product lines & brands, brand equty 3

8/9/2019 Product Lines & Brands, Brand Equty 3

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MANAGING PRODUCTMANAGING PRODUCT

LINES & BRANDSLINES & BRANDS


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PRODUCT:PRODUCT:

A product is anything that can be offeredA product is anything that can be offeredto a market to satisfy a want or need.to a market to satisfy a want or need.


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CLASSIFICATION OF PRODUCT:CLASSIFICATION OF PRODUCT:

Based on Durability & TangibilityBased on Durability & Tangibility

NonNon--durabledurable goodsgoods (tangible)(tangible) ConsumedConsumedinin oneone oror fewfew usesuses EgEg:: beerbeer && soupsoup..

DurableDurable goodsgoods (tangible)(tangible) LongLong survivalsurvivalgoodsgoods

ServicesServices (intangible)(intangible)


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Continues.,Continues.,

ConsumerConsumer goods Classificationgoods Classification ConvenienceConvenience goodsgoods tobaccotobacco products,products, soaps,soaps,

newsnews paperspapers

ShoppingShopping goodsgoods CustomerCustomer selectselect && purchasepurchasesuitability,suitability, quality,quality, priceprice && stylestyle ExEx:: furniture,furniture,clothing,clothing, usedused cars,cars, etcetc..

SpecialtySpecialty goodsgoods goodsgoods withwith uniqueunique characteristicscharacteristicsoror brandbrand identificationsidentifications.. ExEx:: cars,cars, stereostereo components,components,

photographicphotographic equipmentequipment etcetc.. UnsoughtUnsought goodsgoods goodsgoods thatthat thethe consumersconsumers doesdoes

notnot knowknow aboutabout oror normallynormally doesdoes notnot thinkthink ofof buyingbuying..ExEx:: lifelife insurance,insurance, HealthHealth insuranceinsurance etcetc..


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Industrial goods classificationIndustrial goods classification

Materials & partsMaterials & parts

Capital itemsCapital items installations & equipmentsinstallations & equipments Supplies & business servicesSupplies & business services --

Lubricants, coal, paper, pen, and paints.Lubricants, coal, paper, pen, and paints.


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PRODUCT MIXPRODUCT MIX

It is the set of all products and items thatIt is the set of all products and items thata particular seller offers for sale.a particular seller offers for sale.

Product widt

hProduct widt

h

Product lengthProduct length

The DepthThe Depth

The ConsistencyThe Consistency


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Product width:Product width:

ProductProduct widthwidth ofof aa productproduct mixmix refersrefers totohowhow manymany differentdifferent productproduct lineslines thatthat

companycompany carriescarries.. (soaps,(soaps, powders,powders,shampoos,shampoos, etc)etc)


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Product length:Product length:

TotalTotal numbernumber ofof itemsitems inin thethe mixmix.. (total(total ofofallall productproduct andand productproduct lines,lines, ii..ee..,, aboveabove

100100 productsproducts ofof HLL)HLL)


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The Depth:The Depth:

HowHow manymany variantsvariants areare offeredoffered ofof eacheachproductproduct inin thethe lineline.. (i(i..ee..,, howhow manymany brandsbrands

areare inin shampooshampoo lineline,),)


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The ConsistencyThe Consistency

TheThe refersrefers toto howhow closelyclosely relatedrelated thethevariousvarious productproduct lineslines areare inin endend use,use,

productionproduction requirements,requirements, distributiondistributionchannelschannels oror somesome otherother wayway..


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What is a brand?What is a brand?

AA brandbrand isis aa name,name, term,term, sign,sign, symbolsymbol orordesign,design, oror aa combinationcombination ofof them,them,

intendedintended toto identifyidentify thethe goodsgoods oror servicesservicesofof oneone sellerseller oror groupgroup ofof sellerssellers andand totodifferentiatedifferentiate themthem fromfrom thosethose ofofcompetitorscompetitors.. TheThe bestbest brandsbrands conveyconvey aa

warrantywarranty ofof qualityquality..


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Brand EquityBrand Equity


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FiveFive distinguisheddistinguished levelslevels ofof customercustomerattributesattributes towardstowards theirtheir brandbrand fromfromlowestlowest toto higherhigher..

Not known by buyersNot known by buyers

High degree of brand awarenessHigh degree of brand awareness

High degree of brand acceptabilityHigh degree of brand acceptability

High degree of brand preferenceHigh degree of brand preference

High degree of brand Loyalty.High degree of brand Loyalty.


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1.1

.C

ustomerC

ustomer willwill ch

angech

ange brands,brands,especiallyespecially forfor priceprice reasonsreasons nonobrandbrand loyaltyloyalty..

2.2. CustomerCustomer isis satisfied,satisfied, nono reasonreason

toto changechange thethe brandbrand..3.3. CustomerCustomer isis satisfiedsatisfied andand wouldwould

incurincur costscosts byby changingchanging brandbrand..

4.4. CustomerCustomer valuesvalues thethe brandbrand andand

seessees itit asas aa friendfriend..5.5. CustomerCustomer isis devoteddevoted toto thethe brandbrand..


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Brand EquityBrand Equity

BrandBrand equityequity isis highhigh relatedrelated toto howhow manymanycustomerscustomers areare inin classesclasses 33,,44 andand 55.. itit isis

alsoalso relatedrelated toto thethe degreedegree ofof brandbrand namename recognition,recognition, perceivedperceived brandbrand quality,quality,strongstrong mentalmental andand emotionalemotional association,association,andand otherother assetsassets suchsuch asas patents,patents,

trademarkstrademarks andand channelchannel relationshipsrelationships..


