10-1

Product & Brand Management

Dr. Sanjeev Varshney

10-2

Different Levels of Benefits (Laddering)

Potential Product or Service

(True insights)

Augmented or

Enhanced Products

or Services (Delights)

Expected product

or Service (Satisfiers)

Generic or Core Product or Service

(Must)

The Rings Model of Product/Service Attributes (Levitt)

10-3

Product Mix and Product Line

The product mixproduct mix is the set of all products offered for sale by a company.

A product mix has two dimensions:– Breadth - the number of product lines carried.– Depth - the variety of sizes, colors, and models offered

within each product line. A product lineproduct line is a broad group of products, intended for

similar uses and having similar characteristics.

10-4

Dabur Strategy

Oral Care

Hair Care

Home Care

Food Health Digestives Baby

Red Toothpaste

Binaca Toothebrush

Lal Dant Manjan

Babool

Meswak

Promise

Dabur Hair Oil

Vatika Hair oil

Vatika Shampoo

Anmol Shampoo

Anmol Hair Oil

Odomos

Odonil

Odopic

Sani fresh

Real

Real active

Coolers

Hommade

Lemoneez

Capsica

Health supplments

Natural Cures

Digestives

Hajmola

Pudin hara

Hingoli

Anardana

Dabur Lal Tail

Dabur Baby Olive oil

Dabur Janma Ghuti

10-5

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Colgate-Palmolive Product Assortment

10-6

Product Mix Strategies Positioning the Product

– In Relation to a Competitor– By Price and Quality

Product-Mix Expansion– Line Extension– Mix Extension

Altering of Existing Products– Product Alteration– Packaging Alteration

10-7

Product Mix Strategies (Con’t.)

Product-Mix Contraction– Thinner/Shorter– Concentration on Fewer Lines

Trading Up/Trading Down– Trading up: Adding a higher-priced product to a line to attract a

higher-income market and improve the sales of existing lower-priced products.

– Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

Why Would a Company want to increase its product mix breadth? Why would it want to decrease it?

10-8

How do firms decide which products to add or subtract from their product mix?

Adopting Product Breadth to Meet Changing Consumer Demand

10-10

Product Line Substitution Effect

From - To Core Brand Multi-grain Reduced Fat

Core Brand X 10% 25%

Multi-grain 5% X 20%

Reduced Fat 10% 5% X

Product Line extension add to the sales & profit of the Product Line

10-11

Product Line Scale Effects

Scaling effect in terms of fixed manufacturing expenses

Leveraging fixed Marketing Expenses associated with sales & distribution

Marketing ROS: Net Marketing Contribution/Sales X 100%

Marketing ROI: Net Marketing Contribution/Marketing expenses X 100%Or

Marketing ROI = Marketing ROS/Marketing expenses X 100%

Net Marketing Contribution = Sales Revenue X % GP – Marketing exp

10-12

Product Scale EffectsCore Brand

Flanker Brand 1

Flanker Brand 2

Product Line

Primary Demand

Net Volume

WP/ p.u.

VC/p.u.

Margin/p.u.

TC (Total Contri)

MO (Manf Overhead)

GP (Gross Profit)

FME (Fixed mrk Exp)

VBE (Variable brand exp)

TME (Total Mrk exp)

NMC (Net Mrk Contri)

Marketing ROS (%)

Marketing ROI (%)

10-13

"Products are made in the factory, but brands are created in the mind."

Walter Landor

10-14

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

What Makes a Brand?

BrandingBranding

Brand name

URLs

Logos and symbols

Slogans

Jingles

Characters

10-15

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Value of Branding for the Customer and the Marketer

10-16

Brands

Reasons for not brandingReasons for not branding

No promotion

Do not need consistent quality

Product can not bephysically differentiated

10-17

Selecting a Brand Name

AGood

Brand Name

AGood

Brand Name

Can beregisteredand legallyprotected

Can beregisteredand legallyprotected

DistinctiveDistinctive

Easy topronounce

spellremember

Easy topronounce

spellremember

Suggestbenefits

or use

Suggestbenefits

or use

Adaptableto

product lineadditions

Adaptableto

product lineadditions

10-18

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand Equity

CRM Programs:

Are they able to create

Brand Associations

Brand EquityBrand

Awareness

Brand Perceived

Value

Brand Association

Brand Loyalty

10-19

Exercise

Brand Equity of XLRI Brand Personality of XLRI

10-20

Brand Loyalty

Brand Recognition Brand Preference Brand Insistence (Luxury Products like Rolex

Watches etc)

10-21

Protecting a Brand Name

Productcounterfeiting

Productcounterfeiting

Generic usageGeneric usage

Xerox

10-22

Measuring Brand Equity

Brand Audits: Consumer Focused exercise Brand Tracking Brand Valuation

Brand Asset Score

Brand Liability Score

Brand Equity

- =

10-23

Brand Asset Score Card

Brand assets

Rltv Imp

Very Low (0)

Below avg (25)

Average (50)

Above Avg (75)

Very High (100)

Brand Assets Score

BA 20% X 20

EC 10% X 5

BL 20% X 15

PLE 30% X 15

PP 20% X 10

OBA 100% 65

BA – Brand Awareness

EC- Emotional Connectedness

BL – Brand Loyalty

PLE – Product Line extensions

PP – Price Premium

10-24

Brand Liabilities Score Card

Brand Liabilities

Rltv Imp

Very Low (0)

Below avg (25)

Average (50)

Above Avg (75)

Very High (100)

Brand Assets Score

CD 20% X 4

PF 10% X 4

QP 20% X 10

PRSI 30% X 0

NA 20% X 4

OBL 100% 22

CD- Customer Dissatisfaction

PF – Product failures

QP – Questionable Practices

PRSI – Poor Record on Social issues

NA – Negative Associations

10-25

Branding Strategies

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand Ownership

Manufacturer or National

Brand Generic

Store or Private Label

10-26

Naming Brands and Product Lines

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand Names

Corporate or Family

BrandIndividual

Corporate & Product Line Brand

Examples for Each

10-27

Brand Extension

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Boost sales of the core

brand

Boost sales of the core

brand

Synergy among

the products

Synergy among

the products

Marketing costs

are lower

Marketing costs

are lower

Brand knownfor highquality

Brand knownfor highquality

Name wellestablished

Name wellestablished

Benefits of using

same brandname

Benefits of using

same brandname

10-28

Brand Dilution

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Evaluate the fit betweenthe product classof the core brand

and the extension.

Evaluate the fit betweenthe product classof the core brand

and the extension.

Evaluate consumer perceptions of the

attributes of the core brand and seek out extensions

with similar attributes.

Evaluate consumer perceptions of the

attributes of the core brand and seek out extensions

with similar attributes.

Refrain from extending the brand name to too many

products.

Refrain from extending the brand name to too many

products.

Is the brand extension distanced

enough from the core brand?

Is the brand extension distanced

enough from the core brand?

10-29

Brand Repositioning

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

New design New message New faces New audience New image New packaging New uses

Identify a Brand that needs repositioning. How would you reposition the brand

10-30

Packaging

Primary package Secondary package

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Example: of Packaging that has helped the brand successful

10-31

Packaging Strategies

Multiple packagingMultiple packaging

Changing the packagingChanging the packaging

Packaging the product linePackaging the product line

10-32

How can firms use packaging to create value for customers and the firm?

Using Packaging to Create Value

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin