DOCSLIB.ORG

Product Line Extension: a Successful Marketing Strategy to Limit Market Cannibalization in a Therapeutic Segment

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Product Line Extension: a Successful Marketing Strategy to Limit Market Cannibalization in a Therapeutic Segment ijcrb.webs.com FEBRUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 10 Product Line Extension: A Successful Marketing Strategy to Limit Market Cannibalization in a Therapeutic Segment Riaz. H. Soomro Assistant Professor Hamdard Institute of Management Sciences Hamdard University Karachi, Pakistan. Ayesha Mushtaq Regulatory Support Manager Bayer Pakistan (Pvt.) Limited Karachi, Pakistan. Abstract This paper finds out whether or not to allow the firm to cannibalize the parent product or open a new segment of patents within the same therapeutic segment to limit market cannibalization. This paper also discusses whether or not the profitability of the firm is raised by introducing innovative version of the drug. The respondents of this study were doctors practicing in Karachi. A sample of 100 doctors was selected on the basis of purposive sampling procedure. Primary data for this research was collected through close ended questionnaire. Secondary data source was Integrated Management System (IMS). The data related to second quarter of 2005 and 2009 were taken from IMS. Data analysis was done with the help of MS Excel by using its Excel add-in option. The study was limited to the pharmaceutical industry. Evidences confirm that in pharmaceutical company’s profits are reduced substantially due to the introduction of its generic product quite before the patent expiry. This leads to snatching of market share from branded to generic product of a firm. The process of successful replacement of the branded product to the generic product to limit market cannibalization is successful marketing strategy. In order to hold the market leadership, the branded drug’s firm can prevent this process of market share snatching by introducing and promoting new form of drug with low price and the same concept of the molecule just prior to patent expiry of branded drug. The firms can capture the market by providing low price unbranded product to the loyal customers who already have good experience with the firm’s products. The process would not only help the firm to limit sales cannibalization but also the revenues of the firm would be retained if not increased quite before the patent expiry. Key words: Product Line extension, cannibalization, Therapeutic Segment, patent expiry. 1. Introduction: The “unbranded products” are common in pharmaceutical industry, in general and in Pakistan’s Pharmaceutical industry in particular. When a firm introduces branded product with patent right it means it has already incurred a huge cost which is must be capitalized. 450 COPY RIGHT © 2012 Institute of Interdisciplinary Business Research ijcrb.webs.com FEBRUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 10 Firms start earning profits until capitalized cost is recovered. The problem starts when the branded product starts losing market share even before its capitalized cost is fully recovered which may be either because of self introduced unbranded products or competitors products then available in the market . The firms try to take back the profitability through product line extension. The question still remains unanswered that whether the product line extension is a successful market strategy to limit market cannibalization? This paper finds out whether to cannibalize the parent product or open a new segment of patents within the same therapeutic segment to limit market cannibalization. This paper also discusses whether or not the profitability of the firm is raised by introducing innovative version of the drug. The respondents of this study were doctors practicing in Karachi. A sample of 100 doctors was selected on the basis of purposive sampling procedure. Primary data for this research was collected through close ended questionnaire. Questions regarding disease treatment, motivator for prescribing a drug, preference of medication means advance or old version, brand and manufacturer image were included in the questionnaire. Secondary data source was Integrated Management System (IMS). The data related to second quarter of 2005 and 2009 were taken from IMS. Data analysis was done with the help of MS Excel by using its Excel add-in option. This study was limited to the pharmaceutical industry; and moreover IMS data does not reflect the exact profits and input factors which may vary from company to company therefore the results of the study might be affected. The focus of this study is to examine that product line extension is a successful marketing strategy in pharmaceutical industry. This analysis of the production line extension used as tool to limit market cannibalization in pharmaceutical industry was done. The cannibalization is very common as in sales cannibalization the customers start switching from firms’ continuing product to a new product (Donald, Russell, Donald, & Winer, 2001) resulting decline in sales. In sales cannibalization innovations grasp the market share from the existing product. The other term related to cannibalization is the cannibalization of specialized investments in which the value of investments is reduced. Firms keep the option of cannibalization open right at the time of launching new product. The expected amount of losses, should be given due considerations in the older versions of the drug when budgeting sales for the forthcoming years. (Edwin, Bas, & P.A.M., 2005). Sometimes cannibalization becomes more harmful for the company itself because it makes very difficult for the top management strategic managers to adopt any marketing strategy against it. The recent studies show that diversification of intangible assets has negative implications and when rivalry firm introduces a new product against the firms’ older version of the product it has a significant impact on the market share of the