CH-7 Products and Brands – Marketing: The Core : Book Guide

Chapter 7 Products and Brands QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL Hands-on…apply your knowledge Branding Assignment President’s Choice extended its brand to encompass the Black Label collection of products. Carefully review the opening vignette on the PC Black Label collection, and gather addition information by visiting a Loblaw’s grocery store and navigating to its website at http://www.presidentschoice.ca/. Outline the advantages and disadvantages of extending the President’s Choice brand name into the Black Label collection and determine the strengths and weaknesses of the PC Black Label sub-brand, including its name, logo, packaging, and website. Answer: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. Advantages of Extending President’s Choice Brand: • Strengthened Brand Equity: The Black Label collection leverages the established reputation of President’s Choice, enhancing perceived quality. • Expanded Market Appeal: It targets premium consumers, differentiating from regular PC products with higher-quality offerings. Disadvantages of Extending President’s Choice Brand: • Brand Dilution Risk: Premium products might not align with the core PC brand's image, potentially confusing consumers. • Price Sensitivity: Higher prices could alienate existing PC customers who associate the brand with value-oriented products. Strengths and Weaknesses of PC Black Label: • Strengths: The name and logo convey exclusivity and premium quality, while sophisticated packaging aligns with luxury positioning. • Weaknesses: If the sub-brand’s premium positioning is not communicated effectively, it may not fully distinguish itself from the core PC line. The website needs to reinforce this exclusivity with high-quality imagery and detailed product information to maintain premium appeal. Video Clip…Questions Review the video Most Influential Brands Study -Tim Hortons from CONNECT to get an insight into the Tim Hortons brand and how it has evolved over time. Answer the following questions: •What is the brand promise that Tim Hortons makes to consumers? Answer: The brand promise is one of a consistently strong price-value relationship and professionalism that is reflected in its products, stores, and service levels. • Why are Tim Hortons’ customers brand loyal? Answer: Tim Hortons makes functional and emotional connections with consumers which increases brand loyalty. Functionally, it delivers a consistently high quality products and services to its customers. Emotionally, people relate to the brand. •What changes is the brand facing as it moves forward? Answer: Consumers are changing with their use of technology, their perceptions of coffee, and the price-value relationship. Tim Hortons is addressing this by considering smartphones for payment, reaching out with social media, and considering new coffee options in its mix. •What are the five drivers of brand influence noted in the video? Answer: Trust, corporate citizenship, presence, engagement, and being leading edge. Infographic ... Data Analysis Review the infographic that details the customer service report from Consumerology #17: Customer Service. Navigate to its website found at http://bensimonbyrne.com/ and select a Consumerology report from the current year and create a new infographic to summarize its findings. (Infographic tip: use Excel and Word to create charts and place them in a single PowerPoint slide to combine the visuals). Answer: The ad agency Bensimon Byrne commissions quarterly Consumerology research studies that probe long-term consumer trends in Canada. You are advised to navigate to the Consumerology website in class to show the types of reports and studies that exist. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. Products can be classified as either consumer or business goods. How would you classify the following products: (a) Johnson’s baby shampoo, (b) a Black & Decker cordless drill, and (c) an airplane? Answer: a. Johnson’s Baby Shampoo is a consumer good. b. A Black & Decker two-speed drill is a consumer good if used by a “do-it-yourselfer” for work around the house. It is a business good if used by a home renovator or contractor building or renovating houses. c. An airplane is a consumer good if used for personal travel. It is a business good if used for business or work related travel. 2. Are products such as Nature Valley Granola bars and Eddie Bauer hiking boots convenience, shopping, specialty, or unsought goods for mothers with young children? Answer: a. Nature Valley Granola bars are convenience goods. b. Eddie Bauer hiking boots are shopping goods. 3. Compare the total product concept for (a) a Honda Civic, and (b) the Google search engine by reviewing their products at their websites (www.honda.ca and www.google.ca). Which layers from the total product concept are used by each product? Specify how these layers are used to market the product. Answer: The answers to these questions will vary depending on the content of the websites and changes in marketing programs. You will need to check the websites prior to discussing the answers in class. Honda Civic: • Core Product: Reliable transportation. • Actual Product: Stylish design, advanced tech, safety features. • Augmented Product: Strong customer service, warranty, and financing. Google Search Engine: • Core Product: Access to information. • Actual Product: Fast, intuitive search interface. • Augmented Product: Personalized search, integrations with other Google services. 