1 Branding ABC’s 2 PRODUCT DEVELOPMENT Evolving your product to stay ahead of the competition Gatorade - .

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Branding ABC’s

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Branding ABC’s

PRODUCT DEVELOPMENTEvolving your product to stay ahead of the

competition Gatorade -http://www.youtube.com/watch?v=nWAjioAfDW0

http://www.youtube.com/watch?v=NAtIZafyeHI

Google Google Plus -http://www.youtube.com/watch?v=GRmDGvdkg8E

Health- http://www.youtube.com/watch?v=yNe6-p4G7Ik http://googleblog.blogspot.com/2011/06/update-on-google-health-and-google.html

Three keys to a successful product launch

The right productThe right timingThe right people

THE RIGHT PRODUCT

Make sure you have the best product before launching it

INC: Dumb productshttp://www.youtube.com/watch?v=bvB5ZIbLirc

Dads - productshttp://www.youtube.com/watch?v=_UppL6_sVNs

Product must satisfy a needMust meet consumer expectationsMust be produced at a profit

THE RIGHT TIMINGIf your product is seasonal, you will want

to wait until the start of the selling season

Replacing an old product,

wait until merchandise is out before launchingFood Saver- http://www.youtube.com/watch?v=SYJBNn0uAFk

Food Saver -http://www.youtube.com/watch?v=jIlXtwjOjvM&feature=player_profilepage

NEW PRODUCTS

http://www2.kelloggs.com/ProductNew.aspx

http://edisonawards.com/BestNewProduct_2011.php

http://www.drinkcodeblue.com/ - Which of the 5 suggestions do you think will work the best?

THE RIGHT PEOPLEPeople who buy new products, “early

adopters” (Ipad 3)Pioneers of new products

Late Adopters, cautious consumerWon’t try your product, simply because it’s new.Middle Adopters (80%)Must be convinced that your product is worthwhile, before buying.

Need to tell them why “new” is betterMust run lot’s of ads to tell people about your product.

You have 6 months, to claim “new”After, show how well your product performs.

KEY TERMS –PG 5

Choose one of the following sections to read about:

1. Types of consumer products pg 308-310

2. Product Items, Lines and Mixes pg 310-311

3. Adjustments to Product Items pg 312-314

4. Branding pg 314-315

5. Branding Strategies pg 316-320

6. Packaging pg 320-323

COMPLETE THE FOLLOWING QUESTIONS AS A GROUP (EACH MEMBER NEEDS TO WRITE DOWN ANSWERS) 1. What is the name of your Section

2. What is the most important part of your section for a business leader to know? (Imagine that you only have 30 seconds in an elevator to convince someone this is important)

3. What is the Learning objective from this section? (After reading this section, what should everyone know?)

4. What are the key terms everyone should know from this section

5. Provide an example of a company that understands this Learning Objective Effectively

6. Provide an example of a company that failed to understand this Learning objective.

RE-SHUFFLE GROUPS!

Each Member of your group will count off from 1-4. You will then form new groups of six- Each member will of the group will teach the other member about their section in a 3 minute presentation

*Members should be completing their terms sheets during presentations.*

GROUP MIND MAPS.

• Using a piece of Presentation Paper, groups will create a Mind Map that represents the process of product development. The mind map should connect all of the terms and section notes.

NEW PRODUCTS

Pick a Product from the Edison Awards Finalists and Answer the following questions. Send and e-mail to Mr. Fassl with your answer!

http://www.edisonawards.com/BestNewProduct_2012.php

1.Do the product fill a need?

2. Is it the right time?

3. Can they make a profit? Explain.

4. Do you think they will be successful? Why or Why not?

FUTURE PRODUCTS…DIGITAL $$$

Jetsons The future of businessWhat are three things that

businesses need to do to be successful with customers in 2016.

Complete your ticket!

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Branding ABC’s

Entrepreneurship- Imagine that you are going to open a retail clothing business..

Write down all of the decisions you will need to make

PRODUCT PLANNING

Making decisions about features that are needed to sell a product

Packaging, Branding, Labeling

Product MixAll the different products that a company makes or sells.

http://www.gm.com/vehicles/browseByBrand.htmlhttp://www2.kelloggs.com/Product/Product.aspx

PRODUCT LINE

Group of closely related products manufactured and/or sold by a business

All of the Chevy’s produced by GMAll of the Cereal’s produced by Kellogg’sProduct ItemA specific model, brand or size of a product within a product line.

Ex. Chevy Cruz, or Fruit loops

PRODUCT WIDTH/DEPTH

Product WidthNumber of different product lines a business manufactures or sells

Product DepthNumber of product items within each product line.