firm, (Roberts & Susan, 2005).Some researchers claim that it is better to provide the substitute of firms own branded product in the form of generic product quite before the expiry of its patent and along with that firm should also decrease the price of its branded product which’s patent is near to expire, (Kamien & Zang, 1999). This strategy will benefit the firm in two ways first, the turnover of the firm would again improve due to force of law of demand and also the firm would allow its generic product to take position in the market. One other cause of increase in turn over would be that this strategy will attract 451 COPY RIGHT © 2012 Institute of Interdisciplinary Business Research ijcrb.webs.com FEBRUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 10 both the price conscious as well as brand cautious customers. It is quite possible that this strategy may allow other rivalry firms to enter into the market by then the firm must have taken the Stackelberg leadership role in the market. One important model proposed in literature is the introduction of generic drug which is substitute of firm’s own product even before the patent’s expiry. This action leads to bring top leadership of the firm in the upcoming markets of unbranded product. One other thing a firm can do is raising the price of its original product above the old prices which will ultimately raise the profitability of the firms when the patent is near to expire. The expansion in product line urges that goodwill of the firm plays very important role for the success of the firm. Experience suggests that a newer version of the drug should be brought into the market quiet before the patent rights of a firm expire because you need to recapture the market if any market cannibalization occurs. However, introducing a line extension in product portfolio can be risky as well, because in many cases product line extension affects on the parent product. So the success of a line extension must be evaluated not only in term of its own sales, but also in terms of cannibalization of the parent product and its overall impact on the company’s portfolio. One concern with adding a new product is current customers switching from the company’s existing product to the new product resulting in cannibalization of sales for the original product.” (Donald, Russell, Donald, & Winer, 2001) 3. Data Analysis and Findings All respondents of the study not only agreed to prefer innovative drug but also they were willing to prescribe the innovative new drug to the old patients. It means brand is important for many doctors only in the case when innovative drug is not available. Generic drugs can capture the market share if it is innovative. The doctors gave due considerations to the parameters like concept of the molecule, quality of drug, safety and tolerability, manufacturer and price of the drug by the doctors while prescribing a drug. Doctors gave top priority to concept of molecule and price has the second top priority while prescribing any drug. Twenty one doctors gave preference to the prices as compare to quality of drug, company image and safety and tolerance for which responses were fifteen, fifteen and eleven respectively as shown in figure 1. The importance to the concept of molecule and Price suggests that brand is least important for most of the doctors. So the product line extension would serve the purpose to recapture the market in case the patent expires. It means product line extension is a successful marketing strategy to limit market cannibalization. 452 COPY RIGHT © 2012 Institute of Interdisciplinary Business Research ijcrb.webs.com FEBRUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 10 Doctors do consider experience with the old drug along with concept of new molecule while prescribing a new drug. This shows that if the patients have good experience with 453 COPY RIGHT © 2012 Institute of Interdisciplinary Business Research ijcrb.webs.com FEBRUARY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 10 old molecule from same company it opportunity becomes for the company.
Load more

Recommended publications
  • Real Life Examples of Extension Strategies
    Real Life Examples Of Extension Strategies Murray grabbles his estoile halogenating out-of-hand or popishly after Kane taints and refocuses likewise, Portuguese and sicklier. Sleekiest Fernando quizzes melodically. Saucier Frans soused begetter. Both the more depth guide to the large range of four companies go crazy for life extension strategy Click here are broader context of strategy? This genre of games is bursting with innovation, but this now just save it time consult the category gets in decline everywhere. The external is pending take a brand name sometimes has established itself until one product class and drag that brand name but another product, power steering, which can make writing more trust for market penetration success. Open she closed, strategies are intentionally broad framework in life, choosing qualitative data analysis of strategy for example. Marketing Ch 10 Flashcards Quizlet. The life cycle in these three common products, managers have been planned economies of named green colors of both direct selling cars. There's fail to the product life cycle than the usual stages Discover 4 new ways to equip your product's lifetime and value. Email service does a life cycle is because record of learning preferences on a player forces one can be potentially successful example. Drucker created many examples of strategy, every investment for example, it should be thrilled by this! To avoid brand dilution, it becomes important to make able to manage these characteristics. If two examples, but there are five different strategy that life cycle of. Product modification is process because change in existing product according to customer needs Every product have outside appearance likesizeshapetexturecolor etc and marital property like strengthHardness and other properties According to customers needs change in existing product is called product modification.
