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Product Management II - The Value of Branding

Product Management II - The Value of Branding. MKT 750 Professor West. Agenda. Discuss Tivo Case Commercials Consumer Viewpoint, Stakeholders, Competition? Action plan Leveraging brand equity. Launching Tivo. What is Brodie Keast’s interpretation of Tivo’s problem?. Launching Tivo.

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Product Management II - The Value of Branding

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  1. Product Management II - The Value of Branding MKT 750 Professor West

  2. Agenda • Discuss Tivo Case • Commercials • Consumer Viewpoint, Stakeholders, Competition? • Action plan • Leveraging brand equity

  3. Launching Tivo • What is Brodie Keast’s interpretation of Tivo’s problem?

  4. Launching Tivo • Who is Tivo best suited for? • What is Tivo’s value proposition?

  5. Campaign: • Target Market: • Positioning: • Product: • Price: • Place: • Promotion:

  6. Value Chain Impact BeforeAfter Advertisers Advertisers Networks Networks Cable & Satellite Cable & Satellite Consumers Consumers

  7. Launching Tivo • What can we learn from this about being a product pioneer?

  8. The Value of Brands “A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller and to differentiate them from those of competitors. (Philip Kotler p. 443).”

  9. What is a brand? • A product is a bundle of benefits • Mix Decisions -- How big is big enough? • Life Cycle Decisions -- How long is too long? • A brand is a “promise to your customer” • Communicated through advertising, packaging, services, and warranties • Expectations matter and impact experience

  10. What is Brand Equity? • The value added/deleted from a product or service due to the brand name • A set of brand assets and liabilities • Customer Loyalty • Awareness • Perceived Quality • Associations • Proprietary Assets

  11. The Value of Brands • Value to the Customer? • Info processing is simplified, increased consumer confidence, risk reduction, ease of justification, enhanced satisfaction… • Value to the Firm? • Efficient and effective marketing, loyal customer base, higher margins, platform for growth, channel power

  12. Leveraging Brand Equity • Product Line and Brand Extensions • Evaluate the “extended” product based on perceived similarity to the core brand • Extensions offer quick rewards • The cost of a successful brand launch is approx. $30 million versus $5 million for a line extension

  13. BIC disposable shavers Kodak film Ivory soap Jell-O gelatin Barbie dolls Bausch & Lomb optics Minolta camera Unsuccessful: Levi jeans Mr. Coffee coffee makers Bausch & Lomb optics BIC disposable lighters Kodak cameras and batteries Ivory shampoo, dishwashing liquid Jell-O pudding pops Barbie games, furniture, clothes Bausch & Lomb contact lens Minolta copiers Levi business suits Mr. Coffee coffee Bausch & Lomb mouthwash Successful: Leveraging Brand Equity

  14. Leveraging Brand Equity • Brand collaboration • Partnering

  15. Brand Dilution • Can brands be stretched too far? • In the late 1980s Disney became concerned • Research revealed that product endorsements were resented • Disney responded by establishing a brand equity team to manage the franchise and selectively evaluate all promotional opportunities

  16. Summary • Strong brands: • Add value to the firm through • Premium pricing • Channel power • Platform for extension • Collaboration opportunities • Require attention, and investment of resources

  17. Assignment • Case: Are Some Customers More Equal Than Others? • Work on developing your team’s paper

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