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Unformatted text preview: Product And Brand Management
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Product and Brand Management
Objectives: The focus of this course is on decisions about how a company can build and manage its products
so that they are profitable to the company and at the same time adequately meet target customers' needs
and wants. The course aims to synchronize product and brand management processes.
S. No. Description 1. Introduction to Product & Product Related Concepts: Product Management & Scope
Marketing Organization & Types, Marketing Planning: Components of Marketing Plan
Defining the Competitive Set: Levels of Market Competition, Methods for Determining Competitors
Category Attractiveness Analysis: Aggregate Market Factors, Category Factors, Environmental
Analysis 2. Competitor Analysis: Sources of Information, Assessing Competitors’ Current Objectives &
Differential Advantage Analysis
Customer Analysis: Purpose, Segmentation Criteria 3. Market Potential & Sales Forecasting, Methods of Estimating Market & Sales Potential 4. Developing Product Strategies, PLC, Product Strategies Over the Life Cycle
Managing New Product Development ,Product Modification, Line Extension & Brand Extension 5. Brands & Brand Management, Branding Challenges & opportunities, Concept of Brand Equity 6. Strategic Brand Management Process: Introduction & Phases 7. Identifying & Establishing Brand Positioning: Building A Strong Brand, Positioning Guidelines 8. Planning & Implementing Brand Marketing Programs: Criteria for Choosing Brand Elements,
Options & tactics for Brand Elements, Use of IMC for Brand Building, Leveraging Secondary Brand
Associations to Brand building 9. Measuring & Interpreting Brand Performance: Developing A Brand Equity Measurement &
Management System, Measuring Sources of Brand Equity & Outcome of Brand Equity 10. Growing & Sustaining Brand Equity: Designing & Implementing Branding Strategies
Managing Brands Over Time CONTENTS
Unit 1: Introduction to Product Management 1 Unit 2: Marketing Planning 19 Unit 3: Competitor Analysis 52 Unit 4: Market Potential and Sales Forecasting 79 Unit 5: Developing Product Strategies 98 Unit 6: Extension 115 Unit 7: Brand and Brand Management 146 Unit 8: Brand Equity 162 Unit 9: Strategic Brand Management Process 186 Unit 10: Identifying and Establishing Brand Positioning 196 Unit 11: Planning and Implementing Brand Marketing Programs 220 Unit 12: Measuring and Interpreting Brand Performance 248 Unit 13: Growing and Sustaining Brand Equity 273 Unit 14: Managing Brands over Time 289 Unit 1: Introduction to Product Management Unit 1: Introduction to Product Management Notes CONTENTS
1.2 Concepts related to Product
1.2.1 Product Development 1.2.2 New Product 1.2.3 Product Life Cycle 1.2.4 Product Upgrade 1.3 Product Management: Meaning
1.4 Aspects of Product Management
1.4.1 Product Planning 1.4.2 Product Marketing 1.5 Product Management: Scope
1.6 Marketing Organisation
1.6.1 Characteristics of a Good Marketing Organisation
1.6.2 Types of Marketing Organisation 1.7 Organizational Structure
1.8 Role of Product Manager
1.12Further Readings Objectives
After studying this unit, you will be able to: Learn the Concept of Product Explain the Concepts related to Product Discuss the Definition and Scope of Product Management Understand Marketing Organisation Illustrate the Types of Marketing Organisation Introduction
Product Management is becoming an important function of marketing. With the
passage of time, product management has undergone many changes. It is no more LOVELY PROFESSIONAL UNIVERSITY 1 Product and Brand Management Notes
a department of churning out promotional materials but is has now become the
nerve center of the organization.
Effective product management is a practical, purposeful and positive approach of
improving the company results, through the efforts of a competent and committed
team, coordinating manufacturing, marketing and sales. In short, it can be said that
product management involves. 1.1 Product
The word “product” can be defined in many ways. The definitions differ according to
the difference in the connotation in which it is being used.