Blades and Razors

Toiletries Writing Instruments

Lighters

MACH 3FusionSensorTrac IIAtraSwivelDouble EdgeLady GilletteSuper speedTwin InjectorTechmatic

SeriesAdornToniRight guardClinical StrengthSilkienceSoft and DriFoamyDry LookDry IdeaBrush Plus

Paper MateFlair

CricketS.T. Dupont

Depth of P

roduct Lines

2001-WIDTH OF THE GILLETTE PRODUCT MIX

Razors Gel and skin car

Body Wash Deodorant

Fusion ProglideMVPGamerFusion PowerMach 3 turboM3 powerVenus

Pro SeriesAftershaveProglide shave gelHydragelFoamFOAMY

Body WashFresh + Clean

ClinicalOdor ShieldClear GelPower beads

Depth of P

roduct Lines

HTTP://WWW.GILLETTE.COM/EN/US/HOME.ASPX

2011-WIDTH OF THE GILLETTE PRODUCT MIX

PRODUCT MIX STRATEGIES

Plan on which products to make or stock

Different strategies depend upon resources and company objectives.

Add new productsModify current productsDelete existing productsTo make these decisions, you look at sales and current trends in the marketplace

NEW PRODUCT DEVELOPMENT

Generate New IdeasScreen ideasDevelop the productTest the productIntroduce the productEvaluate customer acceptance

LINE EXTENSIONSProduct ModificationAltering an existing productNew color, style, features, sizes, formula, variety.

Usually the old product is phased outOften the packaging is modified to attract attention…. http://www.nabiscoworld.com/default.aspx

RITZ http://www.youtube.com/watch?v=zsAOGR365Uo&playnext=1&list=PL81E0AF4CA1407E44

Pita Chips http://www.youtube.com/watch?v=CuQcWNim1Io

DELETING A PRODUCT LINE

ObsoleteLost it’s appealDoesn’t match Co. objectivesMake room for new productNo longer profitableConflicts with other products

Pepsi Clear http://www.youtube.com/watch?v=Tign09D5IgE Cabbage Patch http://www.youtube.com/watch?v=H3lK8eZ3fN4

LINE EXTENSIONSYou are the manufacture of

Stride. Visit stride’s website at stridegum.com

You are to determine the next new “hot” flavor of gum to introduce.

Name of Gum- “make sure it flows with the other flavors”

Write an “introduction”

Depth of P

roduct Lines

WIDTH – DELL VS APPLE

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PRODUCT CLASSIFICATIONS

Convenience goods

Shopping goodsSpecialty goodsUnsought goods

CONVENIENCE GOODS

Goods that we just buy without thinking about price.

Staple good – regular, routine purchases (bread, milk, etc.)

Impulse Good – purchased on spur of the moment (magazine, candy, inexpensive products

Emergency Goods –purchased as result of urgent need (gasoline, plumbing, ambulance)

SHOPPING GOODS

Products that we spend time considering before making a purchase decision

Usually more expensive than convenience goods

Examples are: Clothing, houses, major appliances, stereo goods

SPECIALTY GOODSWill not consider buying anything else as a substitute.

Favorite brand of jeans? Two factors – importance to customer- willingness to delay until specific product is located.

THE PRODUCT MIXAll the different products that a company makes or sells.

Could be over 100Could be as few as 1

REVIEW: PRODUCT LINEA. All of the Products a

company makesB. Groups of closely related

ProductsC. Specific Items sold by a

companyD. I have no idea.

REVIEW: PRODUCTSProduct Width –A. # of Different LinesB. # of Different ProductsC. # of Different DistributorsD. # of different mixes company hasE. I have no idea!

Product Depth –A. # of Different LinesB. # of Different ProductsC. # of Different DistributorsD. # of different mixes company hasE. I have no idea!

THE PRODUCT LIFE CYCLE

Growth

Introduction

Maturity

Decline

Deletion/Rejuvenation

Focus on Promotion and Production.Goal: Attract attention to productSpecial sales to get customers to try.

Increasing sales.Advertising now focuses on customer satisfaction rather than new product benefits. Competition is now aware, and copying products. Introduce new models to stay ahead of competition.

Maturity. Sales level offSpend Ad money fighting off competition. Advertising expenses climb. Must develop improvements to product to keep sales goingMust tell how your product is better than competition.

Decline:Sales Fall off. Profits are now lower…Cut advertising.Make Decisions regarding continuation of product.

Rejuvenation:

Must incorporate new strategies to keep product from failing. -Selling business-Licensing product-regionalizing, Modernizing-Altering(repackaging)

QUESTIONS TO ANSWER TO DETERMINE PRODUCT

MIXWhat is the target market?

What kinds of products do customer’s want?

What products are competitors offering?

How many product lines and product items are needed?

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PACKAGING

FUNCTIONS OF PACKAGING

Sell Product ID

Info Meet custom

er Needs

Protect Cust.

Protect the

product

Theft Red.

