product mix decisions and branding
TRANSCRIPT
Product Mix Decisions&
Branding
Marketing ConceptsMarketing Concepts
The Marketing Mix(The 4 P’s of Marketing)
Major Marketing Management decisions classification Product - function, appearance, packaging, service, warranty, etc
Price - list price, discounts, financing, and other options such as leasing
Place (distribution) - market coverage, channel member selection, logistics, and levels of service
Promotion - advertising, public relations, media types, etc
ProductProduct
TargetTargetMarketMarket
PromotionPricePrice
PlacePlace
Customers judges the offerings by three basis elements
Product features and qualityProduct features and quality Service mix and qualityService mix and quality Price appropriatenessPrice appropriateness
Components Components of the Market Offeringof the Market Offering
Product is a key element in the market offeringProduct is a key element in the market offering
All three elements must be meshed All three elements must be meshed into a complete attractive offeringinto a complete attractive offering
ProductProduct
Physical goodsPhysical goods ServicesServices ExperiencesExperiences EventsEvents PersonsPersons PlacesPlaces PropertiesProperties OrganizationsOrganizations InformationInformation IdeasIdeas
Anything that can be offered to a market to satisfy a want or needAnything that can be offered to a market to satisfy a want or need
The fundamental service or product the customer is buyingIn a bank the customer is looking for In a bank the customer is looking for security of his moneysecurity of his money
Marketer has to turn core benefit into basic productBank accounts like savings account, current account
A set of attributes and conditions the buyers expect when they buy the product The bank customer would expect a cheque The bank customer would expect a cheque book, locker and other deposit products like book, locker and other deposit products like FD, RDFD, RD
A product that exceeds customer expectationsA bank can offer facilities like A bank can offer facilities like ATM/Debit cards, Telebanking, Internet ATM/Debit cards, Telebanking, Internet Banking and also other financial Banking and also other financial servicesservices
Encompasses all possible augmentation and transformations the product might undergo in futureAnywhere banking, ATM sharing, Anywhere banking, ATM sharing, CRM priority banking, portfolio CRM priority banking, portfolio managementmanagement
Product LevelsProduct Levels
Product hierarchyProduct hierarchy
Stretches from basic needs to particular items that Stretches from basic needs to particular items that satisfy those needssatisfy those needs
(Audio System)(Audio System) Need family – Need family – entertainmententertainment
Product family – Product family – audio entertainmentaudio entertainment
Product class – Product class – audio systemsaudio systems
Product line – Product line – stereos, mini systems…stereos, mini systems…
Product type – Product type – basic, mid range, premiumbasic, mid range, premium
Brand – Brand – Phillips PowerHousePhillips PowerHouse
Item (product variant) – Item (product variant) – V220V220
Product MixProduct Mix
Product mix has a certain…Product mix has a certain…
WidthWidth
LengthLength
DepthDepth
ConsistencyConsistency
Case StudyCase Study
Product-line Length
Product-Mix Width
Beverages Juice Snacks
Pepsi
Mountain Dew
Aquafina
Mirinda
7-Up
Dukes Soda
Dukes Mangola
Slice
Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit
Lays
Cheetos
Lehar
Numkeens
Nutyumz
Kurkure
Product-Mix Width and Product-Line Length for PepsiCo IndiaProduct-Mix Width and Product-Line Length for PepsiCo India
Case Study contd..
1990 - First Pepsi produced
1991 - Year of the Flavors
1993 - Fountain Pepsi, Slice, Teem
1996 - Mirinda attained leadership in Orange category
1999 - Launch of 500ml & 2 Ltr PET, Aquafina & Diet Pepsi
2000 - Launched 200 ml
2001 - Launched Mirinda Apple
2002 - Launched Pepsi Aha
2003 - Launched Mountain Dew, Pepsi Blue
PepsiCo India - LandmarksPepsiCo India - Landmarks
Case StudyCase Study
PrintPrint RetailRetailEntertainmentEntertainmentNetNet
The Times Group
The Times Group contd..The Times Group contd..
PrintPrint
GROUP SITES
The Times Group contd..The Times Group contd..
NetNet
The Times Group contd..The Times Group contd..
