PRODUCT STRATEGY AND
BRANDING
Professor Chip Besio
Cox School of Business
Southern Methodist University
WITHIN EVERY BRAND
IS A PRODUCT, BUT
NOT EVERY PRODUCT
IS A BRAND
…DAVID OGILVY
WHAT ARE PRODUCTS AND SERVICES?
GOODS, SERVICES, AND IDEAS

Product

Good
• Nondurable
Goods
• Durable
Goods

Services

Ideas
WHAT ARE PRODUCTS AND SERVICES?
PRODUCT ITEMS, LINES, AND MIXES

Product Item
• Stock Keeping Unit (SKU)

Product Line

Product Mix
10-4
WHAT IS A PRODUCT?
Augmented Product
Installation
Packaging
Brand
Name
Delivery
& Credit
Quality
Level
Core Features
Benefit
or
Design
Service
AfterSale
Service
Actual Product
Warranty
Source: Prentice Hall
Core Product
How stages of the product life cycle relate to a
firm’s marketing objectives and marketing mix
actions
Stages of the product life cycle and its total
industry sales and total industry profit
How stages of the product life cycle relate to a
firm’s marketing objectives and marketing mix
actions
CHARTING THE PRODUCT LIFE
CYCLE
INTRODUCTION STAGE

Primary Demand

Selective Demand

Skimming Strategy

Penetration Pricing
Product life cycle for the stand-alone fax machine
for business use: 1970-2012
CHARTING THE PRODUCT LIFE CYCLE
GROWTH STAGE

Rapid Sales Growth

More Competitors

Repeat Purchasers

New Features

Broad Distribution
CHARTING THE PRODUCT LIFE CYCLE
MATURITY STAGE

Industry/Product
Sales Slow

Profit Declines

Product Differentiation

Fewer Competitors
CHARTING THE PRODUCT LIFE CYCLE
DECLINE STAGE

Industry/Product
Sales Drop

Environmental Changes

Deletion

Harvesting
CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

Length of the Product Life Cycle

Shape of the Product Life Cycle
• Generalized Life Cycle
• High-Learning
Product
• Fashion
Product
• Low-Learning
product
• Fad
Product
Alternative product life cycle curves based on
product types
CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

The Product Level: Class and Form
• Product Class
• Product Form
Prerecorded music product life cycles by product
form
CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

The Life Cycle and Consumers
• Diffusion of Innovation
 Innovators
 Late Majority
 Early Adopters
 Laggards
 Early Majority
Five categories and profiles of product adopters
(diffusion of innovation)
CHARTING THE PRODUCT LIFE CYCLE
FOUR ASPECTS

The Life Cycle and Consumers
• Barriers to Adoption
 Usage
 Value
 Risk
 Psychological
11-20
MANAGING THE PRODUCT LIFE CYCLE
ROLE OF A PRODUCT MANAGER

Product/Brand Manager Responsibilities
• Product Life Cycle
• New Product Development
• Marketing Program Implementation
• Data Analysis (Sales, Market Share, & Profit Trends)
 Category Development Index - CDI
 Brand Development Index - BDI
11-21
MANAGING THE PRODUCT LIFE CYCLE
MODIFYING THE PRODUCT OR MARKET

Product Modification
• Product
Bundling

• New
Characteristics
Market Modification
• Finding New
Customers
• Increasing a
Product’s Use
• Creating a New
Use Situation
11-22
MANAGING THE PRODUCT LIFE CYCLE
REPOSITIONING THE PRODUCT

Product Repositioning

Reacting to a Competitor’s Position

Reaching a New Market

Catching a Rising Trend
11-23
The Milk Processor Education Program
What factor triggered its repositioning?
11-24
MANAGING THE PRODUCT LIFE CYCLE
REPOSITIONING THE PRODUCT

Changing the Value Offered
• Trading Up (adding value through new features)
• Trading Down (reducing features, quality or price)
• Downsizing (reducing package content or size)
11-25
BRANDING AND BRAND MANAGEMENT

Branding

Brand Name
• Logotype (Logo)

Trade Name

Trademark
®
™
• Product Counterfeiting
11-26
BRANDING AND BRAND MANAGEMENT
BRAND PERSONALITY AND BRAND EQUITY

Brand Personality

Brand Equity
• Provides a Competitive Advantage
• Consumers Willing to Pay a Premium
11-27
GATORADE: QUENCHING
THE ACTIVE THIRST WITHIN YOU
Göt2b Hair Products and Degree Deodorant
What are their brand personalities?
The customer-based brand equity pyramid
BRANDING AND BRAND MANAGEMENT
PICKING A GOOD BRAND NAME

Should Suggest Product Benefits

Should Be Memorable and Positive

Should Fit the Company or Product Image

Should Have No Legal or Regulatory Restrictions

Should Be Simple and Emotional
ALTERNATIVE BRANDING STRATEGIES
BRANDING AND BRAND MANAGEMENT
BRANDING STRATEGIES

Multiproduct Branding
(Family or Corporate Branding)
• Product Line Extensions
• Subbranding
• Brand Extension
• Co-Branding
BRANDING AND BRAND MANAGEMENT
BRANDING STRATEGIES

Multibranding
• Fighting Brands

Private Branding (Private Labeling or
Reseller Branding)
Co-Branding (two brands, one new
product)

Mixed Branding
BRANDING STRATEGY
Brand Name
Product Category
Currently Served
New
Existing
Line
Extension
Brand
Extension
New
Multi-brand
New
Brand
Source: Prentice Hall
Kimberly-Clark’s Huggies
What branding strategy is used?
Black & Decker and DeWalt Tools
What branding strategy does each use?
INDIVIDUAL PRODUCT STRATEGY
DECISIONS
 Attributes
 Packaging
 Labeling
 Product Support
PRODUCT ATTRIBUTES WHERE DO THEY
COME FROM?
Quality
Design
Source: Prentice Hall
Features
PACKAGING
Competitive
Advantages
Sales
Tasks
Packaging
Product
Safety
Identifies
Labeling
Promotes
Describes
Source: Prentice Hall
“?” and Heinz Ketchup
What are the packaging benefits for each?
Lay’s STAX, Pringles and Celestial Seasonings
What are the packaging benefits for each?
PACKAGING AND LABELING PRODUCTS
PACKAGING AND LABELING
CHALLENGES AND RESPONSES

Connecting with Customers

Environmental Concerns

Health, Safety, and Security Issues
• Shelf Life

Cost Reduction
BRANDING AND BRAND MANAGEMENT

Warranty
• Express Warranties
• Limited Coverage Warranties
• Full Warranties
• Implied Warranties
PRODUCT MIX
Variety - number of
different product
lines
Product Mix all the product
lines offered
Assortment number of items
within product lines