MM: Chapter 14 Setting the product and branding strategy Warin Chotekorakul

Product and The Product Mix Product is anything that can be offered to a market to satisfy a want or need. Physicalgoods Organizations Properties Places Persons EventsExperiences Services IdeasInformation Possible Range of Products

Five Product Levels Potential Product Augmented product Expected Product Basic Product Core Benefit

Core benefit: basis for company to survive Core benefit: basis for company to survive Basic product: basis for delivering the core benefit Basic product: basis for delivering the core benefit Expected product: basis for cust satisfaction Expected product: basis for cust satisfaction Augmented product: basis for competitive advantage Augmented product: basis for competitive advantage Potential product: basis for new product Potential product: basis for new product Five Product Levels (2)

Five Product Levels (3) Core benefit: Core benefit: Basic product: Basic product: Expected product: Expected product: Augmented product: Augmented product: Potential product: Potential product:Transportation Wheels, steering-wheel, engine, gear, etc. Working lights, quiet engine, etc. Free 4-wheel change, Free 5-yr check, etc. Self-driving car

Product Hierarchy Need family: Need family: Product family: Product family: Product class: Product class: Product line: Product line: Product type: Product type: Brand: Brand: Item: Item: Need of Foods; Heavy meals; Fast food; Deep fried; Deep fried meat; Deep fried meat; Mc Donald ’ s ; Mc Donald ’ s deep fried chicken; Look and feel better Toiletries Cosmetics Lipstick Tube Lipstick Shiseido Shi ’ s Lip Gloss 07

Durability and Tangibility Durability and Tangibility Consumer-goods classification Consumer-goods classification Industrial-goods classification Industrial-goods classification Product Classifications

Durability and Tangibility Nondurable goods Nondurable goods Durable goods Durable goods Services Services

Consumer-Goods Classification Convenience goods: custs purchase frequently Convenience goods: custs purchase frequently Staple: purchase on a regular basis Staple: purchase on a regular basis Impulse goods: purchase on impulse Impulse goods: purchase on impulse Emergency goods: purchase when a need is urgent Emergency goods: purchase when a need is urgent Shopping goods: custs compare on some bases Shopping goods: custs compare on some bases Homogenous goods: similar in quality but diff in price Homogenous goods: similar in quality but diff in price Heterogeneous goods: pdt features are important more than price Heterogeneous goods: pdt features are important more than price Specialty Goods: pdt with unique characteristics Specialty Goods: pdt with unique characteristics Unsought Goods Unsought Goods

Industrial-Goods Classification Materials and parts Materials and parts Raw materials Raw materials Farm products Farm products Natural products Natural products Manufactured materials and parts Manufactured materials and parts Component materials Component materials Component parts Component parts Capital items Capital items Installation Installation Equipment Equipment Supplies Supplies Operating supplies Operating supplies Maintenance and repair items Maintenance and repair items Business services Business services Maintenance and repair services Maintenance and repair services Business advisory services Business advisory services

Product Mix/Assortment is the set of all products and items that a particular seller offer for sales to buyers. is the set of all products and items that a particular seller offer for sales to buyers. Width: no. of product lines Width: no. of product lines Length: no. of pdt items in each pdt line Length: no. of pdt items in each pdt line Depth: no. of pdts in each pdt item Depth: no. of pdts in each pdt item Consistency: how closely related pdt lines are in end use Consistency: how closely related pdt lines are in end use

Product-Line Decisions Product-Line Analysis Sales and Profits Sales and Profits Market Profile Market Profile Product-Line Length Line Stretching Line Stretching Downmarket stretch: e.g., C-Class MercedesDownmarket stretch: e.g., C-Class Mercedes Upmarket stretch: e.g., LexusUpmarket stretch: e.g., Lexus Two-way stretch: e.g., Toyota (Soluna, Camry)Two-way stretch: e.g., Toyota (Soluna, Camry) Line filling: e.g., new fragrances of perfume Line filling: e.g., new fragrances of perfume Line Modernization: e.g., new look, new style Line Modernization: e.g., new look, new style Line Featuring: one or a few items in the line to feature Line Featuring: one or a few items in the line to feature Line Pruning: pruning slow moving items Line Pruning: pruning slow moving items

Market Profile Low (90)Medium (120)High (150) Extra High (180) Medium High Low Finish Quality A A B B B C C CD D D GeneralPrinting Point-of-Purchasedisplays OfficeSupplies X X X

Brand Decisions What is a brand? What is a brand? A name, term, sign, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them form those of competitors. A name, term, sign, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them form those of competitors.

Key Decisions of Branding BrandingDecision * Brand *No brand Brand-SponsorDecision*Manufactu- rer brand *Distributor(private)brand*LicensedbrandBrand-NameDecision*Individualnames*Blanketfamilyname*Separatefamilynames*Company-IndividualnameBrand-StrategyDecision*Lineextensions*Brandextensions*Multibrands *New brands *CobrandsBrand-Reposition-ing*Repositioning *No Reposit- ioning

Manufacturer/National brand: e.g., Jaspal, IBM Manufacturer/National brand: e.g., Jaspal, IBM Distributor/Private brand: e.g., aro brand, Tops brand, Watsons Distributor/Private brand: e.g., aro brand, Tops brand, Watsons Licensed brand name: using licensor’s brand Licensed brand name: using licensor’s brand Brand-Sponsor Decision

Individual names: e.g., Sunsilk, Dove, Lux Individual names: e.g., Sunsilk, Dove, Lux Blanket family name: e.g., Sony, Mitsubishi Blanket family name: e.g., Sony, Mitsubishi Separate family names: e.g., Betagro for animal feeds, Better Pharma for drugs Separate family names: e.g., Betagro for animal feeds, Better Pharma for drugs Company-individual names: e.g., Toyota Soluna, Kellogg’s Corn Flakes, Windows XP Company-individual names: e.g., Toyota Soluna, Kellogg’s Corn Flakes, Windows XP Brand-Name Decision

Line extension: use existing brand name for new sizes or flavors in the existing pdt category e.g., Fanta, Mama Line extension: use existing brand name for new sizes or flavors in the existing pdt category e.g., Fanta, Mama Brand extension: use existing brand name for new-pdt category e.g., Nike on watches, sunglasses, sports equipment; Vidal Sassoon on shampoo, hair drier Brand extension: use existing brand name for new-pdt category e.g., Nike on watches, sunglasses, sports equipment; Vidal Sassoon on shampoo, hair drier Multibrands: new brand names for the same pdt category e.g., Lipovitan-D and Looktoong from Osadsapa Multibrands: new brand names for the same pdt category e.g., Lipovitan-D and Looktoong from Osadsapa New brands: new brand for new pdt e.g., Ole’ & Lipo from Osadsapa New brands: new brand for new pdt e.g., Ole’ & Lipo from Osadsapa Co-brands: e.g., Sony Ericsson Co-brands: e.g., Sony Ericsson Brand-Strategy Decision

Other Issues Label: A part of packagePackage: The container for a product