Chapter 10

Brands, Packaging, and

Other Product Features
 Product and Service Decisions
Individual Product and Service Decisions

Copyright © 2010 Pearson Education, Inc.  

Chapter 8 - slide 2
Publishing as Prentice Hall
 Product and Service Decisions

Individual Product and Service Decisions

Product attributes are the benefits of the product
or service
• Quality
• Features
• Style and design
 Product and Service Decisions
Individual Product and Service Decisions

Product quality includes level and consistency

• Quality level is the level of quality that supports the
product’s positioning
• Conformance quality is the product’s freedom from
defects and consistency in delivering a targeted
level of performance
 Product and Service Decisions
Individual Product and Service Decisions

Product features are a competitive tool for

differentiating a product from competitors’
products

Product features are assessed based on the value to

the customer versus the cost to the company
 Product and Service Decisions
Individual Product and Service Decisions

Style describes the appearance of the product

Design contributes to a product’s usefulness as
well as to its looks
 Product and Service Decisions

Brand is the name, term, sign, or design—or a

combination of these—that identifies the maker
or seller of a product or service from
competitors' products
Brands
Sub brands
Toyota- Lexus
• Brand Name-The part of a brand that can be
spoken, including letters, words, and numbers

Toyota, Honda

• Brand Mark- Part not made up of words, such

as a symbol or design
- Nike swoosh, Mercedes star, McDonald's
arches
 The Value of Branding
• To Buyers
- Helps speed consumer purchases by identifying
specific preferred products
- Provides a form of self-expression and status
- Evaluates product quality to reduce the risk of
purchase
• To Sellers
- Identifies and differentiates a firm's products from
competing products
- Helps in the introduction of new products
- Facilitates the promotion of all same-brand
products
- Fosters the development of brand loyalty
 Brand loyalty 
• Brand loyalty 
It is the inclination of consumers to continuously
purchase one brand's products over another.
 Product and Service Decisions

Packaging involves designing and producing the

container or wrapper for a product
Convenience Packaging
Some companies compete by designing
packages that are convenient to use.
• Primary Container

• Secondary Container

• Shipping Package
• Packaging can make Difference
• Packaging sends a message
• Universal product codes speed handling
• Labels identify the product or brand, describe
attributes, and provide promotion
 LABEL CAN INCLUDE
…
• Care and use of the product
• Recipes or suggestions
• Ingredients or nutritional information
• Product guarantees
• Manufacturer name and address
• Weight statements
• Sell by date and expiration dates
• Warnings
Care and use of the product
 Recipes or
suggestions
Ingredients or nutritional
information
 Product
guarantees
Manufacturer name and
address
Weight statements
Sell by date and expiration dates
Warnings
I
f
t
 Product and Service Decisions
Individual Product and Service Decisions

Product support services augment actual products

 Product and Service Decisions
Product Line Decisions

A product line is a group of products that are

closely related because they function in a similar
manner, are sold to the same customer groups, are
marketed through the same types of outlets, or fall
within given price ranges
Marriot offers several lines of hotels &
Nike produces several lines of athletic shoes
 Product and Service Decisions

Product Line Decisions

Product line length is the number of items in the
product line.
It might be too short or too long mangers must
look into , in order to assess which one is increasing
overall performance.
 Ways to Expand Product Line
1. Line filling - adding more items within the
present range of the line
• For increasing profit, plugging holes to
keep out competitors
2. Line stretching -when a company
lengthens its product line beyond its
current range
 Line Stretching
• The smartphones of Samsung in Note and Edge are
premium level product and they’re very costly or
premium price range.
• The brand also offers smartphones of A-Series that
are for the lower-level market.
• The consumption rate of the lower-level model is
very high.
• Samsung does a lot of marketing and downward
product line stretching because the brand doesn’t
want to lose it.
 Product Mix Decisions

It consists of all product lines and items

that a particular seller that offers for
sale.
Example P & G’s product mix consists
of three major product lines:
Detergent, Soaps, Shampoos………
 Product and Service Decisions
Product Mix Decisions
Product mix consists of all the products and items that a
particular seller offers for sale

1. Width-number of different product lines the company carries

For example : P&G’s Width –
Detergents, Soaps, Shampoos.

2. Length- total number of items the company carries within its

product line
For Example: P&G’s Detergent product length – Tide,
Ivory, Cheer, Bold.
 PRODUCT MIX
DECISION
P&G
Width
Detergent Soap Shampoo
Length

Depth
 Product and Service Decisions

3. Depth-number of versions offers of each

product in the product line
For example: P&G’s Tide product depth –
Febreze, Cold water, Downy.

4. Consistency-how closely related the various

product lines are in end-use, production
requirements, distribution channels or some
other way.
 Branding Strategy: Building Strong Brands

Brand represents the consumer’s perceptions and

feelings about a product and its performance. It is
the company’s promise to deliver a specific set of
features, benefits, services, and experiences
consistently to the buyers
 BRAND POSITIONING

• Position brands at
any of three levels:
– Product attributes
• Least desirable;
easily copied.
– Product benefits
– Beliefs and values
• Hits consumers
on a deeper
level, touching
universal
emotions.
 Branding Strategy: Building Strong Brands
Brand Name Selection
Desirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
 Branding Strategy: Building Strong Brands
Brand Development Strategies

Copyright © 2010 Pearson Education, Inc.  

Chapter 8 - slide 38
Publishing as Prentice Hall
 LINE EXTENSION
Existing brand names are
extended tonew forms, sizes,
and flavors of an
existing product category.
Example: Fair & Lovely Fairness Cream-1978
Fair & Lovely Ayurvedic Fairness
Cream-2001
Fair & Lovely Fairness Cream with extra
brightness -2003
Fair & Lovely Menz Active-2006
 BRAND EXTENSION
Existing brand names are extended
to new or modified product
categories. Example:
Virgin Atlantic
Virgin Mobile
Virgin Cosmetics
Virgin Trains
Virgin Money
 MULTI
BRANDS
New brand names are introduced in
the same product category.
HUL: Lux, Lifebuoy, Liril, Hamam,
Breeze, Dove, Pears, Rexona
 NEW
BRANDS
New brand names in new categories
are introduced. Example:
Nescafè (Coffee)
KitKat (Confectionery)
Buxton (Water)
Buitoni (Pasta)
Sveltesse (Chilled Diary)
Shredded Wheat (Cereals)