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SERVICES
EXPERIENCE
PRODUCT BRANDING, PACKAGING & SERVICE STRATEGY
1. Product Mix Decisions
Product mix is the set of all product lines & items
Product line is a group of products within a product mix that are closely related (e.g. they function in a similar manner, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges).
Product item is a distinct group within a product line that is distinguishable (by size, price, appearance, or some other attribute).
Width refers to how many different product lines are carried
Depth (length) refers to the number of items or brands in total.
Consistency of the product mix refers to how closely related the various product lines are (end use, production requirrements, or distribution channel, etc.).
2. Product Line Decisions
Each product line needs a marketing strategy
Various items contribute different amounts to sales & profits (20-80 rule).
How is product line positioned against competitor's product lines.
Line Length (Depth) relates to:
company's objectives
search for more volume & profit
manufacturing capacity
Line-Stretching Decision
Downward stretch (establish at the high end & add products to the lower end). Risks are that the low-end might cannibalise high-end items, provoking competitors to counteract by moving into the higher end, dealers are not willing or able to handle the lower end.
Upward stretch (position at the lower end & enter the higher end)
(a) Faster growth rate or higher margins at the upper end
(b) Position as a full-line manufacturer
Two-way stretch (strongly position in the midrange & go after market dominance in both directions.
Line-Filling Decisions
Line lengthened by adding more items within the present range
Line filling can be overdone (cannibalisation & customer confusion).
Line Modernisation Decisions
Line-Featuring Decisions. Select one or a few items for special featuring to draw attention to the line.
3. Product Item Decisions
Core product answers 'why is buyer really buying?' and deals with benefits.
Tangible product has five characteristics (quality level, features, styling, a brand name & packaging).
Augmented product includes additional services & benefits (e.g. personal attention, delivery, money-back guarantee).
types of products
Nondurable goods are tangible goods normally consumed in one or a few uses.
Durable goods are tangible goods that normally survive many uses.
Services are activities, benefits or satisfactions that are offered for sale.
Convenience goods are purchased frequently, immediately and with the minimum of effort in comparison & buying (e.g. staples, impulse & emergency).
Shopping goods are goods that the consumer compares on such bases as suitability, quality, price and style
Homogenous goods (similar in quality but different in price)
Heterogenous goods (other qualities of the product rather than the price are important).
Specialty goods (unique characteristics and/or brand identification for which a significant group of buyers are habitually willing to make a special purchasing effort).
4. Brand Decisions
A brand is a name, term, symbol, design or a combination of them which is intended to identify the goods & services of one seller or group of sellers & to differentiate them from those of competitors (includes brand name, brand mark (symbol, design or distinctive colouring or lettering), trademark, copyright.
Buyer's viewpoint
Important information source (buyer benefits, product's quality).
Increased shopping efficiency
Call attention to new products.
Seller's viewpoint - To handle orders, track down problems, legal protection, to attract a loyal set of customers.
Society's viewpoint
higher quality, innovation & shopper efficiency.
unnecessary differentiation, higher consumer prices & status consciousness.
Brand Sponsor Decision - Three options (manufacturer's brand, private brand, both)
Brand Quality Decision (one of the major positioning tools)
Family Brand Decision
Four brand name strategies:
(a) Individual brand names (Unilever)
(b) A blanket family name for all products (GE)
(c) Separate family names for all products (Coles)
(d) Company trade name combined with individual product names (Kellogg's).
Desirable qualities for a brand name are:
(a) It should suggest something about the product's benefits
(b) It should suggest product qualities such as action or colour
(c) It should be easy to pronounce, spell & remember
(d) It should be distinctive.
Brand Extension Decision (use of a successful brand name to launch product modifications or additional products).
Multibrand Decision
Develops brands that compete with each other.
Brand Repositioning Strategy.
5. Packaging Decisions
Packaging is defined as activities involved in designing & producing the container or wrapper for a product.
Labelling refers to printed information appearing on or with the package that describes the product.
Self-service (package must perform many sales tasks).
Consumer affluence (consumers are willing to pay more for packaging).
Company & brand image can be enhanced by packaging.
Must establish packaging concept.
Decision on component elements must be made.
Must be tested.
6. Service Decisions
First task is to survey customers
Customers expect service in product offer, amount and quality.
Should survey customers periodically.
How to price the service.
How to provide the repair service.
Customer service
All these services should be co-ordinated & used as tools in creating customer satisfaction & loyalty.
Complaints & adjustments
Credit service
Maintenance service
Technical service
Information service
Copyright © 2000 Genesis Management Services Pty Ltd
Last modified: July 28, 2006
