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Managing Products and Brands

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Useful to understand differences in marketing strategy over product lifetime ... as Tarina Tarantino and Anna Sui to interpret Barbie's wardrobe for grownups. ... – PowerPoint PPT presentation

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Title: Managing Products and Brands


1
Managing Products and Brands
  • 03/16/09

2
Product Life Cycle
Primary demand
Selective demand
3
PLC for different product types
4
PLC and consumers
5
PLC 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

6
Role 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)

7
Example Eyeglasses
  • Business Week video

8
Brands
  • 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

9
Brands
  • 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

10
Advantages 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
11
Alternative 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
12
Multiproduct 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

13
Launched 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.
14
Brand extensions Hit or Miss?
This Harley-Davidson icing kit is sold to
bakeries and pastry shops to make birthday
confections
15
The fledgling airline ceased commercial flights
in spring 2006, although the planes are now
available for chartered flights.
16
Branding strategies
  • Co-branding
  • Examples Intel inside Cover Girl with Olay
    ingredients
  • Sub-branding
  • Kelloggs cereals
  • 3M

Apple and Swarovski Mini Ipod
17
Brand 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

18
Packaging role
  • Communication
  • Functional
  • Perceptual

19
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