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McGraw-Hill/Irwin Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Marketing Dhruv Grewal Michael Levy Chapter 10 Product, Branding,

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Marketing Dhruv Grewal Michael Levy Chapter 10 Product, Branding,"— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Marketing Dhruv Grewal Michael Levy Chapter 10 Product, Branding, and Packaging Decisions

2 10-2 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Diesel Jeans Italian based with over 50 company owned stores in 80 countries Unique relationship between customers and the brand Irreverent, creative advertising, promotion and retail experience

3 10-3 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Assortment and Product Line Decisions

4 10-4 Product Assortment and Product Line Decisions Product Category 1 SKUs Product Category 2

5 10-5 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Category Depth

6 10-6 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Lines Product line breadth Product line depth

7 10-7 Test Your Knowledge 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

8 10-8 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Colgate-Palmolive Product Assortment

9 10-9 Increase Breadth – ConAgra through the 1980’s and 1990’s added extensively to its product mix Decrease Breadth – ConAgra has also taken products out of its product mix in response to changing market conditions and strategy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Change Product Mix Breadth

10 10-10 How do firms decide which products to add or subtract from their product mix? Adopting Product Breadth to Meet Changing Consumer Demand

11 10-11 Case in Point: Goodbye Vanilla CokeCoke Challenge Answer Results To keep up with customer demands in a rapidly changing beverage landscape. Explore new flavors that appeal more to customers than current flavors. Vanilla Coke and Diet Vanilla Coke, though selling well over 250 million cases, were removed from stores in the U.S. (2005) and the UK (2006). Consumers are now demanding Cherry flavored drinks so Black Cherry Vanilla Coke and Black Cherry Vanilla Diet Coke are now on the market.

12 10-12 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Change Product Mix Depth ConAgra expanded its presence in popcorn by including three popular brands.

13 10-13 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Change Number of SKUs Addition or deletion of SKU’s in existing categories Designed to stimulate sales or react to consumer demand

14 10-14 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Line Decisions for Services The same types of decisions can be used for services

15 10-15 Branding Product assortment Product line Single item

16 10-16 Branding A brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages.

17 10-17 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin What Makes a Brand? Branding Brand name URLs Logos and symbols Slogans Jingles Characters

18 10-18 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Value of Branding for the Customer and the Marketer

19 10-19 Test Your Knowledge 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

20 10-20 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity

21 10-21 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Awareness

22 10-22 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Perceived Value Perceived value Discussion question How do organic brands create value for customers?

23 10-23 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Brand AssociationsBrand Associations Brand personality

24 10-24 Test Your Knowledge Consumers tending to associate higher prices with higher quality is known as _______________. A)brand association B)quality perception C)perceived value D)brand awareness

25 10-25 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Brand Loyalty 1.Consumers are often less sensitive to price 2.Marketing costs are much lower 3.Firm insulated from the competition

26 10-26 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Adding Value 10.1: Building a Brand from Scratch in the U.S. Location, location, location Product line – Branding – Theme

27 10-27 Branding Strategies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

28 10-28 Brand Ownership Manufacturer brands or national brands Private-label brands or store brands Generic

29 10-29 Naming Brands and Product Lines © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

30 10-30 Naming Strategies Corporate or family brand – GE – The Gap Corporate and product line brands – Kellogg’s Corn Flakes – (Kellogg’s) Pop-Tarts Individual lines – Mr. Clean (Proctor & Gamble) – Swiffer (Proctor & Gamble) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

31 10-31 Test Your Knowledge Brands that are owned and managed by retailers are called _______________ brands. A)public-label B)generic C)private-label D)corporate

32 10-32 Brand Extension © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Benefits of using same brand name Name well established Brand known for high quality Marketing costs are lower Synergy among the products Boost sales of the core brand

33 10-33 Brand Extension © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © ConAgra Foods, Inc. All Rights Reserved. The term “category” used within refers to a portion of the overall Prepared Foods Category. It’s All About the Choices We Make

34 10-34 Brand Dilution © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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?

35 10-35 Cobranding © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

36 10-36 Brand Licensing 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 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

37 10-37 How do firms effectively use brand licensing to reach new markets? Using Brand Licensing

38 10-38 Case in Point: Slave Labor Graphics and DisneySlave Labor Graphics and Disney Challenge Answer Results Disney Publishing Worldwide, the largest children’s publisher in the world, sought to attract an older market to its products. Disney licensed Slave Labor Graphics to create older series based on “Tron”, “Haunted Mansion”, “Gargoyles,” and “Wonderland” (based on Alice in Wonderland). The new series are being launched throughout 2005 and 2006.

39 10-39 Brand Repositioning © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Whirlpool: New design Surf detergent: New message Elizabeth Arden: New faces YM: New audience Gallo: New image Aqua Velva: New packaging Arm & Hammer: New uses

40 10-40 Test Your Knowledge What is the purpose of brand repositioning? A)To allow another firm to use a brand name for a negotiated fee. B)To target new markets or realign the brand’s core emphasis with changing market preferences. C)To market two or more brands together. D)To extend the brand name to additional products.

41 10-41 Packaging Primary package Secondary package © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

42 10-42 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

43 10-43 Case in Point: Quaker Coffee Challenge Answer Results To find a way to establish the brand image and convey the product description. Coffee labels that communicate roast qualities, bakery labels that say baked fresh, and the cups attract customers. Sales increased 400 percent.

44 10-44 Product Labeling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

45 10-45 Chapter 10 Glossary © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand association: The mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality. Brand personality: Refers to a set of human characteristics associated with a brand, which has symbolic or self-expressive meanings for consumers. Perceived value: The relationship between a product or service’s benefits and its cost. Primary package: The packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption. Product line breadth: Represents the number of product lines offered by the firm. Product line depth: The number of categories within a product line. Secondary package: The wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners.


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