 Product Characteristics and Classifications:- Many people think

a product is a tangible offering, but a product is anything that

can be offered to a market to satisfy a Need or Want, including
physical goods, services, experiences, events, persons, places,
properties, organizations, information and ideas.

 Product Levels: The Customer–Value Hierarchy:- In planning its

market offering, the marketer needs to address five product levels.
Each level adds more customer value, and the five constitute a
Customer–Value Hierarchy.

1. The fundamental level is the Core Benefit i.e. the Service or

Benefit the customer is really buying.
Ex:- A hotel guest is buying ‘Rest and Sleep’. The purchaser of a
drill is buying ‘holes’. Marketers must see themselves as benefit
providers.

2. At the second level, the marketer must turn the core benefit into a
Basic Product. Thus, a hotel room includes a bed, bathroom,
towels, desk, dresser and closet.
3. At the third level, the marketer prepares an Expected Product, a
set of Attributes and Conditions buyers normally expect when
they purchase this product.
Ex:- Hotel guests expect a clean bed, fresh towels, working lamps,
and a relative degree of quietness and privacy.

4. At the fourth level, the marketer prepares an Augmented Product

that exceeds customer expectations.

 In developed countries, brand positioning and competition take

place at this level, whereas, in developing and emerging markets
such as India, competition takes place mostly at the expected
product level.

5. At the fifth level stands the Potential Product, which

encompasses all the possible augmentations and
transformations the product or offering might undergo in the
future.
 Here is where companies search for new ways to satisfy
customers and distinguish their offering.

 Differentiation arises and competition increasingly occurs on the

basis of product augmentation, which also leads the marketer to
look at the user’s total Consumption System: the way the user
performs the tasks of Getting and Using products and related
services.

 Each augmentation adds cost and augmented benefits soon

become expected benefits and necessary point of parity.
Ex:- Today’s hotel guests expect cable T.V. with a remote control
and phone lines and preferable a Wi-Fi internet access.

 This means competitors must search for still other Features

and Benefits.
 Some companies raise the price of their augmented product, where
as others offer a ‘Stripped–Down’ version at a much lower price.
Ex:- The ITC – Welcome group of hotels in India, has four sets of
properties under four different brands. The group’s Super–Deluxe
hotels are organized under the brand ITC Hotels; Five–Star hotels
are under the brand Welcome Hotels; Budget hotels in smaller towns
and cities under the brand Fortune Hotels; and Palaces, Forts and
Havelis under the brand Welcome Heritage.

 Product Classifications:- Marketers have traditionally classified

products on the basis of Durability, Tangibility, and Use
(Consumer or Industrial).

 Each product type has an appropriate marketing–mix strategy.

A. Durability And Tangibility:- Marketers classify products into
three groups according to Durability and Tangibility:-

1. Nondurable Goods are tangible goods normally consumed in

one or a few uses, such as soft drinks and soap. These goods are
purchased frequently, so the appropriate strategy is to make them
available in many locations, charge only a small markup and
advertise heavily to induce trial and build preference.

2. Durable Goods are tangible goods that normally survive many

uses like refrigerators, automobiles, machine tools, clothing.
Durable products normally require more personal selling and
service, command a higher margin and require more seller
guarantees.

3. Services are intangible, inseparable, variable and perishable

products, and hence they require more quality control, supplier
credibility, and adaptability.
Ex:- Hair cuts, Legal Advice, Insurance Policies, Appliance
Repairs. Etc.
B. Consumer–Goods Classification:- The vast array of goods
consumers buy are classified on the basis of shopping habits.

 They are distinguished among Convenience, Shopping, Specialty

and Unsought goods.

1. Convenience Goods are purchased frequently, immediately and

with a minimum of effort.
Ex:- Soft Drinks, Soaps, Newspapers.

 Convenience goods can be further divided in Staples, Impulse

Goods & Emergency Goods.

