Managing Products & Brands

1. Managing Products & Brands

2. A product has…. • Core customer value • Benefits • Associated Services (augmented product) • Financing • Warranty • Support

3. What is a Product? • Tangible good • Idea • Service • Person

4. Types of Consumer Products • Convenience • Shopping • Specialty • Unsought

5. Convenience • Relatively inexpensive • Little shopping effort • Without much planning • Require wider distribution

6. Unsought Products • Known but not actively sought • New products • Products we don’t wan to think about

7. Shopping Products More expensive than convenience Found in fewer stores Homogeneous Heterogeneous Different Price, quality varies Personal benefit • Similar • Look for lowest price

8. Specialty Products • Extensive search • Reluctant to accept substitutes • Selective, status advertising • Limited/exclusive distribution

9. Managing the product • Product item • Product Line • Closely related products • Product Mix – all the products sold

10. Managing Products • Width/Breadth • Number of product lines • Product Line Depth • Number of products in a product line • Changes • Increase/decrease breadth • Eliminate/Add a Product line • Increase/decrease depth • Eliminate/Add a product item to a Line

11. Managing Products • Product Modification • Changes one or more of a product characteristic • Quality • Functions • Style • Planned Obsolence

12. Managing Products • Repositioning • Changing consumers’ perceptions of a brand • Changing target market

13. Branding • And we are back to telling our story • Brand is more than a story; there are elements • Brand is • Name, term, symbol, design, or combination that identifies a seller’s products and differentiates them from competitors • Brand Name: can be spoken (GM) • Brand Mark: elements that cannot be spoken (Chevy symbol, Apple’s apple)

14. Importance of Branding • Establish Brand Equity • Value of company and brand names • Measured on awareness, perceived quality, brand loyalty • Can leverage equity to sell other products

15. Why Brand? • Facilitates Purchases • Establish Brand Loyalty • Protect from Competition • Protect from Price Competition • Reduce Marketing Costs

16. Branding Strategies • Ownership • Name • Brand Line Extension • Co-branding • Licensing

17. Ownership • Manufacturer Brands • Private Label brands • Premium • Generic • Copycat • Exclusive co-brands

18. Manufacturer vs. Private Manufacturer Private Higher profits Drop other brands in favor of own Ties customer to store Control of distribution • Advertise to consumer • Strong consumer loyalty • Attract new customer’s • Enhance store • If bad customer experience with product does not affect store

19. Name • Individual • Products vary enough to have own name • P&G different detergents • Family • Selling different products under same brand name • Jack Daniel’s • Absolute • Tide

20. Co-branding • Two or more brand names on a product or its package

21. Brand Line Extension • Use brand name for different product line • Line extension • Use of brand name within same line

22. Licensing • Contractual agreement • Allow a firm to use brand name, logo, etc. for a fee • Common in toys, apparel, and video games.

23. Packaging • Primary package • The one the consumer uses • Secondary package • Wrapper/Exterior • In line with Branding • UPC symbol • Attracts attention • Differentiate from competition • Labeling • Persuasive • Informational • Greenwashing

24. Packaging Functions • Contain and protect product • Promote product • Facilitate storage, use and convenience • Facilitate recycling and disposal