MKtg quiz 12

• Brand Decisions

◦ Branded or Generic

‣ Generics were popular (70s, 80s) because of low price

‣ Generics have now been replaced by store (private label) brands

‣ Most of the time vegetables in the produce aisle are generic

◦ Advantages of Branding

- Charge a premium price

- Control many aspects of how the product is marketed

◦ Brand ownership

‣ manufactures brand (Ex: apple, samsung, nike, harley davidson)

‣ store brand AKA private label brand (ex: trader joe’s, kirkland, great value, organics)

◦ Advantages of Store/private label brands

- Economies of scale (the more your produce the more you gain)

- Can build Store Loyalty (one brand at a specific store, Jiff peanut butter or Great Value PB)

- Helps manufacturers use access capacity

- Can be more profitable for retailers to sell

◦ Brand Decisions

‣ Individual Branding (Proctor and Gamble- vicks, olay, charmin, crest, tampax, tide…)

‣ Blanket Branding (AKA umbrella/mega branding) (virgin atlantic, virgin hotels, virgin trains)

• Advantages of individual branding over blanket Branding

• If Virgin got in trouble and a flight crashes… the rest of the virgin brands would fall off

• Individual Branding would not fall off because they’re all separated

◦

— Being able to sell different product categories

Brand Decisions

◦ Line Extension

‣ Extending the current product line with a modified product under the existing brand

‣ Example: Coke, coca cola mexican, coke zero

◦ Brand Extension’

‣ A new product category under existing brand

‣ Example: Dove soap, dove deodorant, dove babies

◦ Multiple Branding

‣ A marketer sells within one product category (multiple brands within one category)

‣ Advantages of having multiple brands

‣ Example: Tide, Gain, Cheer, Dreft

‣ Target multiple segments

‣ capture the business of brand switchers

‣ lock up shelf space making it harder to smaller competitors

‣ Disadvantages

- increased expenses

- Resources being spread too thinly

- Cannibalization

Selecting a good brand name

◦ Reflect on the major benefit of the brand:

‣ Easy and Simple… (7UP, Bib-Label Lithiated Lemon-Lime Soda)

‣ Distinctive: (BARF… in Persia)

‣ Global:

‣ capable of registration: Coca cola light, iPad was already taken in china… so Steve Jobs bought the rights

Product Life Cycle (PLC)

• First stage in product cycle: product has not yet been launched (product development) (Space tourism, smart clothing)

•

• Second Stage: Introduction of the product (8K TVs AI)

◦ Low sales

◦ Heavy investments

◦ negative profits

◦ prices are high

◦ gain channel acceptance

◦ gain awareness, trial

• Third Stage: Growth (EVs , contactless financial transactions)

◦ Fast growth in sales

◦ entry of competition

◦ new features, improvement

◦ moderately heavy investments

◦ profits increase

◦ prices are still high, slight drop

◦ try to maximize market share

• Fourth Stage: Maturity where sales go up and more profits (laptops, toothpaste, smartphones, soap)

◦ Flat sales

◦ excess capacity

◦ price discounts, sales promotion

◦ reduced profits

◦ exit of some competition

◦ try to enter a second growth stage

◦

• Fifth Stage: Decline where sales drop and little profits (Desktop computers, CDs, newspapers, broadcast TV)

◦ fast declining sales & profits

◦ reduced support

◦ some loyal customers

◦ maintain, harvest or divest

◦ some product categories have come back from a decline stage to enter a growth stage (Oat Bran)