Product, Branding, and Packaging Decisions PDF

Chapter 9 Product, Branding, and Packaging Decisions © 2023 McGraw Hill Limited 9-1  Chapter 9: Product, Branding, and Packaging Decisions LEARNING OBJECTIVES LO1 Describe the components of a prod...

Chapter 9 Product, Branding, and Packaging Decisions © 2023 McGraw Hill Limited 9-1  Chapter 9: Product, Branding, and Packaging Decisions LEARNING OBJECTIVES LO1 Describe the components of a product LO2 Identify the types of consumer products LO3 Explain the difference between a product mix’s breadth and a product line’s depth LO4 Identify the advantages that brands provide firms and consumers LO5 Summarize the components of brand equity LO6 Describe the types of branding strategies used by firms LO7 State how a product’s packaging and label contribute to a firm’s overall strategy © 2023 McGraw Hill Limited 9-2  Patagonia – Adding Value by its Social Conscious!  Makes great products!  Socially responsible consumption  A for profit that tries to influence larger, more systemic issues  Patagonia devoted to sustainability and environmental causes © 2023 McGraw Hill Limited 9-3 Products and Types of Products © 2023 McGraw Hill Limited 9-4  Types Of Products - Consumer Specialt Shoppin y g Conveni Unsough A medical professional is a specialty service. Apparel is a shopping product. ence t Soft drinks are a convenience product. Insurance is an unsought service. © 2023 McGraw Hill Limited 9-5  Product Mix and Product Line Decisions Product Mix the complete set of all products offered by a firm. Product Lines groups pf associated items, such as those that consumers use together or think of as part of a group of similar products. © 2023 McGraw Hill Limited 9-6  Product Mix and Product Line Decisions Product lines Product line breadth Oral Care Personal Care Home Care Pet Nutrition Product Toothpaste Deodorants Dishwashing Hill’s Pet Categorie (Colgate Total) (Speed Stick) liquid Nutrition, Inc.— s Toothbrush Bar soap (Irish (Palmolive) subsidiary (Colgate Plus) Spring) Automatic Dog and cat Kids’ products Body wash (Soft dishwashing food (Science (Colgate Soap) liquid Diet) Product Line Depth Barbie Bubble Hand wash (Palmolive) Dog and cat Fruit (Soft Soap) Household food(Ideal toothpaste) Men’s toiletries cleaners (Ajax) Balance) Whitening (Skin Bracer Dish wipes Dog and cat products Aftershave) (Palmolive) food (Colgate Soap (Murphy (Prescription) Simply White) Oil) Dog and cat Floss (Colgate Fabric softener food (Healthy Total Dental (Fleecy) Advantage) Floss) Oral first aid © 2023 McGraw Hill Limited 9-7  Product Mix and Product Line Decisions Product Category an assortment of items that the customers sees as reasonable substitutes for Brands names, one another. terms, designs, symbols or any other features that identify that one seller’s good or service as distinct from those of other sellers. © 2023 McGraw Hill Limited 9-8  Product Mix and Product Line Decisions Breadth Depth Number of products within Number of product lines a product line © 2023 McGraw Hill Limited 9-9  Change Product Mix Breadth Increase Breadth  Addnew product lines Decrease Breadth  Delete entire product lines © 2023 McGraw Hill Limited 9-  Branding A brand can use: Name, logos, symbols, characters, slogans, jingles and even distinctive Under Armour launched its new slogan, “The Only Way Is Through,” featuring athletes like quarterback Tom Brady in its advertising to help promote its brand. packages. © 2023 McGraw Hill Limited 9-  What Makes A Brand? Brand Element Description Brand name The spoken component of branding, it can either describe the product or service/product characteristics and/or be composed of words invented or derived from colloquial or contemporary language. Examples include Comfort Inn (suggests product characteristics), Apple (no association with the product), or Accenture (invented term). URLs (uniform The location of pages on the Internet, which often substitutes for the resource firm’s name, such as Toyota (www.toyota.ca) or Ben & Jerry’s locators) or (www.benandjerrys.ca). domain names Logos and Logos are visual branding elements that stand for corporate names or symbols trademarks. Symbols are logos without words. Examples include the Nike swoosh and the Mercedes star. Characters Brand symbols that could be human, animal, or animated. Examples include the Pillsbury Doughboy and Rice Krispies’ Snap, Crackle, and Pop. Slogans Short phrases used to describe the brand or persuade consumers about some characteristics of the brand. Examples include State Farm’s “Like A Good Neighbour” and Tim Hortons®’ “Always Fresh.” Jingles Audio messages about the brand that are composed of words or distinctive music. Examples are Intel’s four-note sound signature that accompanies the “Intel Inside” slogan. © 2023 Source: Adapted from Kevin Lane Keller, McGraw Strategic Hill Limited Brand Management, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 9-  Value Of Branding © 2023 McGraw Hill Limited 9- Brand Equity © 2023 McGraw Hill Limited 9-  Brand Equity: Awareness Brand Awareness: Measures how many consumers in a market are familiar with the These brands are so strong that they have become synonymous with the product itself. brand and what it stands for, and have an opinion about that brand © 2023 McGraw Hill Limited 9-  Brand Equity: Perceived Value Perceived value How does First Choice First Choice Haircutters, a national haircutting chain, provides its Haircutters create customers with great value because the haircut is better than good and the price is more than reasonable. value for customers? © 2023 McGraw Hill Limited 9-  Brand Equity: Brand Associations - Mental Links - Consumers make between a brand & its key product attributes such as the logo, slogan or famous personality. © 2023 McGraw Hill Limited 9-  Brand equity: brand loyalty Consumers are often less sensitive to price Marketing costs are much lower Loyal customers praise the virtues of their favourite products, retailers Dove rewarded consumers for their loyalty with double Optimum points at Shoppers Drug Mart. or services High level of brand loyalty insulates the firm © 2023 McGraw Hill Limited from competition 9-  Branding Strategies: Brand Ownership © 2023 McGraw Hill Limited 9- Naming Brands and Product Lines © 2023 McGraw Hill Limited 9-  Naming Brands and Product Lines - Family Brands Family Brands The use of a combination of the company brand name and individual Kraft uses a family branding strategy in which several product lines are sold under one name. brand name to distinguish a firm’s products. © 2023 McGraw Hill Limited 9-  Naming Brands and Product Lines - Individual Brands Individual Brands The use of individual brand names for each of a firm’s products. Kraft also uses an individual branding strategy because Velveeta, Classico, Jell-O, Grey Poupon, Heinz, and others are all marketed using separate names. © 2023 McGraw Hill Limited 9-  Naming Brands and Product Lines - Choosing a name  Should be descriptive & suggestive of benefits & qualities of the product  Easy to pronounce, recognize, remember  Register as a trademark & protect it legally  Easy to translate © 2023 McGraw Hill Limited 9-  Brand extension - benefits Use of the same brand name for new products. Well established name Perception of high quality carries over Lower marketing Ferrari has licensed its brand name to manufacturer-related apparel that costs appeals to those who can’t afford the automobile. Synergy among complementary products Boost sales of the © 2023 McGraw Hill Limited 9-  Brand Extension – Negative Consequences Use of the same brand name for new products. Too many extensions results in brand dilution Ensure the brands can be distanced from one another if need be Zippo suffered brand dilution when it extended its brand by introducing a perfume for women. It turns out that women don’t associate lighters with perfume. © 2023 McGraw Hill Limited 9-  Brand Extension – Negative Consequences Use of the same brand name for new products. Core brand & new extension may not ‘fit’ well together Brand associations between the two may not be similar Brand extensions can be risky. Kate Spade opened Kate Spade Saturday stores to offer lower-priced versions of its designs, but closed them within two years. © 2023 McGraw Hill Limited 9-  Brand Dilution Evaluate Evaluate consumer consumer Evaluate the fit between Evaluate the fit between perceptions perceptions of of the the the the product product class class attributes attributes of of the the core core brand brand of of the the core core brand brand and and seek seek out out extensions extensions and the extension. and the extension. with with similar similar attributes. attributes. Refrain Refrain from from Is Is the the brand brand extending extending thethe brand brand extension extension distanced distanced name name toto too too many many enough enough fromfrom the the products. products. core core brand? brand? © 2023 McGraw Hill Limited 9-  Cobranding Cobranding the practice of marketing two or more brands together, on the same package or promotion. © 2023 McGraw Hill Limited 9-  Brand Licensing Brand licensing is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee. Porsche - appears on: watches luggage sets tennis racquets Video game - Need for Speed: Porsche Unleashed © 2023 McGraw Hill Limited 9-  Packaging  An important brand element with physical benefits  Packaging attracts the consumer’s attention, enables products to stand out from their competitors, and offers a promotional Each jar of Wowbutter comes with 16 peel-off stickers that identify a child’s lunch as being nut free. tool © 2023 McGraw Hill Limited 9-  Labelling Labels on products and packages provide information the consumer needs for his or her purchase decision and consumption of the product. The packaging and label for siggi’s® yogurt highlights that the yogurt contains 18 grams of protein per 175-gram serving. © 2023 McGraw Hill Limited 9- © 2023 McGraw Hill Limited 9-