Product Hand Out

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA

Prof.-University of Mumbai-150 years of

standing

[email protected]

Product/Brand Management

Responsibility

1. Improving / Maintaining Profit2. Increasing Market Share3. Growth4. Increasing Customers satisfaction5. Develop brand equity

Functions

1. Prepare and implement Marketing plan2. Formal observation of competitors’ activities3. Consistent update on market information and research4. Administer marketing mix elements5. Packaging and price fixation of a brand for market

effectiveness6. Recommend product improvements7. Inform a sales approved marketing strategy to field staff8. Ensure that sales forecasts are met9. Ensure fair amount of sales force time for brand he is

handling.

Functions (contd)

10. Recommend selling prices and volume discounts.11. Ensure production understand plan.12. Consult production for feasibility of product changes.13. Ensure balance between inventory and production plans.14. Fit marketing plan into corporate plan.

15. Synergy between marketing strategy and company philosophy.

16. Recommend new products /selling methods/ new markets.

Functions (contd)

17.Do Strategic appraisal-Integrate planning assumption, identify key issues, opportunity, threat,indetify commercial opportunity

18.Selling knowledge and skills.-Analysis of data

19.Time Management-reduce procrastination, Handle daily works Have one project at one time, prioritize activity,

20.Project Management-Be focused and bring accountability, Provide resources in different areas, Manage new product development team

21.Product Manager score card:Business skills-Marketing plan, Financial knowledge, Selling skillsDeliver Results through People-Communication, developing others, interaction

with peopleEnsure market driven direction-customer relation, market research skills, Competitive intelligence, leading cross functional teamsGuide Product fit function-Technical understanding, QC knowledge,Product

portfolio analysis, New product development.Manage Multiple project-Time management, project management

Changing job function of a PM/BM

PM

Government

Profit Market

CoordinationProducts

TechnologyPricing

Sharp timely decision

Promotion

PlanningPR

Packaging

BRAND’S INNER AND OUTER CORE BRAND’S INNER AND OUTER CORE

INNER CORE The spiritual

central/brand essence/brand

soul.

Product

Packaging

Personality

Brand name

OUTER CORE Design

Character

Logo/symbol

Slogan

BRAND VALUE PROPOSITION

BRAND IDENTIFY – PARACHUTE BRAND IDENTIFY – PARACHUTE

INNER CORE:

Expertise in Coconuts

Brand lineage

Experience

BRAND IDENTIFY – PARACHUTE BRAND IDENTIFY – PARACHUTE

OUTER CORE:

Personality: Innovative, confident, trustworthy, young

Product focus: Coconut oil, coconut perfumed hair oil, coconut anti-dandruff hair oil

Price/quality: Value for money

User profile: Men/women, 18-45 years, SEC-B

Extensions: Parachute Coconut Hair Oil, Parachute Jasmine, Parachute Dandruff Solution.

Symbol/Logo: Flag shaped logo with a coconut tree against a blue background.

Heritage: Has been in coconut business for decades

Discrimination: Expertise – Parachute Dream centre

VALUE PROPOSITION:

Essential coconut nourishment

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA


standing

[email protected]

What is Product………Product is a Bundle ofTangible & Intangible

Benefits

Core Benefits

In – Tangible benefitsEg: Brand Name, Delivery, Credit, services

Tangible BenefitsEg: Colour, Design, Quality,

Price, Durability

Characteristics of ProductThere are 3 aspects to any product/service: 1. Core Benefit

[In-use benefit, psychological benefit etc]

2. Tangible product or service:[Benefits and product attributes and features]

3. Intangible product and service:[Brand name, delivery etc]

Theodore Levitt of Havard observed: “A product is not a product unless it sells. Otherwise its merely a museum piece”

Definitions• Philip Kotler – A product is anything that can be

offered to a market to satisfy a want or need.

• William Stanton – A product is a set of tangible attributes including packaging, colour, price, quality and brand plus the services and reputation of the seller. A product may be a good, service, place, person or idea.