• Staples are those goods, which consumers purchase on a regular

basis.
Ex:- Close up Toothpaste, Detol Hand wash, Britannia Marie
biscuits. Etc.
• Impulse Goods are purchased without any planning or search
effort.
Ex:- Chocolates, Candy Bars, Potato Chips. Etc.

• Emergency Goods are purchased when a need is urgent.

Ex:- Umbrellas and rain Coats with the advent of monsoons,
pullover, sweaters and shawls with the advent of winter.

 Manufacturers of Impulse and Emergency goods should place them

in those outlets where consumers are likely to experience an urge or
compelling need to make a purchase.

2. Shopping Goods are goods that the consumer characteristically

compares on the basis of Suitability, Quality, Price or Style.
Ex:- Furniture, Clothing, Used cars and All major appliances.

 Shopping goods are further divide into Homogeneous Shopping

Goods and Heterogeneous Shopping Goods.
• Homogeneous Shopping Goods are similar in quality but
different enough in price to justify shopping comparisons.

• Heterogeneous Shopping Goods differ in product features and

services that may be more important than price.
The seller of heterogeneous shopping goods carries a wide
assortment to satisfy individual tastes and must have well–trained
salespeople to inform and advise customers.

3. Specialty Goods have unique characteristics or brand identification

for which a sufficient number of buyers are willing to make a special
purchasing effort.
Ex:- Cars, Stereo components, Photographic Equipments. Etc.
 Specialty goods don’t require comparisons. Buyers invest time
only to reach dealers carrying the wanted products. Dealers don’t
need convenient locations, although they must let prospective
buyers know their location.
Ex:- A Mercedes is a specialty good because interested buyers will
travel far to buy one.
3. Unsought Goods are those the consumer doesn’t know about or
does not normally think of buying, such as smoke detectors.
The classic examples of unsought goods are Life Insurance,
Encyclopedias, and Reference Books. Unsought goods require
advertising and personal–selling support.

C. Industrial–Goods Classification:- Industrial goods can be

classified in terms of their relative cost and how they enter the
production process, i.e. Materials and Parts, Capital Items, and
Supplies & Business Services.

 Materials and Parts are goods that enter the manufacturer’s

product completely.

 They fall into two classes:- Raw Materials, and Manufactured

Materials & Parts.

 Raw Materials fall into two major groups: Farm Products (Wheat,
Cotton, Livestock, Fruits and vegetables) and Natural Products
(Fish, Lumber, Crude Petroleum, Iron Ore etc.).
• Farm Products are supplied by many producers, who turn them
over to marketing intermediaries, who provide assembly, grading,
storage, transportation and selling services.

• Farm Products are Perishable and Seasonal in nature and this

gives rise to special marketing practices, whereas their
commodity character results in relatively little advertising and
promotional activity, with some exceptions.

• At times, commodity groups will launch campaigns to promote their

product.
Ex:- National Egg Co-ordination Committee (NECC) regularly
undertakes an intensive promotion campaign.

• Natural Products are limited in supply. They usually have great

bulk and low unit value and must be moved from producer to
user.

• Fewer and larger producers often market them directly to

industrial users. As manufacturers depend on these materials,
long–term supply contracts are common.
• Price and delivery reliability are the major factors influencing
the selection of suppliers.

 Manufactured Materials and Parts fall into two categories:-

Component Materials (iron, yarn, cement, wires, etc.) and
Component Parts (small motors, tires, castings, etc.).

 Component materials are usually fabricated further.

Ex:- Pig iron is made into Steel, and Yarn is woven into Cloth.

• Price and Supplier reliability are key purchase factors.

 Component Parts enter the finished product with not further

change in form.

• Most manufactured Materials and Parts are sold directly to

industrial users.

• Price and Service are major marketing considerations, and

branding & advertising tend to be less important.
 Capital Items are long–lasting goods that facilitate developing
or managing the finished product. They include two groups:-
Installations and Equipments.

• Installations consist of buildings (factories, offices) and have

Equipments (generators, drill presses, mainframe computers,
elevators).

