Title: Managing Products and Brands
1Managing Products and Brands
2Product Life Cycle
Primary demand
Selective demand
3PLC for different product types
4PLC and consumers
5PLC Advantage and disadvantage
- Advantage
- Useful to understand differences in marketing
strategy over product lifetime - Disadvantage
- It is reactive
- How do we know which stage our product is in?
- Level of specificity is important
6Role of product manager
- Market modification (Increase market size)
- Finding New Users (JJ baby shampoo)
- Increasing Use (Shampoos)
- Creating New Use Situation (Arm Hammer baking
soda) - Product modification (Change product)
- Vanilla Coke, new car models
- Product repositioning (Change product)
- Quaker Oats
- Downsizing (NPR audio)
7Example Eyeglasses
8Brands
- Branding is an important differentiation tool
- It refers to the name, term, symbol or design
that is used to identify and differentiate your
product from competing products
9Brands
- Brands are important because consumers buy and
are loyal to brands not products - E.g. You buy Coke not just any soda, you wear Gap
khakis not just any khakis - Loyalty can be driven by inertia or by preference
- You may buy Crest toothpaste out of habit
- You may buy AF clothing due to strong preference
- Hence, purchase patterns alone do not adequately
represent brand loyalty
10Advantages of Brand Loyalty
- Reduced marketing costs (MacDonalds vs.
Whataburger) - Greater leverage and power (Wal-Mart vs. K-Mart)
- Ability to charge higher prices (Abercrombie vs.
Target) - Ability to launch extensions (Sony vs. Aiwa)
- Defense against competitors (Microsoft vs. Linux)
Greater profitability
11Alternative branding strategies
COST RISK DILUTION
Branding strategy
Multiproduct branding strategy Sunbeam
makes Sunbeam irons Sunbeam toasters Sunbeam
crockware Toro makes Toro
snowblowers Toro lawn mowers Toro garden
hoses
Multibranding strategy Anheuser-Busch
makes Budweiser Busch Michelob Wurtburger Hofbrau
Procter Gamble makes Tide Cheer Ivory
Snow Oxydol
Private branding strategy AP has Ann
Page canned goods Ann Parker bakery goods Eight
OClock coffee Sears has Kenmore
appliances Craftsman tools
Mixed branding strategy Michelin makes Michelin
tires Sears tires Epson makes printers
as Epson IBM
12Multiproduct Branding strategies
- Line extensions
- Current brand name for new but closely related
product - Examples Yoplaits flavor variants, Car series
like the BMW 300/500/700 series - Higher survival rates lower cost
- Risk cannibalization
- Brand Extensions
- Current brand name for different product
- Example Dove soap, shampoo, lotion, face care
- Lower marketing costs
- High risk to the original brand if the extension
fails - Brand dilution
13Launched with a party at the upscale Los Angeles
boutique Fred Segal Flair in October, 2005, the
Barbie Luxe extension of Mattel's enduring doll
franchise offers Barbie-themed clothing and
accessories in adult sizes. Mattel recruited hip
fashion designers such as Tarina Tarantino and
Anna Sui to interpret Barbie's wardrobe for
grownups.
14Brand extensions Hit or Miss?
This Harley-Davidson icing kit is sold to
bakeries and pastry shops to make birthday
confections
15The fledgling airline ceased commercial flights
in spring 2006, although the planes are now
available for chartered flights.
16Branding strategies
- Co-branding
- Examples Intel inside Cover Girl with Olay
ingredients - Sub-branding
- Kelloggs cereals
- 3M
Apple and Swarovski Mini Ipod
17Brand Equity
- Brand equity is the value that a brand adds to a
product offering beyond the functional benefits
provided - Brand awareness
- Mental and emotional associations
- Sometimes measured in terms of willingness to
pay additional money
18Packaging role
- Communication
- Functional
- Perceptual
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