• Skinner – A product is any good, service or idea that satisfies a need or wants and can be offered in an exchange.

WHAT IS BRAND………..

Brand is a

Name , Symbol, Numbers,

or Nemonics attached

with the Product

TYPES OF BRANDTYPES OF BRAND

Functional Symbolic Mixed

Hero Honda

‘Fill it, shut, it forget it’

Raymond

‘Complete man’

Johnson Tiles

‘Not just tiles, lifestyles’

Disprin

‘Quick relief from pain’

Classic

‘Discover or passion’

Opel Carsa

‘Achtung baby’

Surf Excel

‘Surf Excel hai na’

Ell 18

‘Be your self’

Hero Honda Passion

‘When style matters’

Nirma

‘Doodh jaisi safedi’

Louis Philippe

‘Upper crest’

Liril

The freshness soap

Captain Cook

‘Free flow salt’

Carbon

‘Very provocative’

Dove

‘With ¼ moisturing cream’

Bajaj Aspire

‘110% bike’

Lacoste

‘Be what you are’

Nescafe

‘The taste that gets you stated’

Bisleri

‘Play safe’

Cortier

‘Opulence’

Cadbury Dairy milk ‘Khane walon ka khane..?


Dettol

‘100% bath’

Thumps up

‘Have you grown up to Thumps up yet’

woodland

‘Leather that weathers’

Complan

‘The complete planned food’

American Express

‘Quite frankly American Express card is not for everyone’ (earlier)

Rexona Deo

It keeps working

Panasonic

‘First & Fast Telecom Solutions’

Wills Sport

‘Be a sport’

Honda Accord

‘Style and substance’




Kelvinator

‘The coolest one’

Nike

‘Just do it ’

Alto

‘The hottest little car in town’

Moove

‘Ah se aaha tak’

Allen Solly

Friday dressing

BMW

Ultimate driving machine

Vim Bar

‘Bas thoda sa vim bar’

Boss

Hugo Boss

Indica

‘More car per car’

Mant Blanc

Art of writing

PRODUCT V/S BRANDProduct Brand

Refers to a commodity Refers to a mindset

A product is something that is made in a factory

A brand is something that is bought by a customer.

A product can be copied by a competitor.

A brand is unique.

A product can be quickly outdated.

A successful brand is timeless.

A product is something tangible

A brand is a set of values and associations that exist only in the mind of consumers

Leads to customer satisfaction

Leads to customer loyalty

What is Brand Equity?What is Brand Equity?Brand equity is a set of brand assets and liabilities linked to a brand, its name, and a symbol, that add to or subtract from the value provided by a product or service to a firm or to that firm’s customers.

David Aaker TheoryDavid Aaker Theory

““Brand equity is the brand assets or liabilities Brand equity is the brand assets or liabilities linked to a brand’s name and symbol that add to linked to a brand’s name and symbol that add to or subtract from a product or a service. or subtract from a product or a service. These assets can be grouped into 4 dimensions These assets can be grouped into 4 dimensions – brand awareness, perceived quality, brand – brand awareness, perceived quality, brand associations and brand loyalty.”associations and brand loyalty.”

- David Aaker

Brand Equity ……………….

┘ Value of a Brand Name or Symbol

Sets of Assets & Liabilities linked with a Brand

Incremental Value of a Business above Physical Asset┘

┘

Higher Market Share Does Not Mean Higher

Brand Equity

Brand EquityBrand Equity

Perceived Brand Quality

BrandAwareness• Brand Name• Symbols

BrandLoyalty

OtherProprietaryBrand Assets•Patents•Trademarks•Channel relationships

Brand Associations• Attributes• Benefits• Attitudes

Provides Value to Customerby Enhancing:• Interpretation/processing of information• Confidence in the Purchase Decision• Use Satisfaction

Provides Value to Firm by Enhancing:• Efficiency and Effectiveness of Marketing Programs• Brand Loyalty• Prices/margins• Brand extensions • Trade Leverage• Competitive Advantage

What is Brand Equity?What is Brand Equity?

