New Products and New Products and ServicesServices

Chapter 10Chapter 10

ProductProduct

““A good, service, or idea consisting A good, service, or idea consisting of a bundle of tangible and intangible of a bundle of tangible and intangible attributes that satisfies consumers attributes that satisfies consumers and is received in exchange for and is received in exchange for money or some other unit of value.”money or some other unit of value.”

Consumer GoodsConsumer Goods

Consumer v. industrial goodsConsumer v. industrial goods

Consumer goodsConsumer goods Convenience goodsConvenience goods Shopping goodsShopping goods Specialty goodsSpecialty goods Unsought goodsUnsought goods

ProductsProducts

Product itemProduct item Nike Air JordanNike Air Jordan

Product lineProduct line Nike shoesNike shoes

Product mixProduct mix Nike shoes and Nike shoes and

clothesclothes

Product widthProduct width Product depthProduct depth

Source: http://nike-guidesntips.blogspot.com

BrandsBrands

BrandingBranding Brand nameBrand name Trade nameTrade name

TrademarksTrademarks Brand personalityBrand personality

Examples:Examples: Brand equityBrand equity

Benefits of BrandingBenefits of Branding

Product identificationProduct identification

Brand equityBrand equity

Brand loyaltyBrand loyalty

More on Brand EquityMore on Brand Equity

The Value of Brand EquityThe Value of Brand Equity Intangible assetsIntangible assets LicensingLicensing

Naming the BrandNaming the Brand What characteristics should it have?What characteristics should it have?

Branding StrategiesBranding Strategies

Manufacturer BrandingManufacturer Branding Multiproduct brandingMultiproduct branding Multibranding Multibranding

Private Branding StrategyPrivate Branding Strategy Mixed Branding StrategyMixed Branding Strategy Generic Branding StrategyGeneric Branding Strategy

Manufacturer BrandingManufacturer Branding

Multiproduct Multiproduct BrandingBranding AdvantagesAdvantages DisadvantagesDisadvantages SubbrandingSubbranding Brand ExtensionBrand Extension

Co-brandingCo-branding

Manufacturer BrandingManufacturer Branding

Multibranding Multibranding StrategyStrategy Each product gets Each product gets

its own nameits own name P&GP&G

AdvantagesAdvantages DisadvantagesDisadvantages

Source: http://retail-guru.com

Private BrandingPrivate Branding

Manufactures product but sells under the Manufactures product but sells under the brand name of the retailer or wholesalerbrand name of the retailer or wholesaler

Source: http://mypbrand.com

Mixed Branding StrategyMixed Branding Strategy

Mix of manufacturer and private Mix of manufacturer and private brandingbranding

Examples:Examples:

Generic BrandingGeneric Branding

No identification No identification other than other than contentscontents

Less than 1% of Less than 1% of grocery purchases grocery purchases are generic are generic

Source: http://influentia.typepad.com/blog/2007/12/why-the-generic.html

Packaging and LabelingPackaging and Labeling

Packaging v. LabelPackaging v. Label

Benefits of PackagingBenefits of Packaging

GreenwashingGreenwashing

WarrantiesWarranties

Express warrantyExpress warranty Limited-coverage warrantyLimited-coverage warranty Full warrantyFull warranty Implied warrantyImplied warranty