Unit-IV Lecture-14

Setting Product Strategy

A: Product and Brand Relationships
B: Packaging, Labelling, Warranties, and
Guarantees
 Learning Outcome
Students will be able
• To know the difference between guarantee and
warranty
A: Product and Brand Relationships
a) The Product Hierarchy
A method of classifying
your company’s products 6. Item
and services by their 5. Product
essential components into type
a logical structure. 4. Product
line
3. Product
class
2. Product
family
Modeling of the hierarchical relationships
1. Need between products in a tree structure. It
family groups products and defines the
relationship between products and
groups at different hierarchy levels (for
example, food – frozen food – pizza).
A: Product and Brand Relationships
a) The Product Hierarchy
A: Product and Brand Relationships
b) Product Systems and Mixes
A group of diverse but related items that function in
a compatible manner. – For example, the extensive
Nokia Lumia 530 product system includes
headphones and headsets, cables, cases and car
accessories it is Product System for Nokia Lumia
530.
• A product Mix (also called a product assortment):
the set of all products and items a particular seller
offers for sale. – A company’s product mix has a
certain width, length, depth, and consistency. These
concepts are illustrated Product Mix of AMUL.
A: Product and Brand Relationships
b) Product Systems and Mixes
A: Product and Brand Relationships
b) Product Systems and Mixes
A: Product and Brand Relationships
b) Product Systems and Mixes
A: Product and Brand Relationships
b) Product Systems and Mixes
A: Product and Brand Relationships
b) Product Systems and Mixes
Calculate the product mix width, length and depth?
A: Product and Brand Relationships
C:Product Line Analysis
• Sales and profits
A: Product and Brand Relationships
D:Product Line Length
A: Product and Brand Relationships
D:Product Line Length
• Line Modernization: Companies plan improvements
to encourage customer migration to higher-valued,
higher- priced items.
• – It’s important to time improvements so they do
not appear too early (damaging sales of the current
line) or too late (giving the competition time to
establish a strong reputation)
• – Samsung came up with new version of android,
Processer in it’s smart phones over period of time.
A: Product and Brand Relationships
D:Product Mix Pricing
A: Product and Brand Relationships
D:Product Mix Pricing
A: Product and Brand Relationships
D:Product Mix Pricing
A: Product and Brand Relationships
D:Product Mix Pricing
A: Product and Brand Relationships
E:Co-Branding and Ingredient Branding

1-CO-BRANDING Two or more well-known

brands are combined into a joint product or
marketed together in the same fashion. Also
known as ‘Dual Branding’ or ‘Brand Bundling
A: Product and Brand Relationships
E:Co-Branding and Ingredient Branding
A: Product and Brand Relationships
E:Co-Branding and Ingredient Branding

• Ingredient Branding Co-branding that creates

brand equity for parts that are necessarily
contained within other branded products.

•
B: Packaging, Labelling, Warranties, and Guaranteesc
a: Packaging
All the activities of designing and producing the
container for a product
Packaging objectives
Used as a marketing tool
• Identify the brand
• Self-service
• Convey descriptive and
• Consumer affluence
persuasive information
• Company and brand image
• Facilitate product
• Innovation opportunity transportation and
protection
• Assist at-home storage
• Aid product consumption
B: Packaging, Labelling, Warranties, and Guarantees

b:Labeling
– Identifies, grades, describes, and promotes the
product
C:Warranties
– Formal statements of expected product
performance by the manufacturer
D:Guarantees
– Promise of general or complete satisfaction
 Mcq’s
•1) A group of products within a product class that
are closely related because they perform a similar
function, are sold to the same customer groups,
are marketed through the same outlets or
channels, or fall within given price ranges is
known as a ________.
•A) product type
•B) product class
•C) need family
•D) product line
 Mcq’s
•2) A ________ is the set of all products and
items a particular seller offers for sale.
•A) product line
•B) product mix
•C) product extension
•D) product system
 Mcq’s
•3) XYZ Company produces detergents,
toothpaste, bar soap, disposable diapers, and
paper products. This company has a product
________ of five lines.
•A) type
•B) length
•C) class
•D) width
 Mcq’s
•4) The ________ of the product mix refers to
how closely related the various product lines are
in end use, production requirements, distribution
channels, or some other way.
•A) consistency
•B) depth
•C) width
•D) length
 Mcq’s
•5) Gillette uses ________ pricing when it offers
razor handles at a low cost, but places a high
markup on the replacement razor blades that fit in
the handles.
•A) optional feature
•B) two-part
•C) by-product
•D) captive-product