Source: Aaker (1991) “Managing Brand Equity”Source: Aaker (1991) “Managing Brand Equity”

Higher Loyalty

Name awareness

Lower Marketing Cost

Excellent Channel Relationship

Competitive AdvantageSTRONGBRANDEQUITYHigh perceived quality Can be sold at higher price

Strong brand association

STEPS IN DEVLOPING BRAND EQUITY

Identify product attributes

What is USP / UCP

Market Segment – which is more attractive?

Developing positioning based on segment / USP /UCP/ Psychographic Profile

Does it tally with company’s image and strength?

Develop campaign on new product

Top Ten Brands of Asia

1. Coca cola

2. Kelloges

3. McDonalds

4. Kodak

5. Marlbro

6. IBM

7. American Express

8. Sony

9. Mercedes

10. Nescafe

Measuring brand equityMeasuring brand equity

a) Sales value X 1.1-- 2

b) Book Value X 2 or 3 or 4

c) Profit X 10 or 15 .

Brand EquityBrand Equity

d) Basis of the Stock Value

RKS Model

MEASUREMENT OF BRAND EQUITYCOST – BASED

HISTORICAL COST

REPLACEMENT COST

MARKET VALUE METHOD

INTERBRAND METHOD

PRICE-BASED

PRICE PREMIUM

EQUALIISATION PRICE

INDIFFERENT PRICE

CONSUMER-BASED

ATTRIBUTE RATING

BLIND TEST

Cost based methodsHistorical cost

Money spent till date on the brand Eg: Rs.100mn. Have been spent so far in creating a brand “X”. So, value at which

brand can be sold is Rs.100mn.

Disadvantage : 1. No guarantee of realization.

2. Cost incurred in brands are no measure of the efficiency with which the money was spent.

Eg:

3. May or may not be adequate measure of brand’s future potential even when the costs are adjusted to the current prices.

Interbrand INTER-BRAND METHOD

Valuation Method Is Based On Brand Earnings Approach.Brand Earnings Are Determined By Using Brand Index- A Combination Of Seven Variables

STEPS USED TO MEASURE BRAND EQUITY

a) The weighted average of the last three years profits of the brand is computed

b) This figure when multiplied with a number gives the value of brand equity. The number is arrived at by multiplying the P/E of the company or industry in which the company operates and a factor called Brand Strength.

c) Brand strength is dependent on Brand Index which consists of certain variables like leadership, stability, etc . Of the brand.

BRAND EQUITY = (weighted average of brand profits X P/E of the Industry X Brand strength)

CONSIDER A BRAND X, WHOSE PROFITS ARE GIVEN BELOW

YEAR PROFITS

(Rs. Million)

WEIGHTAGE

1998

1999

2000

15

20

30

1

2

3

AVERAGE PROFIT = 15X1+ 20X2 + 30X3/1+2+3 = Rs. 24.2 million

FACTORS IMPLICATION MAXIMUM SCORE

SCORE FOR BRAND X

Leadership

Stability

Geographic Spread

Support

Protection

Market

Trend

Is The Brand Leader In Market Share, Pricing

Does The Brand Have Stable Market Share

What Is The Brand Acceptance Level Internationally

Is The Brand Actively Supported And Promoted By The Company

Is It Adequately Supported By Trademark

Is The Market In Which Brand Operates Is Stable

Long Term Future For The Brand

25

15

15

15

5

5

20

13

7

1

8

2

2

10

TOTAL 100 43

BRAND STRENGTH SCORE = 43/100 = 0.43

SUPPOSE THE P/E VALUE OF THE INDUSTRY IS 15, THEN BRAND STRENGTH SCORE X P/E = 0.43 X 15 = 6.45

BRAND EQUITY = 6.45 X 24.2= 156.09 million

This is the recommended price at which brand X can be sold.