• Installations are major purchases. They are usually bought

directly from the producer, whose sales force includes technical
personnel, and a long negotiation period precedes the typical sale.
Producers must be willing to design to specification and to
supply post–sale services.
Ex:- BHEL, L&T etc.

• Advertising is much less important than personal selling.

 Equipments include portable factory equipments and tools

(hand tools, lift trucks) and office equipments (personal
computers, desks).
• These types of equipment don’t become part of a finished
product.

• They have a shorter life than installations but a longer life than
operating supplies.

• Although some equipment manufacturers sell direct, more

often there are intermediaries as the market is geographically
dispersed, the buyers are numerous, and the orders are small.

• Quality, features, price and service are major considerations.

• The sales force tend to be more important than advertising,

although advertising can be used effectively.

 Supplies and Business Services are short–term goods and

services that facilitate developing or managing the finished
product.
 Supplies are of two kinds:- Maintenance & Repair Items (paint,
nails, brooms, etc.) and Operating Supplies (lubricants, coal,
writing paper, pencils, etc.).

• Together they go under the name of MRO goods.

• They are normally marketed through intermediaries because of

their low unit value and the great number and geographic
dispersion of customers.

• Price and Service are important considerations, because

suppliers are standardized and brand preference is not high.

 Business Services include Maintenance and repair Services

(maintenance of air conditioners, repair of photocopying machines,
etc.) and Business Advisory Services (legal, management
consulting, advertising, etc.).
• Maintenance and repair services are usually supplied under
contract by small producers or are available from the
manufacturers of the original equipment.

• Business advisory services are usually purchased on the basis of

the supplier’s reputation & staff.

 Product And Brand relationships:- Each product can be related

to other products to ensure that a firm is offering and
marketing the optimal set of products.

 The Product Hierarchy:- The product hierarchy stretches from

basic needs to particular items that satisfy those needs.
Six levels of the product hierarchy can be identified, using life
insurance as an example:-

1. Need Family:- The core need that underlies the existence of a

product family.
Ex:- Security.
2. Product Family:- All the product classes that can satisfy a core
need with reasonable effectiveness.
Ex:- Savings and Income.

3. Product Class:- A group of products within the product family,

recognized as having a certain functional coherence. Also
known as a product category.
Ex:- Financial Instruments.

4. Product Line:- A group of products within a product class that

are closely related because they perform a similar function, are
sold to the same customer groups, are marketed through the
same outlets or channels, or fall within given price ranges.

 A product line may consist of different brands, or a single family

brand, or individual brand that has been line extended.
Ex:- Life Insurance.
5. Product Type:- A group of items within a product line that
share one of several possible forms of the product.
Ex:- Term Life insurance.

6. Item:- A distinct unit within a brand or product line

distinguishable by size, price, appearance or some other
attribute.
Ex:- LIC’s renewable term life insurance.

 Product Systems and Mixes:- A Product System is a group of

diverse but related items that function in a compatible
manner.
Ex:- Samsung handheld and smartphone product lines come
with attachable products including headsets, cameras, MP4 players,
and so on.

 A Product Mix (also called a Product Assortment) is the set of all

products and items a particular seller offers for sale.
 A product mix consists of various product lines.
Ex:- General Electric. (the G.E consumer appliance division has
got product line managers for refrigerators, stoves, washing machine,
and so on).
The consumer product portfolio of Nirma Limited consists of
fabric–care products, personal–care products, food products, etc. In
each of these categories, the company has different brands and
variants.

 A company’s product mix has a certain width, length, depth,

and consistency.

