1. ACTION PROJECT: PRODUCT RELAUNCH By: Pawel Puszko Ian Sheldon 2. Agenda Product Launch Product Re-Launch Branding Re-Branding 3. Product Launch In recent years, product launching has become an art which can make or break a product. - Launching a New Product into a Developed Market. (2014). Times 100 Case Studies 4. The importance of providing consumer benefits Consumers do not buy products, they buy benefits Sensory benefits e.g. the colour and look Value, e.g. the price in relation to the quality Convenience, e.g. the ease 5. Marketing strategy A plan of action designed to achieve the goals of the organisation Need to set out the key objectives you want to achieve E.g. to increase distributor, profitability and productivity by providing a new and exciting business opportunity, to optimise consumer convenience and value through enhanced product differentiation with this exclusive and revolutionary cleaning system, to provide innovative and unique products to enhance the image 6. Positioning Think very carefully about the position that the new product would take in the market-place E.g. A revolutionary product system that provides the ultimate in customer convenience 7. Strategy and tactics of the launch A strategy is a plan or practical measure designed to achieve certain objectives, while the tactics are the actions taken to implement the strategy and achieve these objectives Stage 1: to build excitement Stage 2: to create awareness Stage 3: to build product knowledge Times 100 Case Studies, (2014) 8. Post launch analysis Assess how well the product has been received by the consumer Research Surveys 9. Product Re-Launch This does not mean abandoning their strengths, but rather adapting to a changing environment - changed legal requirements (e.g. new environmental laws that reduce unnecessary packaging) - actions of competitors (e.g. a rival markets a new product) - shifts in consumer demand (e.g. consumers seeking more sophisticated products) 10. Reasons for a re-launch Confusion Move a brand from the Mid Market sector to the growing Premium Market To encourage lapsed users to repurchase and to generate new customers 11. Developing a re-launch strategy Extends the lifecycle of a brand Review all the ingredients of the marketing mix in order to differentiate products from competition and thereby provide a more appropriate market position Times 100 Case Studies, (2014) 12. Major Changes When making major changes to a product, it is essential to communicate clearly: - what changes are taking place - why these changes are taking place - how the public, in particular consumers, will be better off 13. The use of the marketing mix in product launch/re-launch Effective balance of the right product, price, promotion and place (Product will achieve its critical success factors) In line with the product and the target market as well as meeting your own business objectives 14. Product First stage in building an effective mix is to understand the market Market research to target key market segments Eg. - using focus groups to listen to consumers directly - gathering data from consumers through a variety of different research techniques - product testing with consumers in different markets 15. Price The costs of production or the business need to maximise profits or sales A products price also needs to provide value for money in the market and attract consumers to buy 16. Pricing Strategies Cost based pricing this can either simply cover costs or include an element of profit. It focuses on the product and does not take account of consumers Penetration price an initial low price to ensure that there is a high volume of purchases and market share is quickly won. This strategy encourages consumers to develop a habit of buying Price skimming an initial high price for a unique product encouraging those who want to be first to buy to pay a premium price. This strategy helps a business to gain maximum revenue before a competitors product reaches the market 17. Place How the product arrives at the point of sale. This means a business must think about what distribution strategies it will use Where a product is sold 18. Promotion Promotion is how the business tells customers that products are available and persuades them to buy Above-the-line promotion is directly paid for. E.g. TV or newspaper advertising Below-the-line is where the business uses other promotional methods to get the product message across. E.g. Events or trade fairs, Direct mail & Public relations 19. What is a Brand? 20. What is a Brand? a) The Company Name & Logo? b) The Product? c) Core Competencies? d) The Company Mission Statement? e) All of the above? 21. BRANDING Dream of the founder Message/Philosophy/Vision Brand Story (Hestad, 2013) 22. BRANDING STRATEGY DOS Build Brand Strategy. Unveil Captivating Brand Story & Logo. Determine Target Core Customer. Dynamic Implementation. 23. BRANDING STRATEGIES DONT Market product specifics. Compare self to competition. Instead Market the company message. Advertise the BENEFITS gained/the add-value. 