Session 2

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Commodities, Products , Brands

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&
Product Policy

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August 9, 2017
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TNS - GLAKES 1
 Five Product Levels

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At which
level is a
Brand ?

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 What is a Brand?
Derivation

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Old Norse brandr = to burn
branding livestock

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Heritage
A means to distinguish goods from one
producer vs another.
AMA (technical definition 2005 )
A name, term, design, symbol, or any other feature

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that identifies one seller's good or service as
distinct from those of other sellers. The legal term
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for brand is trademark. A brand may identify one
item, a family of items, or all items of that seller. If
used for the firm as a whole, the preferred term is
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trade name
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TNS - GLAKES 3
 What is a Brand?

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Kellers Definition:
A product, but one that adds other

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dimensions that differentiates it in some
way from other products designed to
satisfy the same need.

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Rational and tangible
Symbolic, emotional and intangible
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The psychological response to a brand
can be as important as the
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physiological response.
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TNS - GLAKES 4
 What is a Brand?

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Product = Commodity +
A product is a produced item
always possessing these

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characteristics:
G Tangibility
GAttributes and Features

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Brand = Mind Set
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The sum of all communications and experiences
received by the consumer and customer resulting in
a distinctive image in their mind set based on
perceived emotional and functional benefits.
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TNS - GLAKES 5
Timothy D. Ennis, Ennis Associates, Inc
BRAND IS -.

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Delivering what it is purported to QUALITY.
Identity & Ownership - Name , Logo,

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personality etc.
Differentiation over others &.
Value addition that projects.

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Confidence - + ve & strong.
At 2 levels.
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Head - tangible
Heart - intangible.
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TNS - GLAKES 6
 Brand Distinction

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Relative Brand Distinction
The more distinctive or different a brand is in the
consumers mind set, the stronger brand preference

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becomes. This is critical to keeping competition from the
consumers consideration.
A brands preference is primarily built through
differentiation and relevance

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Insulate product from competition
OWN Something
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Products Brand Strong Brand
Name Brand Perceived by
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the
No Difference Well Known Distinctive Consumer as
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Except Price But Similar Unique

TNS - GLAKES Timothy7 D. Ennis, Ennis Associates, Inc

 Brand Distinction

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Kotlers Five Levels
Potential Product
of A Product

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Augmented
Product BRAND DISTINCTION by Timothy D. Ennis

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Products Brand Strong Brand

Expected Name Brand

Perceived by
Product No Difference Well Known Distinctive the
N Except Price But Similar Consumer as
Unique
OWN Something
Generic
Product
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CORE BENEFIT
TNS - GLAKES 8
 Brand Equity

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Fundamentally, stresses the importance of
the role of the brand in marketing
strategies.

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Marketing effects uniquely attributed to
the brand

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Represents the ADDED VALUE endowed as
a result of past marketing investments.
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Bridge between the past and future
possibilities
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TNS - GLAKES 9
 Brand Equity

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A set of stored values that
consumers associated with a
Product/Service.

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These associations add value
beyond the basic product functions
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due to past investments in marketing
the Brand.
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Timothy D. Ennis, Ennis Associates, Inc
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TNS - GLAKES 10
 Determinants of
Customer-Based Brand

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Equity

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Customer is aware of and familiar with the
brand

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Customer holds some strong, favorable,
and unique brand associations in memory
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TNS - GLAKES 11
Kellers Brand Resonance Pyramid
CBBE

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TNS - GLAKES 12
 Top Global Brands 2016

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Change in
Brand Brand
2012 Rank 2013 Rank 2014 Rank 2015 Rank 2016 Rank Brand
Name Value ($m)
Value
2 1 1 1 1 Apple 1,78,119 5%

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4 2 2 2 2 Google 1,33,252 11%
1 3 3 3 3 Coca-Cola 73,102 -7%
3 4 5 4 4 Microsoft 72,795 8%

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5 5 4 6 5 Toyota 53,580 9%
6 6 8 5 6 IBM 52,500 -19%
9 8 7 7 7 Samsung 51,808 14%
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10 10 6 10 8 Amazon 50,338 33%
7 7 9 12 9 Mercedes 43,490 18%
>25 >20 15 8 10 GE 43,130 2%
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At least 30 percent of revenue must come from outside the brand's home region and have a significant presence in Asia, Europe, and North America, as well as
broad geographic coverage in emerging markets.There must be sufficient publicly available data on the brand's financial performance. Economic profit must be
expected to be positive over the longer term, delivering a return above the brand's cost of capital.The brand must have a public profile and awareness across the
major economies of the world TNS - GREAT
Best Indian Brands 2016
Interbrand

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How Many of the Top 30 are B2B

Brands ? 14
 PRODUCT POLICY

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What is Product Policy Value through
Current & New offerings

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1. Current Offerings
i. Progression augmented vs expected
ii. Mix / line decisions
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Extensions line / market
Managing P L C
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2. New Offerings
i. New new
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ii. Improvement / improvisation

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 PRODUCT POLICY

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What is Product Management ?
Twin responsibilities

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1. PRODUCT PLANNING - Analysing &
Strategising marketing and objectives
2. PRODUCT MARKETING
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Implementing marketing programmes &
ensuring organisational support for the
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same
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PRODUCT MANAGEMENT

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PRODUCT PLANNING

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Analysis of Product, Portfolio,

Market, customers, competition

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& environment

Translation of above information
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to Objectives & Strategies
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PRODUCT MANAGEMENT

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PRODUCT PLANNING is also referred

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to as MARKETING PLANNING
depending on the Product Mix.