EntertainmentEntertainment
The Times Group contd..The Times Group contd..
RetailRetail
The Times of IndiaThe Times of India Product Mix!! Product Mix!!
Print Net Entertainment Retail
TOI-- ET -- MT-- NBT- FILMFARE- FEMINA indiatimes.com Times Music Planet M&
Group Sites Radio Mirchi
TOI ET MTBT CD Mumbai Times
WSP BETP
CGPVP
DTP
The Times Group
Product Line DecisionsProduct Line Decisions
A. Product Line AnalysisA. Product Line Analysis Market profile Market profile
80 – 20 rule80 – 20 rule
1. SALES & PROFITS1. SALES & PROFITS
CollapseCollapse
Cutting the deadwoodCutting the deadwood
2. GROSS MARGIN, SALES & PROMOTION 2. GROSS MARGIN, SALES & PROMOTION
a. Core Producta. Core Product
b. Staplesb. Staples
c. Specialtiesc. Specialties
d. Convenience items d. Convenience items
Product Line DecisionsProduct Line Decisions
B. Product line LengthB. Product line Length a. Objectives a. Objectives
b. Cycleb. Cycle
1. Line Stretching1. Line Stretching a. Down market Stretcha. Down market Stretch b. Up market Stretchb. Up market Stretch c. Two way stretchc. Two way stretch
2. Line Filling2. Line Filling Just-noticeable differenceJust-noticeable difference
3. Line Modernization, Featuring and Pruning3. Line Modernization, Featuring and Pruning
Branding
Definition: “A brand is a name, Term, Sign, Symbol, Definition: “A brand is a name, Term, Sign, Symbol, Brand or combination of them intended to identify Brand or combination of them intended to identify the goods or services of one seller or group of the goods or services of one seller or group of sellers and to differentiate them from those of sellers and to differentiate them from those of competitors.”competitors.”
- American Marketing Association- American Marketing Association
6 levels of Brand meaning
(Mercedes Benz)(Mercedes Benz) Attributes – Attributes – Features - Features - Well Engineered, Durable, High Prestige Well Engineered, Durable, High Prestige Benefits – Benefits – EmotionalEmotional - Feels important, - Feels important, Functional - Functional - Well BuiltWell Built Values – Values – Product valueProduct value – High Performance, Safety – High Performance, Safety Personality – Personality – Associates PersonalityAssociates Personality – No Nonsense Boss – No Nonsense Boss Culture – Culture – Represents cultureRepresents culture – Organized, Efficient, High Quality – Organized, Efficient, High Quality User – User – set of users who will respect brands values, Culture and set of users who will respect brands values, Culture and
personality – personality – Business Head Business Head
Challenges in Branding and decisionsChallenges in Branding and decisions
Branding to be or not to be..Branding to be or not to be..
Whether Produce Manufacturer Brands or Whether Produce Manufacturer Brands or Distributor / Private BrandsDistributor / Private Brands
Which Brand Name/s to useWhich Brand Name/s to use
Whether to use Line extensions, Brand Whether to use Line extensions, Brand Extensions, Multi Brands, New Brands or Extensions, Multi Brands, New Brands or CobrandsCobrands
Brand Name FeaturesBrand Name Features
suggest something about the product’s suggest something about the product’s benefitsbenefits
suggest the product or service categorysuggest the product or service category suggest concrete, “high imagery” qualitiessuggest concrete, “high imagery” qualities be easy to spell, pronounce, recognize, and be easy to spell, pronounce, recognize, and
rememberremember be distinctivebe distinctive not carry poor meanings in other countries not carry poor meanings in other countries
and languagesand languages
A Brand name shouldA Brand name should
Building Brand IdentityBuilding Brand Identity
Brand bondingBrand bonding Brands are not built by advertising Brands are not built by advertising
but by the brand experiencebut by the brand experience Everyone in the company lives the brandEveryone in the company lives the brand Three ways to carry on internal branding – Three ways to carry on internal branding –
Employees mustEmployees must UnderstandUnderstand Desire, and Desire, and Deliver on the brand promiseDeliver on the brand promise
Brand EquityBrand Equity
Brand awarenessBrand awareness Brand acceptabilityBrand acceptability Brand preferenceBrand preference
Five levels of customer attitude:Five levels of customer attitude: The customer will change brands, especially forThe customer will change brands, especially for
price reasons. No brand loyalty.price reasons. No brand loyalty. Customer is satisfied. No reason to change brands.Customer is satisfied. No reason to change brands. Customer is satisfied and would incur cost by Customer is satisfied and would incur cost by
changing brand.changing brand. Customer values the brand and sees it as a friend.Customer values the brand and sees it as a friend. Customer is devoted to the brand.Customer is devoted to the brand.
