APPENDICES
A PPENDIX 1 THE PRODUCT DELETION SYSTEM 2
A PPENDIX 2 E XAMPLES OF QUANTITATIVE AWARENESS MEASURES 4 A PPENDIX 3 E XAMPLES OF SCALING OF QUESTIONNAIRES . 5
A PPENDIX 4 E XAMPLES OF OPEN ENDED QUESTIONS 6
A PPENDIX 5 E XAMPLES OF BRAND RESPONSE / INTENTIONS 7 A PPENDIX 6 E XAMPLES OF BRAND RELATIONSHIP MEASURES 8
A PPENDIX 7 S TAIRS OF AGONY 9
A PPENDIX 8 M EASUREMENT OF BRAND ASSOCIATIONS , THE FORD T AURUS STORY 10 A PPENDIX 9 H OW T O A VOID C RIPPLING P RICE COMPETITION 13
A PPENDIX 10 O UTCOMES QUESTIONNAIRE 14
A PPENDIX 11 Q UESTIONNAIRE INTRODUCTION LETTER 22 A PPENDIX 12 Q UESTIONNAIRE
E
RROR! B
OOKMARK NOT DEFINED.
A PPENDIX 1 THE PRODUCT DELETION SYSTEM
I-A
Monthly scan of product line. Analyze each product’s performance
Start
6 Factors I-B
Sick product?
I-D Leave system
II-A Analysis of sick product’s suitability to
company objectives
III-A Predict effects of retention and deletion
IV-A Determine approximate
time of burial
1 Factor
10 Factors
4 Factors
I-C Proceed to state II
II-C Proceed to state III
II-B Suitable?
IV-B Should product
be deleted immediately?
II-D Corrective
actions?
III-B Delete?
7 Alternatives
III-C Proceed to state IV
Drop
Phase out
Finish
State I
State IV State III State II
Yes
Yes Yes
Yes No
No No
No
A PPENDIX 1 T HE PRODUCT DELETION SYSTEM
Evaluation factors of deletion system model
State I State II State III State IV
1. Inventory requirement 1. Product suitability 1. Past costs
2. Past sales volume to company objectives 2. Future costs 1. Stock on hand 3. Future sales volume 3. Past profitability 2. Holdover demand 4. Profit margin 4. Future profitability 3. Timing’s effect on
5. Competitive activity 5. Scope of line profit
6. Total generic demand 6. Company new product 4. Status of replacement
trend research parts
7. Consumer satisfaction
8. Usage of production
and warehouse facilities
9. Production problems
10. Marketing problems
if a sick does not meet the company objectives it should be rejuvenated.
If a product is suitable, corrective actions such as promotions, package change, product change, cost analysis, new market development, and formula change are used individually or in combinations. The product is then moved out of the system.
If the product is not suitable, it is moved to state III for a detailed deletion analysis utilizing ten evaluation factors as shown in the table. The third state is an intensive deletion analysis to determine whether a product should be retained or deleted.
If a retention decision is made after the state III analysis, the product is moved into corrective actions following state II and then out of the system to await the next monthly review which starts at State I-A. However, if a deletion decision is made, the product is moved to State IV to determine when it shall be eliminated. State IV utilizes four evaluation factors, as shown in the table to determine the most opportune time for the product’s eliminations.
RESULTS
The product deletion system as practiced by the progressive firm investigated is best integrated with other functions of product management (for example, product addition, product planning, product auditing, and new product research) in large, multi-product companies. Early recognition of weak products will keep marketing managers, product managers, and other alert to the relative importance of trying to salvage weak products as against incurring the expense and the
uncertainties of developing new product replacements.
An integrated deletion approach will direct the product into the system for screening to determine its qualifications as a deletion candidate. Such a system makes it possible to review many products on a scheduled basis, thereby reducing the peak loads created when the entire product mix is reviewed at one time in order to pick deletion candidates.
A workable product deletion model suitable for companies having extensive product lines is illustrated. The development, exposure, and revision of the model provides the basic logic and design of a workable construct appropriate for many firms. Such a construct represents a conceptual foundation upon which a decision system can be implemented and managed if appropriate changes and additions are made to customize the system to fit an individual company’s need.
The development and testing of relevant decision systems offer promise to marketing and products managers in their attempt to refine and systemize the many irregular variables which confront them daily. Hopefully, a better understanding of the product deletion system can be can be considered as a step in this derection.
RW Eckles (1971:4)
A PPENDIX 2 E XAMPLES OF QUANTITATIVE AWARENESS MEASURES
A brand name with a high level of awareness will be recognized under less than ideal conditions. Consider the following list of incomplete names (i,e,, word fragments). Which ones do you recognize? Compare your answers to the answer key in the footnote to see how well you did.
