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Products and Branding
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Page 1: Product

Products and Branding

Page 2: Product

Product

“A bundle of tangible and intangible benefits that a customer receives in exchange for money and other considerations”

- Tuckwell, Marketing in Action, 2004

Page 3: Product

Product & its Strategies

ProductsGoods, services, ideas, persons or places capable of offeringtangible and intangible attributes

ExampleTangible goods: salt, teabags, pencilIntangible goods: hairdressing, psychological advicesIdeas: public health messages, management advicesPlaces: Holiday resorts, Royal Palace

Page 4: Product

IInput

PProcess

OOutput

ConsumersB2C

ProducersB2B

How to classifyGoods ?(B2B or B2B)?

Rubber, MetalCar Chassis

Volvo, BMWFord Fiesta

Page 5: Product

What is a Product?What is a Product?

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

Page 6: Product

What is a Product?What is a Product?

CORE BENEFIT

Generic Product

Expected Product

Augmented Product

Potential Product

The Fundamental Need or Want that consumers satisfy by consuming the product or service

Page 7: Product

What is a Product?What is a Product?

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

Generic Product

Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

Page 8: Product

What is a Product?What is a Product?

CORE BENEFIT

Augmented Product

Potential Product

Generic Product

Expected Product

Attributes and Characteristics that buyers normally expect and agree to when they purchase a product

Page 9: Product

What is a Product?What is a Product?

CORE BENEFIT

Potential Product

Generic Product

Expected Product

Augmented Product

Additional product attributes, benefits, or related services that distinguish the product from competitors

Page 10: Product

What is a Product?What is a Product?

CORE BENEFIT

Generic Product

Expected Product

Augmented Product

Potential Product All the augmentations and transformations that a product might ultimately undergo in the future

Page 11: Product

What is a Product?What is a Product?

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

The Fundamental Need or Want that consumers satisfy by consuming the product or service

Generic ProductBasic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

Expected ProductAttributes and Characteristics that buyers normally expect and agree to when they purchase a product

Augmented ProductAdditional product attributes, benefits, or related services that distinguish the product from competitors

Potential ProductAll the augmentations and transformations that a product might ultimately undergo in the future

Page 12: Product

Durable GoodsLast for many usesEx. Cars, television, computer

Non-Durable GoodsCan be used once before theyhave to be replacedEx. Food, Ink CartridgesSoft Drinks

Service GoodsIntangible productsEx. Secretarial serviceslegal advices

Page 13: Product

Convenience GoodsRoutine, inexpensive, frequent purchaseEx. staples, groceries, gilletes

Shopping GoodsRiskier & adventure purchaseEx. Stereo, clothing, dress

Specialty GoodsExtensive adventure, expensive, infrequent purchaseEx. house / mortgage, marriage

Unsought GoodsEmergency, “not normal” purchaseEx. umbrella, life insurance, private GP

Consumer goods

Page 14: Product

Convenience Goods

Shopping Goods Speciality Goods

Unsought

Goods

Buying

Behavior

Low Involvement

Frequent

Little Planning

High Involvement

Less Frequent

Compare Shopping

Brand Loyalty

Special purchase

No Comparison

Little Awareness

Negative

Interests

Examples Toothpaste

Magazines

Detergent

Staples

Clothing

Television

Furniture

Car

Patek-Phillips and Rolex

Watch

Rolls Royce

Life Insurance

Private

GP

Price

Strategies

Low Price

Elastic Demand

High/Medium Price

Elastic Demand

High Price

Inelastic Demand

High Price

Very Inelastic D.

Promotion

Strategies

Mass

Promotion

undifferentiated

Differentiated

Segmented Ad.

Personal Selling

Differentiated

Segmented Ad.

Aggressive Advert.

Personal Selling

Place

Strategies

Convenient

Location

Selective

Distribution

Exclusive

Distribution

Not

Important

Page 15: Product

Organizational goods

Capital Goods (fixed eqpmnt in production process)Ex. Buildings, FactoryStrategy for: High Involvement Products,high risk, very expensive

Accessory Goods (supporting production process)Ex. Light equipment, fork-lift trucks, filling cabinetsStrategy for: Less High Involvement, high risk, expensive

Raw-Material Goods (Input in production process)Ex. Rubber, Plastic, Metal, Glass (for Car production)Strategy for: service handling, LR trust, terms of payments

Semi-Finished Goods (Input in production process)Ex. Car Chassis, car Stereo (for Car production)Strategy for: service handling, LR trust, terms of payments

Component-Part Goods (Input in production process)Ex. Bolt, Screw (for Car production)Strategy for: service handling, LR trust, terms of payments

Page 16: Product

ProductRange

ProductMix

ProductLine

ProductItem

Page 17: Product

Beecham Healthcare Products

Analgesics

PanadolAnadinHedexSolpadeine

Vitamins

Scott’s OilVita AVit CMinerals

Oral Healthcare

AquafreshMacleansAnti OdorDr. Best

Product Mix, all products offered by Beecham

Product Line, a group / classified products

Product Item, individual products (inside product line)

Page 18: Product

Product Strategies

BREADTH OF PRODUCTS OFFERINGS

NUMBER OF MARKETS SERVED

Narrow

Many

Few

Wide

ProductsFocused

Unfocused (Everything

for everyone)

Market Focused

Fully Focused Products and

market focused)

Page 19: Product

Detergents Toothpaste Soap Deodorant

Fruit

Juice

Lotions

Tide Crest Ivory Secret Sunny

Delight

Tropic Tan

Dash Glim Zest Sure Citrus Camay

Bold 3 Denquest Oil of

Ulay

Economy Speas

Farm

Raintree

Dreft Camay

Proctor & GambleProduct Line Length PLL – Product Mix Width PMW

PLL

PMW

Page 20: Product

PossibleBrandingStrategies

BrandName

ProductCategory

LineExtension

BrandExtension

Multibrand New Brands

Existing

Existing New

New

Page 21: Product

Line Extension StrategiesAdditional items (size, form, flavour) in a given productIce Cream:Vanilla + Strawberry, Chocolate, NapolitanCereal: for Children, for Teenagers, for AdultsCoca Cola: Cherry Coke, Diet Coke, Classic Coke

Brand Extension (Stretching) StrategiesLaunching new products in a given brand image Adidas (Shoes) + cologne, deodorant, clothing etcVirgin (Trains) + airlines, internet, music entertainment

Multi-Brands StrategiesCreating individual brand identities for each products (efficient segm.)Proctor & Gambles: nine brands of laundry products

New-Brands StrategiesNew Brands for new positioning & segmentation v RivalsToyota (car) + Lexus (executive cars)Mercedes (car) + Smart Car (high-tech efficient car)

Page 22: Product

Product Lifecycle

• A key concept

• Applies to all products … including industrial goods

• Usually used to describe a specific product, e.g. “tooth powder”, “mini-van”

• Length of cycle varies

• Why does it matter?

Page 23: Product

Product Life Cycle

TimeProduct

DevelopmentStage

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

($)

Sales and Profits Overthe Product’s Life FromInception to Demise

Sales

Profit

Page 24: Product

Key Success Factors: Introduction

• Product line is narrow• Decision: Keep prices high (skim)

or launch “cheap” (penetration)• Distribution is selective• Target “early adopters”—experts• Promotional budget very high

– heavy for ads (narrow media) and personal selling

– attempt to get PR coverage

• Examples: Home networking, hybrid cars

Page 25: Product

Key Success Factors: Growth

• Add more channels - broader distribution• Still getting new customers• Watch for “me too” new entrants• Advertise in mass media …• Compete on features• Price for market share• Examples: Digital cameras (a year ago),

MP3 players

Page 26: Product

Key Success Factors: Maturity

• Defend market share against competition• Early: Peak profits, then begin to price

aggressively for market share … to be a survivor• Competition depends on

“stealing customers”• Consider “freshening” brand (new claims)• Production and distribution efficiencies to lower

costs as competitive edge• Examples: Most consumer packaged goods

Page 27: Product

Key Success Factors: Decline

• Above all: cut costs, – No development– Simplify Product Line– Limited distribution– Minimal advertising

• Example: Wonder Bread

• Consider exiting with grace– Examples: IBM typewriters, GE lightbulbs

Page 28: Product

Isn’t PLC Just Theoretical?

• We don’t know where we are until the future and look back …

• Not true … we can be diagnostic

Page 29: Product

What would tell us we are in

1. Introduction?

• We have a defensible patent

• We don’t see any other providers in the market

• Our chief problem is meeting demand

Page 30: Product

What would tell us we are in

2. Growth?

• We see “new entrants” into our turf

• We observe a lot of advertising based on features

Page 31: Product

What would tell us we are in

3. Maturity?

• The industry players are well-known

• We observe a lot of competition on price and sales promotion deals

Page 32: Product

What would tell us we are in

4. Decline?

• Competing technologies have been announced

• Pricing is brutal, with “irrational players”

Page 33: Product

What is a Brand?

Product = Commodity

A product is a produced item always possessing these characteristics:• Tangibility•Attributes and Features

Brand = “Mind Set”

The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.

Timothy D. Ennis, Ennis Associates, Inc

Page 34: Product

What is a Brand?

• Derivation– Old Norse “brandr” = to burn – branding livestock

• Heritage– A means to distinguish goods from one producer vs

another.

• AMA (technical definition)– “Name, term, sign, symbol, or design, or a

combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”

Page 35: Product

What is a Brand?

• Keller’s Definition:– A product, but one that adds other dimensions that

differentiate it in some way from other products designed to satisfy the same need.

• Rational and tangible• Symbolic, emotional and intangible

• The psychological response to a brand can be as important as the physiological response.

Page 36: Product

MANUFACTURERS• ID to simplify handling

or tracing• Legal protection of

unique features• Signal of quality level to

satisfied customers• Means of endowing

products w/unique associations

• Competitive Advantage• Financial Returns

CONSUMERS• ID Product Source• Assignment of

responsibility to maker• Risk reducer• Search cost reducer• Promise, bond, or pact

w/make of product• Symbolic Device• Signal of Quality

Why Does A Brand Matter?

Page 37: Product

What is a Brand?

• Products don’t exist in a void…

• They are bought because consumers have found something they relate to in them, something which they value

• Brand = Credible Guarantee

Page 38: Product

What is a Brand?

• Relative Brand Distinction– The more distinctive or different a brand is in

the consumers “mind set”, the stronger brand preference becomes. This is critical to keeping competition from the consumer’s consideration.

Strong Brand

Perceived by theConsumer as

Unique

Products(Commodities)

No DifferenceExcept Price

BrandName

Well KnownBut Similar

Brand

Distinctive

Timothy D. Ennis, Ennis Associates, Inc

Page 39: Product

What is a Brand?

• Relative Brand Distinction– A brand’s preference is primarily built through

differentiation and relevance– Insulate product from competition– OWN Something

Products(Commodities)

No DifferenceExcept Price

BrandName

Well KnownBut Similar

Brand

Distinctive

Strong Brand

Perceived by theConsumer as

Unique

Timothy D. Ennis, Ennis Associates, Inc

Page 40: Product

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential ProductKotler’s Five Levels

of A Product

What is a Brand?

Products(Commodities)

No DifferenceExcept Price

BrandName

Well KnownBut Similar

Brand

Distinctive

Strong Brand

Perceived by the

Consumer as Unique

BRAND DISTINCTION by Timothy D. Ennis

Page 41: Product

What is a Brand?

• What Makes the Best Brands?– Source of company wealth for generations– Improves with Age– Develop clearly defined personalities– Develop affection & loyalty of the public– Become parents to sub-brands and brand

extension

• Brands = Powerful emotional tools

Page 42: Product

What Is a Brand?

• Truly understood brands are the things which patrol the boundary between people and the world outside them.

• A brand with an emotional difference can potentially command a premium forever.

Page 43: Product

Alternative Branding Models

Company dominates

Brands

Company is equal to Brands

Brands dominate the

CompanyAmerican Express (cards)

BMW (Motorcycles)

Colgate (Total toothpaste)

Disney (Films)

General Electric (appliances)

IBM (Technology)

L’Oreal (Cosmetics)

Sony (Electronics)

Holiday Inn (Crowne Plaza)

Anheuser Busch =

Budweiser

Campbell Soup = Godiva

Chrsyler = Jeep

Estee Lauder = Clinique

Kraft = Maxwell House

PepsiCo = Mountain Dew

Time Warner = Warner

Bros

3M = Scotch Tape

Marriott = Courtyard

Skol (Am Bev)

Claridge Hotel (Savoy)

Crest (P&G)

Healthy Choice (Con-Agra)

Hidden Valley Ranch (Clorox)

Kleenix (Kimberly-Clark)

Marlboro (Philip Morris)

MCA Records (Universal Studios)

Wranlger (VF Jeans)

Page 44: Product

• The Successful Brands

– Don’t JUST sell products

– Communicate Clear Values

– Stretch Across a Number of Products

– Attached to Consumers/ NOT Products

– Individualized Relationships

POWER BRANDS

Page 45: Product

• Allow Consumers to clearly identify and specify products which genuinely offer added value.

• Deep respect for the way products fit into consumer’s lives = “core” of success

• Consumer Relationship = Loyalty

• Social Changes in their favor

POWER BRANDS

Page 46: Product

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND DEPTH

BRAND WEIGHT

BRAND LENGTH BRAND BREADTHPOWER

Page 47: Product

The influence or dominance that a brand has over its category or market (more than just market share)

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND WEIGHT

Page 48: Product

The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND LENGTH

Page 49: Product

The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND BREADTH

Page 50: Product

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND DEPTH

The degree of commitment that the brand has achieved among its customer base and beyond. The proximity, the intimacy and the loyalty felt for the brand.

Page 51: Product

• Assessing BRAND POWER

POWER BRANDS

Interbrand

BRAND DEPTH

BRAND WEIGHT

BRAND LENGTH BRAND BREADTHPOWER

Page 52: Product

Brand Equity

• Brand Ingredients: – Brand Name & heritage– Packaging (structure & graphics) & signage– Brand symbols, properties and logos– Perceived quality, reliability & convenience– Defined level of satisfaction– Meaningful (premium) price/value relationship– Purchase & usage experiences– Consumer perceptions, attitude & behaviors– Emotional associations with the product/services

Timothy D. Ennis, Ennis Associates, Inc

Page 53: Product

BRAND GESTALT

Brand Equity

Physical Product

AttributesQualityUses

Brand Personality

LogoVisualAppearance

Country ofOrigin

User Imagery

Tangible

Benefits

Emotional

Benefits

Brand Customer

Relationship

Kevin Clancy, Copernicus modified by Soni Simpson

Page 54: Product

The Coca-Cola Brand Is…

• 1800’s Heritage The Real Thing

• Americana Red & White Striped Can

• Vanilla Coke Sold Everywhere

• Authenticity Battles with Pepsi

Brand Equity

Page 55: Product

The Mc Donald’s Brand Is…

• The Big Mac Happy Meals

• French Fries Red and White Restaurants

• Fun For Children Ronald Mc Donald

• Golden Arches Value for Your Money

Brand Equity

Page 56: Product

• A synthesis of all elements, physical, aesthetic, rational AND emotional.

• End result =

– appropriate

– differentiated

– relevant

Brand Equity

Page 57: Product

Brand Equity

• A set of stored values that consumers associated with a Product/Service.

• These associations add value beyond the basic product functions due to past investments in marketing the Brand.

Page 58: Product

Brand Value Breakdown

0

20

40

60

80

100

120

Coca-Cola

J&J P&G Unilever Amazon

INTANGIBLE &Goodwill

Net TANGIBLEAssets

$US Billions

Page 59: Product

• Measurable Financial Value

• Legal Systems recognize brand value

– Most countries now recognize intellectual property is REAL property w/rights of ownership

• Trademarks, Patents, Designs, Copyright

• Consumer Value

Brand Value

Page 60: Product

Brand Value

• Multiple values for a brand• Communicated through every medium from

shelf to advertising to editorial to word-of-mouth.• Coca-cola

– Bottle shape– Can color– Logo type face– Taste– Youthful messages – FORMULA

• Are Brand Values Equal?

Page 61: Product

Brand Value

• Three Tiers of Brand Value– Functional Values– Expressive Values– Central Values

Interbrand; The World’s Greatest Brands.

Page 62: Product

Central

Expressive

Functional

Brand Value Corresponding to Brand Hierarchy Pyramid

Page 63: Product

Brand Value

• Functional Values: – Govern product performance

• Coke refreshes its drinker• Volvo gives its driver a safe ride• IBM PC provides quick computing

– Don’t differentiate products• Pepsi refreshes• Mercedes is as safe as Volvo • Apple is as quick as IBM

– Brand Owner’s “bright ideas” can be instantly copied in every continent

Interbrand; The World’s Greatest Brands.

Page 64: Product

Brand Value

• Expressive Values: – Say less about the product & more about the

consumer– Reflect and enhance the consumer’s sense of

him/herself– Provide a key source of brand differentiation

• Marlboro’s - masculine values• Armani’s - status and fashionable values• Apple - creative and human values

Interbrand; The World’s Greatest Brands.

Page 65: Product

Brand Value

• Central Values: – Most Enduring– Right to the Core of the Consumer’s Belief System– At their purest = embodied in religious, national or

political persuasions– Comparable power = embody mass movements or

cultural trends• 1960’s Coke “I Like to teach the world to sing”• Today= Nike “Just Do It”, Richard Branson’s Irreverent Virgin

Interbrand; The World’s Greatest Brands.

Page 66: Product

Brand Value Corresponding to Brand Hierarchy Pyramid

Central

Expressive

Functional

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

Easy to deliver and explain to consumers but also easy to imitate

Interbrand; The World’s Greatest Brands.

Page 67: Product

Central

Expressive

Functional

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

Easy to deliver and explain to consumers but also easy to imitate

Beliefs & Core Values

Benefits

Features & Attributes

Brand Value Corresponding to Brand Hierarchy Pyramid

Hierarchy : Timothy D. Ennis, Ennis Associates, Inc

Page 68: Product

Brand Value: Brand Hierarchy Pyramid

Beliefs & Core Values

Benefits

Features & Attributes

The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL)

The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)

Product/Service features and/or attributes that must be addressed (FUNCTIONAL)

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

Easy to deliver and explain to consumers but also easy to imitate

Page 69: Product

Mc Cormick: The Taste You Trust

Brand Value: Brand Hierarchy Pyramid

CENTRAL VALUE

Beliefs and Core Values

EXPRESSIVE

Benefits

FUNCTIONAL

Features & Attributes

I take pleasure in

how the family enjoys the meals I

prepare

Brand I Trust / Taste You Trust

Part of making food my way Makes a meal/dish an eating

pleasure Makes prepared meals taste better Brings out the best in

foods

Let me adjust to make it my own * Can be used with any dish * Adds flavor, Spicy * For everyday use * Has a lot

of products I use * Easy to find when shopping * Largest variety of spices, extracts, dry seasonings, and

mixes

Page 70: Product

Brand Hierarchy Pyramid vs Product Level

Beliefs & Core Values

Benefits

Features & Attributes

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

Easy to deliver and explain to consumers but also easy to imitate

Generic Product

CORE BENEFIT

Expected Product

Augmented Product

Potential Product

Page 71: Product

The Brand Identity Prism

• We can also look at the brand as a prism that reflects two issues that concern a brand– Brand Culture: The How of a Brand– Brand Associations: The What of a Brand

Page 72: Product

Brand Culture

• Just as people, brands also have a pedigree, a culture, a way of life……

• Culture is the way a brand is bought & consumed.

• Just as culture decides both what we do as well as the way we do it, Brands also have this aspect—which brands we buy for what purpose. Gilli versus Tanishq

Page 73: Product

Brand Associations

• The “image” of the brand in our minds– Nirma is for the middle class housewife “Jaya,

Sushma, Hema, Rekha” –it is not meant for “Nilofer, Pamela, Adya”

• The place, price and promotion that we associate the product with.

Page 74: Product

Brand Identity

• Brand Identity is the combination of Brand Culture and Brand Association that forms a distinct structure in consumers’ minds.

• This can be represented as a prism having 6 sides.

Page 75: Product

Physique

Picture of Sender

Personality

CultureRelationship

Reflection Self-image

Picture of Recipient

Page 76: Product

Down to earth, tough, Indian,not young, son of the soil(Dharmendra -filmstar)

1. Institutional- police, army2. Rural guy, middle class

Prudent,macho, tough

Laid back, family

Tough, economical,

jeep looks, all-terrain,

diesel,noisy

Dependable

Mahindra » brand identity prism

Physique

Relationship

User Image Self Image

Culture

Persona

Page 77: Product

Successful, new economy businessman,

Self made, Evolved taste

Powerful, in control, Sophisticated

A cut above, Expects the best from life

Nothing Else Will Do

Living life at ones own terms

Styling, International looks, Power,

Car-like comfort

Extension of his lifestyle

Physique

Relationship

User Image Self Image

Culture

Persona

Scorpio » brand identity prism

Page 78: Product

• House of Brands

• Endorsed Brands

• Sub Brands

• Branded House

• Sunsilk, Dalda, Close-up Pepsodent

• Servo- Indian Oil Nestea, Nescafe

• Lifebuoy Plus

HP Laserjet, HP Inkjet

Maruti 800

Maruti Esteem • Siemens

Virgin

The Brand ArchitectureThe Brand Architecture