1. 9-1 Chapter 9 Product, Branding, and Packaging Decisions

2. 9-2 LO1 Describe the components of a product LO2 Identify the types of consumer products LO3 Explain the difference between a product mix’s breadth and a product line’s depth LO4 Identify the advantages that brands provide firms and consumers LO5 Summarize the components of brand equity LO6 Describe the types of branding strategies used by firms LO7 State how a product’s packaging and label contribute to a firm’s overall strategy LEARNING OBJECTIVES Chapter 9: Product, Branding, and Packaging Decisions

3. 9-3 CANADA GOOSE – A CANADIAN SUCCESS STORY! Not only functional & practical but a fashion statement too! From meagre beginnings to phenomenal success “Made-in-Canada” is a brand differentiator The brand is very visible & chic LO4, LO7

4. 9-4 LO1 COMPLEXITY OF PRODUCTS AND TYPES OF PRODUCTS

5. 9-5 SpecialtyShoppingConvenienceUnsought LO2 TYPES OF PRODUCTS - CONSUMER

6. 9-6 LO3 PRODUCT MIX AND PRODUCT LINE DECISIONS

7. 9-7 BreadthDepth LO3 Number of product lines Number of products within a product line PRODUCT MIX BREADTH AND PRODUCT LINE DEPTH

8. 9-8 LO3 CHANGE PRODUCT MIX BREADTH Increase Breadth Add new product lines Decrease Breadth Delete entire product lines

9. 9-9 Increase Depth Band-Aid now has over 40 products to heal cuts. Decrease Depth Unilever eliminated 400 core brands including Ragu sauce & Sunlight laundry detergent LO3 CHANGE PRODUCT LINE DEPTH

10. 9-10 Addition or deletion of SKUs in existing categories Designed to stimulate sales or react to consumer demand LO3 CHANGE NUMBER OF SKU’S

11. 9-11 The number of product lines offered by a firm is known as its _______________. A)product breadth B)product assortment C)product depth D)product mix Test Your Knowledge LO3

12. 9-12 A brand can use: Name, logos, symbols, characters, slogans, jingles and even distinctive packages. Oscar Meyer Commercial LO4 BRANDING

13. 9-13 LO4 WHAT MAKES A BRAND?

14. 9-14 LO4 VALUE OF BRANDING

15. 9-15 The purpose of branding is to _______________. A)allow advertising firms to establish a name for themselves B)make customers aware of a product’s features C)ensure legal rights for a product D)help consumers distinguish one company’s products from another LO4 Test Your Knowledge

16. 9-16 LO5 BRAND OVERVIEW

17. 9-17 LO5 BRAND EQUITY: AWARENESS

18. 9-18 Perceived value Discussion question How does First Choice Haircutters create value for customers? LO5 BRAND EQUITY: PERCEIVED VALUE

19. 9-19 LO5 BRAND EQUITY: BRAND ASSOCIATIONS - Mental Links - Consumers make between a brand & its key product attributes such as the logo, slogan or famous personality. Toyota Prius: economical, stylish, environmentally friendly Volvo: safety State Farm: ‘like a good neighbour’ Hallmark Cards: show you care with quality cards

20. 9-20 The relationship between a product or service’s benefits and its costs is known as _______________. A)brand association B)quality perception C)perceived value D)brand awareness LO5 Test Your Knowledge

21. 9-21 1.Consumers are often less sensitive to price 2.Marketing costs are much lower 3.Loyal customers praise the virtues of their favourite products, retailers or services 4.High level of brand loyalty insulates the firm from competition LO5 BRAND EQUITY: BRAND LOYALTY

22. 9-22 LO6 BRANDING STRATEGIES: BRAND OWNERSHIP

23. 9-23 LO6 NAMING BRANDS AND PRODUCT LINES

24. 9-24 Brands that are owned and managed by retailers are called _______________ brands. A)public-label B)generic C)private-label D)corporate LO6 Test Your Knowledge

25. 9-25 Should be descriptive & suggestive of benefits & qualities of the product Easy to pronounce, recognize, remember Register as a trademark & protect it legally Easy to translate LO6 CHOOSING A NAME

26. 9-26 Use of the same brand name for new products. Well established name Perception of high quality carries over Lower marketing costs Synergy among complementary products Boost sales of the core brand LO6 BRAND EXTENSION - BENEFITS

27. 9-27 Use of the same brand name for new products. Core brand & new extension may not ‘fit’ well together Brand associations between the two may not be similar Too many extensions results in brand dilution Ensure the brands can be distanced from one another if need be LO6 BRAND EXTENSION – NEGATIVE CONSEQUENCES

28. 9-28 Evaluate the fit between the product class of the core brand and the extension. 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. Is the brand extension distanced enough from the core brand? LO6 BRAND DILUTION

29. 9-29 LO6 COBRANDING Two or more brands together on the same package or promotion.

30. 9-30 Lacoste Founded in 1933 by David Lacoste Still sold in stores today Harley Davidson ConAgra recently introduced Harley Davidson Beef Jerky into the $2.7 billion per year beef snack category The product will be sold in convenience stores and in Harley Davidson dealerships Canadian Tire/Nascar official automotive retailer of NASCAR in Canada LO6 BRAND LICENSING

31. 9-31 Brand extension can be successful, but it can also dilute brand equity. All of the following EXCEPT are considerations that marketers should be aware of and try to avoid: A)the brand name should be extended to as many products as possible. B)Firms should consider whether or not the brand extension can also be distanced from the core brand. C)There should be a fit between the product class of the core brand and the extension. D)Consumer perceptions between the core brand and the extension should be similar. LO6 Test Your Knowledge

32. 9-32 LO7 PACKAGING An important brand element with physical benefits.

33. 9-33 How can firms use packaging to create value for the firm and excitement for customers? LO7 USING PACKAGING TO CREATE VALUE

34. 9-34 Challenge Answer Results To find a way to rejuvenate sales and interest in a brand viewed by consumers as stale and boring. A marketing campaign introduced “new “ Diamond Shreddies. The cereal itself was unchanged except for the packaging. Sales increased 18 percent in test markets in Alberta. LO7 CASE IN POINT: DIAMOND SHREDDIESDIAMOND SHREDDIES

35. 9-35 LO7 LABELLING

36. 9-36 Barbie enters the world of technology Barbie Video Girl doll that has a tiny video camera in her necklace that can record up to 25 minutes of video She’s also a celebrity FourSquare user that uses social networking sites Have the lines between play & advertising been blurred? LO7 ETHICAL DILEMMA 9.1: “VIDEO GIRL” BARBIE BRINGS GIRLS TO FOURSQUARE