9. Identifying the Product/Brand for Marketing Flashcards
What are the 2 main types of product to be marketed?
BRAND NEW: products launched to fill a perceived gap in the market, ID’d 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 $, 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 expectation 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. NV cuvées of Champagne houses, not marked by vintage variation.
Creating a strong image; CONSUMER TRUST.
- As a result of this 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 $
- 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.
e.g. of Brand Name that demonstrates importance of translation btw/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):
e.g. very common for branding in China
Penfolds = Ben Fu
Lafite = La Fei
Casillero del Diablo = Hong Mo Gui
eg.s of wine brands that contain references to geographical features (5)?
Why is this a useful strategy?
Cloudy Bay, Blossom Hill, Banrock Station, Felton Road, Terrazas de Los Andes.
Such names give the wine a sense of place, link to agriculture.
e.g.s of wine brands that are names of their founder (2)?
Why is this a useful strategy?
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?
And e.g. of where this has proven difficult (2)?
- Trademarking the brand name is essentially protecting one’s assets.
e. g. in China, trademarks are given to the first person/company to file an app 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 w/strong stories?
Many consumers, but especially Millenials (those btw/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 w/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 e.g.s?
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’ UK, Costco’s ‘Kirkland Signature’ 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