 These concepts are in the table below for the consumer – product
division of Hindustan Unilever Limited (HUL).
 Product – Mix Width
Home & Personal Care Foods
Personal Laundry Skin Hair Oral Deodora Ayurvedic Color Tea Coffee Foods Ice
Wash Care Care Care nts Personal & Cosmetics Cream
Health
Care
Lux Surf Fair & Sunsilk Pepso Axe Ayush Lakme Brooke Brooke Kissan Kwality
Excel Lovely Naturals dent Bond Bond Wall’s
Bru
Product – Line Length

Lifeboy Rin Pond’s Clinic Close Rexona Lipton Knorr

Plus - up

Liril Wheel Vaseline Annap

urna

Hamam

Breeze

Dove

Pears

Rexona
 The Width of a product mix refers to how many different
product lines the company carries. The above table shows a
product–mix width of twelve lines.

 The Length of a product mix refers to the total number of items

on the mix. In the above table it is 29. we can also talk about the
average length of a line. This is obtained by dividing the total length
(here 29) by the number of lines (here 12), or an average product
length of less than 3 in the above case.

 The Depth of a product mix refers to how many variants are

offered of each product in the line. If Lux comes in four variants
and in two sizes, then it has a depth of eight. The avg. depth of any
company’s product mix can be calculated by averaging the
number of variants within the brand groups.

 The Consistency of the product mix refers to how closely related

the various product lines are in end use, production
requirements, distribution channels, or some other way.
 HUL’s product lines are consistent insofar as they are consumer
goods that go through the same distribution channels. The lines are
less consistent insofar as they perform different functions for the
buyers.

 These four product–mix dimensions permit the company to

expand its business in four ways:-

• It can add new product lines, thus widening its product mix.

• It can lengthen each product line.

• It can add more product variants to each product and deepen its
product mix.

• Finally, a company can pursue more product–line consistency.

 To make these product and brand decisions, it is useful to conduct

product–line analysis.
 Product–Line Analysis:- In offering a product line, companies
normally develop a basic platform and modules that can be
added to meet different customer requirements.
Ex:- Car manufacturers build their cars around a basic platform.
Homebuilders show a model home to which buyers can add
additional features.

 This modular approach enables the company to offer variety and

to lower production costs.

 Product line managers need to know the sales and profits of each
item in their line in order to determine which items to build,
maintain, harvest, or divest.

 They also need to understand each product line’s market profile.

 Sales And Profits:- Every company’s product portfolio contains
products with different margins.

 A company can classify its products into four types that yield
different gross margins, depending on sales volume and
promotion:- Let’s illustrate it with a laptop example.

1. Core Products:- Basic laptop that produce high sales volume are
heavily promoted but with low margins because they are viewed as
undifferentiated commodities.

2. Staples:- Items with lower sales volume and no promotion, such

as faster CPUs or bigger memories. These yield a somewhat higher
margin.

3. Specialties:- Items with lower sales volume but that might be

highly promoted, such as digital moviemaking equipment; or
might generate income for services, such as personal delivery,
installation, or on-site training.
4. Convenience Items:- Peripheral items that sell in high volume
but receive less promotion, such as carrying cases and accessories,
sound cards, or software.

 Consumers tend to buy them where they buy the original equipment
because it is more convenient than making further shopping trips.
These items usually carry higher margins.

 Market Profile:- The product-line manager must review how

the line is positioned against competitors’ line.

 Product – line analysis provides information for two key decision

areas – Product–line length and Product–mix pricing.

 Product–Line Length:- Company objectives influence product –

line length.

 One objective is to create a product line to induce up-selling.

Ex:- Tata Motors would like to move its Indica customers to Vista
or Indigo. Maruti would like to move its 800 customers to Alto,
WagonR or Swift.
 A different objective is to create a product line that facilitates cross–
selling.
Ex:- HP sells printers, scanners as well as computers.
 Still another objective is to create a product line that protects against
economic ups and downs.
Ex:- Videocon offers white goods such as refrigerators, washing
machines, televisions, microwave ovens, air conditioners under different
brand names to cater to the entry–level, mid–level and premium segments.
 Companies seeking high market share and market growth will
generally carry longer products lines, whereas companies that
emphasize high profitability will carry shorter lines consisting of
carefully chosen items.
 Product lines tend to lengthen over time. Excess manufacturing capacity
puts pressure on the product–line manager to develop new items.
 The sales force and distributors also pressure the company for a more
complete product line to satisfy customers. But as items are added, costs
rise (design and engineering costs, transportation costs, and new–item
promotional costs etc).
 A company lengthens its product line in two ways:-

