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Product and Brand Management # "% ! " " & Edited by: Ashwani Panesar Product and Brand Management Edited By Ashwani Panesar Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for Lovely Professional University Phagwara SYLLABUS 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 & Strategies, 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 CONTENT Unit 1: Introduction to Product Management 1 Ashwani Panesar, Lovely Professional University Unit 2: Marketing Planning 19 Ashwani Panesar, Lovely Professional University Unit 3: Competitor Analysis 52 Ashwani Panesar, Lovely Professional University Unit 4: Market Potential and Sales Forecasting 79 Ashwani Panesar, Lovely Professional University Unit 5: Developing Product Strategies 98 Ashwani Panesar, Lovely Professional University Unit 6: Extension 115 Hitesh Jhanji, Lovely Professional University Unit 7: Brand and Brand Management 146 Hitesh Jhanji, Lovely Professional University Unit 8; Brand Equity 162 Hitesh Jhanji, Lovely Professional University Unit 9: Strategic Brand Management Process 186 Hitesh Jhanji, Lovely Professional University Unit 10: Identifying and Establishing Brand Positioning 196 Hitesh Jhanji, Lovely Professional University Unit 11: Planning and Implementing Brand Marketing Programs 220 Pavitar Parkash Singh, Lovely Professional University Unit 12: Measuring and Interpreting Brand Performance 248 Pavitar Parkash Singh, Lovely Professional University Unit 13: Growing and Sustaining Brand Equity 273 Pavitar Parkash Singh, Lovely Professional University Unit 14: Managing Brands over Time 289 Pavitar Parkash Singh, Lovely Professional University Ashwani Panesar, Lovely Professional University Unit 1: Introduction to Product Management Unit 1: Introduction to Product Management Notes CONTENTS Objectives Introduction 1.1 Product 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 1.9 Summary 1.10 Keywords 1.11 Review Questions 1.12 Further 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 LOVELY PROFESSIONAL UNIVERSITY 1 Product and Brand Management Notes 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 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 market. 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 2 LOVELY PROFESSIONAL UNIVERSITY Unit 1: Introduction to Product Management assurance managers, user interface design engineers, marketers, financial personnel, graphic Notes artists, etc. 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 firm’s 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 N2 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
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