1. Product Management II - The Value of Branding
MKT 750
Professor West

2. Agenda Discuss Tivo Case Leveraging brand equity Commercials
Consumer Viewpoint, Stakeholders, Competition?
Action plan
Leveraging brand equity

3. Launching Tivo
What is Brodie Keast’s interpretation of Tivo’s problem?
Strengths
Weaknesses

4. Launching Tivo Who is Tivo best suited for?
What is Tivo’s value proposition?

5. Campaign: Target Market: Positioning: Product: Price: Place:
Promotion:

6. Value Chain Impact Before After Advertisers Advertisers
Networks Networks
Cable & Satellite Cable & Satellite
Consumers

7. Launching Tivo
What can we learn from this about being a product pioneer?

8. The Value of Brands
“A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify goods or services of one seller and to differentiate them from those of competitors. (Philip Kotler p. 443).”

9. What is a brand? A product is a bundle of benefits
Mix Decisions -- How big is big enough?
Life Cycle Decisions -- How long is too long?
A brand is a “promise to your customer”
Communicated through advertising, packaging, services, and warranties
Expectations matter and impact experience

10. What is Brand Equity?
The value added/deleted from a product or service due to the brand name
A set of brand assets and liabilities
Customer Loyalty
Awareness
Perceived Quality
Associations
Proprietary Assets

11. The Value of Brands Value to the Customer? Value to the Firm?
Info processing is simplified, increased consumer confidence, risk reduction, ease of justification, enhanced satisfaction…
Value to the Firm?
Efficient and effective marketing, loyal customer base, higher margins, platform for growth, channel power

12. Leveraging Brand Equity
Product Line and Brand Extensions
Evaluate the “extended” product based on perceived similarity to the core brand
Extensions offer quick rewards
The cost of a successful brand launch is approx. $30 million versus $5 million for a line extension

13. Leveraging Brand Equity
Successful:
BIC disposable shavers
Kodak film
Ivory soap
Jell-O gelatin
Barbie dolls
Bausch & Lomb optics
Minolta camera
Unsuccessful:
Levi jeans
Mr. Coffee coffee makers
BIC disposable lighters
Kodak cameras and batteries
Ivory shampoo, dishwashing liquid
Jell-O pudding pops
Barbie games, furniture, clothes
Bausch & Lomb contact lens
Minolta copiers
Levi business suits
Mr. Coffee coffee
Bausch & Lomb mouthwash

14. Leveraging Brand Equity
Brand collaboration
Partnering
                                                                                                                                                                               
                 
                                   

15. Brand Dilution Can brands be stretched too far?
In the late 1980s Disney became concerned
Research revealed that product endorsements were resented
Disney responded by establishing a brand equity team to manage the franchise and selectively evaluate all promotional opportunities
                 

16. Summary Strong brands: Add value to the firm through
Premium pricing
Channel power
Platform for extension
Collaboration opportunities
Require attention, and investment of resources

17. Assignment Case: Are Some Customers More Equal Than Others?
Work on developing your team’s paper