1. Line Stretching:- Every company’s product line covers a certain part of

the total possible range.
Ex:- Mercedes automobiles are located in the upper price range of the
automobile market. Line stretching occurs when a company lengthens its
product line beyond its current range. The company can stretch its line
down – market, up – market or both ways.

a. Down – Market Stretch:- A company positioned in the middle market

may want to introduce a lower–priced line for any of the three
reasons:-

 The company may notice strong growth opportunities as mass retailers

attract a growing number of shoppers who want value–priced goods.

 The company may wish to tie up lower–end competitors who might

otherwise try to move up–market. If the company has been attacked by
a low–end competitor, it often decides to counterattack by entering
the low end of the market.

 The company may find that the middle market is stagnating or

declining.
 A company faces a number of naming choices in deciding to move a
brand down–market:-

 Use the parent brand name on all its offerings.

Ex:- Sony has used its name on products in a variety of price tiers.

 Introduce lower -priced offerings using a sub-brand name.

Ex:- P&G’s Charmin Basics, Gillette Good News, Plasto. Etc.

 Introduce the lower–priced offerings under a different name.

Ex:- Tata’s Fast Track watches.
• This strategy is expensive to implement, and consumers may not accept
a New Brand that lacks the equity of the parent brand name.

 Moving down–market carries risks.

Ex:- Kodak launched Funtime film to counter lower–priced brands, but it
did not price it low enough to match the lower–priced film. It also found
some of its regular customers have also started buying Funtime. Finally
Kodak withdrew the product and may have also lost some of its quality image
in the process.
On the other hand, Mercedes successfully introduced its C – class cars at
$30,000 without injuring its ability to sell other Mercedes cars for $1,00,000.
b. Up–Market Stretch:- Companies may wish to enter the high end
of the market to achieve more growth, to realize higher
margins, or simply to position themselves a full–time
manufacturers. Many marketers have spawned surprising upscale
segments.
Ex:- Toyota’s Lexus, Nissan’s infinity and Honda’s Honda civic &
CRV.

c. Two–Way Stretch:- Companies serving the middle market might

decide to stretch their line in both directions.
Ex:- Titan.

2. Line Filling:- A firm can also lengthen its product line by adding
more items within the present range.

 There are several motives for line Filling:- Reaching for

incremental profits, trying to Satisfy Dealers who complain
about lost sales because of missing items in the line, trying to
Utilize Excess Capacity, trying to be the Leading Full–Line
Company, and trying to Plug holes to Keep out Competitors.
 Branding
 Brand:- The American Marketing Association defines a brand as “A
name, term, sign, symbol or design, or a combination of them,
intended to identify the goods or the services of one seller or
group of sellers and to differentiate them from those of
competitors.”

 A brand is thus a product or service whose dimensions

differentiate it in some way from other products or services
designed to satisfy the same need. The differences may be
functional, rational, or tangible related to product
performance of the brand.

 In other words, a brand is an assurance or guarantee that the

product will perform as the customer thinks it should, which
means, that the brand has already shaped the expectations of the
customers about itself.

 The brand embodies some values that remain consistent over a

period of time. The customer expects these values to be delivered
to him during each encounter he has with the brand.
 Hence, the company must realize that building a brand is not a short
term activity. Consistency is the most valued quality of a brand.

 Branding has been around for centuries as a means to distinguish the

goods of one producer from those of another.
Ex:- In the fine arts, branding began with artists signing their works.

 Brand today play a number of important roles that improve

consumers’ lives and enhance the financial value of the firms.