1. D_ _NE_
2. KO_ _K 3. DU_AC_ _ _ 4. HY_T_
5. AD_ _L 6. M_T_EL 7. D_LT_
8. N_QU_L 9. G_LL_T_ _ 10. H_ _SH_Y 11. H_LL_ _RK 12. M_CH_ _IN 13. T_PP_RW_ _E 14. L_G_
15. N_K_
Answers: (1) Disney, (2) Kodak, (3) Duracell, (4) Hyatt, (5) Advil, (6) Mattel, (7) Delta, (8) NiQuil, (9) Gillette, (10) Hershey, (11) Hallmark, (12) Michelin, (13) Tupperware, (14) Lego, (15) Nike
(Keller, 2003:454)
A PPENDIX 3 E XAMPLES OF SCALING OF QUESTIONNAIRES .
1. To what extend do you feel the following product characteristics are descriptive of Lipton iced tea (where 1=strongly disagree and 7= strongly agree)?
_______ convenient
_______ refreshing and thirst quenching _______ real and natural
_______ good tasting
_______ contemporary and relevant _______ used by young professionals
2. How good or bad is it for iced tea to have the following product characteristics (where 1= very bad and 7= very good)
_______ convenient
_______ refreshing and thirst quenching _______ real and natural
_______ good tasting
_______ contemporary and relevant _______ used by young professionals
Example of brand associations ratings in terms of strength, favorability and uniqueness
(Keller 2003:460)
A PPENDIX 4 E XAMPLES OF OPEN ENDED QUESTIONS
Kapferer and Laurent’s Brand Sensitivity Measure
Direct Questions
Forced choice between two items
1. For PRODUCT…….
“I prefer to buy a well known brand” or
“I don’t mind buying the store brand”
Four Likert items
2. “When I buy a PRODUCT, I look at the brand”
3. “I do not choose a PRODUCT according to the brand”
4. “For a PRODUCT, the brand name is not that important”
5. “When I buy a PRODUCT, I take account of the brand”
Indirect measures
6. A dollarmetric measure involving three well-known brands: the last brand purchased by consumer in the product category and the first other two brands mentioned in a spontaneous brand awareness question. Would the consumer maintain his/her choice if the price differential increases by 10 percent, 25 percent, 50 percent between the chosen brand and the other two competitors?
7. A dollarmetric measure between the last brand bought by consumer and a private label or store brand in the product category.
8. A mini information display board choice task. Five brands and five product attributes (including brand name and price) were included in a grid and consumers were asked to choose a brand. Brand sensitivity was indicated by usage of the brand name attribute in making the choice.
(Keller 2003: 459,460)
A PPENDIX 5 E XAMPLES OF BRAND RESPONSE / INTENTIONS
Brand response
The purpose of measuring more general, higher level considerations is to find out how consumers combine all of the more specific, lower-level considerations about the brand in their minds to form different types of brand responses and evaluations.
Chapter 2 provides examples of measures of key brand judgments (i.e. brand quality, credibility, considerations, and superiority) and feelings (i.e. warm, fun, exiting, sense of security, social approval, and self-respect). The Science of Branding 9-3 provides additional insight into brand attitudes and judgment.
Purchase intentions
Another set of possible measures closely related to brand attitudes and
consideration is purchase intentions. Intention measures could focus on the likelihood of buying the brand or likelihood of switching from the brand to another brand.
Research in psychology suggests that purchase intentions are most likely to be predictive of actual purchase when there is correspondence between the two in the following categories:
¾ Action (e.g. buying for own use of give as a gift)
¾ Target (e.g. specific type of product and brand)
¾ Context (e.g. in what type of store based on what prices and other conditions)
¾ Time (e.g. within a week, month, or year)
In other words, when asking consumers to forecast their likely purchase of a product or a brand, it is important to specify exactly the circumstances involved –the purpose of the purchase, the location, the time of the purchase, and so fort, For example, consumers could be asked:
“Assume your refrigerator broke down over the next weekend and could not be inexpensively repaired. If you went to your favorite appliance store and found all the different brands completely priced, how likely would you be to buy a General Electric refrigerator?”
Consumers could indicate their purchase intention on a 11-point probability scale that ranges from 0 (definitely would not buy) to 10 (definitely would buy).
(Keller 2003: 462/463)
A PPENDIX 6 E XAMPLES OF BRAND RELATIONSHIP MEASURES
Brand relationships
Chapter 2 characterized brand relationships in terms of brand resonance and offered possible measures for each of the four key dimensions: behavioural loyalty, attitudinal attachment, sense of community, and active engagement. This section considers several additional considerations with respect to those dimensions.