Technically, a product can be defined as anything that is produced, whether as the
result of generation, growth, labor, or thought, or by the operation of involuntary
causes; as, the products of the season, or of the farm; the products of
manufactures; the products of the brain. In manufacturing, products are purchased
as raw materials and sold as finished goods.
In project management, products are the formal definition of the project
deliverables that make up or contribute to delivering the objectives of the project.
In marketing, a product is anything that can be offered to a market that might
satisfy a want or need. Notes Commodities are usually raw materials such as metals and agricultural
products, but a commodity can also be anything widely available in the open
From all the above connotations, we can say that in general usage, product may
refer to a single item or unit, a group of equivalent products, a grouping of goods or
services, or an industrial classification for the goods or services. 1.2 Concepts related to Product
The world of products has many important concepts related to it that are very
popularly prevalent in the industries world over. Let us understand each of them one
by one. 1.2.1 Product Development
Product development is the process of designing, building, operating, and
maintaining a good or service. Product development adds things like pricing,
marketing, and customer support to the technology to create a complete product.
The companies world over, use a product development process to ensure that they
are not just manufacturing a product that people will want to buy but also one that
people would like to continue to use. To be sure, a base technology is at the heart of
the product, but product development ensures that the customer’s voice is not lost
in the rush to an exciting technology.
Product development is performed by a multi-disciplinary team whose goal is
building, operating, and maintaining the product. Team members may include
product managers, product developers, project managers, product operations
engineers, customer support managers, quality assurance managers, user interface
design engineers, marketers, financial personnel, graphic artists, etc. 2 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Product Management Notes 1.2.2 New Product
The dynamics of markets, technology, and competition have brought changes to
virtually every market sector and have made new product development one of the
most powerful business activities. The monumental changes that constantly impact
commerce have forced companies to innovate with increasing speed, efficiency, and
quality. In turn, this has made new product development one of the most complex
and difficult business functions. However, firms must innovate in order to survive.
The power of innovation is revealed in numerous studies, which show that
companies leading their industries attribute about half of their revenues to products
developed in the most recent five years. By comparison, companies at the bottom
of their industries achieve approximately one-tenth of their sales from new
products. A new product can be defined as a product that is new to the market.
Example: Sony introduced Walkman
GE introduced Light
HLL’s adult diapers, DEPEND, in Indian market.
There are five categories of new products.
1. New-to-the-world products or services are new inventions.
Example: In-line skates and health maintenance organizations. 2. New category entries are products or services that are new to a firm
Example: Sport utility vehicles 3. Additions to product lines add products or services to a firms current markets.
Example: When a powder laundry detergent offers a liquid version it is considered a line extension.
4. Product improvements are another type of new product and are common to
every product category.
Example: Product improvement made in Lifebuoy Soaps (as shown through Figure below)
Figure 1.1 5. Repositionings target products to new markets or for new uses. LOVELY PROFESSIONAL UNIVERSITY 3 Product and Brand Management Notes Case Study Repositioning Maggi estlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé
SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2
Minute Noodles, an instant noodles product.
With the launch of Maggi noodles, NIL created an entirely new food category –
instant noodles – in the Indian packaged food market. During the 1990s, the
sales of Maggi noodles declined, and this was attributed partly to the growing
popularity of Top Ramen, another instant noodles product. In order to improve
sales and attract more consumers, NIL changed the formulation of Maggi
noodles in 1997. However, this proved to be a mistake, as consumers did not
like the taste of the new noodles. In March 1999, NIL reintroduced the old
formulation of the noodles, after which the sales revived.
Over the years, NIL also introduced several other products like soups and
cooking aids under the Maggi brand. However, these products were not as
successful as the instant noodles. In the early 2000s, Maggi was the leader in
the branded instant noodles segment, and the company faced little serious
competition in this segment.
