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1 Chapter 6 Brand and Product Management. 2 Products A product is anything capable of satisfying customers needs. It exists on three levels: Core Actual.

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Presentation on theme: "1 Chapter 6 Brand and Product Management. 2 Products A product is anything capable of satisfying customers needs. It exists on three levels: Core Actual."— Presentation transcript:

1 1 Chapter 6 Brand and Product Management

2 2 Products A product is anything capable of satisfying customers needs. It exists on three levels: Core Actual Augmented

3 3 The Levels of Product Core Benefit Features Quality Packaging Styling Guarantees Delivery Additional Services Installation Brand Values Augmented Product Actual Product Core Product

4 4 The Difference Between a Product and a Brand Branding is the process by which companies distinguish their product offerings from the competition. Branding permits customers to develop associations (e.g. status, prestige) with products, which eases the purchase decision.

5 5 Top US basketball player LeBron James Sports celebrity, LeBron James has astutely managed his personal brand to win multiple endorsement contracts with leading firms like Nike, McDonald’s.

6 6 The Benefits of Brands Company value Consumer preference and loyalty Barrier to competition High profits Base for brand extensions

7 7 Building Brands This involves making decisions about the following: Naming brands Developing brands A brand is created by means of augmentation of a core product to add brand values

8 8 Brand Name Considerations : A good brand name should: Evoke positive association Be easy to pronounce and remember Suggest product benefits Be distinctive Use numerals when emphasising technology Not infringe an existing registered brand name

9 9 Brand Name Strategies and Choices Brand name strategies Family brand names Individual brand names Combination brand names

10 10 The Anatomy of Brand Positioning Brand personality Brand Domination Brand Values Brand Heritage Brand Assets Brand Personality Brand Reflection Brand Positioning

11 11 Brand Management Issues Brand extension and stretching Pan–European and global branding Co-branding

12 12 Chivas The Chivas whisky brand’s campaign ‘Live with Chivalry’ implies that the Chivas man is a good guy who gives something back!

13 13 The Boston Consulting Group Growth-Share Matrix Stars Problem Children Cash Cows Dogs 7% 15% 0% Market Growth Rate Market Share 10 0

14 © The McGraw-Hill Companies, Strategic Objectives and the Boston Box Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges Stars Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest Problem children Harvest or Divest or Focus on defendable niche Dogs Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development Cash cows

15 15 Strategic Objectives and the Boston Box Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest Problem children Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges Stars Harvest or Divest or Focus on defendable niche Dogs Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development Cash cows

16 16 Strategic Objectives and the Boston Box Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges Stars Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest Problem children Harvest or Divest or Focus on defendable niche Dogs Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development Cash cows

17 17 Strategic Objectives and the Boston Box Harvest or Divest or Focus on defendable niche Dogs Build sales and/or market share Invest to maintain/increase leadership position Repel competitive challenges Stars Hold sales and/or market share Defend position Use excess cash to support stars, selected problem children and new product development Cash cows Build selectively Focus on defendable niche where dominance can be achieved Harvest or divest the rest Problem children

18 18 The Product Life Cycle

19 19 What is a New Product? Product replacements Additions to existing lines New-to-the-world products New product lines New Products

20 20 The Seven-Stage New Product Development Process New products Screening Concept testing Business analysis Product development Market testing Commercialisation Idea generation

21 21 ZARA Zara’s speed to market has given it a competitive advantage in the apparel industry.

22 22 Diffusion of Innovations

23 23 Chapter Summary A product is anything that is capable of satisfying customer needs. Brands are the means by which companies differentiate their offerings from those of the competitors. The three different levels of product, namely, the core, the actual and the augmented product and how differentiation can take place at any of these levels. The key to developing a brand is the brand name and the positioning of the brand. Brand management may involve dealing with own-label brands, brand extension, pan-European, global and co-branding decisions. Portfolio planning and the product life cycle are important for the management of a diverse group of products and brands. New product development should be carefully managed throughout the development process.


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