ADVANTAGES

IT IS WIDELY ACCEPTED

IT TAKES ALL ASPECTS OF BRANDING IN ACCOUNT IN VALUATION

DISADVANTAGES

BRAND STRENGTH COMPUTATION RESTS MORE OR LESS ONSUMJECTIVE JUDGEMENT.

VALUME BUSINESS

RANK IN MARKET

MARKET SIZE

RELATIVE PRICE

MARKETING EXPENSE TO TOTAL SALES RATIO

HOW TO MEASURE BRAND EQUITY--- RKS model

ACTUAL QUALITY SATISFACTION SCORE

STATUS OF THE PRODUCT ON PRODUCT LIFE CYCLE

PRICE ELASTICITY

PROFITABILITY

SCOPE FOR LINE EXTENTION

HOW TO MEASURE BRAND EQUITY

Measuring Brand Equity (RKS Model)

Factors Score ( a )

( b )1 2 3 4 5

WeightedScore

( a x b ) Value Business of product

Rank in the market( 1-3- = 10 – 15 <3 = 10 )

Market Share

( > 5% = 10 - 15< 5% = 10)

10

Perceived Value

(Higher - 10 - 15Lower - 10)

15

15

15


Factors Score ( a )

( b )1 2 3 4 5

WeightedScore

( a x b ) Profitability

(> 60% GM – 10- 15> 60% GM – 10)

Marketing Expense

to total Sales

Status of product on

Life cycle

15

10

10


Factors Score ( a )

( b )1 2 3 4 5

WeightedScore

( a x b ) Scope of life Extension

Total

Total Weighted Score ( a x b)

Index Scores = ---------------------------------------- X 100

500

B Eq. = Profit X Index Score % = -------------- crore

10

100

Brand Equity Valuation RKS MODEL

• ROOSTER 25 Cr.• NORMAXIN 15.4 Cr.

Million $ 1. COKE 70453 2. MICROSOFT 651743. IBM 510874. INTEL 311125. MCDONALD 245996. MARLBRO 22183

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA


standing

[email protected]

BRAND IDENTITY CONFUSION BRAND IDENTITY CONFUSION

• BRAND IMAGE : How the brand is now perceived

• BRAND IDENTITY : How strategists want the brand to be

perceived

• BRAND POSITION : The part of the brand identity and value

proposition to be actively communicated to a target audience

Identity and Image

Image: The way a

public perceive the company or its product

Identity: The way a company aims to

identify or position itself.

BRAND IDENTITY CONFUSION BRAND IDENTITY CONFUSION

Brand identity strives to support the relationship between

customer and brand by generating a value proposition that can

include functional, emotional and self expressive benefits

Sales

Brand ImageHi

Low

HiLow

HealthyBrand

VulnerableDyingBrand

UnrealizedPotential

Brand Image vs Sales

BRAND IDENTITY PLANNING MODEL BRAND IDENTITY PLANNING MODEL

Continue

Core Extended

Brand Essence

Brand as Product

1. Product scope

2. Product attributes

3. Quality / Value

4. Uses

5. Users

6. Country of origin

Brand as Symbol

11. Visual image and metaphors

12. Brand heritage

Brand as person

9. Personality (e.g., genuine, energetic, rugged)

10. Customer/ brand relationships

Brand as a organization

7. Organization attributes (e.g., innovation, consumer concern, trustworthy)

8. Local versus global

BRAND IDENTITY


Continue

VALUE PROPOSITION

• Functional

benefits

• Emotional

benefits

• Self-expressive

benefits

CREDIBILITY

Support other brands

RELATIONSHIP


BRAND IDENTITY IMPLEMENTATION SYSTEM

BRAND IDENTITY ELABORATION

BRAND POSITION

The part of the brand identity and value proposition that is to be actively communicated to the target audience

BRAND-BUILDING PROGRAMS

TRACKING

BRAND’S INNER AND OUTER CORE -identityBRAND’S INNER AND OUTER CORE -identity

INNER CORE The spiritual

central/brand essence/brand

soul.

