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Product and Brand Management

Product and Brand Management

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Product and Brand Management

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  1. Product and Brand Management Unit 1 Lecture 2 Levels of a product & product mix.

  2. Unit 1 - Syllabus Levels of a product, product mix.

  3. Levels of a product Consumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, let’s consider it as three different products – the CORE product, the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a Product.

  4. The CORE product The CORE product is NOT the tangible physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.

  5. The ACTUAL product The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product.

  6. The AUGMENTED product The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.

  7. Product Mix and Product Line Product mix: Product mix, which is the largest entity, denotes the complete set of all products offered for sale by a company

  8. Product Mix and Product Line Product line: A group of closely related products constitute a product line. Product mix of a company is composed of all the product lines it carries. For example – in case of HUL, there are various product lines bath soaps line, fabric wash products, line l beverages line, etc..

  9. Product Mix and Product Line Width of Product mix: The width of the product mix denotes the number of product lines it carries. Example: in case of HUL, bath soaps line, fabric wash products line, beverages line, etc. together constitute a width of product mix.

  10. Product Mix and Product Line Length of the product line: Length of a product line is decided by the number of products/brands in the line. For example in case of HUL, in bath soap category different products like Dove, Liril, Le-Sancy, Pears, Rexona, Lifebuoy, Hamam, Breeze, Jai, Moti etc constitute a length of Bath soap product line. .

  11. Product Mix and Product Line Depth of the product line: Depth of a product line denotes the total number of items under each brand in the line, in terms of variants, shades, models, pack sizes etc. For example in case of HUL, in Lux beauty soap there are various colors like pink, white, Black etc in various volumes like 25gm, 50gm, 75gm etc.

  12. Product Mix and Product Line A product item/SKU: Stock – keeping unit (SKU) denotes an independent item of a product/brand offered for sale. Head and shoulder shampoo, for example is offered in 200ml and 150ml packs and 5ml sachet. Each is an SKU.

  13. Product Mix and Product Line If the shampoo in each of the above pack is made available in say, 3 colours, each such unit (that will be 3x3=9) will constitute SKU. Bailley mineral water is available in 20 litre, 5 litre, 1.5 litre, and 1 litre, 750 ml, 200ml, and 125 ml sizes. Each is an SKU. All SKU’s of all the product/brands in a product line make the depth of the product line

  14. Assignment • What are level of products explain with Examples? • SAQS and LAQS • What is product mix • What is product line • What is a core product • What is an augmented product • What is actual product

  15. Summary The CORE product is NOT the tangible physical product. You can't touch it. The ACTUAL product is the tangible, physical product. You can get some use out of it. The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. Product mix, denotes the complete set of all products offered for sale by a company

  16. Reference Marketing Management – Kotler, Keller, Koshy, Jha Principles of Marketing – Kotler, Armstrong, Agnihotri, Haque