 The role of Brands:- Brands identify the source or maker of a product

and allow consumers – either individuals or organizations – to assign
responsibility for its performance to a particular manufacturer or
distributor.

 Consumers may evaluate the identical product differently depending

on how it is branded.

 They learn about brands through past experiences with the product.

 As consumers’ lives become more complicated, rushed and time starves,

the ability of a brand to simplify decision making and reduce risk, is
invaluable.
 Brands also perform valuable functions for firms:-

1. They simplify product handling or tracing.

2. A brand also offers the firm legal protection for unique features
or aspects of the product.

 The brand name can be protected through registered trademarks;

manufacturing processes can be protected through patents; and
packaging can be protected through copyright and proprietary
designs.

 These intellectual property rights ensure that the firm can

safely invest in the brand and reap the benefits of a valuable
asset.
3. Brands, signal a certain level of quality so that satisfied buyers
can easily choose the product again.

 Brand loyalty provides predictability and security of demand for

the firm, and it creates barriers to entry that make it difficult for
other firms to enter the market.

 This loyalty also can translate into customer willingness to pay

a higher price often 20% to 25% more than competition brands.

4. To firms, brands represent enormously valued piece of legal

property that can influence consumer behavior, be bought and
sold, and provide the security of sustained future revenues to
their owners.
 The Scope of Branding:- Branding is endowing products and services
with the power of a brand.

 It is all about creating differences between products. Marketers need to

teach consumers ‘who’ the product is – by giving it a name and other
brand elements to identify it – as well as what the product does and
why consumers should care.

 Branding creates mental structures that help consumers organize

their knowledge, about products and services in a way that clarifies
their decision making and in the process, provides value to the firm.

 For Branding strategies to be successful and brand value to be created,

consumers must be convinced there are meaningful differences among
brands in the product or service category.
Ex:- Gillette, Merk, etc.
These have been leaders in their product categories for
decades, due in part, to continual innovation.
Gucci, Nike, Adidas and others have become leaders in their product
categories by understanding consumer motivations and decisions and
creating relevant and appealing images around their products.
 Marketers can apply branding virtually anywhere a consumer
has a choice.

 It is possible to brand a physical good (Maggi Noodles, Lux soap,

Tata Indica/Indigo automobile), a service (ICICI bank, Jet airways,
Blue Dart courier service), a store (Big Bazar, Pantaloon, Shopper’s
stop), a person (Aamir Khan, Sachin Tendulkar), a Place (the state
of Goa, the city of Bangalore or the country India), an organization
(UNICEF, Automobile Association of India), or an Idea (Family
Planning, Blood Donation, freedom of speech).

 Brand Equity:- Brand equity is the added value endowed on

products and services because of their brand name.

 It may be reflected in the way consumers think, feel, and act

with respect to the brand, as well as in the prices, market share,
and profitability the brand commands for the firm.

 Customer–based brand equity is the differential effect that

brand knowledge has on consumer response to the marketing of
that brand.
• There are three key ingredients of customer–based brand
equity:-

1. Brand equity arises from differences in consumer response. If no

differences occur, then the said branded product is essentially a
commodity or generic version of the product.
Here competition will probably be based on price.

2. Differences in response are a result of consumer’s knowledge

about the brand.

 Brand knowledge consists of all the thoughts, feelings, images,

experiences, beliefs, and so on that become associated with the
brand.

 In particular, brands must create strong, favorable, and unique

brand associations with customers.
Ex:- Volvo, H.P, Harley–Davidson.
3. The differential response by consumers that makes up brand equity is
reflected in perceptions, preferences, and behavior related to all
aspects of the marketing of a brand. Stronger brands lead to greater
revenue.

 The challenge for marketers in building a strong brand is therefore

ensuring that customers have the right type of experiences with products,
services and their marketing programs to create the desired brand
knowledge.

