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Products, Services & Brands. Chapter: 8 Lec: 7b. Product Line Decisions. Product Line

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Products services brands

Products, Services & Brands

Chapter: 8

Lec: 7b

Product line decisions

Product Line Decisions

  • Product Line

    A group of products that are closely related because they function in a similar manner, are sold to the same customer groups , are marked through the same types of outlets, or fall within given price ranges

  • A company can expand its product line in two ways

    - Line filling (add more items in line)

    - Line stretching (upwards/ downwards)

    e.g. Hotel one, PC, Marriot (downwards)

    Tata Indigo, upper market car (upwards)

Product mix decisions

Product Mix Decisions

  • Product Mix

    The set of all product lines and items that a particular seller offers for sale

    - Product mix has four dimensions

    1- Width

    2- Length

    3- Depth

    4- Consistency

Product mix decisions1

Product Mix Decisions

  • Width

    The number of different product lines the company caries

    e.g. Sony ( TV, play station, camera)

  • Length

    Total number of items a company carries in its product line

    e.g. digital cameras, camcorders

  • Depth

    The number of versions offered of each product in the line

    e.g. Flat panel, rear projection, High/low resolution

  • Consistency

    How closely related the product line are

    e.g. Distribution, stores availability

Branding strategy building strong brands

Branding Strategy: Building Strong Brands

  • Brand Equity

    The differential effect that knowing the brand name has on customer response to the product or its marketing

    - brand vary in the amount of power

    e.g. Song, Nike, Disney, McDonalds

  • Customer perception dimensions

    1) Differentiation (what makes the brand stand out)

    2) Relevance (how it meets consumer needs)

    3) Knowledge (how much consumer know about the brand)

    4) Esteem (How do consumer respect the brand)

Building strong brands

Building Strong Brands

Brand Positioning



Beliefs and values

Brand Sponsorship

Manufacturer’s brand Private Brand Licensing Co-branding

Brand Development

Line extensions

Brand extensions


New brands

Brand name selection

Selection Protection

Building strong brands1

Building Strong Brands

  • Brand Positioning

    e.g. Volvo

    attributes: features of the car

    benefit: what you’ll get out of them (safety)

    Belief and values: e.g. Marriot- Luxury rooms

Building strong brands2

Building Strong Brands

  • Brand Name Selection

    - can add to a product’s success

    - best suited for product category

    - should be protected

Building strong brands3

Building Strong Brands

  • Brand Sponsorship

    There are four sponsorship options

    - National Brand: sell under your own name (Sony Bravia)

    - Private Brand: (distributor brand)

    - Licensed brands

    - Co-brand

Brand sponsorship

Brand Sponsorship

  • National Brands Vs Store Brands

    Store Brands

    A brand created and owned by a reseller of a product or service

    e.g. HKB, Al-Fateh

    - Retailer can select the best place in store for their brands

    - Select a lower price as compared to national brands

Brand sponsorship1

Brand Sponsorship


  • Takes years and millions to create a brand

  • Some companies license names/ symbols for a fee

  • Toys based on Tv characters

  • Characters on clothes, bags etc.

Brand sponsorship2

Brand Sponsorship

  • Co-branding

    The practice of using the established brand names of two different companies on the same product

    - you can bring new value for your customers

    e.g. Marriot and Barclays

    Nike and ipod

    - Complex legal contracts and licenses

    “Giving away your product is like giving away your child – you want to make sure everything is perfect”

Brand development

Brand Development

  • A company has four choices when it comes to developing brands

    Line extension

    Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

    e.g. Bata, regular shoes, sports shoes, sandals etc.

    - Geo news, geo super, geo entertainment

    -An overextended brand name might lose its meaning

    - Sale of an extension might come at the expense of other item

Brand development1

Brand Development

  • Brand Extensions

    Extending an existing brand name to new product categories

    e.g. Maggie Noodles, Maggie soup, Maggie Ketchup

    - Ponds tooth paste, Heinz pet food met early death

    - Extension may confuse the image of the product

Brand development2

Brand Development

  • Multibrands

    Companies introduce additional brands in the same category

    - Each brand entertains a different segment

    - Each brand may obtain a small marketplace

Brand development3

Brand Development

  • New Brands

Brand development strategies

Brand Development Strategies

Product Category



Line extension

Brand Extension


Brand Name


New Brands


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