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Brand Management(Mktg 547) Question Paper
Brand Management(Mktg 547)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2013
TIME: 3 HOURS
INSTRUCTIONS:
Answer Question ONE and any Other THREE Questions
QUESTION ONE
READ THE CASE STUDY AND ANSWER QUESTIONS THAT FOLLOWS:
CASE STUDY:
FALLING BIRTH RATES ARE PUTTING PRESSURE ON NAPPY BRANDS- HOW CAN BRAND MANUFACTURERS RESPONS?
Introduction
Pampers and Huggeis- the two biggest brands in the UK nappy market- are
trying to increase sales at a time when the UK`s birth rate is declining. The
demand for nappies is a "derived demand"- it derives from the needs of parents
with children aged from birth up to three. A changes in the number of children
requiring nappies is, therefore, potentially significant.
Pampers (owned by Proctor and Gamble "P&G") and Huggies (owned by
Kimberley- Clark) dominate the UK nappy market. According to Mintel,
Pampers and Huggies together accounted for 90 per cent of the UK market by
value in 2001.
Falling birth rates
The number of children aged four and under in the UK fell by 5.1 percent
between 1997 and 2001. Over the same period sales of disposable nappy sales
feel by 19 per cent from £457m to £370m.
The UK birth rate is predicted to fall by a further 3.5 percent in 2002, meaning
that 23,000 fewer babies are expected to be born in 2002 than in 2001. What
effect does this have on the product strategy for these two market leaders?
Brands respond with product innovation and brand extensions
One response to falling demand has been a significant amount of new product
innovation and product re-launches. The Pampers and Huggies brands are
also being extended beyond nappies into all aspects of baby care. P&G recently
announced a re-launch of its pampers baby dry range. The re-lanch was
backed by a £5m advertising and marketing campaign in an effort to put
pressure on Huggies’ Freedoms nappy range. This initiative was announced
just a month after the £6.8m re-launch of Huggies’ parent and baby club.
In August 2002, P&G lanched a Pampers baby wipes range, called Kandoo.
This is marketed as a transitional tool for three-to-five year old as they progress
from nappies to the toilet.
The pampers brand has also been extended into:
Disposable bibs called Bibsters
Packaged face-and-hand wipes called wipesters, and
Sunscreen lotions on a wipe- sunnies
P&G has also agreed a licensing deal to make Pampers Clean ’n’ play, a cleaning fluid that can be sprayed and has licensed the pampers brand to a clothing company to make baby pyjama and blankets. How successful is this brand extension strategy with customers? Do product re-lauches and extensions mean anything to customers? Are they confused by the proliferation of products carrying familiar brand name so strongly associated with one product- disposable nappies?
One baby product buyer at a leading supermarket chain dismisses the pampers baby dry relaunch, questioning how adding "new" in front of the brand name will drive sales. He says: "With increasing competition manufacturers are tweaking their existing products to create some sort of interest, in a market that is falling in both value and volume, such revamps mean little to shoppers and only end up confusing them".
Advertising executives feel that nappy brands may expose themselves to ridicule if they are over-extended:
"The fear is the Pampers and Huggies could soon become commoditized and hence devalued. Consumers today can see when manufacturers are trying to milk brands, and they could lose their credibility. There is only so much that you can do with a nappy brand- you can improve on the absorbency, breathability, feel and fit. I cannot see any nappy brand being extended into baby food. Even extending it into clothing may not work, because clothes are all about aspirations."
Brands must also be careful not to extend into products that have the potential to seriously damage brand value. One example is the launch in 1999 of Pampers Care Mats. The Care Mats were disposable mats on which infants could be placed while changing their nappies or to protect toddlers against bet-wetting. Less than six months after the launch, P&G was forced to label the mats with a safety warning after fears were raised that they could suffocate young babies.
Skeptics feel that new product and variant launches in the nappy sector are often simply a means for companies to gain a temporary edge over rivals. Whether all the new product development and brand re-launching will help to expand the sector in the long term is open to questions.
a) Advice P&G on strategies to create brand loyalty on their brands, use
information provided in the case as a guide. (6marks)
b) What benefits is P&G likely to accrue from extending its pampers brand?
What are the possible dangers of such a move? (8marks)
c) Discuss the brand revitalization strategies that Proctor and Gamble to revive its dying brands. (10marks)
d) How can P&G use the concept of perceived quality in its branding strategy? (6marks)
Question Two
Mr. Tembo, a small scale entrepreneur has started packaging and selling maize flour. However his product is doing very well due to lack of branding knowledge and skills. He therefore consults you for advise.
a) Suggest to him an appropriate brand name and symbol. Justify your
choice. (10marks)
b) What strategies can be used to create awareness for this brand?
(15marks)
Question Three
a) Describe the benefits of a strong brand. (8marks)
b) Using examples, discuss the dangers and benefits of changing brand
identity. Use Airtel as an example to illustrate your answer. (17marks)
Question Four
a) Use of a celebrity as a brand ambassador has both advantages and disadvantages. Using examples discuss this statement. (15marks)
b) Using examples, discuss the levels of brand loyalty. (10marks)
Question Five
a) Describe the various types of brand associations that a seller of a beer
brand can use to gain a competitive advantage. (15marks)
b) Describe how a marketer can measure the level of brand awareness for
his/her brand. (10marks)
Question Six
Brand management is all about shaping and managing perceptions. Using examples, discuss this statement. (25marks)
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