Summary of Product Management

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

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!!