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Products, Services & Brands
Chapter: 8
Lec: 7b
Product Line Decisions
• Product Line A group of products that are closely related
because they function in a similar manner, are sold to the same customer groups , are marked through the same types of outlets, or fall within given price ranges
• A company can expand its product line in two ways
- Line filling (add more items in line) - Line stretching (upwards/ downwards) e.g. Hotel one, PC, Marriot (downwards) Tata Indigo, upper market car
(upwards)
Product Mix Decisions
• Product Mix
The set of all product lines and items that a particular seller offers for sale
- Product mix has four dimensions
1- Width
2- Length
3- Depth
4- Consistency
Product Mix Decisions• Width The number of different product lines the company
caries e.g. Sony ( TV, play station, camera)• Length Total number of items a company carries in its
product line e.g. digital cameras, camcorders• Depth The number of versions offered of each product in
the line e.g. Flat panel, rear projection, High/low resolution• Consistency How closely related the product line are e.g. Distribution, stores availability
Branding Strategy: Building Strong Brands
• Brand Equity The differential effect that knowing the brand name
has on customer response to the product or its marketing
- brand vary in the amount of power e.g. Song, Nike, Disney, McDonalds- Customer perception dimensions 1) Differentiation (what makes the brand stand out) 2) Relevance (how it meets consumer needs) 3) Knowledge (how much consumer know about
the brand) 4) Esteem (How do consumer respect the brand)
Building Strong Brands
Brand Positioning
Attributes
Benefits
Beliefs and values
Brand name selection
Selection Protection
Brand Sponsorship
Manufacturer’s brand Private Brand Licensing Co-branding
Brand Development
Line extensions
Brand extensions
Multibrands
New brands
Building Strong Brands
• Brand Positioning e.g. Volvo attributes: features of
the car benefit: what you’ll
get out of them (safety)
Belief and values: e.g. Marriot- Luxury rooms
Building Strong Brands
• Brand Name Selection
- can add to a product’s success
- best suited for product category
- should be protected
Building Strong Brands
• Brand Sponsorship There are four
sponsorship options - National Brand: sell
under your own name (Sony Bravia)
- Private Brand: (distributor brand)
- Licensed brands - Co-brand
Brand Sponsorship
• National Brands Vs Store Brands Store Brands A brand created and owned by a
reseller of a product or service e.g. HKB, Al-Fateh - Retailer can select the best place
in store for their brands - Select a lower price as compared
to national brands
Brand Sponsorship
Licensing• Takes years and millions to
create a brand• Some companies license names/
symbols for a fee• Toys based on Tv characters• Characters on clothes, bags etc.
Brand Sponsorship
• Co-branding The practice of using the established
brand names of two different companies on the same product
- you can bring new value for your customers
e.g. Marriot and Barclays Nike and ipod - Complex legal contracts and licenses “Giving away your product is like giving
away your child – you want to make sure everything is perfect”
Brand Development
• A company has four choices when it comes to developing brands
Line extension Extending an existing brand name to new forms,
colors, sizes, ingredients, or flavors of an existing product category
e.g. Bata, regular shoes, sports shoes, sandals etc.
- Geo news, geo super, geo entertainment -An overextended brand name might lose its
meaning - Sale of an extension might come at the expense
of other item
Brand Development
• Brand Extensions Extending an existing brand
name to new product categories
e.g. Maggie Noodles, Maggie soup, Maggie Ketchup
- Ponds tooth paste, Heinz pet food met early death
- Extension may confuse the image of the product
Brand Development
• Multibrands
Companies introduce additional brands in the same category
- Each brand entertains a different segment
- Each brand may obtain a small marketplace
Brand Development
• New Brands
Brand Development Strategies
Line extension
Multibrands
Brand Extension
New Brands
Existing
Existing
New
New
Product Category
Brand Name