9. Branding Flashcards
Describe the product life cycle
- Introduction
- Growth
- Maturity/stabilisation
- Decline
Describe what marketing is needed in the introduction stage
- Getting the product to the market
- Gain recognition and reputation
- Distribution is limited
Describe what marketing is needed in the growth stage
Increase distribution
Enlarge target market
Describe what marketing is needed in the maturity stage
Highlight difference with competitors which will have entered the market
Describe what marketing is needed in the decline stage
Take steps to extend life cycle e.g. improve product/packaging or reduce price
Explain the importance of branding
Without branding, consumers would choose the lowest price for the intended style, and the more expensive options would decline
Give an example of the benefit of branding
A consumer sees 2 bottles of Marlborough Sauvignon Blanc with the same quality, one medium priced from an unknown producer and one premium priced from the very well known Cloudy Bay. Many consumers will still choose the more expensive one
Define “brand”
The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it
How can a brand create a positive image in the consumers mind
- Substance
- Consumer trust
- Consumer engagement
- Brand story
- Price premium
- Longevity
- Strong brand name
Explain substance, and give an example
- Consistent quality/style: Non Vintage Champagne in a house style
Explain consumer trust, and give an example
As a result of consistency
- Supermarket own-brand wine, which will be favoured over unknown cheaper wine
Explain consumer engagement, and give an example
Small changes to the market strategy should be considered carefully
- Cloudy Bay packaging changed in 2016 but stayed very recognisable
Give examples of brand story
- Producers history
- How did the wine region establish
- Where are the grapes grown
- How is the wine made
- The name, label, bottle design
- Other people
Explain price premium
Many consumers view high price as a guarantee of quality
Explain longevity, and give examples
How long does the brand exist
- Hardys 1850
- Gallo 1930
- Robert Mondavi 1960
Give examples of succesful brand names
Easy to remember
Easy to pronounce
- Penfolds becomes Ben Fu
- Lafite becomes La Fei in China
Innocent in all languages
- Mist (Saint-Tropez) means excrement in German
Geographical features
- Felton Road
- Cloudy Bay
- Blossom Hill
Company founder
- Champagne: Krug
- Taylor’s Port
Give an example of trademark registration
In China, trademarks are given to the first person to file an application. Treasury Wine Estates had to enter a legal battle to cancel the prior registration of Ben Fu, by a person who did not use it commercially
What are the different types of brands
- Brand position
- Private label
- Ladder brand
- Soft brand
- Luxury brand
Explain brand position, and give examples
Where a brand sits in a market, often linked to retail price
- Symington Family Estates raised position by modernising production, updating image, introducing new high-end products
- Hardys, variety of brands positioned in different parts of the market to attract as much consumers as possible
Explain ladder brands
- Accessible: inexpensive, great distribution
- Stretch: affordable for special occasions
- Aspiration: prestigious expression, cast identity over the entire ladder
Not helpful with low-involvement consumers
Give an example of a Champagne ladder brand
- Accessible: Pol Roger non-vintage
- Stretch: Pol Roger vintage
- Aspiration: Pol Roger Cuvée Winston Churchill
Give an example of a Bourgogne ladder brand
- Accessible: Bourgogne Rouge
- Stretch: Gevrey-Chambertin
- Aspiration: Le Chambertin Grand Cru
Explain soft brand, and give examples
When a consumer prefers one product, for example because of its origin, region, GI, variety, style,..
- Pouilly-Fumé AOC: most producers are too small to become a well known brand, but they benefit from AOC reputation
- AVAs are growing in number, in California
Explain a luxury brand, and give examples
Super-premium priced wines, inculding Champagne prestige cuvées, Bordeaux Premier Cru Classé, expensive Californian wine
Promote following assets:
- Scarcity (not always true)
- quality of fruit
- expenses during winemaking
- rich heritage
Promoting idea of luxury:
- Sponsor of luxury events
- Upmarket retailers
- Fine dining restaurants
