ADVANCED MARKETING

•ANALYZE THE LIFE CYCLE OF AN EXISTING PRODUCT

•ANALYZE A PRODUCT LINE AND BRAND EXTENSION USING CASE STUDIES

•CREATE A PRODUCT EXTENSION FOR AN EXISTING PRODUCT

Product Planning

What is Product/Service Planning

The process of planning and implementing strategies to obtain, develop, maintain and improve a

product or product mix .

Role of Product Service Planning

generating and screening ideas for a product/service developing and testing the product/service

introducing the product/service to consumers evaluating consumer acceptance of the

product/serviceimproving the product/service to meet consumer needs and wants.

Product Item

A specific model, brand, or size of a product within a product line

NIKE Delt Force shoe

Product Line

A group of closely related products manufactured or sold by a business

Example: NIKE Men’s Outerwear is a product line

Brand

Word, group of words, letters, or numbers that represent a product or service.

Easily recognizableEstablishes image

Why Brand?

Target customers’ needs and preferencesEstablish recognitionIdentify and promote companyEnsures quality and consistencyExtend product in to new markets

Brand Extension

Branding strategy that uses existing brand name to promote a new or improved product in a company’s product line.

EXAMPLE: Ocean Spray extended cranberry juice drink by adding flavors (Cran Apple, Cran Cherry, Cran Grape)

Why Create Brand Extension?

Launching new products is costly Failure rate for new products is very highCompanies can reduce risk by using already

established brand name

Role of Marketing Research and Branding

Identifies new marketsIdentifies market preferences and needsReduces risk- takes “guessing” out of market

acceptanceResults can enable company to “tweak”

product before final launch to ensure success

Impact of Branding

 A brand can make identical products seem different e.g. commodities: water, petrol, milk

• A brand can set up positive expectations which are self-fulfilling e.g. Fugi bottled water• A brand can instigate trust and take away risk e.g. Huggies• A brand can inspire loyalty and encourage repeat purchase e.g. Apple• A brand can influence the price consumers are willing to pay e.g. Ralph Lauren Polo

Impact of Branding

Role of Competition

Competition is the struggle of amongst two or more companies for the same target customers.

Competition encourages continuous process of improvement to gain market share- which leads to brand extension

Class Assignment

Students will work independently or with a partner to analyze a brand extension of an existing product line.

Using the Internet, research one of the following companies and identify the process the company went through to create a brand extension to an existing product line. Prepare a PPT presentation to deliver to the class that identifies this process.

Companies to Choose From:Hershey, Nestle, Coke, Pottery Barn, Ralph Lauren,

Clorox, Crest, or select your own but have it approved!