product and brand mangement

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PRODUCT AND BRAND MANAGEMENT

PRESENTED BY:-

SITESH KUMAR SONIPGDM 4th TRIMESTERROLL NO. 116ICBM-SCHOOL OF BUSINESS EXCELLENCE

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Responsibilities of a product managerCreating a product planDeveloping demand planningDiscussing with production deptCreating innovative marketing strategiesDiscussing about packagingResponsible for line extensionsNew product identificationProposing sales promotion plansConducting marketing researchMonitoring performance

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“A product is anything, tangible or intangible, which can be offered to a market

for attention, acquisition, use, or consumption that might satisfy a need or want.”

Thus, a product can be

a physical entity -- computer, shirt, or soap

some service -- healthcare, tuition, or bank

a retail store -- music store, locality grocer, or supermarket

a person-- a singer, physician, or politician

an organization-- business organization, trade organization

a place-- village, city, or country

an idea-- social issues, concepts, or population control

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A product can be described at five levels:

The first level is the core benefit

The second level is a generic product

The third level is the expected product

The fourth level is the augmented product

The fifth level is the potential product

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CORE BENEFIT

BASIC PRODUCT

EXPECTED PRODUCT

AUGMENTED PRODUCT

POTENTIAL PRODUCT

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Core Benefit The most fundamental benefit or service the customer is buying

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Basic Product Conversion in to Tangibles

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Expected Product

A set of attributes and conditions buyers normally expects when they purchase the product

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Augmented Product Which exceeds customer’s expectations

The new competition is not on what firms manufacture in the factory but between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value………………..Levitt

Each augmentation adds cost and slowly becomes potential benefit.

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Potential Product Which encompasses all the possible augmentations and

transformations the product might undergo in the future

Companies search for new ways to satisfy customers and

distinguish their offer.

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Product ClassificationProducts can be grouped under one of the two general categories.

Consumer products are those that we buy for our personal or family use

or consumption. Organisational products represent those products that

firms and institutions buy to produce other products, to resell, or to run day-

to-day operations.

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Consumer ProductsBased on durability and tangibility, there are three categories:

Durable goods

Non-durable goods

Services

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The most widely used approach to classifying consumer goods puts them

under four categories:

Convenience Products

Shopping Products

Specialty Products

Unsought Products

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Organisational ProductsOrganizational or industrial goods can be classified into seven categories based

on their characteristics and intended use:

raw materials,

capital equipment,

accessory equipment,

component parts,

process materials,

consumable supplies and

industrial services.

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Product Line and Product MixProduct item, product line, and product mix concepts help us understand

the relationships among a company’s different products.

A product item refers to a particular version of a product that is distinct, such

as Surf Excel is a (premium) product item offered by Hindustan Lever

Limited. A product line is a closely related group of products for essentially

similar use, and technical and marketing considerations. Product mix is the

total number of products that a company markets.

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Line Stretching

Downward Line Stretch

Upward Stretch

Both-Way Stretch

Line Filling

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Line Stretching Decisions

High High High

New Product

Price PresentProduct

Price New Product

Price PresentProduct

New Product

PresentProduct

New ProductLow Low Low

Quality Quality Quality

Downward Stretch Upward Stretch Both-Way Stretch

Low Low Low HighHigh High

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Line Pruning

Line pruning is just the opposite to line stretching and involves a deliberate

decision to cut down the number of items in product line(s).

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MARKETING PLANNING

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Types of Marketing Plans

Strategic plans

typically for a five year period

Tactical plans

typically for the year ahead

Contingency plans

an alternative plan if assumptions prove to be false

Marketing Planning

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Importance of Marketing Planning It helps in avoiding future uncertainties

It helps in management by objectives

It helps in achieving objectives

It helps in coordination and communication among the departments

It helps in control

It helps the customers in getting complete satisfaction.

Marketing Planning

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Strategic Planning at Three Levels

Corporate Level Strategic Planning

multi business corporation

(e.g.: ICICI Group)

strategic business unit (ICICI Bank)

 “What business should we be in?”

strategic business unit (ICICI Lombard)

Strategic Business Unit

(ICICI Prudential)

Business- Unit Level Strategic Planning “How should we compete in each

of our businesses?”

operations

Functional Level Strategic Planning

marketing

finance

human resources“How do we support each of our SBUs?”

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Management Level Planning Focus Key Marketing Question

Top Level of Management

Corporate Plan What is the organization’s mission? How do we organize the business?

Middle Level of Management

Business Unit Plan What is our competitive strategy for growth in that particular business unit?What are our competitive advantage?

Lower level of Management

Operational Plans How can we best support both the corporate plan and the business unit plan? What are our operational schedules?

Marketing Planning

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Marketing Planning Process

Marketing Planning

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Steps in Corporate Planning Process

1. Establishing corporate mission, objectives and

goals.

2. Establishing Strategic Business Units

3.  Assigning Resources to Each Strategic

Business Unit

4. Planning for Business Growth.

Marketing Planning

The Mission Statement

Based on answers to the following questions:

What is our business?

Who is the customer?

What is value to the customer?

What will our business be?

What should our business be?

Marketing Planning

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Strategic Business Unit

A strategic business unit has the following characteristics.

(a) Separate responsibility for strategic planning and profit

performance, and profit influencing factors

(b)  Separate set of competitors

Single business or a collection of related businesses, which offer scope for

independent strategic planning from remaining organization.

Marketing Planning

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Boston Consultancy Group (BCG) Matrix

Marketing Planning

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S.B.UClassificati

on

S.B.U. Characteristics Strategy Strategy Characteristics

1.      Dogs (Low share,

low growth)

Generate low profits or lossesConsume more management time

Divest Sell or liquidate the business because resources can be better used elsewhere.

2.      Question Marks

(Low share, high

Growth)

Requires a lot of cash for fast growthContinue investing in the SBU or withdrawing from the market

Build/ Harvest Increase the SBU’s market share/increase the SBU’s short-term cash flow and eliminate R & D expendi-ture

3.      Stars (High share, high growth)

-       Generate large amount of cash-       Competitors attack on SBU

Build Increase the SBU’s market share

4. Cash Cows -         Generate considerable sums of cash-         Enjoy economies of scales and higher profit margins

Hold/ Harvest Preserve the SBU’s market share/increase the SBU’s short-term cash flow and involve eliminat-ing R & D expenditure

Marketing Planning

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