Companies will try to be in situation 3,4 & 5Companies will try to be in situation 3,4 & 5
High Brand Equity BenefitsHigh Brand Equity Benefits
Reduced Marketing CostReduced Marketing Cost More trade leverage with channelMore trade leverage with channel Can charge higher price than competitor because of higher Can charge higher price than competitor because of higher
perceived qualityperceived quality Easy launch of brand extensions because of high credibilityEasy launch of brand extensions because of high credibility Defense against price warDefense against price war
Public relations and Public relations and press releasespress releases
SponsorshipsSponsorships Clubs and consumer Clubs and consumer
communitiescommunities Factory visitsFactory visits Trade showsTrade shows Event marketingEvent marketing
Public facilitiesPublic facilities Social cause marketingSocial cause marketing High value for the moneyHigh value for the money Founder’s or a celebrity Founder’s or a celebrity
personalitypersonality Mobile phone marketingMobile phone marketing
Brand Building ToolsBrand Building Tools
THE BRAND NAME - THE BRAND NAME - HCL – INFINITIHCL – INFINITI
25 Years of IT Service to nation25 Years of IT Service to nation
Case StudyCase Study
PAST:
Previously known as “The Calculator Company”.Previously known as “The Calculator Company”. Started its operation 28 years ago.Started its operation 28 years ago. Decided to put brand name on the self Decided to put brand name on the self
manufactured P.C’s as: HCL-Infinitimanufactured P.C’s as: HCL-Infiniti Tied up with HP for their servers.The brand Tied up with HP for their servers.The brand
name was modified to HCL-HPname was modified to HCL-HP Corporate decision to break the tie up with HPCorporate decision to break the tie up with HP
BRAND EXTENSION
HCL-Infiniti range of servers launched HCL-Infiniti range of servers launched under the flagship of HCL –Infiniti Brand under the flagship of HCL –Infiniti Brand name.name.
HCL-Infiniti range of both managed and HCL-Infiniti range of both managed and unmanaged switches launched again unmanaged switches launched again branded as HCL-Infiniti.branded as HCL-Infiniti.
Active and Passive components in Active and Passive components in networking launched and branded as HCL-networking launched and branded as HCL-InfinitiInfiniti
Storage hardware as JBOD launched Storage hardware as JBOD launched under HCL Brand name.under HCL Brand name.
BRAND REPOSITIONING
HCL –Infiniti Challenger HCL –Infiniti Challenger (Workstation) repositioned in high (Workstation) repositioned in high end graphics market for video end graphics market for video streaming and CAD/CAM streaming and CAD/CAM applications.applications.
HCL-Infiniti Strata Z (Vertical and HCL-Infiniti Strata Z (Vertical and Horizontal Mount slimline P.C’s) Horizontal Mount slimline P.C’s) repositioned in corporate segment.repositioned in corporate segment.
BRAND QUALITY DECISION
Quality ImprovementQuality Improvement: : ISO 9001:2000ISO 9001:2000
Quality is continuously improved by Quality is continuously improved by our H.O. Product team and R&D Centre.our H.O. Product team and R&D Centre.
Quality Maintenance:Quality Maintenance:
Quality of all the HCL manufactured Quality of all the HCL manufactured products is maintained under strict QC products is maintained under strict QC norms as Drop Test,Rigorous tests, etc.norms as Drop Test,Rigorous tests, etc.
FerrariFerrari SonySony BMWBMW NokiaNokia DisneyDisney RyanairRyanair HPHP IKEAIKEA AdobeAdobe NikeNike
Top Ten Brands – April 2002Top Ten Brands – April 2002(source Google)(source Google)
Thank youThank you