Marketing

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Quiz 14 :

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communication Strategy

Quiz 14 :

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communication Strategy

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Pillsbury Like other marketers of consumer products, Pillsbury has set up a website to inform and entertain consumers. Catering to the appeal of its most popular product spokesperson, Pillsbury has given its Dough Boy his own site. Visit him at www.doughboy.com. What branding strategy does Pillsbury seem to be using with regard to the products it presents on this site?
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Pills maintain the logo, tagline, and the connection on this website for various products that it offers. They offer various coupons for the people on occasions. They also offer variety of recipes for the customers, using the dough that they provide.
C, magazines have been initiated to be sold to the customers, so that they make their product more visible to the customers in the market. Contests are being organised on a regular basis to attract more consumers and gain market share.

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New Belgium Brews Up Strong Brand Equity The idea for New Belgium Brewing Company began with a bicycling trip through Belgium, where some of the world's fi nest ales have been brewed for centuries. As Jeff Lebesch, a U.S. electrical engineer, cruised around on a fat-tired mountain bike, he wondered if he could produce such high-quality ales in his home state of Colorado. After returning home, Lebesch began to experiment in his Fort Collins basement. When his home-brewed experiments earned rave reviews from friends, Lebesch and his wife, Kim Jordan, opened New Belgium Brewing (NBB) in 1991. They named their first brew Fat Tire Amber Ale in honor of Lebesch's biking adventure. Although the overall craft-brewing industry has done well in recent years, with sales growing steadily even during the recent economic downturn, NBB has done even better. Today, NBB is a successful $125 million company that markets 710,000 barrels of ales and pilsners every year. The entrepreneurial company has steadily expanded its distribution throughout the western United States, partnering with regional breweries to produce and sell its fresh-brewed beers in local communities farther and farther from its Colorado headquarters. The standard product line includes Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, and 1554 Black Ale, as well as the firm's best seller, the original Fat Tire Amber Ale. NBB also markets seasonal beers, such as Frambozen, released at Thanksgiving and Christmas, and Hoptober, sold during the early fall. The firm occasionally offers one-time only brews-such as LaFolie, a wood-aged beer-that are sold only until the batch runs out. To reinforce the firm's commitment to old-fashioned brewing quality, NBB's packaging and labels evoke a touch of nostalgia. The Fat Tire label, for example, features an old-style cruiser bike with wide tires, a padded seat, and a basket hanging from the handlebars. All the label and packaging designs were created by the same watercolor artist, Jeff Lebesch's next-door neighbor. NBB prices its beers to reflect high quality and set the products apart from those of more widely available brands, such as Coors and Budweiser. This pricing strategy conveys the message that the products are special but also keeps them competitive with other microbrews, such as Pete's Wicked Ale and Sierra Nevada. To demonstrate its appreciation for its retailers and business partners, NBB does not sell beer to consumers onsite at the brewery for less than the retailers charge. Since its founding, NBB's most effective promotion has been via word-of-mouth communication by customers devoted to the brand. The company initially avoided mass advertising, relying instead on small-scale, local promotions, such as print advertisements in alternative magazines, participation in local festivals, and sponsorship of alternative sports events. Through event sponsorships, such as the Tour de Fat, NBB has raised thousands of dollars for various environmental, social, and cycling nonprofit organizations. The company is also a member of 1% for the Planet, donating 1 percent of its annual sales revenue to environmental protection groups around the world. With expanding distribution, however, the brewery recognized a need to connect more effectively with a far-flung customer base. NBB's top management consulted with Dr. David Holt, an Oxford professor and branding expert. After studying the fast-growing company, Holt, together with NBB's marketing director, drafted a 70-page "manifesto" describing the brand's attributes, character, cultural relevancy, and promise. In particular, Holt identified an ethos of pursuing creative activities simply for the joy of doing them well and in harmony with the natural environment. With the brand defined, NBB teamed up with Amalgamated, a New York City advertising agency, to help communicate the brand identity. The agency created a $10 million ad campaign targeting high-end beer drinkers among men ages 25 to 44, highlighting the brewery's down-to-earth, whimsical, yet thoughtful image. The grainy ads focused on a man rebuilding a cruiser bike out of used parts and then riding it along pastoral country roads. The product appeared in just five seconds of each ad between the tag lines "Follow Your Folly... Ours Is Beer." In addition to advertising, the company promotes its brand by engaging customers in conversations via social media, such as Twitter, Facebook, and blogs. "One of the biggest messages for craft [beer] is local and variety," says NBB's director of advertising and social media. That's why the brewer has created a series of Facebook pages, one for each of its brands and each market. It also maintains an overall Facebook company page. In all, its pages have more than 400,000 Facebook fans, who each buy an estimated $260 worth of NBB products every year. By investing time and money in social media, the company is spreading the word about its brand and reinforcing brand loyalty among current customers. NBB's mission is: "To operate a profitable brewery which makes our love and talent manifest." From top-quality brewing to a strong belief in giving back to the local and global community, the company reinforces the positive qualities that make its brand so successful every day. How is New Belgium Brewing using packaging to support its brand image?
