Product and Brand Management

1. Product and BrandProduct and Brand
ManagementManagement

2. What is a product?What is a product?
A product is any offering by a
company to a market that serves to
satisfy customer needs and wants.
It can be an object, service, idea etc.

3. New Product DevelopmentNew Product Development
Most new product development is an
improvement on existing products
Less than 10% of new products are
totally new concepts.

4. Success rate of newSuccess rate of new
productsproducts
The success rate of new products is
very low – less than 5%.
Product obsolescence is rapid with
improvements in technology

5. Product Development StagesProduct Development Stages

6. Business analysisBusiness analysis
The most customer appealing offer is
not always the most profitable to
make
Estimate on costs, sales
volumes,pricing and profit levels are
made to find out the optimal price –
volume mix.
Breakeven and paybacks
Discounted cash flow projections

7. Market testingMarket testing

8. CommercializationCommercialization

9. Product LevelsProduct Levels
Customer value hierarchy

10. Customer DelightCustomer Delight
When you exceed customer’s
expectations

11. Product HierarchyProduct Hierarchy

12. Product classificationProduct classification

13. Consumer goodsConsumer goods
classificationclassification
Convenience goods
Shopping goods
Specialty goods
Unsought goods

14. Industrial goodsIndustrial goods
classificationclassification
Materials and Parts
- raw materials
- manufactured materials and parts
Capital items
Supplies and business services

15. Product MixProduct Mix
 The assortment of products that a company
offers to a market
 Width – how many different product lines?
 Length – the number of items in the
product mix
 Depth – The no. of variants offered in a
product line
 Consistency – how closely the product lines
are related in usage

16. Product Line decisionsProduct Line decisions
 Product rationalization
 Market rationalization
 Product line length
too long – when profits increase by
dropping a product in the line
too short – when profits increase by
adding products to the product line
 Line pruning – capacity restrictions to
decide

17. BrandBrand
A name becomes a brand when
consumers associate it with a set of
tangible and intangible benefits that
they obtain from the product or
service
It is the seller’s promise to deliver the
same bundle of benefits/services
consistently to buyers

18. Brand EquityBrand Equity
When a commodity becomes a brand,
it is said to have equity.
The premium a brand can command
in the market
The difference between the perceived
value and the intrinsic value

19. Levels of meaningLevels of meaning
Attributes
Benefits
Values
Culture
Personality
Users

20. Brand PowerBrand Power
Customer will change brands for price
reasons
Customer is satisfied. No reason to
change.
Customer is satisfied and would take
pains to get the brand
Customer values the brand and sees
it as a friend
Customer is devoted to the brand

21. Brand Equity – CompetitiveBrand Equity – Competitive
AdvantagesAdvantages
Reduced marketing costs
Trade leverage
Can charge a higher price
Can easily launch brand extensions
Can take some price competition

22. Managing Brand EquityManaging Brand Equity
Brand Equity needs to be nourished
and replenished. We must not flog
the brand for equity to be diluted or
dissipated
Store brands

23. Advantages of brandingAdvantages of branding
 Easy for the seller to track down problems
and process orders
 Provide legal protection of unique product
features
 Branding gives an opportunity to attract
loyal and profitable set of customers
 It helps to give a product category at
different segments, having separate bundle
of benefits
 It helps build corporate image
 It minimises harm to company reputation if
the brand fails

24. Brand parityBrand parity
Consumers buy from a set of
acceptable/ preferred brands

25. Umbrella BrandUmbrella Brand
Products from different categories
under one brand
Dangerous to the brand if the
principal brand fails
Sometimes the company name is
prefixed to the brand. In such cases
the company name gives it
legitimacy. The product name
individualises it.

26. Naming the BrandNaming the Brand
Product benefits
Product qualities
Easy to pronounce
Should be distinctive
Should not have poor meanings in
other languages and countries

27. Brand strategyBrand strategy
 Line extension – existing brand name
extended to new sizes in the existing
product category
 Brand extension – brand name extended to
new product categories
 Multibrands – new brands in the same
product category
 New brands – new product in a different
product category
 Cobrands –brands bearing two or more well
known brand names

28. Brand RepositioningBrand Repositioning
This may be required after a few
years to face new competition and
changing customer preferences

29. PackagingPackaging
Includes the activities of designing
and producing the container for a
product
Packaging is done at three levels
- primary
- secondary
- shipping

30. Packaging as a marketingPackaging as a marketing
tooltool
Self service
Consumer affluence
Company and brand image
innovation

31. Designing packagingDesigning packaging
 Packaging concepts
 Technical specifications
 Engineering tests
 Visual tests
 Dealer tests
 Consumer tests
 Packaging innovations
 Environmental considerations

32. LabelsLabels
Identification
Grade classification
Description of product
Manufacturer identity
Date of mfg., batch no.
Instructions for use
Promotion