Visual Appea

l,

Color

Directions, Nutritional

info, guarantee, warnings, instruction

s

Better way

to use product (Heinz, chips a hoy,

medicine bottles)

Glassplastic,Tamper-resistant

Prot. From

breakage Clamshell,

better seals

Bulk Size of

packaging

LABELING

Label - information tag, wrapper, seal, imprinted message that is attached to a product or package

Two main functionsInform customersDirections for use

Contents of a labelBrand Nameingredientsdirectionspromotional messagesMost Food labels contain weight -datesillustrations -storage informationmanufacturers name & addressuniversal product code (upc)guarantee

LABEL LAWSFederal Nutrition Act (1994)light, lite, free, low, reduced, good sourceprovides consistent labeling for eachrequires nutritional information

Care Labeling Rule 1972care labels on textile clothingcriteria for using “recycled content,” recyclable, degradable.

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Branding ABC’s

BRANDING –

Brand name- group of words that can be spoken about a brand (Special K)

Brand Mark – the symbol or design that identify a brand (K)

Trade name – identifies the company (Kellogg’s)

Trade character – brand mark that has been given human form, (dough boy)

TRADEMARKA brand name, brand mark, trade character or a combination that get legal protection.

Kellogg’s Special K ®

These elements combined are used to form a firm’s corporate symbol

BRANDING

Why? Helps to assure customers of qualityIdentifies who manufactures productHelps introduce new products Customers are familiar with company

Helps to establish a corporate image

TYPES OF BRANDSNational – manufacture brands Generate majority of sales

Customers - consistent quality, performanceGeneric – “No Frills”Don’t carry a brand name30-50% less expensivePrivate – “store label”Quality and performance at lower price

Large profits for retailers, customer loyalty

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PRODUCT POSITIONING

The efforts a business makes to identify, place, and sell its product in the marketplace

Price and qualityFeatures and benefitsUnique CharacteristicsRelation to CompetitionOther products in product mix

POSITIONING BY PRICE AND QUALITYFord FocusEconomical, Fuel EfficientFord TaurusFamily carSafe, High QualityPorcheHigh Priced, Sports CarGives each car a unique position in the market place

BY FEATURES AND BENEFITS

Ford Focus –What are their Unique Features?

Oil of OlayFacial moisturizer and cleanser to keep skin soft and youngHonda OdessyFeatures- Benefits?Mitsubishi Eclipse

UNIQUE CHARACTERISTICS

Goal is to set products apart from competition.

Mighty PuttyWhat’s unique about DELL

computers?http://www.youtube.com/watch?v=WpaiTwAslsM

RELATING TO COMPETITIONhttp://www.apple.com/getamac/ads/

Mac vs Pc

Progresso – Vs – Campbell'sProgresso

http://www.youtube.com/watch?v=wj9myfIgpTM&feature=PlayList&p=318C2EC3F8351725&playnext=1&playnext_from=PL&index=83

Campbells chunky http://www.youtube.com/watch?v=8syv6GupEXw

http://www.youtube.com/watch?v=4sfAvBntndM

The companies are trying get customers to believe that their product works better than competition.

Which Product is Campbell's better than?

RELATING TO OTHER PRODUCTS IN MIX

Coke vs coke http://www.youtube.com/watch?v=pv8YgrqUCVU

http://www.youtube.com/watch?v=_UzU7sQFZKo&feature=related

New Ritz ChipsHow is it different than other products?Maxell HeadphonesClassicFashionPremium

POSITIONING CHECKhttp://www.youtube.com/watch?v=tKXoll6GaNQ http://www.youtube.com/watch?v=QyBOBntguPUFBhttp://www.youtube.com/watch?v=yylNWKoifgk&feature=related

Qualityhttp://www.youtube.com/watch?v=9mD9QqZnunY&feature=PlayList&p=60B15B53B29EB6D2&index=7

Against other Products in Mixhttp://www.youtube.com/watch?v=xhiyDQNmEjY&feature=relatedhttp://www.youtube.com/watch?v=TnABZM83hqgAgainst Competition

POSITIONING “YOUR” PRODUCTGMC EN-V

Mentos Gum

CAN YOU “SEE” IT…

If you look at the center of this logo, you can see two people enjoying a Tostito chip with a bowl of salsa.

This logo conveys an idea of people connecting with each other

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CAN YOU “SEE” IT

First of all, the yellow swoosh looks like a smile: Amazon wants to have the best customer satisfaction. The swoosh also connects the letters a and z,meaning that this store has everything from a to z.

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BRANDING/PRODUCT ARTICLES

Read your Article as a GroupSummarize it for the classIs it a good idea? Why or why not?How can this information make you more successful in business?

BEVERAGE PRODUCT LABEL

Must Include the Following:

Brand NameNutrition FactsIngredientsDirections for useWeight (usually in FL oz)

Dates (expiration or manufactured)

storage informationmanufacturers name & addressUniversal product code (upc)

Optional Items

GuaranteePromotional messagesIllustrationsWebsiteConsumer Contact Phone numberRecycling Fees and discounts

STEPS TO CREATE YOUR LABEL

1. Measure the Circumference of the bottle

You can cut off the existing label and trace it.

2. Layout a Box in Word You can use other programs such as

publisher, Photoshop, and Fireworks NOT PAINT

3. Insert Graphics and additional Text Boxes as Needed