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10-30
Using Packaging to Create Value
How can firms use packaging to create value for
customers and the firm?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin