Product and Brand Management (1)

Product and Brand Management

H & GH Mansukhani Institute Of Management

Difference:

Product• Product is made in the

Factory.

• LCD is Product.

• Product has a characteristics.

• Product can be copied

• Product has features.

• Product can be outdated

Brand• Brand is bought by the customer.

• LG, SAMSUNG is a Brand.

• Brand is Perceived.(Has preciseness)

• Brand is Unique.

• Brand has recognition and identity.

• Brand is timeless.

Brand

• A name, term, sign, symbol, or design or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Concepts:

1) Brand awareness:

Customers ability to recall and recognize the brand under different conditions and link to the brand name/logo in accordance with certain associations in the memory.

Example: Diwali-Moti Soap.

2) Brand Recall:

A brand is said to be recalled if it comes to the consumer mind when its product class is mentioned

Top of Mind: Glucose Buiscuits..???

Example: Product class is small car-????????

Thanda matlab COCA COLA.

Dominant: Bislery: Distilled Water.

3) Brand Recognition:

It is the familiarity gained from the past Exposure.

Symbol is given and we have recognized as it is pepsi.

It is done through positioning.

Assumption is customer/consumer is aware/past exposed to the brand

Life's Goods….?????

4) Brand Equity:

• It is a set of brand assets and liabilities linked to a brand , its name and symbol , that add to or subtract from the value provided by a product or service to a firm and /or to that firm’s customers.

• Sachin Tendulkar

• Assets: + things: Good batsman.

• Liabilities: - things: Not a Good Captain.

5) Brand Identity:

The outward expression of the brand including its name, trademark, communication and visual appearance.

Example: Airtel jingle, New Airtel advertisement, Low smoke coil: Good knight.

It is uniqueness.

It reflects how owner wants the consumer/customer to perceive the brand

6) Brand image:

The actual impression in the consumer mind of brand total personality.(real or imaginary qualities).

7) Brand Loyalty:

The degree to which a consumer consistently purchases the same brand within a product class.

Purchasing from a single manufacturer than multiple suppliers.

8) Brand Switching:

The degree to which a consumer restrict the purchasing the same brand within a product class.

9) Co Branding:

-Marketers often combine their products with the products from the other companies in various ways

Product:

• Anything offered to the market for attention, acquisition/ownership, use, consumption that might satisfy the need/want.

• Service:

• Intangible offerings which do not results in to the ownership of anything.

Types of Consumer Products

1) Convenience Products:

-Frequently Purchased

-Minimum Buying efforts

-Low Price

-Mass Promotion

-Large Distributors.

Example: FMCG Products.

2) Shopping Products:

-Less purchases

-Selective distribution

-More buying efforts

Example

Furniture

3) Specialty Products:

-Strong Brand Preference and loyalty

-High Price

-Exclusive distribution

-carefully targeted Promotions

Example: Jwellery

4) Unsought Goods:

-little awareness and knowledge

-Pricing varies

-Distribution varies

-People may/ma not pay attention

Example; Insurance

Industrial goods Classification

1) Materials and Parts

-Raw materials: Farm products and Natural products.

-Manufactured materials and parts.

2) Capital Items:

3)Supplies and business services.

Product MIX

1) Width: No of product Lines.

-Consumer Durable Goods/FMCG

2) Length: Total No of Items in mix.

-TV, Refrigerators, ovens in consumer durables

-Soap, Tooth paste…in FMCG

3) Depth: No of Product variations.

-Moisturizing soap, Lemon Soap, Freshness, Delux soap…

4) Consistency: Degree to which the product lines are related.

Industrial Product DevelopmentStrategy

Induced Strategy• Defines a market need that

converges on the organizations concept of strategy

• Formal screening of technical and market merit using administrative procedures

• Existing organizational resources

• Roles and responsibilities are defined.

Autonomous Strategy• Defines a market need that

diverges from organizations concept of strategy

• Informal Network

• Combination of resources.

• Roles and responsibilities are

not defined properly.

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What is Product development?

“Product development aims to provide the goods

wanted by the market, at the time and in the

quantities desired by it, at the prices it is willing to

pay, yet leaving a sufficient margin (or a net profit)

for the manufacturer”

Product development is the process of

commercializing a product in the market starting

from the concept stage.

16Types of Product development

1. Addition of a product

2. Modification/improvement of an existing

product

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1. Addition of new product

Fill the gap in product range – men’s wear, ladies

wear + kids wear

To maintain some products always at maturity

level to boost the revenue for the company - PLC

To utilize the resources and skills available in the

company – MMS + BMS + MBA

To explore new market or create new markets –

tooth paste + tooth powder

18To meet customers’ specific demand –

packaging boxes for a new product,

special cans for Ponds’ Magic

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2. Improvement/modification of existing

products

Short term objectives and long term objectives

Short term objectives

To stimulate the sales – Colgate herbal, active, sensitive! Cell

phones with cameras

To satisfy urgent needs of the customers - pencils with erasers,

CFL lamps, need to meet customers urgent need to save electric

power

To utilize installed capacity – fan manufacturers making radiator

blowers

Brand Building Strategies

• 1) Brand Name Strategies:

• A) Family Brand Names: Godrej

• Godrej interiors, Godrej Safety Divisions, Godrej Fork lifts, Godrej infrastructures, Godrej consumer durables.

• B) Individual brand Names:

2) Brand Relationship Spectrum

2) Brand Extension• It is use of an established

brand name on a new brand within the same broad market/Product category

• Unilever used Dove brand name for deodorants, shower gel, liquid soap etc.

• Cadbury dairy Milk- Silk-celebrations..

3) Brand Stretching• It is use of established

brand name in unrelated markets/product categories.

• Yamaha used on Pianos, HI-FI, Summerhouses.

• Cadbury Oreo, Halls

Disadvantages of Brand Extentions:

• Brand Dilution:

• Consumer no longer associate the brand with specific product.

• Example: Audi 5000 suffered from tidal wave of negative publicity

• Mouth in mind: 1980- Problem od Sudden Acceleration

• Audi had to spilled 4000 models.

• Quattro: isolated by negative margines with brand revitalization.

4) Brand Portfolio

• It is a set of all brands and brand lines a particular firm offers for sale in a particular category/market segment.

• Flankers• Cash cows• Low end entry level: Traffic Builders.• Initially introduce low price products to attract the customer to the franchise• Example: BMW introduces 3 series automobiles.• Apple decreasing a price on Diwali occasions.• Selling a old stock at less price before launching a new technology.• High End Prestige.

5) Brand Revitalization

• When the sales of a particular brand decreases bcoz of change in consumer taste and preferences, new competitors..etc. this strategy is used.

• It gives new identity to the Brand

Voltas: Tata Enterprise

• Market Share: 30-40 % in 1992-1993

• In 2000-2001- 7% market share

• For high volume sale-Decrease the Price-ultimately cost

• Joint venture with leading US based AC company-Fedders International.

• Revamping of distribution system- removing a non performing distributors, adding a new network of distributions.

• New technology

Pepsi: Dew

Mountain DEW in 1969- Yahoo Mountain DEW-It will tickle your innards

1990- young males-Dew Dudes-outdoor action scenes

1995-DO the Dew

200-Dar ke aage jit hain.

• 6) Global Branding: Cipla.

• 7) Managing a product Portfolio.

• 8) Developing a new product.

• 9) Brand Positioning

• 10) Brand Elements.