Product

Packaging

Personality

Brand name

OUTER CORE Design

Character

Logo/symbol

Slogan

BRAND VALUE PROPOSITION

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA


standing

[email protected]

Brand Personality

Expression of the core values & characteristics of a brand with emphasis on human personality traits e.g. friendly, intelligent, innovative

Process of transforming brand into a person or humanizing the brand.

Acts as brand differentiator &offers sustainable competitive advantage

Personaity

• Brand personality describe brands in terms of human characteristics and was seen as a factor in increasing brand awareness and attachment in much the same ways as people related and bonded themselves to other people. (Aaker J.L.(1997).

Brand Personality Dimensions-David Aaker

• Sincerity– down-to-earth, honest, wholesome, cheerful

• Excitement– daring, spirited, imaginative, up-to-date

• Competence– reliable, intelligent, successful

• Sophistication– upper class, charming

• Ruggedness– outdoorsy, tough CRESS

1. SINCERITY :

DOWN-TO-EARTH – Family oriented, Small town,

Conventional, Blue-collar, All Indian

HONEST – Real, Ethical, Thoughtful, Caring.

WHOLESOME – Original, Genuine, Ageless, Classic, Old-

fashioned.

CHEERFUL – Sentimental, Friendly, Warm, Happy.

2. EXCITEMENT:

DARING – Trendy, Exciting, Off-beat, Flashy,

Provocative.

SPIRITED – Cool, Young, Lively, Outgoing,

Adventurous.

IMAGINATIVE – Unique, Humorous, Surprising,

Artistic, Fun.

UP-TO-DATE – Independent, Contemporary,

Innovative, Aggressive.

3. COMPETENCE:

RELIABLE – Hardworking, Secure, Efficient,

Trustworthy, Careful.

INTELLIGENT – Technical, Corporate, Serious.

SUCCESSFUL – Leader, Confident, Influential.

4. SOPHISTICATION:

UPPER CLASS – Glamorous, Good Looking,

Pretentious, Sophisticated.

CHARMING – Feminine, Smooth, Sexy, Gentle.

5. RUGGEDNESS:

OUTDOOR – Masculine, Active, Athletic.

TOUGH – Rugged, Strong, No-nonsense.

WELCOME

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Lecture

DR.R.K.SRIVASTAVA


standing

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EXTENSION

• What is line Extension?Occurs when original brand name is extended by

modifying features within the existing product category. Ex,Coke,Diet Coke

• What is Brand extension ?-is using the leverage of a well known brand

name in one category to launch a new product in a different category.” –ponds cold cream ponds telcum powder

1.Line Extension-approach

Product

Existing New

Existing Line extension

For Better Penetration

Eg : Different packs.

Existing Brand with little modification. eg: LUX Liquid soap.

New New UsersBrand development activityGrocery shop to club shop/Petrol shopLiquor shop to bars

Diversification

eg:Cocktail Drinks.

(Breeze)

Alcoholic drink

Cust

omer

Diversification

Market Penetration Market Development

Product Development

Existing Markets New Markets

Exis

ting

Prod

ucts

New

Pr

oduc

ts

2.Igor Ansoff’s Matrix (Product/Market Matrix)

Colgate Dental Cream Tata Tea

Ujala Supreme

Ariel Liquid with fabric softener

Bru Cappuccino

Tanishq

Line ExtensionDannon Yogurt Flavors

MultibrandsSeiko Lasalle & Pulsar

Brand ExtensionBarbie Electronics

New BrandsWindex (by acquisition)B

rand

Nam

e

Existing New

Product Category

Existing

New

3.Four Brand Extension Strategies

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA


standing

[email protected]

TEN COMMANDMENTS OF PRODUCT LAUNCH

Do not try introducing a new product if you have no:

1) Market Research

2) Free availability of raw material.

