9. Identifying the Product/Brand for Marketing Flashcards
(33 cards)
What are the 2 main types of product to be marketed?
BRAND NEW: products launched to fill a perceived gap in the market, identified through market research/analysis.
EXISTING: a product which may/may not have been updated.
What are the 4 stages of a typical product ‘Life Cycle’?
1. Introduction
2. Growth
3. Maturity / Stabalization
4. Decline
What kind of marketing strategies should be implemented during a product’s Introduction and Growth stages?
Introduction, focus on :
- Getting product to market, gaining recognition/reputation
- Distributing to a few carefully selected channels.
Growth, focus on :
- Increasing the distribution to a wider scope, aimed at a broader target market to encourage growth.
What kind of marketing strategies should be implemented during a product’s MATURITY/STABILIZATION and DECLINE stages?
Maturity/Stabilization :
- Highlight differences between product and competitors which may have newly entered market.
Decline :
- Extend life cycle, improve product, update packaging, reduce price, ID new markets.
Using Cloudy Bay as an example, explain the aim of Branding and its effectiveness :
Branding
- The aim is to move the wine away from simply being a commodity, highlighting its quality/style to convince customers that its worth paying above the minimum price for
Cloudy Bay :
- 2016: updated its packaging to a more modern look, but still instantly recognizable.
- If placed next to a mid-priced, unknown producer of Marlborough, customer may choose Cloudy Bay, even at higher price, because of what it represents vs generic products.
What is the CIM definition of the term BRAND?
The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it - a unique combo which the name/logo of the product/service should evoke in the mind of the audience.
7 ways a brand can create a positive image in the consumer’s mind:
- Substance
- Consumer Trust
- Consumer Engagement
- Brand Story
- Price Premium
- Longevity
- Strong Brand Name
Creating a strong brand image: SUBSTANCE.
Substance :
- Consistency of quality and style
- e.g. non-vintage cuvées of Champagne houses, not marked by vintage variation.
Creating a strong brand image: CONSUMER TRUST.
- As a result of the product consistency, consumers come to trust a brand always to give them what they want.
- Many low-involvement consumers will therefore regularly buy their favourite brand of wine in preference to a cheaper, unbranded alternative which they do not know.
Creating a strong brand image: CONSUMER ENGAGEMENT.
Consumer Engagement :
- The consumer should have a relationship with the brand and will ask for it by name.
- They will feel that the brand’s marketing strategy is aimed directly at them
- Risk of alienating dedicated consumers if any changes are implemented.
Creating a strong brand image: BRAND STORY.
Brand story :
- A successful brand story can create an emotional attachment between the consumer and the brand.
Creating a strong brand image: PRICE PREMIUM.
PRICE PREMIUM
- Many successful brands command higher prices.
- Many consumers see this as a guarantee of quality.
Creating a strong brand image: LONGEVITY.
LONGEVITY
- A number of wine brands overall are newcomers, some have been in existence for a long time, e.g.
- many Champagne houses
- Hardys (1850s)
- Gallo (1930s)
- Mondavi (1960s).
- Longevity is seen as proof of knowledge and quality
Creating a strong brand image: STRONG BRAND NAME.
- strong brand name is very important
- must be easy to remember and easy to pronounce across many languages.
Example of Brand Name that demonstrates importance of translation into other languages (3):
- a brand name might sound prefectly innocent in one language, but may have negative/unwanted connotations in another.
- e.g. ‘Mist’ from St. Tropez (Made In Saint-Tropez).
- ‘Mist’ in German translates to ‘crap’.
Examples of brands that have created different names for different markets (3):
- very common for branding in China
- Penfolds = Ben Fu
- Lafite = La Fei
- Casillero del Diablo = Hong Mo Gui
Examples of wine brands that contain references to geographical features (5)?
Why is this a useful strategy?
Brands that contain references to geographical features:
- Cloudy Bay
- Blossom Hill
- Banrock Station
- Felton Road
- Terrazas de Los Andes.
Such names give the wine a sense of place, link to agriculture.
Examples of wine brands that are names of their founders (2)?
Why is this a useful strategy?
Wine brands that are names of their founders:
- Krug
- Taylor’s Port.
Links the product to its heritage and endows it with a sense of longevity.
Why is trademark registeration important for a brand name?
An example of where this has proven difficult (2)?
- Trademarking the brand name is essentially protecting one’s assets.
- Example: in China, trademarks are given to the first person/company to file an application vs based on usage.
- this has led to expensive legal battles, e.g. Treasury Wine Estate’s battle to cancel prior registration of the trademark ‘Ben Fu’ (Penfolds) by a person not using it.
What demographic is attracted to products with strong stories?
Many consumers, but especially Millenials (those between drinking age and mid-30’s).
How can the story of the wine be told ?
What is the producer’s history?
- Producing wine for generations? If in newer regions, ancestors from older ones and brought vines with them (e.g. Penfolds)?
- Interesting previous career? (e.g. Nicolas Joly)
Where are the grapes grown?
- Single vineyard, with unusual/evocative name (e.g. Sassicaia)?
- Topography; steep, rocky, misty?
How are grapes grown?
- e.g. biodynamics?
How is the wine made?
- Philosophical; organic, biodynamic, ‘natural’.
- Any distinct/ancient processes, or unusual/old equipment?
How is the wine marketed?
- Packaging (label/bottle design)
- Story behind the name
What is meant by ‘Brand Equity’?
How is it calculated?
Brand Equity
- The value of the brand to its owner which includes components such as brand awareness and brand image.
- Some companies employ consultants to calculate financial value of brand equity as asset on balance sheet.
What is meant by the term ‘Brand Position’?
What 4 categories are commonly used?
Where a brand ‘sits’ in the market, in relation to its retail price.
- Inexpensive (Value)
- Mid-priced (Standard)
- Premium
- Super-Premium
Explain what are Private Label wines :
2 examples?
What are the benefits ?
Private Label wines :
- A wine label exclusively made for and sold by a retailer (even though wine inside may be identical to another product) under their own brand name.
- Typically found in USA/UK, in supermarkets, deep discounters and larger chains of bars/restaurants.
- Typically will not display winemaker’s name prominently, or at all
- e.g Sainsbury’s ‘Taste the Difference’ in UK or Costco’s ‘Kirkland Signature’ in USA.
Benefits :
- Increase customer loyalty to the store
- Exclusive offer : can’t be compared as the wine can’t be found elsewhere
- Easier to target your target segment by controling the marketing
