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Product and Product and Branding StrategyBranding Strategy
PowerPoint by : Prof Sameer KulkarniPowerPoint by : Prof Sameer Kulkarni
ObjectivesObjectives
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?What is a Product?
Goods
Services
Experiences
Events
Persons
Places
Properties
Organizations
Information
Ideas
The Product and Product The Product and Product MixMix
Potential customers judge product offerings according to three elements:
– Product features and quality
– Services mix and quality
– Value-based prices
The Product and Product The Product and Product MixMix
The customer value hierarchy:
– Core benefit
– Basic product
– Expected product
– Augmented product
– Potential product
The Product and Product The Product and Product MixMix
ProductClassifications
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 The Product and Product MixMix
ProductClassifications
Durability and tangibility
Consumer goods
Industrial goods
Classified by shopping habits:
– Convenience goods
– Shopping goods– Specialty goods– Unsought goods
The Product and Product The Product and Product MixMix
ProductClassifications
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 The Product and Product MixMix
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-building Advertising
Brand: Amul
As per Aaker’s model
And
As per Kapferer’s prism
AMUL : Aaker’s ModelAMUL : Aaker’s Model
Extended
Available
Food
Brand Essence:
Core
Value Taste
IndianQuality
Pride
Variety
Milk
AMUL: Aaker’s ModelAMUL: Aaker’s Model
Brand-building: The StepsBrand-building: The StepsDetermine 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 witha monitoring programme
Feedback to action plan
Physique : Taste, Quality
Personality :Simple, Indian
Self-Image :Proud Indian, Fun loving
Reflection :Value Oriented
Culture :Co-operative, Sharing
Relationship :Sociable
AMUL : Kapferer’s PrismAMUL : Kapferer’s Prism
AMUL
Product-Line DecisionsProduct-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization, Featuring, and Pruning
Brand DecisionsBrand 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 DecisionsBrand Decisions
Brands can convey six levels of meaning:
– Attributes– Benefits– Values– Culture– Personality– User
Brand DecisionsBrand Decisions
Brand identity decisions include:
– Name– Logo– Colors– Tagline– Symbol
Consumer experiences create brand bonding, brand advertising does not.
Brand DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 DecisionsBrand 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 LabelingPackaging 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 LabelingPackaging and Labeling
Developing an effective package:
– Determine the packaging concept– Determine key package elements– Testing:
Engineering testsVisual testsDealer testsConsumer tests
Packaging and LabelingPackaging 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 advertisingObjective of advertising
“Build the business today and build brand value overtime”
All advertising has to pass through this objective test
How does Advertising build How does Advertising build Brands?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 Building Blocks for Brand-building Advertising IBrand-building Advertising I
Market analysisSize, volume, value, growth, geographic, seasonality
Consumeranalysis
•Size, demographic, geographic•Usage, depth, width
Company analysis
•Size, profitability, •distribution, technology
Competitor analysisSize, profitability, strengths, weaknesses
Brand
Advertising StrategyCreative Strategy , Media Strategy
Advertising ObjectiveAwareness , Salience , Image , attitude
Marketing ObjectivesSales , Market Share , Profits
Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis
Marketing StrategyProduct , Pricing , distribution , Service , packaging ,
Advertising & Sales Promotion
Building Blocks for Building Blocks for Brand-building Advertising IIBrand-building Advertising II
How Does Advertising How Does Advertising Work IWork I
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Classic Hierarchy of Effect Model
How Does Advertising How Does Advertising Work IIWork 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 involvementThinking Vs feeling
How Does Advertising Work How Does Advertising Work IIII
FCB Grid FCB Grid
High involvementConsumer 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 involvementConsumer is not involved; tends to see the utilitarian values of the category; routine/quick decision makingE.g.: detergents, fuel, flour, mobile service (?)
How Does Advertising Work How Does Advertising Work IIII
FCB GridFCB Grid
Think Vs feel
ThinkConsumer decides using his
head : ‘Rationality’ drives the choice of product/brand
FeelConsumer decides using his
heart : ‘ Emotionality’ drives the choice of product/brand
THINKING FEELING
HIGH
INVOLVEMENT
LOW
INVOLVEMENT
Advertising to fit FCB Grid Advertising to fit FCB Grid requirementsrequirements
LEARN-FEEL- DO
I) INFORMATIVE
FEEL-LEARN-DO
II) AFFECTIVE
DO-LEARN-FEEL
III) HABITUAL
DO-FEEL-LEARN
IV) SATISFACTION
Category DifferencesCategory Differences
ConsumerProducts
ConsumerDurables Services Corporate
Lower values Higher values Indeterminate No value
Frequent purchase Infrequent Indeterminate Variable
Narrow/BroadTarget customer
Narrow Target Customer
Variable Very wide/variable
Role of advertising in brand-building will tend to vary with category type
Brand-building Advertising Brand-building Advertising FCB Grid - Self-test FCB Grid - Self-test
Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile
Thinking FeelingHigh
Involvement
Low Involvement
Consumer Products : Consumer Products : What are they?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
Some consumer products could
be high involvement
Perfumes, Cigarettes
Health aids, Baby foods
Consumer Products : TypesConsumer Products : Types
Often low involvement,
routine purchase or
impulse purchase
What is the consumer issue facing the brand?
• Poor awareness leading to poor trial
• Poor repeat usage after high trial
• Lack of desired image perceptions
What is the key task?Attracting new users
Retaining existing users
Consumer Product Consumer Product Purchase Behaviour 1Purchase 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 Consumer Product Purchase Behaviour 2Purchase 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 Consumer Product Purchase Behaviour 3Behaviour 3
All India Household Category penetration
Soaps 99%
Washing cake 93%
Toothpaste 44%
Hair oil 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 Brand-building Advertising Self Test 3Self 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 LearnedYou 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 LessonEnd of LessonYouYou
start Branding start Branding