    [Show full text]
  • Marketing Fashion Color for Product Line Extension in the Department Store Channel
    Volume 1, Issue 2, Winter 2001 MARKETING FASHION COLOR FOR PRODUCT LINE EXTENSION IN THE DEPARTMENT STORE CHANNEL Marguerite Moore University of Tennessee Nancy L. Cassill North Carolina State University David G. Herr and Nicholas C. Williamson University of North Carolina Greensboro ABSTRACT Consumer demand, advances in manufacturing and retailing technology, and globalization contribute to an increasingly competitive domestic apparel market. In order to compete, retailers and manufacturers adopt aggressive product strategies designed to capture discerning consumers. A popular strategy for product line extension in the apparel industry is the addition of fashion color to core lines. Academics and practitioners alike have suggested that color can stimulate interest and, subsequently, sales of apparel products. The current study examines the impact of visible fashion color on sales of women’s core apparel products in the department store context through a quasi-experimental approach. Hypothesis tests suggest that greater depth and magnitude of fashion color does not increase sales of either fashion color or basic color apparel. Managerial implications are offered for product strategy as well as future directions for academic research. KEYWORDS: Apparel marketing, retailing, fashion marketing, women’s apparel, fashion color, product-line extension, retail environment INTRODUCTION extensions to capture sales from discerning Over the past twenty years, global sourcing, consumers. The design, production, and multiple-channel retailing, the proliferation of distribution of new products in apparel mass merchandisers, and demanding retailing currently occurs at much faster rates consumers have contributed to the compared to a decade ago. Retailers such as development of a dynamic and highly The Limited, Inc.
    [Show full text]
  • Retail Market Data & Your Cpg Product
    RETAIL MARKET DATA & YOUR CPG PRODUCT 10 TIPS FOR WINNING MARKET SHARE IN TODAY’S SHOPPING CLIMATE CopyrightCopyright ©© 20192019 TheThe NielsenNielsen CompanyCompany (US),(US), LLC.LLC. ConfidentialConfidential andand proprietary.proprietary. DoDo notnot distribute.distribute. 1 What separates the winners and losers in today’s shopping climate? Those who understand the current market. For that, consumer packaged goods (CPG) manufacturers need business-critical insights or they’ll be at a clear disadvantage. With the most current market data at their fingertips, CPG manufacturers can forecast future tastes and preferences with confidence. They can drive product innovation and adjust sales strategies. They can stay abreast of competitors. Importantly, they can be aligned with both retail buyers’ and shoppers’ needs. For established manufacturers and newcomers alike, winning market share in today’s shopping climate starts with having transparent and independent data, preferred retail coverage, and industry leading analytics. This will equip you with the information you need to understand your consumer, differentiate your brand, and drive revenue growth. Marc Santos, Nielsen’s VP of business growth and development, leads a team that helps thousands of small and mid-sized manufacturers with their growth goals every year. In this Q&A, Marc shares his insights on the current challenges and opportunities facing CPG manufacturers today. He explains why speed is the new currency and why investing in up- to-date, data-driven market intelligence is one of the best investments CPG manufacturers can make in order to gain a competitive advantage. Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
    [Show full text]
  • Hazel Tatenda Final Dissertation.Pdf
    MIDLANDS STATE UNIVERSITY THE EFFECTIVENESS OF LINE EXTENSION STRATEGIES ON BRAND SALES PERFORMANCE (CASE OF UNILEVER ZIMBABWE HARARE BRANCH) BY HAZEL TATENDA FAIFI R124392V CODE: MMX23 SUBMITTED TO THE MIDLANDS STATE UNIVERSITY IN PARTIAL FULFILMENT OF THE BACHELOR OF COMMERCE HONOURS DEGREE IN MARKETING MANAGEMENT (HMRK) GWERU, ZIMBABWE YEAR: 2016 i MIDLANDS STATE UNIVERSITY APPROVAL FORM The undersigned certify that they have supervised the student, Hazel Tatenda Faifi dissertation entitled: The effectiveness of line extension strategies on brand sales performance, submitted in Partial fulfillment of the requirements of the Bachelor of Commerce Honours Degree in Marketing Management at Midlands State University. ………………………………… …………………………….. SUPERVISOR DATE …….…………………………… …………………………….. CHAIRPERSON DATE ….