In the early 2000s, NIL started introducing new ‘healthy’ products in
accordance with the Nestlé Group’s global strategy to transform itself into a
health and wellness company. NIL also adopted the same strategy for the
Maggi brand with the launch of the Maggi Vegetable Atta Noodles (Vegetable
Atta Noodles), a ‘healthy’ instant noodles product made of whole wheat flour
and vegetables (instead of refined flour), in 2005. The Dal Atta Noodles were
another variant of Maggi’s healthy instant noodles.
Because of its first-mover advantage, NIL successfully managed to retain its
1. Analyse three benefits that NIL derived by repositioning Maggi. 2. What do you learn from the case above? Source: Firms can obtain new products internally or externally. External sourcing means the
company acquires the product or service, or obtains the rights to market the
product or service, from another organization. Internal development means the firm
develops the new product itself. This is riskier than external development because
the company bears all of the costs associated with new product development and
implementation. Collaborations, which include strategic partnerships, strategic
alliances, joint ventures, and licensing agreements, occur when two or more firms
work together on developing new products. 1.2.3 Product Life Cycle
We have all heard about the product life cycle can be divided into four phases
namely introduction, growth, maturity and decline. On the basis of these stages,
product planning is done. The life cycle concepts on which a product planning team
works are shown in Figure 1.2. 4 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Product Management Notes
Figure 1.2 Product Initiation Feasibility Development Testing Product Launch Operation Decommisioning 1. Product Initiation Phase: In the Initiation Phase, Product Management,
Engineering, or Operations submits a request for a new service or modification
to an existing service.
Figure 1.3 Right
Sponsor Scope &
Boundaries These requests are received and prioritized by the Program Management
Office (PMO). Once prioritized, the requests are reviewed by various
management teams to assess the impact and viability of the request in the
context of business needs and the organization’s strategy. If approved, the
request is given necessary funding and resources in order to proceed to the
2. Feasibility Phase: The Feasibility Phase is where an idea is explored in more
depth in order to determine the feasibility of engineering the requested service
within the scope of the business needs. The request that has been approved
during the initiation phase by the Governing Committee is evaluated at the
engineering and product management level. LOVELY PROFESSIONAL UNIVERSITY 5 Product and Brand Management Notes
From an engineering perspective, the service is evaluated for technical
feasibility. The preliminary Technical Service Description outlines the general
architecture of the proposed service. The Feasibility Analysis and stable
Business Case are also developed during this phase. These documents
summarize time and cost estimates and other investment information
necessary for deciding whether to continue the product development process
3. Design and Plan Phase: In the Design & Plan Phase, the cross-functional team
documents all detail pertaining to the development of the service. While core
documents, such as the Marketing Service Description, Technical Service
Description, and Design Specifications, are stabilized, other groups, including
Operations, QA, and Customer Care begin to specify their requirements for
supporting the service. All of these documents are approved and signed off by
the project team and the Design & Plan Checklist is presented to the
Governing Committee for final approval before moving into the Development
Phase. 4. Development Phase: In the Development Phase, the actual engineering of the
service is completed. As the service is being developed, other functional
groups continue preparatory work for the Testing and Introduction Phases.
Much of the documentation to support Customer Care, Training, Vendors, and
Clients is created during this phase. Also, the Quality Assurance (QA) Group
prepares for the testing handoff by documenting Test Plans and Test
Specifications, and configuring the test environment. In this phase, a decision
gate ensures that all pieces required for testing have been completed. The
following are requirements to pass through the decision gate:
(a) Ready for Testing Phase from a System Integration Test perspective (b) Documentation Complete (c) Test Environment Complete (d) Code Complete (e) Vendor Requirements met (f) Integration Testing & Results Complete. Once the Project Team has approved the readiness of the service, the
Development Checklist is compiled and presented to the Governing Committee
for approval to move the service into the Testing Phase.