Some Key Benefits of Brand Equity:-

 Improved perceptions of product performance.
 Greater loyalty.
 Less vulnerability to competitive marketing actions.
 Less vulnerability to marketing crises.
 Larger margins.
 More inelastic consumer response to price increases.
 More elastic consumer response to price decreases.
 Greater trade cooperation and support.
 Increased marketing communications effectiveness.
 Possible licensing opportunities.
 Additional brand extension opportunities.
 Brand Elements:- Brand elements are those trademark able
devices that identify and differentiate the brand.

 Most of the strong brands employ multiple brand elements.

Ex:- Nike has the distinctive ‘swoosh’ logo, the empowering ‘just
do it’ slogan, and the ‘Nike’ name based on the winged goddess of
victory.

• Brand Element Choice Criteria:- There are six main criteria for
choosing brand elements.

 The first three – Memorable, Meaningful, and Likable – are

‘Brand building’.

 The latter three – Transferable, Adaptable, and Protectable – are

‘Defensive’ and deal with how to leverage and preserve the
equity in a brand element in the face of opportunities and
constraints.
1. Memorable:- How easily is the brand element recalled and
recognized? Is this true at both purchase and consumption?

 Short brand names such as Lux, LG, Taj are memorable brand
elements.

2. Meaningful:- Is the brand element credible and suggestive of

the corresponding category? Does it suggest something about
a product ingredient or the type of person who might use the
brand?
Ex:- Fair & Lovely fairness cream, Close –Up toothpaste, Mother’s
Recipe pickles. Etc.

3. Likable:- How aesthetically appealing is the brand element? Is

it likable visually, verbally, and in other ways?

 Concrete brand names such as Scorpio, Splendor etc. evoke much

imagery.
4. Transferable:- Can the brand element be used to introduce new
products in the same or different categories?

 Although initially an online book seller, Amazon.com was smart

enough not to call itself “Books ‘R’ Us.” The Amazon is famous as the
world’s biggest river, and the name suggests the wide variety of goods
that could be shipped, an important descriptor of the diverse range
of products the company now sells.

5. Adaptable:- How adaptable and updatable is the brand element?

 Lifebuoy, launched in the year 1895, with its brick red color and the
cresylic perfume, underwent several changes over the years.
The biggest change took place in the year 2002, when the brand
was re-launched with new formulations, colour, fragrance, and
packaging to make the brand contemporary.
With the re-launch, Lifebuoy made a conscious shift in its
positioning from the victorious male concept of health to a warmer
and more versatile benefit of health for the entire family.
 Although the product formulation, packaging, and other brand elements
have changed to synchronize with the changing consumer perceptions and
preferences, the brand continues to maintain its core value
proposition of ‘health’.

6. Protectable:- How legally protectable is the brand element? How

competitively protectable?

 Names that become synonymous with product categories – such as

Kleenex, Surf, Scotch Tape, Xerox, Fiberglass – should retain their
trademark rights and not become generic.

 Co–Branding and Ingredient Branding:-

• Co–Branding:- In Co–branding which is also known as Dual branding

or Brand building – two or more well–known brands are combined
into a joint product or marketed together in some fashion.

 One form is same–company Co–Branding, as when Gillette India jointly

promotes its Gillette Mach 3 Turbo saving system and Gillette Shaving Gel.
Eureka Forbes jointly promotes its water purifier Aquagrard and
vacuum cleaner Euroclean.
 Another form is joint venture Co–Branding, as in the case of
Indian Oil and Citibank co–branded credit cards.

 Further there is multiple–sponsor Co–branding, such as Taligent,

a one-time technological alliance of Apple, IBM, and Motorola.

 Finally, there is retail co–branding where two retail establishments,

such as fast-food restaurants, use the same location as a way to
optimize both space and profits.

 The main advantage of co-branding is that a product may be

convincingly positioned by virtue of the multiple brands.

 Co-branding a can generate greater sales from the existing

target market as well as opening additional opportunities for
new consumers and channels.