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The packaging of New Belgium Brewing is designed to be attractive, reflective and thoughtful. The packaging and labeling of its first brew, which is named as Fat Tire Amber Ale, has featured a wide tire cruiser old styled bike with a padded seat and a basket slinging from the handle bar. And the brand image is supported with this kind of packing concept.

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How does branding benefit consumers and marketers?
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There are various advantages and benefits to the customers. Some of them are:
• Reliability: The customers can count on the quality of the product when they know that the brand of the company is renowned.
• Premium image: Branding can help the image building of the company; then, customers will be ready to pay premium prices for the product.
• Less risky: Brand loyalty leads to risk reduction for the consumer as a famous or renowned brand is less likely to commit fraud.
There are various advantages to marketers as well:
• Increased brand loyalty: Branding helps the company build brand loyalty from the point of view of the customer.
• Reduced advertising cost: With increased brand loyalty the company needs to invest less in advertising, as people start buying the products due to recognition of the name itself.

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Honda introduced an SUV called Element, a name that suggests freedom and comfort in any environment. Invent a brand name for a line of luxury sports cars that also would appeal to an international market. Suggest a name that implies quality, luxury, and value.
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Gatorade Goes for "G" Branding Gatorade, which single-handedly pioneered the sports drink category nearly 50 years ago, is making "G" the centerpiece of its branding efforts. Invented by researchers at the University of Florida, the original Gatorade formula was developed to help players on the college football team avoid dehydration. Other schools took notice of the Gators' performance and soon began ordering batches of Gatorade for their athletes. One by one, Gatorade attracted the interest of professional football teams, and in 1983, it was named the National Football League's official sports drink. That year, Gatorade was acquired by Quaker Oats and, in 2001, Quaker was, in turn, purchased by PepsiCo. Throughout its history, Gatorade has remained the leader in sports drinks. However, in recent years, changes in customer behavior and increased competition have combined to take a toll on sales. First, increasingly health-conscious customers are seeking out low-calorie, low-sodium beverages instead of traditional sports drinks. Second, PepsiCo's main rival, Coca-Cola, has been powering up its marketing of Powerade sports drinks and winning over customers. As a result, Gatorade's market share fell to 75 percent, while Powerade's market share shot up to 24 percent. Now, Gatorade's marketers are fighting for higher sales with new branding initiatives for specific target markets and redesigned packaging to grab customers' attention. Both the Gatorade brand name and the lightning bolt brand mark have been fi ne-tuned to emphasize the G and the thunderbolt while downplaying the rest of the name. The goal is to make the combination instantly recognizable as representing Gatorade, in much the same way that the Nike swoosh has become the iconic representation of that brand. Gatorade is also introducing a series of G sports drinks targeting the specific needs of athletes. This is a change for Gatorade, which had for several years broadened its targeting and positioned the brand as a thirst-quencher for a cross-section of consumers, not just athletes. Now the brand, under its revamped G branding, is going back to its sports roots with the G Series line of drink products for casual and serious athletes at a variety of experience levels. Gatorade Prime 01 contains vitamins and other nutrients to help athletes "start strong." Gatorade Perform 02 products include the original green Gatorade beverage for rehydration during exertion plus a low-calorie drink, branded as G2. In addition, mix-your-own powdered versions of both Perform drinks are available. Gatorade Recover 03 is a special drink developed to replenish energy and help muscles recover after any sports activity. Thanks to a new distribution arrangement, G Series Pro-once sold to professional athletes in gyms and locker rooms-can now be purchased at 5,500 GNC stores. "This line alone, reaching a new target audience, is going to be a killer," comments GNC's CEO. "We have consumers who are extremely passionate about what they [drink]." In another new deal, Gatorade is marketing its G Natural and G2 Natural low-calorie drinks through Whole Foods Market, which specializes in natural and organic foods. Another Gatorade variation, G Series Fit, targets athletes who exercise for fitness. Along with fi ne-tuning the brand and individual products, Gatorade is fi ne-tuning its packaging and labeling. For years, all bottles featured the full "Gatorade" brand name bisected by the brand's stylized orange lightning bolt. Today, the G has taken center stage on container labels, with a small bolt within the G and a bolder bolt as the backdrop for the product name. Overall, the G Series packaging unifies the product line while allowing each item enough distinctive touches (such as different bottle shapes) to help customers quickly find the particular product they want on crowded store shelves. The sophisticated new packaging also sets this line apart from the traditional Gatorade green-and-orange look, visually reinforcing the innovativeness of the G Series. Gatorade's advertising and promotional efforts, including a YouTube channel and Facebook fan page, carry through the focus on athletic achievement and individual fitness. Sports stars like Serena Williams and Derek Jeter are featured, along with behind-the-scenes interviews with athletes getting ready for major sporting events. Thanks to these brand initiatives, Gatorade has increased its yearly volume sales beyond 1 billion gallons. However, it continues to lose market share, holding 70 percent of the market compared with Powerade's 28.5 percent. Looking ahead, will Gatorade's target gulp down enough G Series drinks to rebuild the brand's market share? As Gatorade sharpens its marketing focus on athletes, should it vary its packaging for different distribution channels or different sports? Explain your answer.