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Branding Decision:Branding Decision:

nceOnce aa companycompany decidesdecides onon itsits brandbrandnamename strategy,strategy, itit facesfaces thethe tasktask ofof

choosingchoosing aa specificspecific brandbrand namename..


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A company may choose:A company may choose:

TheThe namename ofof aa personperson Honda,Honda, Ford,Ford,TT..VV..SS..

LocationLocation American American Airlines, Airlines, ChetinadChetinadfoodsfoods..

LifeLife stylestyle LifeLife style,style, HealthyHealthy choice,choice, HighHighlooklook TT.. shirtsshirts

ArtificialArtificial namename Kodak,Kodak, MiyamiMiyami


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BRANDING DECISIONBRANDING DECISION

PROCESSPROCESS


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1. BRAND DECISION1. BRAND DECISION

a)a) Brand orBrand or

b)b) No BrandNo Brand


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2. Brand2. Brand--Sponsor DecisionSponsor Decision

1.1. Manufacturer BrandManufacturer Brand

2.2. Distributor (Private) BrandDistributor (Private) Brand

3.3. Licensed BrandLicensed Brand


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3. Brand3. Brand--Name DecisionsName Decisions

1.1. Individual BrandsIndividual Brands

2.2. BlanketFamily NamesBlanketFamily Names

3.3. Separate Family NamesSeparate Family Names4.4. CompanyCompany tradetrade namename combinedcombined withwith

individualindividual productproduct namename (Kelog(Kelog--Confliks)Confliks)


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5.5. BrandBrand--repositioning Decisionsrepositioning Decisions

1.1. RepositioningRepositioning ((77up)up) oneone ofof thethe softsoftdrinkdrink toto alternativealternative toto Cola,Cola, asasrefreshingrefreshing.. (or)(or)

22.. NoNo--repositioningrepositioning


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DESIRABLE QUALITIES OF ADESIRABLE QUALITIES OF A

BRAND NAME:BRAND NAME: ItIt shouldshould suggestsuggest somethingsomething aboutabout thethe

productsproducts benefitsbenefits,, egeg:: BeautyBeauty--rest,rest, FairFair &&LovelyLovely etcetc..,,

ItIt shouldshould suggestsuggest productproduct qualitiesqualities suchsuchasas actionaction oror colourcolour ExEx:: JetJet AirwaysAirways

ItIt shouldshould bebe easyeasy toto pronounce,pronounce,recognizerecognize && rememberremember ExEx:: Bata,Bata, etcetc

ItIt shouldshould bebe distinctivedistinctive ExEx:: Kodak,Kodak, XeroxXerox

ItIt shouldshould notnot carrycarry poorpoor meaningsmeanings ininotherother countriescountries oror inin otherother languageslanguages,,(Ex(Ex:: NovaNova isis aa poorpoor namename ofof aa carcar inin SpanishSpanish--speakingspeaking countries,countries, itit meansmeans doesntdoesnt go)go)


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BRAND STRATEGY DECISION:BRAND STRATEGY DECISION:

LineLine ExtensionExtension (Existing(Existing brandbrand namenameextendedextended toto newnew sizessizes oror flavorsflavors inin thethe existingexistingproductproduct categorycategory..

BrandBrand ExtensionsExtensions (Brand(Brand namesnames extendedextended totonewnew--productproduct categories)categories)..

MultiMulti brandsbrands (New(New brandbrand namesnames introducedintroducedinin thethe samesame productproduct category)category)..

NewNew BrandsBrands (New(New brandbrand namename forfor newnew

categorycategory products)products).. CoCo--BrandsBrands (Brands(Brands bearingbearing twotwo oror moremore wellwell--

knownknown brandbrand namesnames.. ExEx:: HeroHero--HondaHonda..


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PACKAGING:PACKAGING:

It includes the activities of designing andIt includes the activities of designing andproducing the container for a product.producing the container for a product.

Primary PackagePrimary Package Secondary PackageSecondary Package

Shipping PackageShipping Package


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ADVANTAGES OF PACKAGING:ADVANTAGES OF PACKAGING:

SelfSelf--ServiceService

Impulse purchaseImpulse purchase

Attracts attentionAttracts attention

Describe the products featureDescribe the products feature

Create consumer confidenceCreate consumer confidence

Favourable overall impressionFavourable overall impression


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Consumer affluenceConsumer affluence ConvenienceConvenience

AppearanceAppearance

DependabilityDependability Prestige of better packagePrestige of better package

CompanyCompany && BrandBrand ImageImage (Packages(Packagescontributescontributes instantinstant recognitionrecognition ofofcompanycompany && brand)brand)..

InnovationInnovation opportunityopportunity (change(change maymaygivegive increaseincrease inin sales)sales)..


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LABELING:LABELING:

A label performs several functions:A label performs several functions:

Label helps to identify the product or brand,Label helps to identify the product or brand,

Grade the brand (ISI, ISO 9000)Grade the brand (ISI, ISO 9000)

Describe the productDescribe the product Who made it?Who made it?

Where it was made?Where it was made?

When it was made?When it was made?

What it contains?What it contains?

How it is to be used? andHow it is to be used? and

How to use it safely?How to use it safely?

Finally the label might promote the product through itsFinally the label might promote the product through itsattractive graphics.attractive graphics.


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Thank YouThank You

product lines & brands, brand equty 3

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