 It can also reduce the cost of product introduction, because it

combines two well-known images and speeds adoption.
Ex:- The automobile industry has well adopted the Co-Branding.
 The potential disadvantages of co-branding are the risks and lack
of control in becoming aligned with another brand in the
minds of consumers.

 Consumer expectations about the level of involvement and

commitment with co-brands are likely to be high, so unsatisfactory
performance could have negative repercussions for both
brands.

 For co-branding to succeed, the two brands must separately

have brand equity – adequate brand awareness and a
sufficiently positive brand image.

 Research studies show that consumers are more apt to perceive

co-brands favorably if the two brands are complementary
rather than similar.
• Ingredient Branding:- Ingredient branding is a special case of
Co-Branding. It creates brand equity for materials, components, or
parts that are necessarily contained within other branded products.
Ex:- Intel Processors, Lucus automobile parts.

 Ingredient brands try to create enough Awareness and Preference

for their product so consumers will not buy a ‘host’ product that
doesn’t contain the ingredient.

 Packaging:- Packaging can be defined as all the activities of

Designing and Producing the containers for a product.

 Packages might include up to three levels of material.

Ex:- Cool Water cologne comes in a bottle (Primary package) in a
cardboard box (secondary package) in a corrugated box (shipping
package) containing six dozen boxes.

 Well-designed packages can build brand equity and drive sales.

 The package is the buyer’s first encounter with the product and
is capable of turning the buyer on or off. Packaging also affects
consumers’ later product experiences.

 Various factors have contributed to the growing use of

packaging as a marketing tool:-

1. Self – Service:- An increasing number of products are sold on a self-

service basis. In an average supermarket, which stocks 15,000 items,
the typical shopper passes by some 300 items per minute. Given that
50% to 70% of all purchases are made in the store, the effective
package must perform many of the sales tasks: Attract
attention, Describe the product’s features, Create consumer
confidence, and Make a favorable overall impression.

2. Consumer Affluence:- Rising consumer affluence means

consumers are willing to pay a little more for the Convenience,
Appearance, Dependability, and Prestige of better packages.
3. Company and Brand Image:- Packages contribute to instant
recognition of the company or brand.

 In the store, packages for a brand can create a visible billboard

effect, such as Garnier Fructis and their bright green packaging in
the hair care aisle.

4. Innovation Opportunity:- Innovative packaging can bring large

benefits to consumers and profits to producers.

 Companies are incorporating unique materials and features such as

re-sealable spouts and openings.
Ex:- Calcium Sandoz bottles, targeted at children and women,
have been designed to make them attractive to the target customer.
 From the perspective of both the firm and consumers, packaging
must achieve a number of objectives:-

1. Identify the brand.

2. Convey descriptive and persuasive information.

3. Facilitate product transportation and protection.

4. Assist at-home storage.

5. Aid product consumption.

 The packaging elements must harmonize with each other and

with pricing, advertising, and other parts of the marketing
program.

 Packaging changes can give immediate impact on sales.

Ex:- Book publishing industry, where customers often quite
literally choose a book by its cover.
 After the company designs its packaging, it must test it.

 Engineering tests ensure that the package stands up under normal

conditions; Visual tests, that the script is legible and the colors
harmonious; Dealer tests, that dealers find the packages attractive
and easy to handle; and Consumer tests, that buyers will respond
favorably.

 Eye tracking by hidden cameras can assess how much consumers

notice and examine packages.

 Although developing effective packaging may cost considerable

amount of money and take several months to complete,
companies must pay attention to the growing environmental
and safety concerns about packaging.
 Labeling:- A label may be a simple tag attached to the product
or an elaborately designed graphic that is part of the
packaging.

 It might carry only the brand name, or a great deal of information.

 The type of label also depend on the legal requirement.

 Labels perform several functions such as:-

i. The label identifies the product or brand.

ii. The label might also grade the product.

iii. The label might describe the product: Who made it, Where it was
made, When it was made, What it contains, How it is to be
used, and How to use it safely.

iv. The label might also promote the product through attractive
graphics.