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Product and Brand Management

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Product and Brand Management

    Goizueta Business School of Emory University

    Bus547 Product and Brand Management

    Fall Semester 2004

Bus547 TuTh 2:30-3:45pm, GBS 331 Douglas Bowman (404-727-5008; h: 404-851-9605)

    Bus547P Th 6:30-9:30pm, GBS 331 514 GBS, Doug_Bowman@bus.emory.edu

     T.A.‟s: Dante Bellizzi, Tam‟ra Osborne

Career Focus

    The course is designed for both marketing specialists and generalists. The course exposes students to the

    contemporary challenges faced by a broad variety of firms in developing and launching new products, creating and

    maintaining brand equity, and managing their product lines. The settings of the cases and exercises used in the

    course are quite diverse in terms of the sizes of the organizations involved and the types of markets they serve. Hence,

    the course is relevant to students whose interests are in general management and consulting as well as those who

    expect to work directly in brand or product management.

Product management is typically used to describe a wide range of activities centered around a product or product line.

     Product management is often the preferred organizational approach in high technology and industrial markets, and in

    consumer products companies who favor a product category focus.

Brand management has traditionally been associated with consumer products and services markets, though there is

    increasing interest in branding by firms who operate in industrial markets. The brand manager‟s key focus is

    developing and building the brand itself, which may extend across multiple product categories.

    Course Objectives The principal aim of the course is to develop students' skills in areas related to:

    ? developing and introducing new products, and formulating strategies for managing a line of products;

    ? formulating strategies for building, leveraging, and defending brands;

    ? managing integrated campaigns to influence customer and trade behavior; and

    ? working with data of the types that are typically available to brand and product managers.

By the end of the course, the objective is that you will have acquired skills that will allow you to manage your

    products and brands to achieve a sustainable competitive advantage, command greater price premiums, and efficiently

    allocate your marketing resources.

Course Description

    The course is centered on two themes:

    a) managing products and product lines, and

    b) creating and maintaining brand equity.

    Reading Materials Cases: Available from Study.net

Readings: Library Reserves (https://ereserves.library.emory.edu/reserves/index.php?skin=bus))

Required text and software license (1 per person): James, Stuart W., Thomas C. Kinnear and Michael Deighan

    (2004), PharmaSim: A Brand Management Simulation, Version 3, Charlottesville, VA: Interpretive

    Software Inc. Purchased directly from the vendor at www.interpretive.com/emory_bus547/ for about $40.

    Last day to register is Sept.30.

     ndText: Keller, Kevin Lane (2003), Strategic Brand Management, 2 Edition, Upper Saddle River, NJ: Prentice-stHall (referred to later as SBM) (1 edition is fine too). Four copies will be available on library reserves for

    short-term check-out if you do not want to purchase it.

    BUS547 - Bowman (Fall/04)

    Materials for Group Exercises

    Required text and software (1 per group):

    Option 1: The two cases we‟re using are available from Study.net ($15 each)

    Option 2: Buy or borrow a copy of version 1 in book + CD-Rom form (it must have the CD-Rom)

    Lilien, Gary L. and Arvind Rangaswamy (1999), New Product and Brand Management, Reading,

    MA: Addison Wesley Longman, Inc.

    (referred to later as MktgEng; they from a full-length text titled Marketing Engineering)

Grading

    Grading Element Length Due Date Weight

    Group Write-ups (best 4) 20%

     Segmentation exercise (MktgEng) n/a Thurs. Sept.23

     Speaker critique (done individually) 2 pages Thurs. Sept.23

     Report card / Master brand exercise 2 pages Thurs. Sept.30

     Conjoint analysis (MktgEng) n/a Thurs. Oct.21

     Burberry case write-up 2 pages Thurs. Nov.4

     Market response exercise n/a Thurs. Nov.11

     Syndicated data exercise n/a Thurs. Nov.11

    Group PharmaSim

     Situation Analysis 2 pages Thurs. Oct.29 5%

     Report 6 pages Tues. Nov.30 25%

    Participation - - 20%

    Exam (short answer) 90 minutes Tues. Dec.10 30%

    100%

    All written work is due at the beginning of class on its due date. Please mind the due dates extensions will be granted only for the most creative of excuses.

Optional “P” Grade Alternative:

    You may skip the final exam and receive a grade of “P” for the course if you satisfy all of the following criteria:

    ? Group write-ups: Average 3.5 out of 5 or better on your four best group write-ups.

    ? PharmaSim: Passing grade on the Situation Analysis plus a grade of 10 out of 15 or better on your group

    Report and not be flagged by your group as a “free rider”.

    ? Participation: 1-2 “very good” participation classes plus 1-2 with any participation.

    ? End of course attendance: Attend the last two classes (PharmaSim wrap-up and course wrap-up).

    I will email those who do not qualify for this option (and hence must take the exam in an effort to pass the course) on

    Friday, Dec. 3.

    Be Sure to Schedule Time for PharmaSim Before Your Calendar Fills Up This exercise requires 15+ hours of group work. Past students have highly recommended working in a breakout

    room at GBS using a group member‟s laptop or at the home of any group member who has a printer. We begin

    Thursday, October 28 with the final report due Tuesday, November 30.

    Decisions 1-2: 4 hours; Decisions 3-10: up to 1 hour per decision (complete by Thurs. Nov.18);

    Final report (up to 6 pages + Exhibits and due Tues. Nov.30: 4-5 hours)

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    BUS547 - Bowman (Fall/04)

    Group Write-ups (Best 4)

    Guidelines: Where a page limit is indicated, all reports are up to two 8.5x11” pages plus any number of exhibits (all

    exhibits must be referred to and interpreted in the text). You pick the font and margin, so major

    penalties for exceeding the page limit. No covers or binding please just staple the pages in the top

    corner. Include a title page with your names and staple it in the top corner.

    You pick the groups. Yes, you may change groups throughout the semester. Grading standards are

    invariant to group size. Yes, you can do these individually.

Segmentation Exercise (Thurs. Sept.23)

    Conglomerate Inc‟s New PDA Case (purchase for $15 from Study.net; select the “course” MktgEng –

    Cluster Analysis). Answer the questions after the case.

Speaker Summary and Critique Must be done individually (2 pages + exhibits).

    Synthesize and critique comments made by a speaker who spoke to the other section of the course (i.e.,

    Derek Schiller, Sept.16 8-9pm). This is not available for speakers scheduled for the section you regularly

    attend nor for any outside speakers (e.g., Deans speakers, clubs, etc.). The primary reason for allowing this

    as an exercise is to encourage you to hear as many of the speakers scheduled for this class as possible. This

    can only be done individually (not in a group).

Brand Report Card / Master Brand Exercise (2 pages + exhibits) (Thurs. Sept.30)

    Visit the virgin.com website to view the portfolio of products under the Virgin brand. Apply the principals

    from the “Strategies for Leveraging Master Brands” reading. Is Virgin a master brand? Characterize the

    extensions based on this brand? Apply the principals from the “Brand Report Card” reading. How does the

    Virgin brand measure up?

Conjoint Analysis Exercise (Thurs. Oct.21)

    Forte Hotel Design Case (purchase for $15 from Study.net; select the “course” MktgEng – Conjoint

    Analysis). Answer the questions after the case.

Burberry Case Write-up (2 pages + exhibits) (Thurs. Nov.4)

    Write a report to senior management recommending a brand plan for the next five years (2004-09). Be sure

    to address issues related to the sustainability of the brand‟s current positioning, and establishing a

    foundation for growth, and how you will grow the brand.

Market Response Modeling Exercise (Thurs. Nov.11)

     To be distributed.

Syndicated Data Exercise (Thurs. Nov.11)

     To be distributed.

Note: Do not feel compelled to do all the exercises; one can simply do four of their choice.

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    BUS547 - Bowman (Fall/04)

    Group PharmaSim Simulation

Instructions to be distributed.

Schedule highlights: Sept.30: Last day to register to access the software.

     Oct.1-28: Familiarize yourself with the software. Periods 1-2 can be “played” unlimited

    times.

    Thurs. Oct.29: Begin team “play”. Hand-in PharmaSim Situation Analysis report.

    Software re-set to Period 0.

    Thurs. Nov.18: All decisions (1-10) must be completed.

    Tues. Nov.30: Final report due (6 pages + exhibits)

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    Bus547 Class Schedule

     Week of Tuesday Thursday

    Traditional Brand Management Introduction to Product & Brand Mgmt 1 Sept. 6 Read: “P&G” (reserves) Read: Ch.1-2 (SBM) Case: Procter & Gamble

    STP; Demographics

    Read: “Beginners Guide to Demographics” Market Assessment; STP

    2 Sept. 13 Read: Ch.3 (SBM); “Chap 6: Brand Positioning” (reserves); “Defining Moments” (reserves) (reserves) Case: XM Satellite Radio

    8-9pm, room 130: Derek Schiller, Atlanta Braves

    Building Brand Equity; Marketing of

    Experiences

    Read: “Hot Starbucks to Go” (reserves); “The Linking Consumer Insights to Brand Planning

    Read: Ch.12 (SBM) Power of Design” (reserves); “How to Lead the 3 Sept. 20 Case: Black & Decker Corp. Customer Experience” (reserves); “How Global Background: Ch.4 (SBM) Brand Compete” (reserves)

    Background: Ch.5,11 (SBM)

    Hand-in: Segmentation exercise

    Brand Leveraging II

    Read: “Strategies for Leveraging Master Brands” Brand Leveraging I

    4 Sept. 27 Case: Stainmaster (reserves); “The Brand Report Card” (reserves) Background: Ch.7 (SBM) Case: The Virgin Group

    Hand-in: Brand report card / master brand exercise Retailing; Private Label Brands

    Read: “How Should National Brands Think About Building a Product/Brand - Channels Private Labels? (reserves) Read: “Science of Shopping” (reserves); “The Old 5 Oct. 4 Case: Wal-Mart Neighborhood Markets case Pillars of New Retailing” (reserves) Case: H-E-B Own Brands Case: Eddie Bauer, Inc. Background: Note on the Retailing Industry

    (study.net)

    New Products

    Read: “Chap 9: New Products” (reserves); “Product 6 Oct. 11 Break (no class) by Design” (reserves)

    Background: sawtoothsoftware.com Market Response Models I Market Response Models II Read: “What Educated Citizens Should Know 7 Oct. 18 About Statistics and Probability” (reserves) Hand-in: Conjoint analysis exercise Background: infores.com; nielsen.com

    PharmaSim: Brand Mgmt Simulation Building a Product/Brand Price & Promotion Read: “Marketing Planning” (reserves); The entire Read: “Chap 10: Pricing Decisions”; “Market 8 Oct. 25 PharmaSim manual. Makers”; “Chap. 12: Promotions” (reserves) Hand-in before you start the simulation: Case: Coca-Cola‟s New Vending Machine PharmaSim Situation Analysis Product Line Planning Building a Product/Brand Communications Read: “Extend Profits Not Product Lines” Read: “ Nightmare on Madison Avenue” (reserves) (reserves); “Customer-Centered Brand Case: Burberry 9 Nov. 1 Management” (reserves) Background: Ch.6 (SBM); “Chap 11: Advertising Case: Brita Products Company Decisions” (reserves)

    Background: Ch.13 (SBM) Hand-in: Burberry case write-up Metrics for Brand Managers PharmaSim: Brand Mgmt Simulation Read: Ch.8-10 (SBM); “How Do Brands Create (no in-class meeting) 10 Nov. 8 Value?” (reserves); Habitat for Humanity Hand-in: Market response exercise International (study.net) Hand-in: Syndicated data exercise Background: Revenue Premium as a ..”

