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Product and Brand ManagementBy-AV chaudhary
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What is a product?
A product is any offering by a company to amarket that serves to satisfy customer needs andwants.
It can be an object, service, idea,etc.
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New Product Development
Most new product development is animprovement on existing products
Less than 10% of new products are totally newconcepts.
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Success rate of new products
The success rate of new products is very low less than 5%. You have to kiss a lot of frogs tofind a prince.
Product obsolescence is rapid withimprovements in technology
Shorter PLCs
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Product Development Stages
Idea generation
Idea screening
Concept development and testing
Concept testing
Conjoint analysis to find out the best valued
attributes by consumers
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Business analysis
The most customer appealing offer is not alwaysthe most profitable to make
Estimate on costs, sales volumes,pricing andprofit levels are made to find out the optimalprice volume mix.
Breakeven and paybacks Discounted cash flow projections
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Market testing
Test markets
Test periods
What information to gather?
What action to take?
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Commercialization
When? (Timing)
Where? (Which geographical markets)
To whom? (Target markets)
How? (Introductory Marketing strategy)
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Product Levels
Customer value hierarchy
Core benefit
Basic product
Expected product
Augmented product
Potential product
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Customer Delight
When you exceed customer expectations
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Product Hierarchy
Need
Product family
Product class
Product Line
Product type
Brand Item
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Product classification
Durable
Non durable
Services
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Consumer goods classification
Convenience goods
Shopping goods
Specialty goods
Unsought goods
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Industrial goods classification
Materials and Parts
- raw materials
- manufactured materials and parts
Capital items
Supplies and business services
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Product Mix
The assortment of products that a companyoffers to a market
Width how many different product lines?
Length the number of items in the product mix
Depth The no. of variants offered in a product
line Consistency how closely the product lines are
related in usage
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Product Line decisions
Product rationalization
Market rationalization
Product line length
too long when profits increase by dropping aproduct in the line
too short when profits increase by addingproducts to the product line
Line pruning capacity restrictions to decide
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Brand
A name becomes a brand when consumersassociate it with a set of tangible and intangible
benefits that they obtain from the product orservice
It is the sellers promise to deliver the same
bundle of benefits/services consistently tobuyers
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Brand Equity
When a commodity becomes a brand, it is saidto have equity.
The premium a brand can command in themarket
The difference between the perceived value and
the intrinsic value
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Levels of meaning
Attributes
Benefits
Values
Culture
Personality
Users
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Brand Power Customer will change brands for price reasons Customer is satisfied. No reason to change.
Customer is satisfied and would take pains to getthe brand
Customer values the brand and sees it as a friend Customer is devoted to the brand
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Brand Equity Competitive Advantages
Reduced marketing costs
Trade leverage
Can charge a higher price
Can easily launch brand extensions
Can take some price competition
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Managing Brand Equity
Brand Equity needs to be nourished andreplenished. We must not flog the brand for
equity to be diluted or dissipated
Store brands
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Advantages of branding Easy for the seller to track down problems and
process orders
Provide legal protection of unique productfeatures Branding gives an opportunity to attract loyal
and profitable set of customers It helps to give a product category at different
segments, having separate bundle of benefits It helps build corporate image It minimises harm to company reputation if the
brand fails
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Brand parity
Consumers buy from a set of acceptable/preferred brands
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Umbrella Brand Products from different categories under one
brand
Dangerous to the brand if the principal brandfails
Sometimes the company name is prefixed to thebrand. In such cases the company name gives it
legitimacy. The product nameindividualises it.
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Naming the Brand
Product benefits
Product qualities
Easy to pronounce
Should be distinctive
Should not have poor meanings in other
languages and countries
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Brand strategy Line extension existing brand name extended
to new sizes in the existing product category
Brand extension brand name extended to newproduct categories
Multibrands new brands in the same productcategory
New brands new product in a differentproduct category
Cobrands brands bearing two or more wellknown brand names
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Brand Repositioning
This may be required after a few years to facenew competition and changing customer
preferences
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Packaging
Includes the activities of designing andproducing the container for a product
Packaging is done at three levels
- primary
- secondary
- shipping
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Packaging as a marketing tool
Self service
Consumer affluence
Company and brand image
innovation
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Designing packaging
Packaging concepts
Technical specifications
Engineering tests
Visual tests
Dealer tests
Consumer tests Packaging innovations
Environmental considerations
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Labels
Identification
Grade classification
Description of product
Manufacturer identity
Date of mfg., batch no.
Instructions for use Promotion
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Labels as a marketing tool Labels need to change with time or packaging
changes to give it a contemporary and fresh look