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The selection and protection of the appropriate brand name is an important part of formulating a marketing strategy. A clear understanding of how branding and packaging decisions influence a customer's choice of products is essential when developing the marketing plan. The brand name and its packaging will influence several other marketing plan decisions. Relating to the information provided in this chapter, focus on the following issues: Which type of branding strategy is most appropriate for your new-product idea? The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
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Gatorade Goes for "G" Branding Gatorade, which single-handedly pioneered the sports drink category nearly 50 years ago, is making "G" the centerpiece of its branding efforts. Invented by researchers at the University of Florida, the original Gatorade formula was developed to help players on the college football team avoid dehydration. Other schools took notice of the Gators' performance and soon began ordering batches of Gatorade for their athletes. One by one, Gatorade attracted the interest of professional football teams, and in 1983, it was named the National Football League's official sports drink. That year, Gatorade was acquired by Quaker Oats and, in 2001, Quaker was, in turn, purchased by PepsiCo. Throughout its history, Gatorade has remained the leader in sports drinks. However, in recent years, changes in customer behavior and increased competition have combined to take a toll on sales. First, increasingly health-conscious customers are seeking out low-calorie, low-sodium beverages instead of traditional sports drinks. Second, PepsiCo's main rival, Coca-Cola, has been powering up its marketing of Powerade sports drinks and winning over customers. As a result, Gatorade's market share fell to 75 percent, while Powerade's market share shot up to 24 percent. Now, Gatorade's marketers are fighting for higher sales with new branding initiatives for specific target markets and redesigned packaging to grab customers' attention. Both the Gatorade brand name and the lightning bolt brand mark have been fi ne-tuned to emphasize the G and the thunderbolt while downplaying the rest of the name. The goal is to make the combination instantly recognizable as representing Gatorade, in much the same way that the Nike swoosh has become the iconic representation of that brand. Gatorade is also introducing a series of G sports drinks targeting the specific needs of athletes. This is a change for Gatorade, which had for several years broadened its targeting and positioned the brand as a thirst-quencher for a cross-section of consumers, not just athletes. Now the brand, under its revamped G branding, is going back to its sports roots with the G Series line of drink products for casual and serious athletes at a variety of experience levels. Gatorade Prime 01 contains vitamins and other nutrients to help athletes "start strong." Gatorade Perform 02 products include the original green Gatorade beverage for rehydration during exertion plus a low-calorie drink, branded as G2. In addition, mix-your-own powdered versions of both Perform drinks are available. Gatorade Recover 03 is a special drink developed to replenish energy and help muscles recover after any sports activity. Thanks to a new distribution arrangement, G Series Pro-once sold to professional athletes in gyms and locker rooms-can now be purchased at 5,500 GNC stores. "This line alone, reaching a new target audience, is going to be a killer," comments GNC's CEO. "We have consumers who are extremely passionate about what they [drink]." In another new deal, Gatorade is marketing its G Natural and G2 Natural low-calorie drinks through Whole Foods Market, which specializes in natural and organic foods. Another Gatorade variation, G Series Fit, targets athletes who exercise for fitness. Along with fi ne-tuning the brand and individual products, Gatorade is fi ne-tuning its packaging and labeling. For years, all bottles featured the full "Gatorade" brand name bisected by the brand's stylized orange lightning bolt. Today, the G has taken center stage on container labels, with a small bolt within the G and a bolder bolt as the backdrop for the product name. Overall, the G Series packaging unifies the product line while allowing each item enough distinctive touches (such as different bottle shapes) to help customers quickly find the particular product they want on crowded store shelves. The sophisticated new packaging also sets this line apart from the traditional Gatorade green-and-orange look, visually reinforcing the innovativeness of the G Series. Gatorade's advertising and promotional efforts, including a YouTube channel and Facebook fan page, carry through the focus on athletic achievement and individual fitness. Sports stars like Serena Williams and Derek Jeter are featured, along with behind-the-scenes interviews with athletes getting ready for major sporting events. Thanks to these brand initiatives, Gatorade has increased its yearly volume sales beyond 1 billion gallons. However, it continues to lose market share, holding 70 percent of the market compared with Powerade's 28.5 percent. Looking ahead, will Gatorade's target gulp down enough G Series drinks to rebuild the brand's market share? What are the marketing advantages and disadvantages of emphasizing "G" as the primary element in the Gatorade brand?
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What are the three major degrees of brand loyalty?
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100 Years of Product Innovation at Chevrolet General Motors' Chevrolet brand celebrated its 100th anniversary in 2011. In its 100-year history, Chevrolet embarked on many different vehicle models, some of them widely successful and others deleted from the product mix shortly after introduction. Over the years, it has transitioned from an American icon into a worldwide brand known for its quality and durability. Despite numerous ups and downs in its history, including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going strong after a century of product innovation. History of Product Innovation Ironically, Chevrolet exists because of its top competitor, Ford Motor. William Durant founded Chevrolet in 1911 to compete head on with Ford's Model T. The brand was named after Louis Chevrolet, a top racer who was hired to design the first Chevrolet. Chevrolet's initial model cost $2,000. This was a high-priced vehicle at the time, which did not sit well with Durant, who wanted to compete directly against Ford on price. In 1915, Chevrolet released a less expensive model priced at $490, the same price as a Ford Model T. The company was acquired by General Motors in 1918, and Chevrolet went on to become one of GM's most popular brands. During much of its history, Chevrolet attempted to position itself as an iconic American brand, using patriotic slogans and courting racecar drivers as endorsers to create an image of quality and sportiness. Chevrolet is also credited with being the first automobile maker to come up with the idea of planned product obsolescence. Based on this concept, Chevrolet introduces a new car model each year, a type of product modification. Like all established companies, Chevrolet vehicles underwent several successes and failures. Some vehicles that Chevy thought would succeed failed miserably, often due to safety (the Corvair) or quality (the Vega) issues. On the other hand, its sporty Corvette was immensely popular and still exists today as a sports car icon. Table 14.4 shows the entire portfolio of Chevrolet vehicle models sold in the United States. After nearly a century in business, Chevrolet faced its greatest threat with GM's bankruptcy in 2009. The company required a massive government bailout, and although GM has begun to rebound, its reputation will take a while to recover. According to GM CEO Dan Akerson, the company "failed because we failed to innovate." However, he sees hope in Chevrolet as an innovation powerhouse and believes the brand will bring GM back from the brink of collapse. After the Bailout Today, Chevrolet is a worldwide brand. It achieved record global sales of 4.76 million vehicles in 2011. img Although it sold the most vehicles in the United States, China saw a more than 9 percent increase in the number of Chevrolets sold at 595,068 vehicles in 2011. The company positions its vehicles along four values: durability, value, practicality, and friendliness. This lattermost value relies heavily on the customer service that Chevrolet offers among its sales staff and customer support personnel. Chevrolet's vehicles are at all stages of the product life cycle. In the decline stage are its SUVs, as SUVs in general have become less popular due to a greater concern for the environment and rising gas prices. Rather than phasing out its SUVs, however, Chevrolet chose to revamp its SUVs to make them more eco-friendly. The company introduced SUV crossover vehicles and the Chevrolet Tahoe Hybrid in the hope of attracting those who like the style of SUVs without the gas inefficiencies. The Corvette is still going strong, although it has likely reached the maturity stage due to new product innovations and changing customer tastes. Additionally, the average Corvette owner is in his or her fifties. The Chevy Cruze is in the growth stage; in 2011, it was the best-selling compact car in the United States. Another car in the growth stage is the Chevrolet Camaro, a product that was initially deleted from the product mix in 2002. After fans demanded to have the Camaro resurrected, Chevrolet reintroduced a redesigned Camaro in 2010. The car went on to win the World Car Design of the Year. Even more popular than its cars are Chevrolet's pickup trucks. Chevrolet introduced its first truck in 1918, and sales of Chevrolet pickup trucks surpassed sales of its cars in 1989. Its Silverado pickup truck is currently in the growth stage as the second best-selling vehicle in 2011. Chevy is also seizing the opportunity to profit from a growing demand for electric vehicles with its introduction of the Chevrolet Volt. The Volt runs on electricity but will use gasoline if all of the electricity is used. The Chevrolet brand is a model to which marketers aspire. Unlike so many other brands, it has lasted for a century due to its innovative product modifications and ability to rebound from failures. It must continue to seize market opportunities, constantly modify its products, and adapt its brand to changing customer tastes. Successfully meeting these criteria could enable the Chevrolet brand to succeed for another century. Evaluate the product mix brands Cruze, Camaro, and Corvette in terms of their target market.
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What is the difference between a brand and a brand name? Compare and contrast a brand mark and a trademark.
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New Belgium Brews Up Strong Brand Equity The idea for New Belgium Brewing Company began with a bicycling trip through Belgium, where some of the world's fi nest ales have been brewed for centuries. As Jeff Lebesch, a U.S. electrical engineer, cruised around on a fat-tired mountain bike, he wondered if he could produce such high-quality ales in his home state of Colorado. After returning home, Lebesch began to experiment in his Fort Collins basement. When his home-brewed experiments earned rave reviews from friends, Lebesch and his wife, Kim Jordan, opened New Belgium Brewing (NBB) in 1991. They named their first brew Fat Tire Amber Ale in honor of Lebesch's biking adventure. Although the overall craft-brewing industry has done well in recent years, with sales growing steadily even during the recent economic downturn, NBB has done even better. Today, NBB is a successful $125 million company that markets 710,000 barrels of ales and pilsners every year. The entrepreneurial company has steadily expanded its distribution throughout the western United States, partnering with regional breweries to produce and sell its fresh-brewed beers in local communities farther and farther from its Colorado headquarters. The standard product line includes Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, and 1554 Black Ale, as well as the firm's best seller, the original Fat Tire Amber Ale. NBB also markets seasonal beers, such as Frambozen, released at Thanksgiving and Christmas, and Hoptober, sold during the early fall. The firm occasionally offers one-time only brews-such as LaFolie, a wood-aged beer-that are sold only until the batch runs out. To reinforce the firm's commitment to old-fashioned brewing quality, NBB's packaging and labels evoke a touch of nostalgia. The Fat Tire label, for example, features an old-style cruiser bike with wide tires, a padded seat, and a basket hanging from the handlebars. All the label and packaging designs were created by the same watercolor artist, Jeff Lebesch's next-door neighbor. NBB prices its beers to reflect high quality and set the products apart from those of more widely available brands, such as Coors and Budweiser. This pricing strategy conveys the message that the products are special but also keeps them competitive with other microbrews, such as Pete's Wicked Ale and Sierra Nevada. To demonstrate its appreciation for its retailers and business partners, NBB does not sell beer to consumers onsite at the brewery for less than the retailers charge. Since its founding, NBB's most effective promotion has been via word-of-mouth communication by customers devoted to the brand. The company initially avoided mass advertising, relying instead on small-scale, local promotions, such as print advertisements in alternative magazines, participation in local festivals, and sponsorship of alternative sports events. Through event sponsorships, such as the Tour de Fat, NBB has raised thousands of dollars for various environmental, social, and cycling nonprofit organizations. The company is also a member of 1% for the Planet, donating 1 percent of its annual sales revenue to environmental protection groups around the world. With expanding distribution, however, the brewery recognized a need to connect more effectively with a far-flung customer base. NBB's top management consulted with Dr. David Holt, an Oxford professor and branding expert. After studying the fast-growing company, Holt, together with NBB's marketing director, drafted a 70-page "manifesto" describing the brand's attributes, character, cultural relevancy, and promise. In particular, Holt identified an ethos of pursuing creative activities simply for the joy of doing them well and in harmony with the natural environment. With the brand defined, NBB teamed up with Amalgamated, a New York City advertising agency, to help communicate the brand identity. The agency created a $10 million ad campaign targeting high-end beer drinkers among men ages 25 to 44, highlighting the brewery's down-to-earth, whimsical, yet thoughtful image. The grainy ads focused on a man rebuilding a cruiser bike out of used parts and then riding it along pastoral country roads. The product appeared in just five seconds of each ad between the tag lines "Follow Your Folly... Ours Is Beer." In addition to advertising, the company promotes its brand by engaging customers in conversations via social media, such as Twitter, Facebook, and blogs. "One of the biggest messages for craft [beer] is local and variety," says NBB's director of advertising and social media. That's why the brewer has created a series of Facebook pages, one for each of its brands and each market. It also maintains an overall Facebook company page. In all, its pages have more than 400,000 Facebook fans, who each buy an estimated $260 worth of NBB products every year. By investing time and money in social media, the company is spreading the word about its brand and reinforcing brand loyalty among current customers. NBB's mission is: "To operate a profitable brewery which makes our love and talent manifest." From top-quality brewing to a strong belief in giving back to the local and global community, the company reinforces the positive qualities that make its brand so successful every day. What has New Belgium Brewing done to increase brand recognition and brand preference?