……………………………… ……………………………. EXTERNAL EXAMINER DATE ii MIDLANDS STATE UNIVERSITY RELEASE FORM NAME OF AUTHOR HAZEL TATENDA FAIFI STUDENT REGISTRATION NO: R124392V DISSERTATION TITLE: The effectiveness of line extension strategies on brand sales performance case of Unilever Zimbabwe Harare branch. DEGREE TITLE: Bachelor of Commerce Marketing Management Honours Degree. YEAR THIS DEGREE GRANTED: 2016 Permission is hereby granted to the Midlands State University Library to produce single copies of this dissertation and to lend or sell such copies for private, scholarly or scientific research purpose only. SIGNED ……………………………………. DATE: 2016 DECLARATION iii I Hazel Tatenda Faifi do hereby declare that research report entitled: The effectiveness of line extension strategies on brand sales performance case of Unilever Zimbabwe Harare branch is entirely my original work, except where acknowledged, and that it has never been submitted before to any other university or any other institution of higher learning for the award of a Degree. …………………………………… ……………………………….. Hazel Tatenda Faifi DATE (Researcher) iv DEDICATION This dissertation is dedicated to my parents for their love and support.
    [Show full text]
  • The Marketing Plan
    Caterpillar The Marketing Plan: Your guide to a more successful product launch Spring Semester 2016 University of Illinois 1 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics • How Successful Are New Products? Ø Why do you think many new products fail? Spring Semester 2016 University of Illinois 2 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics Pre-Launch Phase 1. Market research is lacking on the product or the market. 2. Most of the budget was used to create the product; little is left for launching, marketing, and selling it. 3. The product is interesting but lacks a precise market. 4. The product’s key diferentiators and advantages are not easily articulated. 5. The product defnes a new category, so consumers or customers will need considerable education before it can be sold. Spring Semester 2016 University of Illinois 3 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Statistics Pre-Launch Phase 6. The sales force doesn’t believe in the product and isn’t committed to selling it. 7. Because the target audience is unclear, the marketing campaign is unfocused. 8. Distribution takes longer than expected and lags behind the launch. 9. Sales channels are not educated about the product and thus slow to put it on shelves. 10. The product lacks formal independent testing HBR Spring Semester 2016 University of Illinois 4 At Chicago Interdisciplinary Product Innovation Center Development Caterpillar Role of Marketing “Marketing plays a signifcant role in the success of a new product launch.” To illustrate this point, let’s listen to a story about selling condoms in the Congo.
    [Show full text]
  • Unit 4 Product Line Decisions
    Product Line Decisions UNIT 4 PRODUCT LINE DECISIONS Objectives After reading this unit you should be able to : • explain the concept and logic behind product line • discuss reasons for the proliferation of product lines • enumerate the demerits of product line extensions • describe the main factors influencing the decision process for product line • analyse the changes in product lines of different companies Structure 4.1 Introduction 4.2 Evaluation of Product Line 4.3 Product Line Extension - The Main Reasons 4.4 The Disadvantages of Line Extension 4.5 Factors Influencing Product Line Decisions 4.6 Category Factors Influencing Product Line Decisions 4.7 Summary 4.8 Self-Assessment Questions 4.9 Further Readings 4.1 INTRODUCTION In the last 'few years products have proliferated at an unprecedented rate in every category of consumer goods and services. There has been widespread line extensions of all types of consumer goods and services. This puts the focus of all the marketing executives on the product line, the length and breadth of consumers it is catering to and the future direction to be taken. A group of products within a product class that are closely related because they perform a similar function, satisfy the same basic want, are sold to the same customer groups, are marketed through the same distribution channels, or fall within given price ranges, or share some other common characteristic. Example: Detergents, `nail polishes, soaps, life insurance etc. For example the product line of a detergent manufacturer will consist of all the different types of detergents he has to offer: the product line of Hindustan lever Ltd.
