Summary of Product Management

1. Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building A Brand Managing Across Brands Summary of Product Management

2. Agenda • PharmaSim Wrap-up • Insights from the marketing plan • Insights from the game • Course Summary • Latest Research Project

3. PharmaSim Wrap-up • Marketing Planning Lessons • Strategies and Performance by Group

4. Marketing Planning Lessons • Situation Analysis • Length • Is it germane to strategy and tactics • Information ->Inferences ->Implications • If no implications, than consider omitting • The plan is also a request for resources • Affects tone

5. Marketing Planning Lessons • Situation Analysis • Internal consistency • If it is in the situation, is it in the summary? The objectives? The strategy? • Assumptions • Includes growth, competitive reactions, etc. • Objectives - are they attainable? • Bonuses and merit raises • Forecasts

6. Marketing Planning Lessons • Competitor and Customer Analyses • What do the customers want? • Table of benefits by segment or perceptual map • Who provides it? • Table of benefits by competitor or perceptual map • Are there positioning gaps? • Who will rush to fill them and what are the threats?

7. Marketing Planning Lessons • Strategy and Tactics • Link objectives, strategy and tactics • Specificity: How many sales people? What ad budget? What allocation of trade promotions? • Pricing Analysis • All teams adopt competitive positioning, but is this profit maximizing?

8. Marketing Planning Lessons • Promotion Analysis • Caution in reallocating marketing support from core product (e.g., Coke to Diet Coke) • Advertising Analysis • Objective of primary demand is often not commensurate with a line extension or a lower share brand (increases competitor’s sales)

9. Marketing Planning Lessons • Product Design Analysis • Articulate rationale • Competitors and customers • Promotional plan should vary by product

10. Game Results • Groups maximized share and sales as opposed to net income - marketing bias?

11. Game Results:Team Strategies

12. Game Results • Correlation between teams’ strategies and teams’ results

13. PharmaSim Wrap-up • Experience with marketing planning • Number of lessons with respect to writing a plan • Goal-setting experience • How did you do vs. plan • Experience managing a brand • Most teams did well • Correlates of success

14. Course Overview • Objective - Theoretical and practical grounding in brand management • Structure • Brand Management System • On Building A Brand • Managing Across Brands

15. Structure • Part I - The Brand Management System • Brands and Brand Management: Class 1 • The Nature of a Brand • Brand/Product Management • An Application to the Pepsi Syringe Scare. • Sophisticated organizational structure • Integrated plan • Facilitated information flows to and from markets • Result: brand not affected

16. Structure • Part I - The Brand Management System • Organizational Design: Class 2 • P&G Case • The brand management system gives brands attention • In mature categories, be wary of product proliferation • Live commentary from P&G • Whitewater packaging • Challenges of implementing decisions (approvals and interactions) • P&G continually adapts its structure

17. Structure • Part II - Building Brands • Pricing: Class 3 • Kodak • Strategic choice between share, margins, and equity • Innovation is necessary to increase all three • Price points and flanker (fighter) brands • Pricing • Price-quality inferences • EDLP • The effect of pricing on equity (JMG 1999) • Red Hat’s Director of Marketing • Product v. brand • Flanker brands

18. Structure • Part II - Building Brands • Distribution: Class 4 • Goodyear case and video • Channel cares about price and store equity (not brand) • Manufacturer cares about brand equity (not store) • Intensive v. exclusive distribution and equity • Push v. pull and equity • Channel is front line to customer and has large impact on equity • Video: dealing with the media • Brand Elements • Name, logo, characters, slogans, and jingles • Memorable, meaningful, protectable, transferable, adaptable

19. Structure • Part II - Building Brands (Cont.) • Private Label and Promotion: Class 5 • Private Label • Change quality, change price, add low quality brand, or do nothing (Hoch) • Recall, these are Kodak’s options • Sales Promotion • Event marketing (raise awareness and leverage secondary associations, but weak payoffs and unforseen consequences) • Sales promotion (trade and consumer) • Short term gains, long term costs • Craig Stacey (VP from IRI) discusses the use of scanner data information to build brands.

20. Structure • Part II - Building Brands (Cont.) • Promotion: Class 6 • Marketing in the NHL • Promotion of event rather than game • Grass roots marketing • Hurricanes Director of Communications, Ken Lehner • Live survey on marketing the NHL and building the Hurricanes brand • Promotional design

21. Structure • Part II - Building Brands (Cont.) • Advertising: Class 7 • Advertising • Integrated communications (awareness and brand associations) • Intel Inside Interactive CDROM. • Process of developing advertising strategy • Live Commentary and Discussion with Michael J. Ganey, Director, Howard, Merrell & Partners,Inc. • How to use an agency • Effect of advertising on brands

22. Structure • Part III - Across Brands and Markets • The Marketing Plan: Class 8 • The Marketing Plan • Plans serve to coordinate and formalize research and decisions • Planning process • Planning format • Tom O’Guinn, Visiting Professor discusses Brand Communities. • Consumers are now empowered by the internet and increasingly difficult to manage

23. Structure • Part III - Across Brands and Markets • Product Extensions: Class 9 • Product Extensions • Tremendous efficiencies • Consumer confusion • Issues of fit • The Black and Decker Case and Video • Demonstrates effect of extensions on parent brand • Strategies to mitigate negative brand associations • Rebrand • Inimitable points of differentiation (service, sales relationships)

24. Structure • Part III - Across Brands and Markets • Global Branding: Class 10 • The Heineken Case • Messages can transcend culture • Think global (message) • Act local (design) • Local v. global control • Global branding • Efficiency v. customization • The Fuqua MBA with Jim Gray, Associate Dean, Fuqua.

25. Structure • Part III - Across Brands and Markets • Branding on the Internet: Class 11 • Deborah Kania (Lens Express and author of branding.com) and Beth Yakel (Sciquest) • Brands are increasingly important on the web • Traditional brands have greater awareness but carry traditional “baggage.” The opposite is true for e-brands • Branding on the web implies personalization and community

26. Structure • Part III - Across Brands and Markets • Wrap-up and PharmaSim Summary: Class 12 • You are here!!

27. Course On a Page • Part 1 - Brand Management System • Brands and Organizational Design • Part 2 - On Building A Brand • Price to Image • Distribution Presents Image • Christen and Nathaniel Arrive! • Promotion to Develop Image • Product is Image (Private Label) • Part 3 - Managing Across Brands & Regions • Marketing Plan • Product Lines Interact • Global v. Local Associations

28. Good Luck! • Stay in touch • Guest speaking • Examples • Feedback regarding preparation • Vexing issues faced this summer or next year • Thank you for making this a great and enjoyable course!!