0. Product and Branding Strategy
New Chapter
Product and Branding Strategy
PowerPoint by : Prof Sameer Kulkarni

1. Objectives Identify the various characteristics of products.
Learn how companies build and manage product lines and mixes.
Understand how companies make better brand decisions.
Comprehend how packaging and labeling can be used as marketing tools.

2. What is a Product? Goods Services Experiences Events Persons Places
Properties
Organizations
Information
Ideas

3. The Product and Product Mix
Potential customers judge product offerings according to three elements:
Product features and quality
Services mix and quality
Value-based prices

4. The Product and Product Mix
The customer value hierarchy:
Core benefit
Basic product
Expected product
Augmented product
Potential product

5. The Product and Product Mix
Classifications
Durability and tangibility
Consumer goods
Industrial goods
Nondurable
Tangible
Rapidly consumed
Example: Milk
Durable
Lasts a long time
Example: Oven
Services
Intangible
Example: Tax preparation

6. The Product and Product Mix
Classifications
Durability and tangibility
Consumer goods
Industrial goods
Classified by shopping habits:
Convenience goods
Shopping goods
Specialty goods
Unsought goods

7. The Product and Product Mix
Materials and parts
Farm products
Natural products
Component materials
Component parts
Capital items
Installations
Equipment
Supplies and business services
Maintenance and repair
Advisory services
Product
Classifications
Durability and tangibility
Consumer goods
Industrial goods

8. The Product and Product Mix
Product mix dimensions:
Width: number of product lines
Length: total number of items in mix
Depth: number of product variants
Consistency: degree to which product lines are related

9. Brand-building Advertising
Brand: Amul
As per Aaker’s model
And
As per Kapferer’s prism

10. AMUL : Aaker’s Model Extended Core Brand Essence: Milk Available Food
Value
Taste
Indian
Quality
Pride
Variety
Milk

11. A Branded Representation
AMUL: Aaker’s Model
Extended
Essence
Core
A Branded Representation

12. Brand-building: The Steps
Determine the current image with consumers
Define the desired image
Identify focus areas for action
Product development/innovation
Packaging/delivery systems
Advertising/promotions
Implement action plan with a monitoring programme
Feedback to action plan

13. AMUL : Kapferer’s Prism
Physique : Taste, Quality
Personality :
Simple, Indian
Culture :
Co-operative, Sharing
Relationship :
Sociable
AMUL
Self-Image :
Proud Indian, Fun loving
Reflection :
Value Oriented

14. Product-Line Decisions
Product-Line Analysis
Product-Line Length
Product-Line Modernization, Featuring, and Pruning

15. Brand Decisions The AMA definition of a brand:
“A name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competition.”

16. Brand Decisions Brands can convey six levels of meaning: Attributes
Benefits
Values
Culture
Personality
User

17. Brand Decisions Brand identity decisions include:
Name
Logo
Colors
Tagline
Symbol
Consumer experiences create brand bonding, brand advertising does not.

18. Brand Decisions
Marketers should attempt to create or facilitate awareness, acceptability, preference, and loyalty among consumers.
Valuable and powerful brands enjoy high levels of brand loyalty.

19. Brand Decisions
Aaker identified five levels of customer attitudes toward brands:
Will change brands, especially for price. No brand loyalty.
Satisfied -- has no reason to change.
Satisfied -- switching would incur costs.
Values brand, sees it as a friend.
Devoted to the brand.

20. Brand Decisions
Brand equity refers to the positive differential effect that a brand name has on customers.
Brand equity:
is related to many factors.
allows for reduced marketing costs.
is a major contributor to customer equity.

21. Brand Decisions Key Challenges Advantages of branding: To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Advantages of branding:
Facilitates order processing
Trademark protection
Aids in segmentation
Enhances corporate image
Branded goods are desired by retailers and distributors

22. Brand Decisions Key Challenges Options include:
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Options include:
Manufacturer (national) brand
Distributor (reseller, store, house, private) brand
Licensing the brand name

23. Brand Decisions Key Challenges Strong brand names: To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
Strong brand names:
Suggest benefits
Suggest product qualities
Are easy to say, recognize, and remember
Are distinctive
Should not carry poor meanings in other languages

24. Brand Decisions Key Challenges To brand or not Brand sponsor
Brand name
Brand strategy
Brand repositioning
Varies by type of brand
Functional brands
Image brands
Experiential brands
Line extensions
Brand extensions
Multibrands
New brands
Co-branding

25. Brand Decisions Key Challenges
To brand or not
Brand sponsor
Brand name
Brand strategy
Brand repositioning
A brand report card can be used to audit a brand’s strengths and weaknesses.
Changes in preferences or the presence of a new competitor may indicate a need for brand repositioning.

26. Packaging and Labeling
Packaging includes:
The primary package
The secondary package
The shipping package
Many factors have influenced the increased use of packaging as a marketing tool.