24. Types of Benefits Functional Benefit Emotional Benefit Self-Expression Benefit Experiential Benefit Creative Credibility Benefit Cultural Credibility/ Iconic Benefit 25. (Hestad, 2013) 26. Aspects of a Brand (Hestad, 2013) 27. Synergistic Brand Management (Hestad, 2013) 28. BRANDING CASE - Failure Sony Betamax Created the first VCRs (Betamax VCRs). Refused to license Technology to competitors. JVC creates alternative VHS-VCR. More willing to share format with competition (saturate market with own technology). Betamax: Better sound and picture quality. VHS: VHS Cassettes are able to record for much longer by sacrificing picture and sound quality. Market Chose JVCs VHS. More companies offering that service. 29. Branding Case Success APPLE Case study 30. Top 10 Reasons for Rebranding 1. Confusing or nonexistent existing brand image. 2. Loss of market share. 3. The company is entering a new industry. 4. Change in company mission, ideology, culture. 5. Target Segment becomes Saturated. 6. New associations are needed to generate growth. 7. Aging target market. 8. New technology makes product obsolete. 9. Pressure from competition. 10. The Company would like to broaden its appeal to more segments. 31. REBRANDING DOS Plan ahead for strategic adaptation and rollouts Hire fresh perspectives Leverage brand equity and goodwill throughout rebranding process Take the time to test implementations Attention to detail 32. REBRANDING DONTS Cling to history. Navigate without a plan Rebrand without doing research first Base your rebrand on an ad. campaign Have Tunnel Focus Believe your too small for rebranding to matter Bypass the basics 33. REBRANDING CASE - Failure NEW COKE Coca-Cola branded as the Classic, the Original, the Industry leader. Late 50s Coca-Cola outsold Pepsi-Cola 5- 1. 60s Pepsi-Cola successfully rebrands itself as as the hip/youthful alternative. 70s Pepsi Introduces the Pepsi- Challenge. Early 80s dubbed Pepsi Generation. Pepsi-Cola signed Michael Jackson as a celebrity endorsement deal. 80s Cokes market share on the rapid decline. 1984 Coca-Cola goes on the defensive. Creates new sweeter formula which tastes more like Pepsi. April 1985, New Coke is launched. Production of Classic Coca-Cola is halted. July 1985, After much public outcry, Coca- 34. REBRRANDING CASE - Success Founded by the Strauss family in 1875. Originally marketed for the working man. Grows into one of the best known global brands of the 20th century. An icon of youth Culture by the 60s. By 90s the brand image grows stale. Growth was stifled. Rebranding deemed necessary. 1. Situational Analysis 2. Creating a brand plan (Brand mission and strategy) 3. Market Research (Interior & Exterior) 4. Strategic Implementation 35. IDEAS? COMMENTS? QUESTIONS? 36. Lessons from NEW COKE Source: Haig, 2012 37. References Berthoz, A. (2012). Bases neurales de la dcision. Une approche de neurosciences cognitives. (French).Annales Medico Psychologiques, 170(2), 115-119. Franzak, F., Makarem, S., & Jae, H. (2014). Design benefits, emotional responses, and brand engagement.Journal Of Product & Brand Management, 23(1), 16-23. Getting the right message across the re-launch of Mars. (2014). Times 100 Case Studies, 1-2. Gurski, D. (2014). Customer Experiences Affect Customer Loyalty : An Empirical Investigation of the Starbucks Experience Using Structural Equation Modeling. Hamburg, Germany: Anchor Academic Publishing. Haig, M. (2012). Brand Failures. Goodbuzz inc. Retrieved from http://www.slideshare.net/Goodbuzz/brand- failures-11856435 Healy, L. l., Ntoumanis, N., Veldhuijzen van Zanten, J. S., & Paine, N. (2014). Goal Striving and Well-Being in Sport: The Role of Contextual and Personal Motivation. Journal Of Sport & Exercise Psychology, 36(5), 446- 459. Hestad, M. (2013). Branding and Product Design : An Integrated Perspective. Farnham: Ashgate Publishing Ltd. Jones, C., & Bonevac8, D. (2013). An evolved definition of the term 'brand': Why branding has a branding problem. Journal Of Brand Strategy, 2(2), 112-120. Key Small Business Statistics. (2013). Retrieved from https://www.ic.gc.ca/eic/site/061.nsf/eng/02808.html 38. Kligyte, V. L. (2013). The Influence of Anger, Fear, and Emotion Regulation on Ethical Decision Making.Human Performance, 26(4), 297-326. MENDLESON, R. (2010). The rebrandings. Canadian Business, 83(19), 51. Miletsky, J. I., & Smith, G. (2009). Perspectives on Branding. Boston, Mass: Course Learning. No 7 The Relaunch of a Brand. (2014). Times 100 Case Studies, 1-2. Packaging Redesign Final Stage In Birds Eye Brand Relaunch. (2014). Checkout, 40(11), 20-21. Reclaiming a brand's identity?. (2014). Times 100 Case Studies, 1-2. Statistics on small business in Canada. (2012). Retrieved from http://www.startupcan.ca/wp- content/uploads/2012/01/Statistics-on-Small-Business-in-Canada_StartupCanada.pdf Successful Products - Successful Solutions. (2014). Times 100 Case Studies, 1-2. The Betamax vs VHS Format War. (2005). Retrieved from http://www.mediacollege.com/video/format/compare/betamax-vhs.html The use of the marketing mix in product launch. (2014). Times 100 Case Studies, 1-4 Todor, R. (2014). THE IMPORTANCE OF BRANDING AND REBRANDING FOR STRATEGIC MARKETING. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 7(2), 59-64.