10 1 Product Brand Management Dr Sanjeev Varshney

10 -1 Product & Brand Management Dr. Sanjeev Varshney

10 -2 Different Levels of Benefits (Laddering) Generic or Core Product or Service (Must) Expected product or Service (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 l l l 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 Hair Oil Odomos Odonil Odopic Sani fresh 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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

10 -6 Product Mix Strategies l Positioning the Product – – l Product-Mix Expansion – – l 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. ) l Product-Mix Contraction – – l 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 l l 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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Characters

10 -15 Value of Branding for the Customer and the Marketer © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-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 l l l 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 Ownership Store or Private Label © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Generic

10 -25 Naming Brands and Product Lines Corporate or Family Brand Names Corporate & Product Line Brand Examples for Each © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

10 -27 Brand Dilution Evaluate the fit between the product class of the core brand the extension. Evaluate consumer perceptions of the attributes of the core brand 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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

10 -28 Brand Repositioning l l l l 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 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

10 -29 Packaging l l Primary package Secondary package Example: of Packaging that has helped the brand successful © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

10 -30 Using Packaging to Create Value How can firms use packaging to create value for customers and the firm? © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin