10 Adopting Product Breadth to Meet Changing Consumer Demand How do firms decide which products to add or subtract from their product mix?In fast changing competitive markets, firms must constantly evaluate their products/services to ensure they meet customer needs and changing preferences
11 Case in Point: Goodbye Vanilla Coke To keep up with customer demands in a rapidly changing beverage landscape.ChallengeAnswerResultsExplore 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.Consumers’ tastes and preferences change quickly, and keeping up is difficult. Even Coca-Cola must constantly evaluate its product offerings.
15 Branding Product assortment Product line Single item The Chevrolet provides a good example of multilevel branding.Group activity: Compare the positioning of two Chevrolet brands (e.g., Corvette, Aveo, Impala, and Malibu). Why does Chevrolet have so many competing brands in the same category?Each brand is aimed at a different target market. Aveo starts around $10,000 while a Corvette coup starts at $45,000.
16 BrandingA brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages.Brand identification takes many forms. Ask students: How many of you can sing the Oscar Meyer jingle?
19 Test Your Knowledge The purpose of branding is to _______________. A) allow advertising firms to establish a name for themselvesB) make customers aware of a product’s featuresC) ensure legal rights for a productD) help consumers distinguish one company’s products from anotherAnswer: D
24 Test Your KnowledgeConsumers tending to associate higher prices with higher quality is known as _______________.A) brand associationB) quality perceptionC) perceived valueD) brand awarenessAnswer: B
28 Brand Ownership Manufacturer brands or national brands Private-label brands or store brandsGenericUnlike Europe, where store brands such as Tesco (U.K. grocery chain) were extremely popular, in the United States, few store brands had achieved such status and were often considered inferior to manufacturer or national brands. Today, many store brands are well established, such as Kenmore, Charter Club, and Presidents’ Choice.
37 How do firms effectively use brand licensing to reach new markets? Using Brand LicensingHow do firms effectively use brand licensing to reach new markets?
38 Case in Point: Slave Labor Graphics and Disney ChallengeAnswerResultsDisney 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).Their names suggest an unlikely match, yet Disney turned to Slave Labor Graphics to help it repackage an existing product for a new audienceThe new series are being launched throughout 2005 and 2006.
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.Answer: B
43 Case in Point: Quaker Coffee ChallengeAnswerResultsTo 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.Even small firms benefit from good packaging and labeling. Quaker Coffee’s packaging conveys its value proposition to the marketplace.Sales increased 400 percent.