978-1259709074 Chapter 11 Part 2

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Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

9 You are the brand manager for a firm that makes herbs, spices, and other food additives. You

have had complaints from some of your retail outlets that they are finding empty bottles of

pure vanilla extract stashed around the store. Apparently, due to the high (35 percent) alcohol

content of pure vanilla extract, people are grabbing the cute little bottles, having a drink, and

getting rid of the evidence. Anecdotal evidence from store employees indicates that the

majority of the imbibers are teenagers. The cost of placing a tamperproof cap on the extract is

a relatively insignificant percentage of the purchase price but will make it more difficult to

open, particularly for older customers. Also, there has been a significant rise in sales to

retailers as a result of the vanilla “addicts.” What should you do?

Student answers will vary. This question leads the student to examine the ethical aspects of packaging

and its impact on the brand.

Students should address the low cost of the tamperproof cap and its benefits to keeping the product safe

Quiz Yourself

1 As the size of retail firms has increased through growth and consolidation, more retailers have

developed _____ merchandise, which they use to establish a distinctive identity.

a. generic

b. copycat

c. private-label

d. manufacturer

e. co-branded

2 Brand equity is determined by four aspects of a brand. Which of the following is not one of the four

aspects?

a. Brand awareness

b. Perceived value

c. Brand associations

d. Brand quality

e. Brand loyalty

Chapter Case Study: From the Counterculture to the Runway: How Did

Birkenstocks Become Fashionable?

1 Visit the company website (https://www.birkenstockusa.com/) and identify and describe the different

product lines that it markets.

Per the company’s website:

BIRKENSTOCK CLASSIC

The perfect synthesis of form, function, and elegance: the models of the BIRKENSTOCK Classic range.

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

BIRKENSTOCK EVA

EVA sandals are perfect for the beach, garden, leisure time, and wellness environment.

BIRKENSTOCK KIDS

Parents know the importance of the right footwear when it comes to the development of their children’s

feet.

BIRKENSTOCK & FRIENDS

The BIRKENSTOCK & Friends range is just the ticket for anyone who loves hanging out with their friends

from comics and science fiction.

BIRKENSTOCK SHOES

A large collection of BIRKENSTOCK closed-toe shoes to choose from.

BIRKENSTOCK PROFESSIONAL

Anyone who works in a demanding environment needs footwear they can count on. And BIRKENSTOCK

offers just that.

PAPILLIO

With its fresh collections, Papillio is aimed at women who appreciate stylish yet comfortable sandals.

ALPRO

These knee guards and protectors are designed for all kinds of manual labor. With Alpro, construction site

and DIY injuries are a thing of the past.

BIRKENSTOCK LEGWEAR

BIRKENSTOCK socks are inspired by the original footbed and make the perfect addition to

BIRKENSTOCK shoes.

2 Describe its product line breadth

The breadth of the product lines varies depending on the product line.

3 Review the different product categories in each of the company’s product lines. Which has the

greatest depth? Which has the least?

The BIRKENSTOCK CLASSIC line has the greatest depth, whereas the ALPRO has the least.

4 How has the company positioned its brand? How does it go about communicating its

position?

Birkenstock wants to be perceived as a manufacturer of glove-leather, designer footwear. Overall, the

company has expanded on its traditional family–friendly and natural image. The new image is to be “edgy

and fashionable footwear that shoe-obsessed, ultra-cool Carrie Bradshaw might wear strolling down

Madison Avenue in HBO’s Sex and the City.” In addition, it has expanded “its fledgling children’s market

and its ‘professional’ shoes aimed at surgeons, chefs and others who stand for long hours.”

Source: Debra De-Jong, “Marketing Birkenstock – from hippie to hipster,”

http://debradejong.blogspot.com/2006/01/marketing-birkenstock-from-hippie-to.html, (accessed on

10/24/2016).

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

Additional Teaching Tips

This chapter examines product lines, mix, and breadth. Different branding strategies are addressed.

Students use critical thinking skills to discover why brands are valuable to a firm. Product packaging and

labeling also contribute to the firm’s overall strategy and those concepts are also reviewed in this chapter.

