Product and brand management

Session 8 Joel Cyclo Xavier

 Company wants to launch new product. How does it do it?

Develop a new brand Apply in some way an existing brand Combination of old brand with new brand

Approach 2 and 3 amount to extension Types of extensions?

 Types of extensions
Line extension?
New product that targets a new market segment within the product category Often involves a different flavour or variety Eg. Head and shoulders dry scalp shampoo

Category extension
Parent brand is used to enter a different category from that currently served. Eg. Fastrack glasses

 7 strategies of establishing a category

Same product in different form.
Milkybar choo

Products that contain the brands distinct taste, ingredient or component

Maggi masala

Companion products
Eveready flashlights with eveready cells

Relevant to consumer franchise of brand

ICICI insurance

 7 strategies of establishing a category

Products that capitalise on firms perceived expertise
Sony digital media

Products that reflect the brands distinctive benefits

Mediker anti-lice hair oil

Products that capitalise on the image of a brand

Ferrari sunglasses and watches

 Advantages of extensions
Facilitate new product acceptance
Improve brand image Reduce perceived risk Increase probability of trial and distribution Increase efficiency of promotional expenditures Reduce costs of introductory and follow up marketing [save 40-80%] Avoid new brand development cost Packaging and labeling efficiencies Consumer variety seeking behaviour promotion

 Advantages of extensions
Provide feedback benefits to parent brand and company
Clarify brand meaning Enhance parent brand image Revitalise the brand Bring new customers to brand franchise Permit subsequent extensions

 Disdvantages of extensions
Confuse of frustrate consumers Encounter retailer resistance Fail. Hence hurt parent brand Succeed. Cannibalise parent brand Succeed. Still hurt parent brand Dilute brand meaning Cause the company to forego the chance of developing a new brand

Managing brands over time

Effect of marketing activities on brands
Consumer response to past marketing activity
Brand awareness and brand image

Consumer response to current marketing activity

CHANGED brand awareness and brand image

Consumer response to future marketing activity

 Reinforcing brands
Maintaining brand consistency
Market leaders
Succeeded in remaining consistent

Consistency and change

What is retained and what is changed

Protecting sources of brand equity Fortifying vs. leveraging

Building brand equity vs using it for financial gain

Fine tuning supporting marketing program

Product related performance associations Non product related imagery associations

 Reinforcing brands
Specific tactics may change Key sources of equity need to be maintained Product innovation and relevance

 Revitalising brands
Expanding brand awareness
Depth and breadth Recall or recognition

How? Identifying additional or new usage opportunities Identifying new and completely different ways to use the brand

 Revitalising brands
Improving brand image
Repositioning the brand Changing brand elements

Entering new markets

 Adjustments to brand portfolio

Acquiring new customers
Multiple marketing communications programs
A campaign for each target group

Brand extensions and sub brands New distribution outlets

 Marketing challenge in acquiring new customers lies in making a brand seem relevant to consumers from vastly different generations, groups and lifestyles

 Retiring brands
Obsoleting existing products Orphan brands Fading brands

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