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Gatorade Goes for "G" Branding Gatorade, which single-handedly pioneered the sports drink category nearly 50 years ago, is making "G" the centerpiece of its branding efforts. Invented by researchers at the University of Florida, the original Gatorade formula was developed to help players on the college football team avoid dehydration. Other schools took notice of the Gators' performance and soon began ordering batches of Gatorade for their athletes. One by one, Gatorade attracted the interest of professional football teams, and in 1983, it was named the National Football League's official sports drink. That year, Gatorade was acquired by Quaker Oats and, in 2001, Quaker was, in turn, purchased by PepsiCo. Throughout its history, Gatorade has remained the leader in sports drinks. However, in recent years, changes in customer behavior and increased competition have combined to take a toll on sales. First, increasingly health-conscious customers are seeking out low-calorie, low-sodium beverages instead of traditional sports drinks. Second, PepsiCo's main rival, Coca-Cola, has been powering up its marketing of Powerade sports drinks and winning over customers. As a result, Gatorade's market share fell to 75 percent, while Powerade's market share shot up to 24 percent. Now, Gatorade's marketers are fighting for higher sales with new branding initiatives for specific target markets and redesigned packaging to grab customers' attention. Both the Gatorade brand name and the lightning bolt brand mark have been fi ne-tuned to emphasize the G and the thunderbolt while downplaying the rest of the name. The goal is to make the combination instantly recognizable as representing Gatorade, in much the same way that the Nike swoosh has become the iconic representation of that brand. Gatorade is also introducing a series of G sports drinks targeting the specific needs of athletes. This is a change for Gatorade, which had for several years broadened its targeting and positioned the brand as a thirst-quencher for a cross-section of consumers, not just athletes. Now the brand, under its revamped G branding, is going back to its sports roots with the G Series line of drink products for casual and serious athletes at a variety of experience levels. Gatorade Prime 01 contains vitamins and other nutrients to help athletes "start strong." Gatorade Perform 02 products include the original green Gatorade beverage for rehydration during exertion plus a low-calorie drink, branded as G2. In addition, mix-your-own powdered versions of both Perform drinks are available. Gatorade Recover 03 is a special drink developed to replenish energy and help muscles recover after any sports activity. Thanks to a new distribution arrangement, G Series Pro-once sold to professional athletes in gyms and locker rooms-can now be purchased at 5,500 GNC stores. "This line alone, reaching a new target audience, is going to be a killer," comments GNC's CEO. "We have consumers who are extremely passionate about what they [drink]." In another new deal, Gatorade is marketing its G Natural and G2 Natural low-calorie drinks through Whole Foods Market, which specializes in natural and organic foods. Another Gatorade variation, G Series Fit, targets athletes who exercise for fitness. Along with fi ne-tuning the brand and individual products, Gatorade is fi ne-tuning its packaging and labeling. For years, all bottles featured the full "Gatorade" brand name bisected by the brand's stylized orange lightning bolt. Today, the G has taken center stage on container labels, with a small bolt within the G and a bolder bolt as the backdrop for the product name. Overall, the G Series packaging unifies the product line while allowing each item enough distinctive touches (such as different bottle shapes) to help customers quickly find the particular product they want on crowded store shelves. The sophisticated new packaging also sets this line apart from the traditional Gatorade green-and-orange look, visually reinforcing the innovativeness of the G Series. Gatorade's advertising and promotional efforts, including a YouTube channel and Facebook fan page, carry through the focus on athletic achievement and individual fitness. Sports stars like Serena Williams and Derek Jeter are featured, along with behind-the-scenes interviews with athletes getting ready for major sporting events. Thanks to these brand initiatives, Gatorade has increased its yearly volume sales beyond 1 billion gallons. However, it continues to lose market share, holding 70 percent of the market compared with Powerade's 28.5 percent. Looking ahead, will Gatorade's target gulp down enough G Series drinks to rebuild the brand's market share? For competitive reasons, do you think Gatorade should consider co-branding to build on the equity of another major brand name as it seeks higher sales? Why or why not?
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The selection and protection of the appropriate brand name is an important part of formulating a marketing strategy. A clear understanding of how branding and packaging decisions influence a customer's choice of products is essential when developing the marketing plan. The brand name and its packaging will influence several other marketing plan decisions. Relating to the information provided in this chapter, focus on the following issues: Discuss the level of brand equity your company's products currently have in the marketplace. How will brand equity affect your branding strategy? The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
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Pillsbury Like other marketers of consumer products, Pillsbury has set up a website to inform and entertain consumers. Catering to the appeal of its most popular product spokesperson, Pillsbury has given its Dough Boy his own site. Visit him at www.doughboy.com. What degree of consistency exists in Pillsbury's packaging of its products displayed on the website?
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The selection and protection of the appropriate brand name is an important part of formulating a marketing strategy. A clear understanding of how branding and packaging decisions influence a customer's choice of products is essential when developing the marketing plan. The brand name and its packaging will influence several other marketing plan decisions. Relating to the information provided in this chapter, focus on the following issues: Do any strategic opportunities exist from co-branding your new product with existing brands in your company's product mix or with other company's brands? You may want to refer to your SWOT analysis in Chapter 2. The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.
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When a firm decides to brand its products, it may choose one of several strategies. Name one company that uses each of the following strategies. How does each strategy help the company? a. Individual branding b. Family branding c. Brand extension
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Identify two brands for which you are brand insistent. How did you begin using these brands? Why do you no longer use other brands?
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Pillsbury Like other marketers of consumer products, Pillsbury has set up a website to inform and entertain consumers. Catering to the appeal of its most popular product spokesperson, Pillsbury has given its Dough Boy his own site. Visit him at www.doughboy.com. How does this Pillsbury website promote brand loyalty?
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100 Years of Product Innovation at Chevrolet General Motors' Chevrolet brand celebrated its 100th anniversary in 2011. In its 100-year history, Chevrolet embarked on many different vehicle models, some of them widely successful and others deleted from the product mix shortly after introduction. Over the years, it has transitioned from an American icon into a worldwide brand known for its quality and durability. Despite numerous ups and downs in its history, including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going strong after a century of product innovation. History of Product Innovation Ironically, Chevrolet exists because of its top competitor, Ford Motor. William Durant founded Chevrolet in 1911 to compete head on with Ford's Model T. The brand was named after Louis Chevrolet, a top racer who was hired to design the first Chevrolet. Chevrolet's initial model cost $2,000. This was a high-priced vehicle at the time, which did not sit well with Durant, who wanted to compete directly against Ford on price. In 1915, Chevrolet released a less expensive model priced at $490, the same price as a Ford Model T. The company was acquired by General Motors in 1918, and Chevrolet went on to become one of GM's most popular brands. During much of its history, Chevrolet attempted to position itself as an iconic American brand, using patriotic slogans and courting racecar drivers as endorsers to create an image of quality and sportiness. Chevrolet is also credited with being the first automobile maker to come up with the idea of planned product obsolescence. Based on this concept, Chevrolet introduces a new car model each year, a type of product modification. Like all established companies, Chevrolet vehicles underwent several successes and failures. Some vehicles that Chevy thought would succeed failed miserably, often due to safety (the Corvair) or quality (the Vega) issues. On the other hand, its sporty Corvette was immensely popular and still exists today as a sports car icon. Table 14.4 shows the entire portfolio of Chevrolet vehicle models sold in the United States. After nearly a century in business, Chevrolet faced its greatest threat with GM's bankruptcy in 2009. The company required a massive government bailout, and although GM has begun to rebound, its reputation will take a while to recover. According to GM CEO Dan Akerson, the company "failed because we failed to innovate." However, he sees hope in Chevrolet as an innovation powerhouse and believes the brand will bring GM back from the brink of collapse. After the Bailout Today, Chevrolet is a worldwide brand. It achieved record global sales of 4.76 million vehicles in 2011. img Although it sold the most vehicles in the United States, China saw a more than 9 percent increase in the number of Chevrolets sold at 595,068 vehicles in 2011. The company positions its vehicles along four values: durability, value, practicality, and friendliness. This lattermost value relies heavily on the customer service that Chevrolet offers among its sales staff and customer support personnel. Chevrolet's vehicles are at all stages of the product life cycle. In the decline stage are its SUVs, as SUVs in general have become less popular due to a greater concern for the environment and rising gas prices. Rather than phasing out its SUVs, however, Chevrolet chose to revamp its SUVs to make them more eco-friendly. The company introduced SUV crossover vehicles and the Chevrolet Tahoe Hybrid in the hope of attracting those who like the style of SUVs without the gas inefficiencies. The Corvette is still going strong, although it has likely reached the maturity stage due to new product innovations and changing customer tastes. Additionally, the average Corvette owner is in his or her fifties. The Chevy Cruze is in the growth stage; in 2011, it was the best-selling compact car in the United States. Another car in the growth stage is the Chevrolet Camaro, a product that was initially deleted from the product mix in 2002. After fans demanded to have the Camaro resurrected, Chevrolet reintroduced a redesigned Camaro in 2010. The car went on to win the World Car Design of the Year. Even more popular than its cars are Chevrolet's pickup trucks. Chevrolet introduced its first truck in 1918, and sales of Chevrolet pickup trucks surpassed sales of its cars in 1989. Its Silverado pickup truck is currently in the growth stage as the second best-selling vehicle in 2011. Chevy is also seizing the opportunity to profit from a growing demand for electric vehicles with its introduction of the Chevrolet Volt. The Volt runs on electricity but will use gasoline if all of the electricity is used. The Chevrolet brand is a model to which marketers aspire. Unlike so many other brands, it has lasted for a century due to its innovative product modifications and ability to rebound from failures. It must continue to seize market opportunities, constantly modify its products, and adapt its brand to changing customer tastes. Successfully meeting these criteria could enable the Chevrolet brand to succeed for another century. What are the challenges for the Chevrolet brand in the future?