1.1.1 Behavioural loyalty
To capture reported brand usage and behavioural loyalty, consumers could be asked several questions directly. Alternatively, consumers could be asked what percentage of their last purchases in the category went to the brand (past purchase history) and what percentage of their planned next purchase will go to the brand (intended future purchase). For example, the marketers or brand managers of Fuji film might ask the following question:
¾ Which brand of film do you usually buy?
¾ Which brand of film did you buy last time?
¾ Do you have any film on hand? Which brand?
¾ Which brands of film do you consider buying?
¾ Which brand of film will you buy next time?
¾ Do you expect to take pictures within the next two weeks?
¾ Have you taken any pictures in the last two weeks?
These types of questions can provide information on brand attitudes and usage for Fuji, including potential gaps with competitors and which other brands might be in the consideration set at the time of purchase.
These measures could be open ended, dichotomous (forcing consumers to choose a
brand), or involve multiple choice or rating scales. The answers to these types of
questions also could be compared with actual measures of consumer behaviour to asses
whether consumers are accurate in their predictions.
A PPENDIX 7 S TAIRS OF AGONY
A-merk means A-brand like Coca Cola, O’cedar, Calgon, Vanish, BMW or Campina
J. Meijers from AC Nielsen told during the MARUG Congress 2004 that with the fierce promotions of the A-brands and introductions of the private labels in the supermarkets, the supermarkets are digging their own graveyard.
First by promoting the A-brand as often as they are doing now, consumers will get used to the discount prices.
Second, these discount prices are very near the private label product prices, so when prices of the A-brands go up again the consumers will jump to these private label brands because they want to buy the product for the price they got used to. The private label offers a good option as the public starts to understand that quality differences are not that big anymore between them and the A-brands.
The third step is from private label to hard discounters like Aldi and Lidl. Because private labels look like the hard discount labels but are still a bit more expensive, consumers are tempted to try the hard discounters. If the consumer starts to use these hard discount brands the price gap between the A-brand and hard discount brand might be too big to go back to.
So in the end the price war and discounts in the supermarkets like Carrefour, Delhaize and Colruyt move people towards the hard discounters.
(congress slide 19 presentation Jan Meijers, AC Nielsen at MARUG Congress 2004)
19
“The stairs of Agony’
ofwel: van A-merk koper naar discount shopper
A-merk
Promoted A-merk
Private Label
Discounters
A PPENDIX 8 M EASUREMENT OF BRAND ASSOCIATIONS , THE FORD T AURUS
STORY
A PPENDIX 9 H OW T O A VOID C RIPPLING P RICE COMPETITION
3
Importance of knowing price sensitivities Importance of knowing price sensitivities
Claim: managers tend to be disproportionally competitor oriented (versus customer focused)
Why?
-We are “naturally” competitive (sport, war) -“Winning is everything”
-It is easy to know competitors’ actions
-It is easy to justify reacting to a competitive action (even if the action is ineffective or the reaction is superfluous)
-It is difficult to justify not reacting to a competitive action (especially if the reaction was necessary)
Dr. Dick Wittink (MARUG Congress 2004)
A PPENDIX 10 O UTCOMES QUESTIONNAIRE
Question 1
Do you know the image of your brands?
Yes, but only the hi Yes, but only the mi
Yes, I know them all
Count
4,5
4,0
3,5
3,0
2,5
2,0
1,5
Question 2
International & Euro market research othe It is a combination
From my own experien
Count
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
,5
Question 3
As the image is build by different brand associations, do you think you know the associations and their individual strength?
Yes, I know some associations Yes, but only a few
Yes, I know them all
Count
7
6
5
4
3
2
1
0
Question 4
60%
80%
Count
8
7
6
5
4
3
2
1
Question 5
Do you think it is better to be more certain about the image of your brand?
No, I do not think so Yes I think so
Count
10
8
6
4
2
0
Question 6
How often do you think the data about the brand image should be updated?
Every two years Every year
Once a month
Count
7
6
5
4
3
2
1
0
Question 7
Do you know what image your brand should have in the next 5 years?
We do not look further then one year Yes, I know and it is
planned
Count
6,5
6,0
5,5
5,0
4,5
4,0
3,5
3,0 2,5
Question 8/9/10
No response on these questions, because all respondents said to know their brand’s image.
Question 11
Do you know the relationship between your brands that are within your brand?
No, I do not know them Yes, but only the high
Yes but only the mid Yes I know them all
Count
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0 ,5
Question 12
How do you know about those relationships?
International &
European category research It is a combination
of qual and quan data Missing
Count
7
6
5
4
3
2
1
0
Question 13
How certain are you about knowing the relationships that exist between the products within your brands?