This is a fun exercise to get students excited about brands. To demonstrate the value of a brand,

instructors may want to start the topic discussion by gathering brand symbols and brand character icons

without any identifying writing on them. These can be obtained through a web search of the character; for

instance, type “Tony the Tiger” in your search engine and download the graphic. Place the symbols on a

transparency in color. Start the class by dividing the class into four or five groups. The instructions: The

leader is to write down the brand name from input of group members. Time the exercise. It usually

doesn’t take long depending on how many characters you use. At the conclusion declare a winner and

then ask the students “Why are brands valuable?” Students realize the importance of brand recognition

through the brand character or icon.

Online tip: The same exercise can be used in an online forum in synchronous connection with the

class where each of the brand characters are shown. The first student that types in the correct brand

name would “win” and the instructor shows the next image. A synchronous course discussion can then

occur about the importance of the brand character/logo.

Product packaging is known as the last five seconds of marketing. Instructors can bring in an empty

Pringles can as well as other interesting examples of packing. Pringles is one of the first package designs

to protect from breakage of food items such as potato chips. The class can address how packaging

becomes the last five seconds of marketing. Package label requirements by the FDA and package design

for shelf space should also be addressed.

Connect Activities

Activity

Type

Learning Objectives 11–

Band-Aid: Building on the Value of

the Brand

Case Analysis

Types of Products

Click & Drag

Branding Strategies

Click & Drag

Frito-Lay Branding with Doritos

Video Case

Three Stripes: Branding at adidas

Video Case

ISeeIt Video Case: Brand Equity

Video Case

Band-Aid: Building on the Value of the Brand

▪ Activity Type: Case Analysis

▪ Learning Objectives: 11-03, 11-05, 11–07

▪ Difficulty: Hard

▪ Activity Summary: The case discusses how Band-Aid manages its product mix. Students answer

questions that apply chapter concepts to the case.

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

Activity

▪ Introduction: The Band-Aid brand, which is a part of global consumer goods giant Johnson &

Johnson, is widely known as a leader in the wound-care market. Band-Aid has built its brand

reputation through continued product innovations and line expansions, helping Band–Aid become one

of the most recognized names in bandages, gauzes, and tapes. In this mini-case, we focus on Band–

Aid’s branding and product strategies.

▪ Concept Review: The value of a brand translates into brand equity, or the set of assets and liabilities

linked to a brand that add to or subtract from the value provided by the goods or service. Firms

institute a variety of brand-related strategies to create and manage key brand assets. These

strategies can include branding policy, decisions to extend the brand name to other products and

markets, using the brand name cooperatively with that of another firm, and licensing the brand to

other firms.

Follow-Up Activity

Individually or in small groups, ask students to visit the Band-Aid website and map out their product mix

(i.e., identify different product lines, and the products in those lines). Assess the depth and breadth of the

product mix and product lines.

Types of Products

▪ Activity Type: Click & Drag

▪ Learning Objectives: 11–02

▪ Difficulty: Medium

▪ Activity Summary: Students are asked to classify four product examples according to the product

type each one represents.

Activity

▪ Introduction: Consumer products are products and services used by people for their personal use.

Marketers categorize consumer products into several categories; this helps marketers determine the

appropriate pricing, promotion, and placement strategy. In this activity, you will be asked to determine

which product falls into which category.

▪ Concept Review: Marketers classify consumer products by the way the products are used and the

way that they are purchased. Four main product categories include specialty goods/services,

shopping goods/services, convenience goods/services, and unsought goods/services.

Student are asked to view descriptions of four products, and to classify each one according to its product

type.

Follow-Up Activity

In small groups, ask students to think of some products that could be classified as more than one of the

four product types, depending on the consumer.

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

Branding Strategies

▪ Activity Type: Click and Drag

▪ Learning Objectives: 11–06

▪ Difficulty: Medium

▪ Activity Summary: Students match five different brand examples with different brand naming

strategies.

Activity

▪ Introduction: A brand name can add value to a product beyond its physical and functional

characteristics. However, marketers often need to make very tough decisions regarding the basic

positioning of the brand. The following exercise requires you to distinguish between the various

branding strategies marketers use.

▪ Concept Review: Firms institute a variety of brand-related strategies to create and manage key

brand assets such as the decision to own the brands, establishing a branding policy, extending the

brand name to other products and markets, cooperatively using the brand name with that of another

firm, and licensing the brand to other firms.

Brands can be owned by any firm in the supply chain, whether manufacturers, wholesalers, or

retailers. There are two basic brand ownership strategies: manufacturer brands and private-label

brands.