3) Clear knowledge of regulatory formalities.

4) Capability of in house manufacturing facilities.

5) Clear cut product differentiations.

6) Good positioning slot.

7) Worthwhile USP./UCP

9) Well planned launch.

10) Well developed feedback systems

8) Good training programme.

HOW TO SELECT A NEW PRODUCT

1. Follow company Objective

2. Off patent Product / Patent Office

8. Existing Molecules With Longer PLC

10. Smaller niche Market

6. Customer Feed back / Suppliers / Licensing Agents

4. Usage Of Precise Models

11. MD idea/ New Marketing Recruits / Production foremen/ Sales Personnel

9. Tie Ups

5. Indian Research lab – Company Venture / International Literature

7. National Product

3. Top ten therapeutic Market Segment

13. Exhibition / Merger / Acquisition

What kind of product to select ?

Application of RKS Model in new product selection Relevance to company Whether product is different than others. Will product benefit to customer. Will it answer – why should he change and buy your product. Production Expertise. Market competitive level.

High Margin : 200 – 300% to Sales or COG = 25 – 35%

What are customer perceptions about product ? High volume sales.

USP of product - can we differentiate

Niche market product

NEW PRODUCT INTRODUCTION SYSTEMNEW PRODUCT INTRODUCTION SYSTEM

PRODUCT CONCEPT

TEST MARKET

CHECK POINT

CHECK POINT

CHECK POINT

8 Weeks---------------8 Weeks---------------

6 Weeks

4 Weeks RSRS RS

RS RS RS RS RS RS RS

RS RS RS RS RS RS RS RS RS RS RS

RS RS RS RS RS RS RS RS RS RS RS RS RS RS RS

BASIC MARKET DATA

IDEAS IDEAS

CONS. SCREENING

Concept Test

Concept use Test

PACKDEVTEST

ADVDEVTEST

TIMINGTIMING IDEASIDEAS EXPENSEEXPENSE

NATIONAL SALES

MODEL - IIRating Scale 0 1 2 3 4 5

1. Product offers something new to consumer.

2. Product will improve or change the habits

3. Product offers advantages over the existing competitive

products.

5. Matching of product profile with current requirement of consumer which is not yet fully filled.

6. Product profile can be communicated is communication effectively.

7. Product profile does not require concept selling.

4. Perceived benefits scores over the price.

35 ----- X 100 = 100%35

NEW PRODUCT – MARKETABILITY INDEX Model 1

A. MARKETABILITY FACTORS

1) MARKET SHARE CONCENTRATION RATIO

2) PRICE / QUALITY ADV.

3) COMPETITION ADV. SPENDING INDEX

4) IMPACT ON EXSTING PRODUCT SALES

5) DISTRI. NETWORK VS COMP.

6) PROFITABILITY

B. DURABILITY FACTORS

7) MARKET SIZE

8) MARKET GROWTH RATE

9) LIFE CYCLEDURATION

10) SENSITIVITYTOECONOMIC FLUCTUATION

C. PRODUCTION ABILITY FACTORS

11) EQUIPMENT NECESSARY

12) PERSONNEL NECESSARY

13) RAW MATERIALS

TOTAL

MARKETABILITY INDEX (MI)

VG = 80 % - G = 71% - 80% AV = 60% - 70%

BELOW AV = 50% - 59% POOR = < 50%

WEIGHT (Wi) RATING SCORE (Ri)

0 1 2 3 4 5 6 7 8 9 10 Wted Score

10 20

7 42

7 7

7 63

9 45

10 60

8 72

10 70

6 36

8 48

6 54

6 54

6 54

100 625

= 625 ------ X 1001000= 62.5%

Livon RKS MODEL Rating (0 – 5)