    Challenges Facing Product & Brand Mgrs PharmaSim: Brand Mgmt Simulation 11 Nov. 15 Panel of speakers. (no in-class meeting) Due: Last day to complete PharmaSim decisions PharmaSim: Brand Mgmt Simulation 12 Nov. 22 Thanksgiving (no class) (no in-class meeting)

    The Future of Product Management, Branding PharmaSim: Brand Mgmt Simulation and Brand Management 13 Nov. 29 Wrap-up Read: “The Claritin Effect” (reserves); “Corporate Hand-in: PharmaSim report Graffiti (reserves)

    14 Dec. 6 Exam (short answer); 90 minutes

    Class Preparation Guide

Week 1

    1.1 Introduction to Product & Brand Management

    Read: Ch.1 Brands and Brand Management (SBM);

    Ch.2 Customer-based Brand Equity (SBM)

1.2 Traditional Brand Management

    Read: Fortune (2004), “P&G: Teaching an Old Dog New Tricks,” May 31, pp.166-180 (reserves).

Case: Procter & Gamble (A)

    1. Why is P&G so successful in the LDL category?

    2. How is the LDL market segmented? What is the logic underlying the positioning of P&G‟s

    existing brands?

    3. How do consumers buy and use LDLs?

    4. What should P&G do with H-80?

    Internet: pg.com

Week 2

    2.1 Market Assessment; STP (Segmentation, Targeting, Positioning)

    Read: Ch.3 Brand Positioning and Values (SBM)

    “Chap 6: Brand Positioning” (reserves)

Background: “Tutorial for Cluster Analysis” (study.net)

    “Direct Market Segmentation Using Customer Needs” (study.net)

2.2 STP; Demographics

    Read: Miller, Berna (1995), “A Beginner‟s Guide to Demographics,” American Demographics,

    October, 54-61 (reserves).

    Schewe, Charles D., Geoffrey E. Meredith and Stephanie M. Noble (2000), “Defining

    Moments: Segmenting by Cohorts,” Marketing Management, 9(3), 48-53 (reserves).

Case: XM Satellite Radio

    1. What is the value proposition of XM to different customer segments? Who should be the

    primary target for XM?

    2. What aspects need to be considered in pricing the radio receiver and subscription fee?

    What is the optimal price for monthly subscription? Assume a five-year lifetime for a

    customer. How would your answer change if the lifetime was longer or shorter?

    3. How should the price of the service change over time? Should you price high initially and

    then decrease it over time? Should you price low initially and then increase it over time?

    4. What aspects need to be considered in allowing advertising to run on XM‟s service? How

    does the fact that the firm could also earn money on advertising affect the optimal

    subscription price?

    5. What are the implications of the expected launch pans for XM‟s rival Sirius?

    Speaker: 8-9pm, room 130, Derek Schiller, VP Sales & Marketing, Atlanta Braves

    BUS547 - Bowman (Fall/04)

    Week 3

    3.1 Linking Consumer Insights to Brand Planning

    Read: Ch.12 Introducing and Naming Products and Brand Extensions (SBM)

Case: Black&Decker Corp. (A): Power Tools Division

    1. Why is Makita outselling B&D 8 to 1 in an account that gives them equal shelf space?

    2. Why are B&D's shares of the two professional segments (industrial and tradesmen) so

    different? Wouldn't you expect them to be similar?

    3. Joe Galli's goal is "to develop and gain corporate support for a viable program to challenge

    Makita for leadership in the tradesmen segment" (p. 1). This goal translates into a "minimal

    objective of doubling B&D's Professional-Tradesmen segment share from 10% to nearly

    20% within three years, with major share 'take-away' from Makita" (p. 12). How realistic is

    this?

    4. Would you support the "build share" strategy? How would recommend pursuing it?

    Evaluate the DeWalt and sub-branding options. Be specific about what you advocate,

    keeping in mind that you have three constituencies to convince: tradesmen, retailers, and

    Nolan Archibald.

    Internet: blackanddecker.com/

    Background: Ch.4 Choosing Brand Elements to Build Brand Equity (SBM)

3.2 Building Brand Equity; Marketing of Experiences

    Read: Fortune (2004), “Hot Starbucks to Go,” January 26, pp.60-74 (reserves).