Follow-Up Activity

▪ Class discussion: As shown in the exercise, Kellogg’s uses a family brand strategy, with its various

types of cereal branded with the Kellogg’s name plus an individual product name (Kellogg’s Frosted

Flakes, Kellogg’s Corn Flakes, and so on).

▪ Show the Kellogg’s product mix (from its website). Ask the students what basically everything in the

product mix has in common (nearly all are breakfast foods). Have the students think of some brand

extensions that would fit the Kellogg’s brand well … and some others that would be a poor fit.

▪ If you have the time to continue, next go to the General Mills website and conduct a similar

investigation. Their product mix covers a much wider range of products. This may be why, although

the General Mills brand logo does appear on their cereal boxes, it tends to be much less prominent

than is the Kellogg’s logo. “Kellogg’s” has strong brand associations with “breakfast” and “cereal,”

whereas “General Mills” does not.

Frito-Lay Branding with Doritos

▪ Activity Type: Video Case

▪ Learning Objectives: 11-04, 11-05

▪ Difficulty: Medium

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

▪ Activity Summary: This video discusses a Doritos rebranding campaign that used several online

channels. After the video ends, students are asked questions about the video and related course

concepts.

Activity

▪ Introduction: Why is the Doritos brand valuable to Frito-Lay and what are the different branding

strategies Frito-Lay uses? This video addresses these questions. It also explains the value of the

Doritos line packaging and label, which must send out a strong message from the shelf.

▪ Concept Review: Branding provides a way for a firm to differentiate its offerings from those of its

competitors. A brand name can represent an entire product assortment, one product line, or a single

item. Brand names, logos, symbols, characters, slogans, jingles, and even distinctive packages

constitute the various brand elements that firms hope customers will recognize and remember.

Brands add value to goods and services beyond physical and functional characteristics.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activity

In class, visit the Doritos website to explore the company’s most recent promotion(s). As of this writing,

Doritos is conducting a “Bold Missions” promotion, challenging product fans to perform various unusual

tasks and post evidence on social media (which they then display on the site). Doritos is also awarding

prizes for completion of the tasks. This is a promotion of the Doritos “Bold Flavor” experimental flavors. As

such, it is very much in the same spirit as was the promotion discussed in the video.

Three Stripes: Branding at adidas

▪ Activity Type: Video Case

▪ Learning Objectives: 11-04, 11-05, 11–06

▪ Difficulty: Medium

▪ Activity Summary: This video explains the adidas branding strategy, in particular describing the

brand naming strategy and how the “three stripes” logo is used on the brand’s products. After the

video ends, students are asked questions about the video and related course concepts.

Activity

▪ Introduction: The “three stripe” logo on all adidas products is an important element of the brand,

designed to help consumers identify that the product comes from adidas. Originally, all of the

company’s products were branded under the adidas name; however, over time the company has

developed some sub-brands to serve specific target markets.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Chapter 11 – Product, Branding, and Package Decisions Marketing 6th

McGraw-Hill Education.

Follow-Up Activity

Have students visit the Nike website. What is Nike’s branding strategy for its shoes?

As of this writing, you can view this information at http://store.nike.com/us/en_us/pw/shoes/brk?ipp=120

Nike currently has sub-brands for different shoe technology as well as a “Nike Free” collection.

ISeeIt Video Case: Brand Equity

▪ Activity Type: Video Case

▪ Learning Objectives: 11-05, 11-06

▪ Difficulty: Easy

▪ Activity Summary: This video case looks at sources of brand equity for a coffee business.

1. Activity

▪ Introduction: One of the core decisions in marketing is branding, where an organization uses a

series of identifiable symbols, names or phrases to distinguish itself from competitors. In order to

understand the effectiveness of these initiatives, businesses must evaluate brand equity, brand

awareness, perceived value, and associations to their brand. The Coffee Collective appreciates this

importance and needs to establish a deeper understanding of its brand equity within the

market. Martha uses a survey and loyalty program to better gauge what consumers think when they

hear Coffee Collective, what customers perceive as the value of buying coffee at the Coffee

Collective, and what associations they may have with her store. From what she has learned about the

brand equity of her business, Martha can develop an appropriate branding strategy to help ensure

that her business maintains its relevance within the marketplace.

▪ Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.