Product offers something new to the consumer 5

Product will improve or change the habits like usage,

buying pattern 5

Product offers advantages over the existing competitive products

5

Perceived benefits scores over the price 3Product matches with current requirements of

consumer, which is not yet fully filled 5

Product profile can be communicated in communication media effectively

5

Product does not require concept selling 3

WELCOME

TO

Lecture

DR.R.K.SRIVASTAVA


standing

[email protected]

Categories of New Products

New-To-The-WorldNew-To-The-World

New Product LinesNew Product Lines

Product Line Additions

Product Line Additions

Improvements/Revisions

Improvements/Revisions

Repositioned Products

Repositioned Products

Lower-Priced Products

Lower-Priced Products

SixCategories

ofNew

Products

SixCategories

ofNew

Products

Mobile MovieMobile Movie

Gatorade- Propel

WaterGatorade- Propel

Water

McDonalds Value Meals

McDonalds Value Meals

New look Honda City

New look Honda City

MilkmaidMilkmaid

Wheel BarWheel Bar

New-Product StrategyNew-Product Strategy

Idea GenerationIdea Generation

Idea ScreeningIdea Screening

Business AnalysisBusiness Analysis

DevelopmentDevelopment

Test MarketingTest Marketing

CommercializationCommercialization

New-Product New-Product Development ProcessDevelopment Process

AdvertisingAdvertising

PackagingPackaging

ProductProductBudget LevelsBudget Levels

Positioning Positioning

DistributionDistributionPricingPricing

BrandingBranding

Elements that May be Test

Marketed by a Company

Test Marketing is the Stage Where the Product and Marketing Program are Introduced into More Realistic

Market Settings.

New Product Development Process New Product Development Process Step 7. Test MarketingStep 7. Test Marketing

Product Positioning is creating a desired product concept based on consumer perceptions.

Segmentation Segmentation isis grouping of people grouping of people by needs or wants.by needs or wants.

Positioning: Positioning: is the way consumers perceive the brand relative to its competitors DUE TO competitive advantage bycompetitive advantage by

- Differentiating the product &Differentiating the product &- Stressing salient characteristicsStressing salient characteristics

According To Ries And Trout

“Positioning is a battle for a place in the consumers mind”

Positioning – What?

Positioning is the act of designing the company’s Positioning is the act of designing the company’s offering and image to occupy a distinct and valued offering and image to occupy a distinct and valued place in the target customers mindplace in the target customers mind – Philip Kotler – Philip Kotler

DO PERCEPTUAL MAPPINGDO PERCEPTUAL MAPPINGCosmetic

Medicinal

Good Taste Poor Taste

o Anchor

o Colgate Gel

o Close Up

Colgate o

o Colgate Cibaca

o Pepsodent

o Colgate Total

o Meswak

Babool o

Emoform o

Types Of Positioning Strategies

Types

Benefit Positioning- Imax Adlabs Dome

Attribute Positioning- Gillette Mach 3

Use/Application Positioning

- Maggi

Quality/Price Positioning- Maruti VFM

Users Positioning- Mercedes

Competitor Positioning- 5paisa.com

New Product Launch Process

Product selected

Name

Trade Mark clearance

Packaging – Design etc.

Fore casting

Mfg Product specification (MKT)

Samples /

Sales

Yearly

Monthly

3 months –Placement stocks

Trade margin Price

Pricing

Inform sales

Get feed back

Finally announce the price - Raw Material

- Batch Size


Finished product

Bonded store

Distribution/ Depot

Stockiest / Distributor / C&F /CA/ Depot

Retailers

Consumer

Marketing Activity

Product : MKT plan

Product concept Testing


Concept & use Test

Segment Analysis

Advt.& Positioning / UCP Testing

Field Testing

Training & Launch Meeting

Availability product & Dealersmeet

Customer selection

Incentive forSR/ Manager

Mediaselection

Communication Details

Print TV SR

Control & monitoring with mkt plan

Product Hand Out

Documents

Transcript of Product Hand Out