Identifying Product/Brand to Market

Question 1

What are the stages of a product’s life cycle?

Answer 1

1. Introduction
2. Growth
3. Maturity/stabilization
4. Decline

Question 2

What should be the focus of the marketing strategy during the introduction stage?

Answer 2

• Getting the product into the market
• Establishing a reputation/gaining recognition
• Possibly limiting distribution to a select number of channels

Question 3

What should be the focus of the marketing strategy during the growth stage?

Answer 3

• Increase distribution channels
• Widen audience

Question 4

Why do products hit a plateau after the growth stage?

Answer 4

• Most consumers have already bought the product
• Competition has increased

Question 5

What should be the focus of the marketing strategy during the maturity/stabilization stage?

Answer 5

• Highlighting differences from competitors

Question 6

What should be the focus of the marketing strategy during the decline stage?

Answer 6

• Enter new markets
• Innovate (eg. improve the product, change the packaging)
• Lower prices

Question 7

What does branding do for a product?

Answer 7

Lessens the direct correlation between quality and price

The product is no longer a commodity, and consumers will pay more for a brand they identify with

Question 8

How does the reading define a “brand”?

Answer 8

“the set of physical attributes of a product or service, together with the beliefs and expectations surrounding it – a unique combination which the name or logo of the product or service should evoke in the mind of the audience”

Question 9

What are some factors that can lead to a brand’s success?

Answer 9

• Substance
• Consumer trust
• Consumer engagement
• Brand story
• Price premium
• Longevity
• Brand name

Question 10

What does it mean for a brand to have substance?

Answer 10

The brand delivers consistent quality and style (eg. a Champagne houses’ style of NV bottlings)

Question 11

How is consumer trust built?

Answer 11

• A result of a brand’s substance
• Low-involvement consumers will regularly buy their favorite brands rather than brands they don’t know
• A very important factor in supermarket branded wines

Question 12

What does it mean for a brand to have consumer engagement?

Answer 12

• Consumer feels their favorite brand’s marketing is aimed directly at them
• A sense of personal ownership of brand and becomes a channel for self-expression
• Any small changes in branding risk alienating loyal consumers

Question 13

Why are brand stories important?

Answer 13

• Emotional and personal connection with brand
• Younger consumers heavily attracted to wine with a story
• Creates a sense of authenticity and origin
• Connects product with price/POS

Question 14

Why is a price premium important in branding?

Answer 14

Most consumers view higher-priced items as higher in quality

Question 15

What is a brand’s longevity?

Answer 15

Longevity is how long the brand has been established

Question 16

What are some factors in choosing a successful brand name?

Answer 16

• Easy to remember
• Accessible in markets that speak different languages (translation is appropriate, easy to pronounce. Eg. Penfolds/Ben Fu in China)
• Connects to brand story (geographical or family name)

Question 17

What is brand equity?

Answer 17

The value of a brand to its owner

Measured by:
- Brand awareness
- Brand image
- A calculated $ amount

Question 18

What is brand positioning?

Answer 18

A brand’s position is where it’s value lies in relation to other brands in the market (usually measured by retail price)

Question 19

What’s a common method of categorizing brand positioning?

Answer 19

• Value
• Standard
• Premium
• Ultra-Premium

Question 20

At which point of the product life cycle is a brand’s position established?

Answer 20

Usually at launch (introduction)

• Position can lower to remain competitive
• Position can raise over time through improvement to product, updating brand image, and introducing higher-end products (rarely happens)

Question 21

What is a benefit to a value brand position?

Answer 21

Higher volume of sales

Question 22

What is a way to for a producer to market their products across a range of brand positions?

Answer 22

Create a ladder brand, which consists of positions for products at three distinct tiers

Question 23

What are the three tiers of a ladder brand?

Answer 23

• Accessible
• Stretch
• Aspirational

Question 24

What characterizes the Accessible tier of a ladder brand?

Answer 24

• Least expensive
• Most widely distributed
• Most regularly consumed

Question 25

What characterizes the Stretch tier of a ladder brand?

Answer 25

Affordable for the average consumer, but only for special occasions

Question 26

What characterizes the Aspirational tier of a ladder brand?

Answer 26

• Most prestigious wine of the producer
• Most consumers will never buy it
• Creates a premium identity for the entire ladder brand

Question 27

What’s an example of a region that often markets a ladder brand?

Answer 27

Champagne

• NV Bottling
• Premium Cuvees (BdB, Vintage, Single vineyard)
• Tete de Cuvee

Question 28

How can “soft brands” create ladder systems?

Answer 28

Burgundy is the best example

• Bourgogne Rouge
• Gevrey-Chambertin
• Chambertin Grand Cru

Question 29

When are ladder brands unhelpful?

Answer 29

When the consumer base is low involvement

• The identity of the brand will be associated with the bottom rung
• Few consumers will be aware of the aspirational rung
• Those who know about the stretch and aspirational rungs will consider them overpriced

Question 30

What is a soft brand?

Answer 30

A cue to consumers to influence consumer preference towards one product over another

• Geographic Indications
• Country of Origin
• Grape
• Style of wine

Question 31

What is a luxury brand? What are it’s key characteristics?

Answer 31

No agreed definition

• Super-premium prices
• Perception of scarcity
• Brand story highlights quality of vineyard/fruit, expensive winemaking techniques, heritage
• Sponsors luxury events
• Positioning in high end retailers

Question 32

What are the five largest wine brands as of 2020?

Answer 32

1. Yellowtail (AUSTRALIA)
2. Casillero del Diablo (CHILE)
3. Gallo Family Vineyards (USA)
4. Jacob’s Creek (AUSTRALIA)
5. Barefoot (USA)