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Products, Services & Brands

Products, Services & Brands. Chapter: 8 Lec: 7b. Product Line Decisions. Product Line

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Products, Services & Brands

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  1. Products, Services & Brands Chapter: 8 Lec: 7b

  2. Product Line Decisions • Product Line A group of products that are closely related because they function in a similar manner, are sold to the same customer groups , are marked through the same types of outlets, or fall within given price ranges • A company can expand its product line in two ways - Line filling (add more items in line) - Line stretching (upwards/ downwards) e.g. Hotel one, PC, Marriot (downwards) Tata Indigo, upper market car (upwards)

  3. Product Mix Decisions • Product Mix The set of all product lines and items that a particular seller offers for sale - Product mix has four dimensions 1- Width 2- Length 3- Depth 4- Consistency

  4. Product Mix Decisions • Width The number of different product lines the company caries e.g. Sony ( TV, play station, camera) • Length Total number of items a company carries in its product line e.g. digital cameras, camcorders • Depth The number of versions offered of each product in the line e.g. Flat panel, rear projection, High/low resolution • Consistency How closely related the product line are e.g. Distribution, stores availability

  5. Branding Strategy: Building Strong Brands • Brand Equity The differential effect that knowing the brand name has on customer response to the product or its marketing - brand vary in the amount of power e.g. Song, Nike, Disney, McDonalds • Customer perception dimensions 1) Differentiation (what makes the brand stand out) 2) Relevance (how it meets consumer needs) 3) Knowledge (how much consumer know about the brand) 4) Esteem (How do consumer respect the brand)

  6. Building Strong Brands Brand Positioning Attributes Benefits Beliefs and values Brand Sponsorship Manufacturer’s brand Private Brand Licensing Co-branding Brand Development Line extensions Brand extensions Multibrands New brands Brand name selection Selection Protection

  7. Building Strong Brands • Brand Positioning e.g. Volvo attributes: features of the car benefit: what you’ll get out of them (safety) Belief and values: e.g. Marriot- Luxury rooms

  8. Building Strong Brands • Brand Name Selection - can add to a product’s success - best suited for product category - should be protected

  9. Building Strong Brands • Brand Sponsorship There are four sponsorship options - National Brand: sell under your own name (Sony Bravia) - Private Brand: (distributor brand) - Licensed brands - Co-brand

  10. Brand Sponsorship • National Brands Vs Store Brands Store Brands A brand created and owned by a reseller of a product or service e.g. HKB, Al-Fateh - Retailer can select the best place in store for their brands - Select a lower price as compared to national brands

  11. Brand Sponsorship Licensing • Takes years and millions to create a brand • Some companies license names/ symbols for a fee • Toys based on Tv characters • Characters on clothes, bags etc.

  12. Brand Sponsorship • Co-branding The practice of using the established brand names of two different companies on the same product - you can bring new value for your customers e.g. Marriot and Barclays Nike and ipod - Complex legal contracts and licenses “Giving away your product is like giving away your child – you want to make sure everything is perfect”

  13. Brand Development • A company has four choices when it comes to developing brands Line extension Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category e.g. Bata, regular shoes, sports shoes, sandals etc. - Geo news, geo super, geo entertainment -An overextended brand name might lose its meaning - Sale of an extension might come at the expense of other item

  14. Brand Development • Brand Extensions Extending an existing brand name to new product categories e.g. Maggie Noodles, Maggie soup, Maggie Ketchup - Ponds tooth paste, Heinz pet food met early death - Extension may confuse the image of the product

  15. Brand Development • Multibrands Companies introduce additional brands in the same category - Each brand entertains a different segment - Each brand may obtain a small marketplace

  16. Brand Development • New Brands

  17. Brand Development Strategies Product Category Existing New Line extension Brand Extension Existing Brand Name Multibrands New Brands New

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