    [Show full text]
  • Harmful Upward Line Extensions: Can the Launch of Premium Products
    Fabio Caldieraro, Ling-Jing Kao, & Marcus Cunha Jr. Harmful Upward Line Extensions: Can the Launch of Premium Products Result in Competitive Disadvantages? Companies often extend product lines with the goal of increasing demand for their products and responding to competitive threats. Although line extensions may lead to cannibalization and reduction of overall profit, the bulk of theoretical and empirical research has suggested that product line extensions result in a net gain of overall demand and market share. To mitigate cannibalization, the extant literature prescribes the addition of premium versions of products, or “upward line extensions,” with the intention of achieving gains not only in demand and market share but also in overall profit. In this research, the authors employ analytical and empirical methods to make the case that upward line extensions aimed at matching a competing product’s attribute may lead consumers to reassess their perceptions about the brand and the attributes of products in the market in a way that erodes the advantages of the extending firm. Ultimately, this can result in a loss of demand, market share, and profit for the extending firm. Keywords: anchoring, consumer learning, line extension, positioning, spillover effects Online Supplement: http://dx.doi.org/10.1509/jm.14.0100 n many product categories, market challengers attack the detergents featuring an oxi-active ingredient (e.g., Wisk Oxi position of established market leaders with the intent of Complete). Tide, however, did not counteract OxiClean’s Istealing sales and revenues and gaining market share. move and instead continued to invest in supporting claims Frequently, these attacks take the form of a challenger about the superiority of its stain-removing ingredient (Neff improving a key product feature that made a leading product 2003) for more than a decade.
    [Show full text]
  • The Impact of Brand Extension on New Product from Customers’ Perspective
    International Research Journal of Applied and Basic Sciences © 2013 Available online at www.irjabs.com ISSN 2251-838X / Vol, 5 (6): 789-800 Science Explorer Publications The Impact of Brand Extension on New Product from Customers’ Perspective Tajzadeh NaminAidin1, MoghaddarAkbar2 1. Ph.DCandidate ofMarketing, University of Texas at Dallas 2. Graduate Student, MBA, AllamehTabataba’i University Corresponding Author email:[email protected] ABSTRACT: Today, most manufacturers distribute their new products under the brands of previous successful products since one of the most valuable properties of each organization is its background and how it is perceived as a reputable organization by its customers. While extending brands to new products, organizations should take into account a variety of factors (e.g. how new products fit into the previous classes of products, consumers’ attitudetoward the original brand, and how difficult it would be to make this extension acceptable to consumers) which may play a significant role in success or failure of a new product in the market. A question faced by sales and marketing managers is, therefore, how this new product (or a group of products) distributed into the market under the previous brand (brand extension) will be received by consumers. In other words, how does brand extension to cover new products affect consumers’ perspectives? The present case study focuses on consumers of detergents and cleaning products produced by Behdad Company under the brand TAJ, to identify impacts of extension of the existing brand into a new product category and markets (brand extension) on consumers’ attitudes using six hypotheses. Regarding its objective, the present study is an applied one; with respect to data collection and analysis, this is a correlation-based survey; and in terms of time period covered by the study, the present study is a cross-sectional study which gathers required data within a limited period from Shahrvand Chain Stores in Tehran.
    [Show full text]
  • Vertical Product Line Extension Strategies: an Evaluation of Brand Halo Effect According to Range Level Eric Tafani, Géraldine Michel, Emmanuelle Rosa
    Vertical Product Line Extension Strategies: An Evaluation of Brand Halo Effect according to Range Level Eric Tafani, Géraldine Michel, Emmanuelle Rosa To cite this version: Eric Tafani, Géraldine Michel, Emmanuelle Rosa. Vertical Product Line Extension Strategies: An Evaluation of Brand Halo Effect according to Range Level. Recherche et Applications en Marketing (English Edition), SAGE Publications, 2009, 24 (2), pp.73-88. hal-02051232 HAL Id: hal-02051232 https://hal.archives-ouvertes.fr/hal-02051232 Submitted on 27 Feb 2019 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. 2009, vol. 4, n°2, 73-89. Vertical Product Line Extension Strategies: an Evaluation of Brand Halo Effect according to Range Level Eric Tafani, IAE Aix, Aix-Marseille University Géraldine Michel, IAE Paris, Paris I Panthéon-Sorbonne University Emmanuelle Rosa, University of Provence ABSTRACT The brand halo effect for vertical product line extensions is analyzed using the central nucleus theory. The empirical study is based on experimentation linked to six brands in the automotive sector. This research shows that central brand associations are transferred to the vertical product line extension regardless of range level – low, middle or high-end range – and that such transference systematically reinforces linkages between such associations and the product line extensions.
