1. Principles of Marketing Session 28, 29 Product Mix, Branding, and Packaging Decisions

2. 10-2 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Assortment and Product Line Decisions UNILEVER MALAYSIA – PRODUCT ASSORTMENTS BREEZELIFEBUOY CLEARLIPTON DOVELUX FAIR & LOVELYPOND’S FOOD SOLUTIONREXONA KNORRSUNSILK LADY’S CHOICEWALL’S

3. 10-3 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Lines Product line breadth Product line depth Product line refers to closely related products Toothpaste and Toothbrush If one company has more closely related products, we say the company’s product line is broad Product line depth refers to the variety of product under the same product category

4. 10-4 Product line breadth – personal care product line of unilever, Malaysia CLEARREXONA DOVELIFEBUOY FAIR & LOVELYPOND’S LUXSUNSILK

5. 10-5 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Category Depth SOFT KISS VELVETTE TOUCH WHITE GLAMOUR WAKE ME UP MAGIC SPELL

6. 10-6 Product Assortment and Product Line Decisions Product Category 1 SKUs Product Category 2

7. 10-7 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Colgate-Palmolive Product Assortment

8. 10-8 How do firms decide which products to add or subtract from their product mix? Adopting Product Breadth to Meet Changing Consumer Demand

9. 10-9 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Change Product Mix Depth ConAgra expanded its presence in popcorn by including three popular brands.

10. 10-10 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Change Number of SKUs Addition or deletion of SKU’s in existing categories Designed to stimulate sales or react to consumer demand

11. 10-11 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Line Decisions for Services The same types of decisions can be used for services

12. 10-12 Branding Product assortment Product line Single item

13. 10-13 Branding A brand can use: Name, logo symbols, characters, slogans, jingles and even distinctive packages.

14. 10-14 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin What Makes a Brand? Branding Brand name URLs Logos and symbols Slogans Jingles Characters

15. 10-15 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Value of Branding for the Customer and the Marketer

16. 10-16 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity

17. 10-17 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Awareness

18. 10-18 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Perceived Value Perceived value Discussion question How do organic brands create value for customers?

19. 10-19 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Brand AssociationsBrand Associations Brand personality

20. 10-20 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Brand Equity: Brand Loyalty 1.Consumers are often less sensitive to price 2.Marketing costs are much lower 3.Firm insulated from the competition

21. 10-21 Branding Strategies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22. 10-22 Brand Ownership Manufacturer brands or national brands Private-label brands or store brands Generic

23. 10-23 Naming Brands and Product Lines © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

24. 10-24 Naming Strategies Corporate or family brand – GE – The Gap Corporate and product line brands – Kellogg’s Corn Flakes – (Kellogg’s) Pop-Tarts Individual lines – Mr. Clean (Proctor & Gamble) – Swiffer (Proctor & Gamble) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

25. 10-25 Brand Extension © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Benefits of using same brand name Name well established Brand known for high quality Marketing costs are lower Synergy among the products Boost sales of the core brand

26. 10-26 Brand Extension © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © ConAgra Foods, Inc. All Rights Reserved. The term “category” used within refers to a portion of the overall Prepared Foods Category. It’s All About the Choices We Make

27. 10-27 Brand Dilution © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Evaluate the fit between the product class of the core brand and the extension. Evaluate consumer perceptions of the attributes of the core brand and seek out extensions with similar attributes. Refrain from extending the brand name to too many products. Is the brand extension distanced enough from the core brand?

28. 10-28 Cobranding © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

29. 10-29 Brand Licensing Lacoste – Founded in 1933 by David Lacoste – Still sold in stores today Harley Davidson – ConAgra recently introduced Harley Davidson Beef Jerky into the $2.7 billion per year beef snack category – The product will be sold in convenience stores and in Harley Davidson dealerships © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

30. 10-30 How do firms effectively use brand licensing to reach new markets? Using Brand Licensing

31. 10-31 Brand Repositioning © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Whirlpool: New design Surf detergent: New message Elizabeth Arden: New faces YM: New audience Gallo: New image Aqua Velva: New packaging Arm & Hammer: New uses

32. 10-32 Packaging Primary package Secondary package © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

33. 10-33 How can firms use packaging to create value for customers and the firm? Using Packaging to Create Value © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

34. 10-34 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

35. 10-35 Product Labeling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin