Products, Services and Branding Strategy
Session-5
PowerPoint Presentation
Product
 Products, Services, and Experiences
– Market offerings may consist of a combination of
goods and services
– Experiences are used to differentiate offerings
 Levels of Product and Services
– Core benefit, Basic, Expected and augmented and
Potential product
 Product and Service Classifications
– Consumer products and industrial products
Product Levels
PRODUCT LEVELS
1. CORE PRODUCT
2. BASIC PRODUCT
3. EXPECTED PRODUCT
4. AUGMENTED PRODUCT
5. POTENTIAL PRODUCT
Example
Product or
service or brand
Core Product
Actual Product
Augmented
Product
Ford Ikon
Freedom to
travel
A motor car
?
Budget/No Frills
Airline e.g.
Jetlite, Go Air
?
An airline journey Food bought
during your flight
Nike
Association with
the best in
sports.
?
Nike online
allows you to
personalise your
trainers
Example: Hotel
Core
• Rest
• Sleep
Basic
• Bed
• Bathroom
Expected
Augmented
Potential
• Hygiene
• Service
• Beech Hotel, Brand, Star Hotel
• Future Product
Product Classification
Consumer products:
– Durability & Tangibility
•Non Durable: eg. Soap, beer
•Durable: TV, Refrigerator.
•Services: Intangible, eg: Air Travel,
Hotel, Telecom
– Consumer-Goods Classification
•Convenience
•Shopping
•Specialty
•Unsought
Industrial Goods Classification
– Materials and parts :
• Raw Materials [ farm & natural] and
Manufactured materials and parts [ component
material and component parts
– Capital items
• Installation and Equipments
– Supplies and services
• Operating Supplies and Maintenance and
repair items
• Maintenance and repair service & business
advisory service
Product Differentiation
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Form- Shape Size
Features
Customization
Performance
Conformance
Durability
Reliability
Reparability
Product Line Analysis
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Product Mix
Product Line
Product Width
Consistency
Product Line Analysis
Two Aspects
– Sales and Profit
– Market Profile
Product Line Length
Profits can increase either if product line is
shorten or added. It can be lengthens in two
ways :
1. Line Stretching : Down market stretch, Up
Market stretch, Two way stretch
2. Line Filling :by adding more items on
product line
Product Line Modernization
Part Basis/Overall
Modernization is carried rapidly, eg
micro-processor companies
Too early might damage sale of current
line and too late competition might
take advantage.
Vox Wagan Beatle
Featuring and Pruning
 Line Featuring
– Establishing Image driver for the line[
Surya classic for Surya brand]
– Issue to promote weak items or safe guard
strong ones
 Pruning
– Weak items
– Production demands
Branding
Coke, Toyota, Surya: What comes to your mind?
Attributes
Benefits
Values
Culture
Personality
User
Marketing is also converting simple products and
Services into brands.
Why Branding
 Brands with strong equity have many
competitive advantages:
– High consumer awareness will reduce marketing
cost
– Strong brand loyalty
– Helps when introducing new products
– Less susceptible to price competition
– More Trade Leverage in bargaining with
distributors and retailers [Bajaj Bikes in Nepal]
Brand Name Decision
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Product benefits
Product Qualities
Easy to pronounce recognize and remember
Distinctive
Should not carry poor meanings in other countries
and languages
 Blanket Family Names
Brand Strategy Decision
Line Extension: Minor Changes to Existing Products
Brand Extension: Successful brands help introduce
new products
Multibrands: Multiple brands into a product category
New brands: New product brand
Co brands
Labeling and Packaging
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Identifies the product
Describes the product
Promotes the product
Legal requirement
Packaging
 A Marketing Tool.
 Garnishing the product.
 Important Marketing Tool