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100 Years of Product Innovation at Chevrolet General Motors' Chevrolet brand celebrated its 100th anniversary in 2011. In its 100-year history, Chevrolet embarked on many different vehicle models, some of them widely successful and others deleted from the product mix shortly after introduction. Over the years, it has transitioned from an American icon into a worldwide brand known for its quality and durability. Despite numerous ups and downs in its history, including the recent bankruptcy and bailout of parent company GM, Chevrolet is still going strong after a century of product innovation. History of Product Innovation Ironically, Chevrolet exists because of its top competitor, Ford Motor. William Durant founded Chevrolet in 1911 to compete head on with Ford's Model T. The brand was named after Louis Chevrolet, a top racer who was hired to design the first Chevrolet. Chevrolet's initial model cost $2,000. This was a high-priced vehicle at the time, which did not sit well with Durant, who wanted to compete directly against Ford on price. In 1915, Chevrolet released a less expensive model priced at $490, the same price as a Ford Model T. The company was acquired by General Motors in 1918, and Chevrolet went on to become one of GM's most popular brands. During much of its history, Chevrolet attempted to position itself as an iconic American brand, using patriotic slogans and courting racecar drivers as endorsers to create an image of quality and sportiness. Chevrolet is also credited with being the first automobile maker to come up with the idea of planned product obsolescence. Based on this concept, Chevrolet introduces a new car model each year, a type of product modification. Like all established companies, Chevrolet vehicles underwent several successes and failures. Some vehicles that Chevy thought would succeed failed miserably, often due to safety (the Corvair) or quality (the Vega) issues. On the other hand, its sporty Corvette was immensely popular and still exists today as a sports car icon. Table 14.4 shows the entire portfolio of Chevrolet vehicle models sold in the United States. After nearly a century in business, Chevrolet faced its greatest threat with GM's bankruptcy in 2009. The company required a massive government bailout, and although GM has begun to rebound, its reputation will take a while to recover. According to GM CEO Dan Akerson, the company "failed because we failed to innovate." However, he sees hope in Chevrolet as an innovation powerhouse and believes the brand will bring GM back from the brink of collapse. After the Bailout Today, Chevrolet is a worldwide brand. It achieved record global sales of 4.76 million vehicles in 2011. img Although it sold the most vehicles in the United States, China saw a more than 9 percent increase in the number of Chevrolets sold at 595,068 vehicles in 2011. The company positions its vehicles along four values: durability, value, practicality, and friendliness. This lattermost value relies heavily on the customer service that Chevrolet offers among its sales staff and customer support personnel. Chevrolet's vehicles are at all stages of the product life cycle. In the decline stage are its SUVs, as SUVs in general have become less popular due to a greater concern for the environment and rising gas prices. Rather than phasing out its SUVs, however, Chevrolet chose to revamp its SUVs to make them more eco-friendly. The company introduced SUV crossover vehicles and the Chevrolet Tahoe Hybrid in the hope of attracting those who like the style of SUVs without the gas inefficiencies. The Corvette is still going strong, although it has likely reached the maturity stage due to new product innovations and changing customer tastes. Additionally, the average Corvette owner is in his or her fifties. The Chevy Cruze is in the growth stage; in 2011, it was the best-selling compact car in the United States. Another car in the growth stage is the Chevrolet Camaro, a product that was initially deleted from the product mix in 2002. After fans demanded to have the Camaro resurrected, Chevrolet reintroduced a redesigned Camaro in 2010. The car went on to win the World Car Design of the Year. Even more popular than its cars are Chevrolet's pickup trucks. Chevrolet introduced its first truck in 1918, and sales of Chevrolet pickup trucks surpassed sales of its cars in 1989. Its Silverado pickup truck is currently in the growth stage as the second best-selling vehicle in 2011. Chevy is also seizing the opportunity to profit from a growing demand for electric vehicles with its introduction of the Chevrolet Volt. The Volt runs on electricity but will use gasoline if all of the electricity is used. The Chevrolet brand is a model to which marketers aspire. Unlike so many other brands, it has lasted for a century due to its innovative product modifications and ability to rebound from failures. It must continue to seize market opportunities, constantly modify its products, and adapt its brand to changing customer tastes. Successfully meeting these criteria could enable the Chevrolet brand to succeed for another century. How has GM managed product innovation to sustain the Chevrolet brand for over 100 years?
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