saks branding

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    New ChapterNew Chapter

    Product andProduct and

    Branding StrategyBranding Strategy

    PowerPoint by : Prof Sameer KulkarniPowerPoint by : Prof Sameer Kulkarni

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    ObjectivesObjectives

    Identify the various characteristics ofproducts.

    Learn how companies build and manageproduct lines and mixes.

    Understand how companies make better

    brand decisions. Comprehend how packaging and

    labeling can be used as marketing tools.

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    What is a Product?What is a Product?

    Goods

    Services

    Experiences

    Events

    Persons

    Places

    Properties

    Organizations

    Information

    Ideas

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    The Product and ProductThe Product and Product

    MixMix

    Potential customers judge product

    offerings according to three

    elements:

    Product features and quality

    Services mix and quality Value-based prices

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    The Product and ProductThe Product and Product

    MixMix

    The customer value hierarchy:

    Core benefit

    Basic product

    Expected product

    Augmented product Potential product

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    The Product and ProductThe Product and Product

    MixMix

    Product

    Classifications

    Durability and

    tangibility

    Consumer goods

    Industrial goods

    Nondurable

    Tangible

    Rapidly consumed

    Example: Milk

    Durable

    Tangible

    Lasts a long time

    Example: Oven Services

    Intangible

    Example: Tax preparation

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    The Product and ProductThe Product and Product

    MixMix

    Product

    Classifications

    Durability and

    tangibility

    Consumer goods

    Industrial goods

    Classified by

    shopping habits:

    Convenience

    goods

    Shopping goods

    Specialty goods Unsought goods

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    The Product and ProductThe Product and Product

    MixMix

    Product

    Classifications

    Durability and

    tangibility

    Consumer goods

    Industrial goods

    Materials and parts

    Farm products

    Natural products

    Component materials Component parts

    Capital items

    Installations

    Equipment

    Supplies and businessservices

    Maintenance and repair

    Advisory services

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    The Product and ProductThe Product and Product

    MixMix

    Product mix dimensions:

    Width: number of product lines Length: total number of items in mix

    Depth: number of product variants

    Consistency: degree to whichproduct lines are related

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    Brand-building AdvertisingBrand-building Advertising

    Brand: Amul

    As per Aakers model

    AndAs per Kapferers prism

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    AMUL : Aakers ModelAMUL : Aakers Model

    Extended

    Available

    Food

    Brand

    Essence:

    Core

    Value Taste

    IndianQuality

    Pride

    Variety

    Milk

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    AMUL: Aakers ModelAMUL: Aakers Model

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    Brand-building: The StepsBrand-building: The Steps

    Determine the current image with consumers

    Define the desired image

    Identify focus areas for action

    Product development/innovationPackaging/delivery systemsAdvertising/promotions

    Implement action plan witha monitoring programme

    Feedback to action plan

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    Physique :

    Taste, QualityPersonality :

    Simple, Indian

    Self-Image :

    Proud Indian, Fun lovingReflection :

    Value Oriented

    Culture :

    Co-operative, Sharing

    Relationship :

    Sociable

    AMUL : Kapferers PrismAMUL : Kapferers Prism

    AMUL

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    Product-Line DecisionsProduct-Line Decisions

    Product-Line Analysis

    Product-Line Length

    Product-Line Modernization,

    Featuring, and Pruning

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    Brand DecisionsBrand Decisions

    The AMA definition of a brand:

    A name, term, sign, symbol, ordesign, 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.

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    Brand DecisionsBrand Decisions

    Brands can convey six levels of

    meaning:

    Attributes

    Benefits

    Values

    Culture

    Personality

    User

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    Brand DecisionsBrand Decisions

    Brand identity decisions include:

    Name

    Logo Colors

    Tagline

    Symbol Consumerexperiences create brand

    bonding, brand advertising does not.

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    Brand DecisionsBrand Decisions

    Marketers should attempt to create or

    facilitate awareness, acceptability,

    preference, and loyaltyamongconsumers.

    Valuable and powerful brands enjoy

    high levels of brand loyalty.

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    Brand DecisionsBrand 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.

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    Brand DecisionsBrand Decisions

    Brand equityrefers 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.

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    Brand DecisionsBrand Decisions

    Key Challenges

    To brand or not

    Brand sponsor

    Brand name

    Brand strategy

    Brand repositioning

    Advantages ofbranding:

    Facilitates orderprocessing

    Trademark protection

    Aids in segmentation

    Enhances corporateimage

    Branded goods aredesired by retailersand distributors

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    Brand DecisionsBrand Decisions

    Key Challenges

    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

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    Brand DecisionsBrand Decisions

    Key Challenges

    To brand or not

    Brand sponsor

    Brand name

    Brand strategy

    Brand repositioning

    Strong brand names:

    Suggest benefits

    Suggest productqualities

    Are easy to say,recognize, andremember

    Are distinctive Should not carry poor

    meanings in otherlanguages

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    Brand DecisionsBrand 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

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    Brand DecisionsBrand Decisions

    Key Challenges

    To brand or not

    Brand sponsor

    Brand name

    Brand strategy

    Brand repositioning

    A brand report cardcan be used to audita brands strengthsand weaknesses.

    Changes inpreferences or the

    presence of a newcompetitor mayindicate a need forbrand repositioning.

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    Packaging and LabelingPackaging and Labeling

    Packaging includes:

    The primary package

    The secondary package

    The shipping package

    Many factors have influenced theincreased use of packaging as amarketing tool.

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    Packaging and LabelingPackaging and Labeling

    Developing an effective package:

    Determine the packaging concept

    Determine key package elements

    Testing:

    Engineering tests

    Visual testsDealer tests

    Consumer tests

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    Packaging and LabelingPackaging and Labeling

    Labeling functions:

    Identifies the product or brand

    May identify product grade

    May describe the product

    May promote the product

    Legal restrictions impactpackaging for many products.