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79
TNS- PGDMVIII- Term IV
 PRODUCT MANAGEMENT

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PRODUCT / MKTG.PLANNING
1. Define current situation

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2. Define problems & Opportunities
3. Establish objectives
4. Strategies to achieve objectives
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Assign responsibility for achieving the
objectives
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6. Encourage discipline thinking
7. Establish customer/ competitor
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orientation
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TNS- PGDMVIII- Term IV
 Strategic & Marketing planning

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Q : How is Mktg planning different
from Strategic Planning ?

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Strategic Planning Marketing Planning

Concerned with overall long term Concerned with day to day

organisational direction performance and results

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Provides long term framework for the Represents only one stage in
organisation organisations development
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Overall orientation needed to match the Functional and professional orientation
organisation to environment tends to predominate

Goals and strategies are evaluated from Goals are subdivided into specific targets
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an overall perspective
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Results evident in long term Results immediately evident

PRODUCT PLANNING

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86
TNS- PGDMVIII- Term IV
 PRODUCT MANAGEMENT

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What is Product Management ?

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PRODUCT MARKETING

Control & implementation of elements
of marketing mix, objectives &

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strategies

Co-ordination with other areas
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internal & external and ensuring
support for the programmes
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PRODUCT PLANNING

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What is Product Management

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Where & How does it begin ?

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DATA MANAGEMENT & ANALYSIS

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TNS 24
 DATA

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DATA
Type title here

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IiiINTERNAL EXTERNAL
Type title here

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PLANS OPS PRIMARY SECONDARY
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STARATEGIC ANNUAL PLAN SALES MARKETING FINANCIAL/ RESEARCH MARKETING SALES AGENCY
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LEGAL

TNS 25
 Product Line Analysis

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Sales and profits

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 Product Line Analysis

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Market profile and image

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 ANALYSIS
Portfolio Analysis

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BCG,

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DPM,
Mckinsey,

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MAPS,
Ansoff
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Perceptual Mapping
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Product Scaling
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TNS 28
 Managing Products

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G Market evolution Product / Market
G New offering

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G Differentiation & Repositioning
G Extensions
G Line

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G Brand
G Commoditisation
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G Product Platform
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G Obsolescence
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TNS 29
 Differentiation Variables

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Product Services Personnel Channel Image

Form Ordering Competenc Coverage Symbols

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Features Delivery Courtesy Expertise Media

Performance
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Installation Credibility Performanc Atmosphere
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Conformanc Customer Reliability Events
e training
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Durability Customer Responsiven
consulting ess
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TNS 30
 Repositioning
Changing physical product by adding

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features (Real repositioning )
Changing beliefs by greater emphasis on a

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particular attribute ( psychological
reposition)
Changing beliefs about competitors

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(Competitive depositioning )
Changing relative importance of an
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attribute
Emphasising an attribute previously ignored
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Changing buyers expectations
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Break away, reverse & stealth

TNS 31
 Positioning & repositioning

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Increase product usage brushing 2 a day
Find new applications Milkmaid

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Add product features - Power Steering
Revitalise - Horlicks
Cobranding

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Brand name GE , Dabur
Gen next
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Easy to use Disposables / microwaveable
Induce frequent use Frequent flyer/cards
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TNS 32
 Extensions

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Line extensions

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Brand extensions
Often used interchangeably
Not entirely correct

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TNS 33
 Line Extensions

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Additions to product line in a given
category to fill out the line

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Addition of To
Rin Advanced Detergent powders

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Wheel Detergent cakes
Dove Shampoos
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Nivea Deo
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Anne French Deep Cleansing Milk
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TNS 34
 Brand Extensions

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Using an existing Brand name to
another unrelated Product Category

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Addition of To
Dettol Toilet Soaps

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Savlon Toilet Soaps
Anchor Toothpastes
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Royal Challenge Golf Kits / CDs / Music
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Nirma Salts
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Wills Garments
TNS 35
 A Product Managers Potential Interactions
Agency media department
Company media department

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Suppliers Media sales reps

Advertis-
Trade
Manufactur- ing agency
ing and Media Premium
Suppliers

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distribution suppliers
Premium
Research screening Store
and Promotion
testing Sampling
development services
Couponing

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Legal Product Packaging
Manager
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Researchers
Fiscal Purchasing
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Market Publicity Suppliers
research
Sales
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Research
suppliers Trade
 PRODUCT MANAGEMENT

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What is Product Management ?

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Twin responsibilities -require
1. Setting objectives

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2. Implementation in short term &
3. Day to functioning and co-ordination
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 PRODUCT MANAGEMENT

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What is Product Management ?

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Twin responsibilities result in a written
document containing guidelines for
the product/ brand/group marketing

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program and allocations over the
planning period called Marketing or
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Product Plan
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 PRODUCT MANAGEMENT

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Marketing / Product Plan
Written document reflecting sanctity

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Vehicle for communication between
functional areas of the organisation
Benchmark for product performance

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measurement
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Basis for future plans
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 PRODUCT MANAGEMENT

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Marketing / Product Plan
Referred to by different names such

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as BMS / Market. Require-ment
Document MRD etc.

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Will revisit in the last module
preparation of this document
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PRODUCT PLANNING Business & Market
Planning Protocol

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116
TNS- PGDMVIII- Term IV
 What is Product Policy

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What Products to produce & sell

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What new products to add
What existing products to discontinue
How long will it take to penetrate

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How many products to have in product
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How to balance a portfolio
How to introduce a product
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TNS- PGDMVIII- Term IV
 What is Product Policy

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Product differentiation

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PLC consideration
What is the ideal packaging & labeling
Individual branding or family branding

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Use of product bundling
Line extensions & Brand extensions
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What logo to use
Planned obsolescence, commoditisation
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