Products, Services and Branding Strategy

PowerPoint Presentation by Sixit Bhatta

Products, Services and Branding Strategy

Session-5

ProductProducts, Services, and Experiences

– Market offerings may consist of a combination of goods and services

– Experiences are used to differentiate offerings

Levels of Product and Services– Core benefit, Basic, Expected and

augmented and Potential productProduct and Service Classifications

– Consumer products and industrial products

Product Levels

1. CORE PRODUCT

2. BASIC PRODUCT

3. EXPECTED PRODUCT

4. AUGMENTED PRODUCT

5. POTENTIAL PRODUCT

PRODUCT LEVELS

Example

Product or service or brand

Core Product Actual Product Augmented Product

Ford Ikon Freedom to travel

A motor car ?

Budget/No Frills Airline e.g. Jetlite, Go Air

? An airline journey Food bought during your flight

Nike Association with the best in sports.

? Nike online allows you to personalise your trainers

Example: Hotel

Product Classification

Consumer products:– Durability & Tangibility

•Non Durable: eg. Soap, beer•Durable: TV, Refrigerator.•Services: Intangible, eg: Air Travel,

Hotel, Telecom

–Consumer-Goods Classification•Convenience •Shopping•Specialty•Unsought

Industrial Goods Classification

– Materials and parts :• Raw Materials [ farm & natural] and

Manufactured materials and parts [ component material and component parts

– Capital items• Installation and Equipments

– Supplies and services• Operating Supplies and Maintenance and

repair items• Maintenance and repair service &

business advisory service

Product Differentiation

Form- Shape Size Features Customization Performance Conformance Durability Reliability Reparability

Product Line Analysis

Product Mix Product Line Product Width Consistency

Product Line Analysis

Two Aspects– Sales and Profit– Market Profile

Product Line Length

Profits can increase either if product line is shorten or added. It can be lengthens in two ways :1. Line Stretching : Down market stretch, Up Market stretch, Two way stretch2. Line Filling :by adding more items on product line

Product Line Modernization

Part Basis/OverallModernization is carried

rapidly, eg micro-processor companies

Too early might damage sale of current line and too late competition might take advantage.

Vox Wagan Beatle

Featuring and Pruning

Line Featuring – Establishing Image driver for the

line[ Surya classic for Surya brand]– Issue to promote weak items or safe

guard strong ones Pruning

– Weak items– Production demands

Branding

Coke, Toyota, Surya: What comes to your mind?AttributesBenefitsValuesCulturePersonalityUser

Marketing is also converting simple products and Services into brands.

Why Branding

Brands with strong equity have many competitive advantages:– High consumer awareness will reduce

marketing cost – Strong brand loyalty– Helps when introducing new products– Less susceptible to price competition– More Trade Leverage in bargaining with

distributors and retailers [Bajaj Bikes in Nepal]

Brand Name Decision

Product benefits Product Qualities Easy to pronounce recognize and

remember Distinctive Should not carry poor meanings in other

countries and languages Blanket Family Names

Brand Strategy Decision

Line Extension: Minor Changes to Existing Products

Brand Extension: Successful brands help introduce new products

Multibrands: Multiple brands into a product category

New brands: New product brandCo brands

Labeling and Packaging

Identifies the product Describes the product Promotes the product Legal requirement

Packaging

A Marketing Tool. Garnishing the product. Important Marketing Tool