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    Objective of advertisingObjective of advertising

    Build the business today and build

    brand value overtime

    All advertising has to pass

    through this objective test

    How does Advertising buildHow does Advertising build

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    How does Advertising buildHow does Advertising buildBrands?Brands?

    Building brand salience

    Unaidedawareness - aidedawareness

    Building brand appeal

    Intention to try - trial

    Reinforce usage - increase usage

    Building brand imagery

    Usage imagery - userimagery

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    Building Blocks forBuilding Blocks for

    Brand-building Advertising IBrand-building Advertising I

    MarketanalysisSize, volume, value, growth, geographic, seasonality

    Consumeranalysis

    Size, demographic,

    geographic

    Usage, depth, width

    Companyanalysis

    Size, profitability,distribution,

    technology

    Competitor analysis

    Size, profitability, strengths, weaknesses

    Brand

    ildi l k f

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    Advertising StrategyCreative Strategy , Media Strategy

    Advertising Objective

    Awareness , Salience , Image , attitude

    Marketing Objectives

    Sales , Market Share , Profits

    Market Analysis+Consumer Analysis +Company Analysis + Competitor Analysis

    Marketing StrategyProduct , Pricing , distribution , Service , packaging ,

    Advertising & Sales Promotion

    Building Blocks forBuilding Blocks for

    Brand-building Advertising IIBrand-building Advertising II

    How Does AdvertisingHow Does A vert s ng

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    How Does AdvertisingHow Does A vert s ngWork IWork I

    Awareness

    Knowledge

    Liking

    Preference

    Conviction

    Purchase

    Classic Hierarchy of Effect Model

    How Does AdvertisingHow Does Advertising

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    How Does AdvertisingHow Does AdvertisingWork IIWork 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

    How Does Advertising WorkHow Does Advertising Work

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    How Does Advertising WorkHow Does Advertising Work

    IIII

    FCB GridFCB GridHigh 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 (?)

    Low involvementConsumer is not involved;

    tends to see the utilitarian

    values of the category;routine/quick decision

    making

    E.g.: detergents, fuel,

    flour, mobile service (?)

    How Does Advertising WorkHow Does Advertising Work

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    How Does Advertising WorkHow Does Advertising WorkIIII

    FCB GridFCB Grid

    Think Vs feel

    Think

    Consumer decides using his

    head :

    Rationalitydrives the

    choice of product/brand

    Feel

    Consumer decides using his

    heart :

    Emotionalitydrives the

    choice of product/brand

    Advertising to fit FCB GridAdvertising to fit FCB Grid

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    THINKING FEELING

    HIGH

    INVOLVEMENT

    LOW

    INVOLVEMENT

    Advertising to fit FCB GridAdvertising to fit FCB Grid

    requirementsrequirements

    LEARN-FEEL- DO

    I) INFORMATIVE

    FEEL-LEARN-DO

    II) AFFECTIVE

    DO-LEARN-FEEL

    III) HABITUAL

    DO-FEEL-LEARN

    IV) SATISFACTION

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    Category DifferencesCategory Differences

    Consumer

    Products

    Consumer

    Durables ServicesCorporate

    Lower values Higher values Indeterminate No value

    Frequent purchase Infrequent Indeterminate Variable

    Narrow/BroadTarget customer

    Narrow TargetCustomer

    Variable Very wide/variable

    Role of advertising in brand-building will tend to vary with category type

    B d b ildi Ad i iB d b ildi Ad ti i

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    Brand-building AdvertisingBrand-building Advertising

    FCB Grid - Self-testFCB Grid - Self-test

    Plot: car, TV, detergents, perfumes, flour, clothing,

    insurance, mobile

    Thinking Feeling

    High

    Involvement

    Low

    Involvement

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    Consumer Products :Consumer Products :

    What are they?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, everymonth

    C P d t TC P d t T

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    Some consumer products could

    be high involvement

    Perfumes, Cigarettes

    Health aids, Baby foods

    Consumer Products : TypesConsumer Products : Types

    Often low involvement,

    routine purchase or

    impulse purchase

    What is the consumer issue

    facing the brand?

    Poor awareness leadingto poor trial

    Poor repeat usage afterhigh trial

    Lack of desired imageperceptions

    What is the key task?

    Attracting new users

    Retaining existing users

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    Consumer ProductConsumer Product

    Purchase Behaviour 1Purchase Behaviour 1 Who decides, who buys, who

    influences

    Map the key influences in the purchase

    process

    Example :

    Toothpaste : Housewife (decision maker)

    Kid (influencer)

    Consumer ProductConsumer Product

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    Consumer ProductConsumer Product

    Purchase Behaviour 2Purchase Behaviour 2

    Limited level ofinformation searchby consumers

    Often a routinisedpurchase or animpulse purchase

    Extended problem

    solving only in thecase of innovationCream for

    foot cracks

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    Consumer Product PurchaseConsumer Product Purchase

    Behaviour 3Behaviour 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

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    Brand-building AdvertisingBrand-building Advertising

    Self Test 3Self Test 3

    Consumer panel data shows the following:

    aaaabaacbabcbabbb

    a, b, c are three brands

    Draw three inferences from thedata

    What should be the role ofadvertising for Brand a ?

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    You LearnedYou Learned

    To identify the various characteristics ofproducts.

    To learn how companies build andmanage product lines and mixes.

    To understand how companies makebetter brand decisions.

    To comprehend how packaging andlabeling can be used as marketingtools.

    E d f L

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    End of LessonEnd of Lesson

    YouYou

    start Brandingstart Branding