27. Packaging and Labeling
Developing an effective package:
Determine the packaging concept
Determine key package elements
Testing:
Engineering tests
Visual tests
Dealer tests
Consumer tests

28. Packaging and Labeling
Labeling functions:
Identifies the product or brand
May identify product grade
May describe the product
May promote the product
Legal restrictions impact packaging for many products.

29. Objective of advertising
“Build the business today and build brand value overtime”
All advertising has to pass through this objective test

30. How does Advertising build Brands?
Building brand salience
Unaided awareness - aided awareness
Building brand appeal
Intention to try - trial
Reinforce usage - increase usage
Building brand imagery
Usage imagery - user imagery

31. Building Blocks for Brand-building Advertising I
Market analysis Size, volume, value, growth, geographic, seasonality
Company
analysis
Size, profitability,
distribution, technology
Consumer
analysis
Size, demographic, geographic
Usage, depth, width
Brand
Competitor analysis
Size, profitability, strengths, weaknesses

32. Building Blocks for Brand-building Advertising II
Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis
Marketing Objectives
Sales , Market Share , Profits
Marketing Strategy
Product , Pricing , distribution , Service , packaging ,
Advertising & Sales Promotion
Advertising Objective
Awareness , Salience , Image , attitude
Advertising Strategy
Creative Strategy , Media Strategy

33. How Does Advertising Work I
Classic Hierarchy of Effect Model
Purchase
Conviction
Preference
Liking
Knowledge
Awareness

34. How Does Advertising Work II
Hierarchy of effect model tends to assume that advertising works the same way for all product categories
Work on understanding Consumer Behaviour revealed that advertising would work differently for different products
Several new models were developed in the eighties and the nineties
One such model was the FCB Grid
The Grid categorised products as
High involvement Vs low involvement
Thinking Vs feeling

35. How Does Advertising Work II FCB Grid
Low involvement
Consumer is not involved; tends to see the utilitarian values of the category; routine/quick decision making
E.g.: detergents, fuel, flour, mobile service (?)
High involvement
Consumer is involved with the product category; identifies with it and often takes time to decide which brand to use
E.g.: TV, car, perfume, clothes, insurance (?)

36. How Does Advertising Work II FCB Grid
Think Vs feel
Think
Consumer decides using his head :
‘Rationality’ drives the choice of product/brand
Feel Consumer decides using his heart :
‘ Emotionality’ drives the choice of product/brand

37. Advertising to fit FCB Grid requirements
THINKING
FEELING
I) INFORMATIVE
II) AFFECTIVE
HIGH
INVOLVEMENT
LOW
LEARN-FEEL- DO
FEEL-LEARN-DO
III) HABITUAL
IV) SATISFACTION
DO-LEARN-FEEL
DO-FEEL-LEARN

38. Category Differences Consumer Products Consumer Durables Services
Corporate
Lower values
Higher values
Indeterminate
No value
Frequent purchase
Infrequent
Indeterminate
Variable
Narrow/Broad
Target customer
Narrow Target
Customer
Variable
Very wide/
variable
Role of advertising in brand-building will tend to vary with category type

39. Brand-building Advertising FCB Grid - Self-test
Thinking
Feeling
High Involvement
Low Involvement
Plot: car, TV, detergents, perfumes, flour, clothing, insurance, mobile

40. Consumer Products : What are they?
Low value, repeat purchase, ‘consumption’ products
Male target : Cigarettes, soft drinks, colognes
Housewife: Soaps, shampoo, cooking oil, detergents
Teenagers: Soft drinks, confectionery, stationery
Repeat usage/purchase: everyday, every week, every month

41. Consumer Products : Types
What is the consumer issue facing the brand?
Poor awareness leading to poor trial
Poor repeat usage after high trial
Lack of desired image perceptions
Often low involvement, routine purchase or impulse purchase
Some consumer products could
be high involvement
Perfumes, Cigarettes
Health aids, Baby foods
What is the key task?
Attracting new users
Retaining existing users

42. Consumer Product Purchase Behaviour 1
Who decides, who buys, who influences
Map the key influences in the purchase process
Example :
Toothpaste : Housewife (decision maker) Kid (influencer)

43. Consumer Product Purchase Behaviour 2
Limited level of information search by consumers
Often a routinised purchase or an impulse purchase
Extended problem solving only in the case of innovation
Cream for ‘foot cracks’

44. Consumer Product Purchase Behaviour 3
All India Household Category penetration
Soaps 99%
Washing cake 93%
Toothpaste 44%
Hair oil 77%
Analyse by SEC, Urban/Rural, Per Capita, CDI /BDI
Consumer Product Life Cycle : What stage is the product ? Introduction / Growth / Maturity / Decline

45. Brand-building Advertising Self Test 3
Consumer panel data shows the following:
aaaabaacbabcbabbb
a, b, c are three brands
Draw three inferences from the data
What should be the role of advertising for Brand ‘a’ ?

46. You Learned To identify the various characteristics of products.
To learn how companies build and manage product lines and mixes.
To understand how companies make better brand decisions.
To comprehend how packaging and labeling can be used as marketing tools.

47. End of Lesson You start Branding