Product Mix Decisions and Branding

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


PrintPrint RetailRetailEntertainmentEntertainmentNetNet

The Times Group

The Times Group contd..The Times Group contd..

PrintPrint

GROUP SITES


NetNet


EntertainmentEntertainment


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


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

Product Mix Decisions and Branding

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