Product and Brand Management
Dr P R Bhattacharyya
https://www.youtube.com/watch?v=q8TnUdLWm-s
Can you identify any difference in the
2 Advertisements ?
What Is A Product?
• A Product Is Any Offering By A Company To
A Market That Serves To Satisfy Customer
Needs And Wants.
• It Can Be An Object, Service, Idea, etc.
Product Hierarchy
• Need Family
• Product Family
• Product Class
• Product Line
• Product Type
• Brand
• Item
Product Levels
Customer value hierarchy
• Core benefit
• Basic product
• Expected product
• Augmented product
• Potential product
New Product Development
• Most new product development is an
improvement on existing products
• Less than 10% of new products are
totally new concepts.
Success Rate Of New Products
• The success rate of new products is very low – less
than 5%. ‘You have to kiss a lot of frogs to find a
prince.”
• Product obsolescence is rapid with improvements
in technology
• Shorter PLCs
Product Development Stages
• Idea Generation
• Idea Screening
• Concept Development and Testing
• Concept Testing
• Conjoint Analysis – to find out the best valued
attributes by consumers
https://www.surveyanalytics.com/conjoint-analysis-example.html
Business Analysis
• The most customer appealing offer is not always the
most profitable to make
• Estimate on costs, sales volumes, pricing and profit
levels are made to find out the optimal price –
volume mix.
• Breakeven and paybacks
• Discounted cash flow projections
Market Testing
• Test markets
• Test periods
• What information to gather?
• What action to take?
Commercialization
• When? (Timing)
• Where? (Which geographical markets)
• To whom? (Target markets)
• How? (Introductory Marketing strategy)
Customer Delight
• When you exceed customer expectations
Samsung Q LED TV
https://youtube/9KFlJYWIrPs
Product Classification
• Durable
• Non – Durable
• Services
Consumer Goods Classification
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods
Industrial Goods Classification
• Materials and Parts
- raw materials
- manufactured materials and parts
• Capital items
• Supplies and business services
Product Mix
• The assortment of products that a company offers to
a market
• Width – how many different product lines?
• Length – the number of items in the product mix
• Depth – The no. of variants offered in a product line
• Consistency – how closely the product lines are
related in usage
Product Line Decisions
• Product rationalization
• Market rationalization
• Product line length
too long – when profits increase by dropping a product in
the line
too short – when profits increase by adding products to
the product line
• Line pruning – capacity restrictions to decide
Brand
• A name becomes a brand when consumers
associate it with a set of tangible and intangible
benefits that they obtain from the product or
service
• It is the seller’s promise to deliver the same bundle
of benefits/services consistently to buyers
Brand Equity
• When a commodity becomes a brand, it is said to
have equity.
• The premium a brand can command in the market
• The difference between the perceived value and the
intrinsic value
Levels Of Meaning
• Attributes
• Benefits
• Values
• Culture
• Personality
• Users
Brand Power
• Customer will change brands for price reasons
• Customer is satisfied. No reason to change.
• Customer is satisfied and would take pains to get
the brand
• Customer values the brand and sees it as a friend
• Customer is devoted to the brand
Brand Equity – Competitive Advantages
• Reduced marketing costs
• Trade leverage
• Can charge a higher price
• Can easily launch brand extensions
• Can take some price competition
Naming the Brand
• Product benefits
• Product qualities
• Easy to pronounce
• Should be distinctive
• Should not have poor meanings in other languages and
countries
Managing Brand Equity
• Brand Equity needs to be nourished and
replenished. We must not flog the brand for
equity to be diluted or dissipated
• Store brands
Advantages of branding
• Easy for the seller to track down problems and process orders
• Provide legal protection of unique product features
• Branding gives an opportunity to attract loyal and profitable set
of customers
• It helps to give a product category at different segments, having
separate bundle of benefits
• It helps build corporate image
• It minimises harm to company reputation if the brand fails