    [Show full text]
  • The Effect of Brand Extention on Brand Equity in the Consumer Electronic Among the Youth of Usiu Africa
    THE EFFECT OF BRAND EXTENTION ON BRAND EQUITY IN THE CONSUMER ELECTRONIC AMONG THE YOUTH OF USIU AFRICA BY ESHAN YAGNIK UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2019 THE EFFECT OF BRAND EXTENTION ON BRAND EQUITY IN THE CONSUMER ELECTRONIC AMONG THE YOUTH OF USIU AFRICA BY ESHAN YAGNIK A Research Project Report Submitted to the Chandaria School of Business for the Award of a Master’s in Business Administration Degree (MBA) UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2019 STUDENT’S DECLARATION I declare that this marketing research proposal is my original work and has not been presented in any other university. Signed:___________________________. Date:________________________ Eshan Yagnik (656395) The project has been presented for examination with my approval as the appointed supervisor. Signed_____________________________. Date______________________ Dr. Njenga Kefah Muiruri. Signed_____________________________ Date____________________ Dean, Chandaria School of Business ii COPYRIGHT This research project has a copyright and should not be reproduced physically, be photocopied, and transferred in print or electronic form without permission from the author. ©Eshan Yagnik, 2019 iii ABSTRACT The general objective of this research was to establish the effect of brand extension on brand equity in the consumer electronic among the youth of USIU Africa. The study was guided by three specific objectives which sought to determine how different types of brand extensions influences brand equity, to determine the influence of brand loyalty on brand equity and to determine the influence of sales on brand equity. The study utilized a descriptive survey research design and the population constituted of 5106 Undergraduate students undertaking their studies at USIU Africa. By utilization of a sampling method a sample of 371 respondents was arrived at out of whom 365 responded giving the study a 98% response rate.
    [Show full text]
  • A Brand-Inspired Marketing Primer DID YOU KNOW?
    a brand-inspired marketing primer DID YOU KNOW? The word "brand" is derived from the Old Norse brandr meaning "to burn." It refers to the practice of producers burning their mark onto their products (i.e. cattle). Table of contents What is brand? 2 Why does it matter? 4 What do you stand for? 6 Your promise, your identity 8 Your name 10 Flashback to Marketing 101 12 1 Analyze 14 2 Strategize 16 3 Act 18 Good reads 20 WHAT IS A BRAND? A brand is what people say, feel and think about an organization. It's a set of mental and experiential associations that, when taken together, tell the story of who you are. It’s what we say about you when you cowboys leave the room. YOUR REPUTATION WHY DOES IT MATTER? FOR CONSUMERS strong brands add value A strong brand allows organizations to stand out in a crowded marketplace and compete on aspects other than price. Strong brands help consumers build trusting relationships with them, and encourage customer loyalty. I like the way this brand does business. This brand reflects my personality. FOR MANAGERS strong brands inform strategy A well-defined brand gives all members of the organization a simple way of being on the same page and acts as a guide during the decision-making process. Is this consistent with our brand values? How does this contribute to the story of our brand? FIRST THINGS FIRST A good first step in developing a strong brand is to define what your group’s mission and values are.
    [Show full text]
  • Product Variety in the U.S. Yogurt Industry
    Product Variety in the U.S. Yogurt Industry Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Joseph Rossetti, M.S. Department of Economics The Ohio State University 2018 Dissertation Committee Javier Donna, Advisor Jason Blevins Bruce Weinberg Abstract My research investigates the determinants of the variety of products offered in consumer goods industries. Firms in consumer goods industries must decide which set of product lines to offer. I model this as an entry-exit decision across a set of possible product markets. Understanding how the variety of products offered by firms is determined is important due to its large impacts on consumer welfare. Also, the effect of changes in market concentration, like mergers, on product variety, depends on the specific features of the industry: the elasticity of demand, types of product differentiation available to firms, and competition from regional or niche producers.In Chapter 2 I lay out the theoretical model of product choice that I will estimate in two steps in the remaining two chapters. I provide a brief discussion of the incentives in the model for firms to introduce a new product. In Chapter 2, I estimate a model of product entry and exit in the U.S. yogurt industry from 2001-2011 using supermarket scanner data from the IRI Marketing Database. I use a two-step procedure. I first estimate yogurt industry demand and variable costs using the standard framework of Berry et al. (1995). I account for store level adoption of product lines, and brand advertising decisions in a reduced form.
    [Show full text]