    BusinessWeek (2004), “The Power of Design,” May 17, pp.86-94 (reserves).

    Haeckel, Stephan H., Lewis P. Carbone and Leonard L. Berry (2003), “How to Lead the

    Customer Experience,” Marketing Management, January/February, 18-23 (reserves).

    Holt, Douglas B., John A. Quelch and Earl L. Taylor (2004), “How Global Brands Compete,”

    Harvard Business Review, September, 68-75 (reserves).

    Background: Ch.5 Designing Marketing Programs to Build Brand Equity (SBM)

    Ch.11 Designing and Implementing Branding Strategies (SBM)

Hand-in: Segmentation exercise

Week 4

    4.1 Brand Leveraging I

    Case: DuPont Stainmaster

    1. What were the critical elements for success in the Stainmaster marketing program?

    2. How did DuPont benefit from the Stainmaster introduction?

    3. Did fiber competitors benefit from Stainmaster?

    4. Did carpet mills benefit from Stainmaster?

    5. Did carpet retailers benefit from Stainmaster?

    6. What changes would you have made in the implementation of the original program?

    7. What are the important decisions facing DuPont on Stainmaster in 1988?

    Internet: dupont.com/stainmaster/

    Background: Ch.7 Leveraging Secondary Brand Knowledge to Build Brand Equity (SBM)

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    BUS547 - Bowman (Fall/04)

    4.2 Brand Leveraging II

    Read: Farquhar, Peter H., Julia Han, Paul M. Herr, and Yuji Ijiri (1992), „Strategies for Leveraging

    Master Brands,‟ Marketing Research, 4 (September), 32-43 (reserves).

    Keller, Kevin Lane (2000), “The Brand Report Card,” Harvard Business Review, January-

    February, 147-157 (reserves).

Case: The Virgin Group

    Use the case as background. Visit the virgin.com web site and answer the following questions:

    1. Is Virgin a master brand?

    2. Characterize the extensions based on this brand?

    3. Apply the principals from the “Brand Report Card” reading. How does the Virgin brand

    measure up?

    Internet: virgin.com

Hand-in: Brand Report Card / Master Brand Exercise

Week 5

    5.1 Retailing; Private Label Brands

    Case: Wal-Mart Neighborhood Markets

    1. Estimate the value created for customers by Wal-Mart in 2001. How much is that on a per

    customer basis? (See Exhibit 2)

    2. Consider Wal-Mart‟s growth possibilities in Springfield. By consideration of Exhibit 7, or

    otherwise, what would be the implications to competition if Wal-Mart were to continue to

    grow at 17% per year?

    3. Come to class with a plausible story of how Wal-Mart can achieve the projections in Table

    A.

    4. What should Scott do about Neighborhood Markets? (See issues in the last two paragraphs

    of the case)

    5. Other retailers have been dominant (Sears, Marks and Spencer) but later fallen back to

    earth. What factors could cause Wal-Mart to have slow or declining growth over the next

    10 years?

    Internet: walmart.com

Read: Hoch, Stephen J. (1996), “How Should National Brands Think About Private Labels?,” Sloan

    Management Review, 37(2), 89-102.

Case: H-E-B Own Brands

    1. What is your recommendation on Glacia?

    2. How should Own Brands respond to competitive price promotions? When should they

    follow? What about national promotions?

    3. What is the role of H-E-B and Hill Country Fare as Own Brand labels? How should these

    be positioned with respect to other brands in the category?

    4. What is the role of Own Brands in H-E-B‟s overall corporate strategy? Why is it important?

     Should it be scaled up? Or dialed down? If so, in what products or in what product

    categories?

    Internet: heb.com

Background: “Note on the Retailing Industry” (study.net)

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    BUS547 - Bowman (Fall/04)

5.2 Building a Product/Brand: Channels

    Read: Malcolm, Gladwell (1996), “The Science of Shopping,” The NewYorker, November 4, 66-75

    (reserves).

    Berry, Leonard L. (2001), “The Old Pillars of New Retailing,” Harvard Business Review, April,

    131-137 (reserves).