60%
80%
Missing
Count
5,5
5,0
4,5
4,0
3,5
3,0
2,5
2,0 1,5
Question 14
5,5
5,0
Question 15
Do you know how strong the relationships are between the products within your brands?
No, do not need to know Yes, I know which
relationships are the strongest Missing
Count
7
6
5
4
3
2
1
0
Question 16
Why do you NOT know the relationships between the products within your brand?
Never thought about it Missing
Count
6,5
6,0
5,5
5,0
4,5
4,0
3,5
3,0 2,5
Question 17
7
6
Question 18
How often do you think the data about the relationships within your brands should be updated?
Done it once no update is needed Every two years
Missing
Count
7
6
5
4
3
2
1
0
Question 19
Do you think it is possible a branded product is bought because the consumer knew another product from the same brand?
Yes, but has marginal effect Yes, very often
Count
8
7
6
5
4
3
2
1
Question 20
Do you think a product will not be bought anymore if another product from the same brand is deleted?
No, Only if C was buying both products Yes, if brand equity is
damaged C buys products within a brand range No,
Count
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0 ,5
Question 21
Do you think the brand equity of a brand is bigger be
Don't know No
Yes
Count
7
6
5
4
3
2
1
0
Question 22
Question: Do you think all products within a brand have an equal influence on total brand equity of that brand?
All answered: No, different products have different influences on total brand equity
Question 23
Does a product with a small sales volume always have lesser influence on the total brand equity?
Don't know sometimes
most of the times
Count
7
6
5
4
3
2
1
0
Question 24
Does your company have long-term objectives, for at least 5 years, concerning brand associations and image?
Yes, we have but are not looked at in practice Yes, and are strictly
monitored
Count
8
7
6
5
4
3
2
1
Question 25
Does your company have a systematic, reliable, sensitive and valid measuring system for customer satisfaction?
No Yes
Count
10
8
6
4
2
0
Question 26
Question: Does your company have a systematic, reliable, sensitive and valid measuring system for customer loyalty?
Question 27
Does your company have a systematic, reliable, sensitive a measuring system for customer brand image?
No Yes
Count
8
7
6
5
4
3
2
1
Question 28
Do you think it is wise to use a systematic, reliable, sensitive and valid measuring system?
Not always, costs can be to high Yes,
Count
6,5
6,0
5,5
5,0
4,5
4,0
3,5
3,0
2,5
Question 29
5,2
5,0
Question 30
In my product deletion process I make use of:
Qualitative and quantitative data Quantitative info
like AC Nielsen
Count
6,5
6,0
5,5
5,0
4,5
4,0
3,5
3,0 2,5
Question 31
0 1 2 3 4 5 6 7 8 9 10
sales value sales quantity gross margin share value Quantitative AC Nielsen data about your own products Quantitative AC Nielsen data about products from competitors GfK data, penetration figures Brand image aspects Product image aspects brand associations product associations existing relationships between products within a brand shelf space other
Count
Which of the following would you want to know to predict what will happen, after you delete one of the products within a brand, with the remaining products within that brand and the brand itself?
(please click all that apply)
Question 32
Question: In what way do you prefer to manage your brand(s)?
All answered: feed-forward management
Question 33
Do you think you have always made the right product deletion decisions?
Y there are too many products in the market Not always
Yes
Count
7
6
5
4
3
2
1
0
Question 34
Other Image building advertising Sales promotions
Count
7
6
5
4
3
2
1
0
Question 36
Given a brand with an annual sales of 1.500.000, with five different products, with the company’s average gross margin and on the lowest priority list, how much are you willing to pay for research regarding, brand image, associations and relationships between the five products within the brand?
Nothing because, no spending is allowed 1000-5000 euro
Count
10
8
6
4
2
0
Question 37
Given a brand with an annual sales of 1.500.000, with five different products, with the company’s average gross
don't know Nothing
5000-10000 euro 1000-5000 euro
Count
7
6
5
4
3
2
1
0
Question 38
Given a brand with an annual sales of 1.500.000, with five different products, with the company’s average gross margin and on the highest priority list, how much are you willing to pay for research regarding, brand image, associations and relationships between the five products within the brand?
Don't know Nothing
20000-25000 euro 15000-20000 euro
Count
6
5
4
3
2
1
0
Question 39
What do you think is the most important activity shown below?
Monitor product development Monitor sales
Monitor what the competition does
Count
8
7
6
5
4
3
2
1 0
Question 40
What do you think is the second most important activity shown below?
Monitor product development Monitor what the
competition does
Count
10
8
6
4
2
0