5. Testing Phase: The majority of the Testing Phase is spent certifying the
hardware and software changes involved in the service. The service will
undergo a number of readiness tests in a Lab Environment. An operation also
performs necessary system and network tests to ensure operational readiness
prior to deployment. Once QA Test Results and Operations Readiness Test
Results are completed, the service may undergo field trials as directed by
product management. The Testing Phase Decision Gate is based on the QA Test
Results, Operations Test Results, Field Verification, Change Requests, and
Business Needs. A ‘go’ decision at the gate authorizes the launch of the
service. 6. Product Launch Phase: The Product Launch Phase coordinates the deployment
of the new or modified service. As the service is enabled by Operations, the
supporting organizations initiate support processes to maintain the service.
Once deployed a service check is made by the Project Team and Program
Management Organization to ensure that the Service is available. If the service
is found to be unsuccessful, a predetermined un-launch process will be 6 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Product Management executed. If the service is launched without incident, the Project Team then
evaluates the stability of the release and the service is transitioned to the Life
Cycle Management Process.
7. Operation Phase: The Operation Phase is typically the longest of the phases
since once a product is developed, it may be operated for quite some time
before it is updated or decommissioned. The operation phase requires an
organization that can manage the product, track problems and bugs, and
respond to customer issues regarding the product in a timely and cost
effective manner. A multi-tiered product support model is used to ensure that
products are operated in a way that leads to RASM (reliability, availability,
security, and manageability). 8. Decommissioning Phase: The Decommissioning Phase occurs at the end of the
product life cycle. While it may seem like the decommissioning phase is
something that can be safely ignored since there will likely be larger problems
if the product is decommissioned, the truth is that many products are taken
out of service. Even when a company is in bankruptcy, the rational, orderly
closing down of a product or service is important to managing the company’s
assets. Notes !
Caution The distinction between a new product and a minor modification to an
existing product is not always clear. Certain products have a product life cycle
in which the supply and demand for the product increases then decreases over
time. The demand for certain food products such as bread will tend to increase
with population, but the supply and demand for a specific brand of bread may
decline over time. 1.2.4 Product Upgrade
When a customer is finished using a product, he can be upgraded to a follow a
product that meets their needs or deprovisioned. The product upgrade path is
desirable because it keeps the customer and reduces customer reacquisition costs.
Customers frequently outgrow products or their needs change. If a company has a
well managed product portfolio, a product more suited for the customer’s current
situation will be waiting for them.
Did u know? What is Deprovisioning?
Deprovisioning a customer may seem like an issue that need not be dealt with:
the customer stops using the product and nothing more need be done.
However, in many cases, particularly where service with a recurring billing has
been provided, if the customer is not properly deprovisioned, there will be
future costs resulting from either providing service that is not being paid for or
from billing a customer who is not receiving service. In either case there are
likely to be costly customer support calls and an unhappy customer. Customer
deprovisioning, where appropriate, should be planned for and built into the
product from the beginning. Self Assessment
Fill in the blanks:
1. Effective ………………………..is a practical, purposeful and positive approach of
improving the company results. LOVELY PROFESSIONAL UNIVERSITY 7 Product and Brand Management 2. Notes
………………………..market. be anything widely available in the 3. The product ………………………..path is desirable because it keeps the
customer and reduces customer reacquisition costs. 4. The dynamics of markets, technology, and competition have brought changes
………………………..development one of the most powerful business activities. 1.3 Product Management: Meaning
Product management is an organizational life cycle function within a company
dealing with the planning or marketing of a product or products at all stages of the
product life cycle. Product management and product marketing are different yet
complementary efforts with the objective of maximizing sales revenues, market
share, and profit margins.
Product Management Process starts with the type of company one works for. There
may be companies that are: 1. Technology-driven
2. Company driven 3. Sales-driven 4. Market-driven Product Manager’s primary role is to serve as the “voice of the customer”. Thus
product management includes indirect management and cooperation with other
members of various groups other members of various groups. The day to day work
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