Case: Eddie Bauer, Inc.

    1. Exhibit 3 shows a “supersegment analysis” of the apparel market. Eddie Bauer positions

    itself mostly to the “Durable Quality Classics” segment. (What apparel brands target the

    other segments in the table?) Based on the buying behavior and sales data described in the

    case, how would you distinguish between Eddie Bauer customers who buy (a) in the store,

    (b) by catalog, and (c) in both the store and by catalog?

    2. The policy of synergy meant that Eddie Bauer would merchandise the stores to support the

    catalog and vice versa. What are some examples of merchandising decisions that have been

    made (a) by the store to support the catalog, and (b) by the catalog to support the stores?

    Quantify the economic value of this cross support. What additional steps could each do to

    better reinforce the other?

    3. How do you suppose “One Brand, One Vision, One Customer” differs from synergy?

    4. Suppose, contrary to current policy, each channel (stores, catalog, I-media) were given a

    large degree of autonomy. For each channel, assume you are in charge of merchandising:

    What would you change, and what results (sales, profitability) would you expect?

    5. What should Eddie Bauer do? What should Julie Rodway do?

    Internet: eddiebauer.com

Week 6

    6.1 Break (no class)

6.2 New Products

    Read: “Chap 9: New Products” (reserves)

    Lipke, David J. (2001), “Product by Design,” American Demographics, February, 38-41

    (reserves).

Background: Wind, Jerry, Paul E. Green, Douglas Shifflet and Marsha Scarbrough (1989), “Courtyard by

    Marriott: Designing a Hotel Facility with Consumer-Based Marketing Models,” Interfaces,

    19(1), 25-47 (reserves).

    Read the overview of conjoint analysis from Sawtooth Software, a major vendor of conjoint

    analysis software

    http://www.sawtoothsoftware.com/qs-whatisconjoint.shtml

    “Tutorial for Conjoint Analysis” (study.net)

    “Product Design with Conjoint Analysis” (study.net)

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    BUS547 - Bowman (Fall/04)

    Week 7

    7.1 Market Response Models I

    Read: Utts, Jessica (2003), “What Educated Citizens Should Know About Statistics and Probability,”

    The American Statistician, 57(2), 74-79 (reserves).

Background: Skim over the products and services offered to consumer packaged goods managers by IRI

    (infores.com) and ACNielsen (nielsen.com).

7.2 Market Response Models II

Hand-in: Conjoint analysis exercise

Week 8

    8.1 Building a Product/Brand Price & Promotion

    Read: “Chap.10: Pricing Decisions” (reserves)

    “Market Makers,” The Economist, March 14, 1998, pp. 67-68 (reserves).

    “Chap.12: Promotions” (reserves)

    Case: Coca-Cola‟s New Vending Machine: Pricing to Capture Value or Not?

    1. Is selling Coke through interactive vending machines a good or bad idea?

    2. What is Coke? What does Coke mean to the average consumer?

    3. Where, how, and for whom does the technology create / destroy value? For example, loyal

    Coke customers, switchers amongst cola products, loyal Pepsi customers, etc.

    4. Are there any pricing related issues that can adversely affect the firm?

    5. What did Coca-Cola do right? What did it do wrong? How would you have done it?

    6. What is price discrimination and when does it work?

    7. How does the Internet affect the ability of firms to price discriminate across consumers?

    8. What do you think of Ivester‟s comments?

    Internet: www.ko.com

    Background: Anderson, Eric and Duncan Simester (2003), “Mind Your Pricing Cues,” Harvard Business

    Review, 89(9).

    Dolan, Robert (1995), “How Do You Know When the Price is Right?” Harvard Business

    Review, September/October.

    Holden, Reed K. and Thomas T. Nagle (1998), “Kamikaze Pricing,” Marketing Management,

    Summer, 30-39.

8.2 PharmaSim: Brand Management Simulation

    Read: “Chap 2: Marketing Planning” (reserves)

    The ENTIRE PharmaSim manual BEFORE coming to class.

Hand-in before you start the simulation: PharmaSim Situation Analysis.

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