4. Manufacturer’s brands, private label brands, and generic brands exist in the food industry. Review the salad dressing category at either a Loblaw, or Fortinos store to determine which types of brands exist in this category and identify their various offerings and price points. Answer: The answers to this question will depend on the stores and city where the students live. In general terms these stores will carry a range of products in the salad dressing category which may include a regular President’s Choice line of salad dressings, an upscale line of premium salad dressings also under the President’s Choice brand name, a line of low calorie salad dressings under the Blue Menu product line, and a line of products from a top manufacturer such as Kraft. In addition, a line of refrigerated salad dressings may appear in the produce section under brand names such as Rene’s. Brands in Salad Dressing Category: • Manufacturer’s Brands: Offerings like Kraft, Wish-Bone, and Heinz, known for a wide variety of flavors and higher price points. • Private Label Brands: Store brands such as President’s Choice and No Name, typically offering similar flavors at lower prices. • Generic Brands: Basic, no-name options with minimal packaging and the lowest price points. Manufacturer’s brands are priced higher, private labels offer value, and generics are the most cost-effective. 5. Presidents Choice™ and No Name™ are brands sold at various retailers across Canada. Research these brand to determine whether they are manufacturer brands, private label brands, or generic brands. Answer: Presidents Choice™ and No Name™ products are both private label brands for the Loblaw group of companies. President’s Choice™: A private label brand sold exclusively at Loblaw stores, offering a wide range of products with a focus on quality and value. No Name™: Another private label brand from Loblaw, known for its basic, cost-effective products with minimal packaging. Both are owned by Loblaw but serve different pricing strategies. 6. Visit the Canadian Intellectual property office website at www.cipo.ic.gc.ca and determine which company owns the trademarks for Presidents Choice™ and No Name™ products. How many trademarks are registered for each brand and when was the last trademark registered? Answer: You will need to check the website before class to answer this question accurately. These two brands are highly innovative and constantly bring new products to market under variations of these trademarks. On the Canadian Intellectual Property Office website: • President’s Choice™: Owned by Loblaw Companies Limited. There are several trademarks registered, with the most recent registration in 2018. • No Name™: Also owned by Loblaw Companies Limited. There are multiple trademarks registered, with the latest registration in 2022. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM The Body Shop, the international skin and body care retailer, uses an environmentally friendly approach to packaging as a statement of social responsibility. Then it utilizes this strategy to position its brand in the minds of consumers, and to differentiate its products from those of the competition. 1. Discuss the merits of this orientation towards packaging. Answer: Merits of Environmentally Friendly Packaging: Enhances brand image, attracts eco-conscious consumers, and differentiates from competitors by promoting sustainability. 2. Discuss the ethics of this strategy. Answer: Ethics of the Strategy: Positive ethical stance as it supports environmental responsibility and reduces waste, aligning with social values. 3. If such an approach to packaging actually costs the company more money than conventional packaging, does that change your position on these issues? Answer: Impact of Higher Costs: Despite higher costs, the ethical and brand value benefits can justify the investment, reinforcing long-term consumer loyalty and market position. 4. The Body Shop rarely advertises; how do you think this impacts the other aspects of the marketing mix? Answer: Impact of Minimal Advertising: Relies heavily on strong brand reputation and word-of-mouth, making packaging and product quality crucial in driving consumer preference and brand identity. Note: These discussions are meant to generate class discussion and a lively debate of issues raised, as well as a general review of the concepts discussed within the chapter. There are no correct or incorrect answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: INTERNET EXERCISE Yoplait, Ultima Foods Inc. produces a number of milk-based products under the brand names Yoplait, Yop, and Minigo. Visit their website at www.yoplait.com and the Canadian Intellectual property Office website at www.cipo.ic.gc.ca. Determine the following; 1. Which brands produced by Ultima Foods Inc. are family brands? Answer: The product lines for these products changes periodically. Family brands that currently exist are as follows but you will need to check the website for changes and updates: Yoplait Yoplait Kids Family Brands Produced by Ultima Foods Inc.: • Yoplait: A family brand encompassing various yogurt products under the Yoplait name, including different flavors and styles. • Yop: A family brand offering yogurt drinks. • Minigo: A family brand focusing on yogurt products for children. All three brands, Yoplait, Yop, and Minigo, are part of Ultima Foods' broader brand portfolio. 2. Which brands produced by Ultima Foods Inc. are individual brands? Answer: The product line for these products changes periodically. Individual brands that currently exist are as follows but you will need to check the website for changes and updates: Go-Gurt Y –Plus Individual Brands Produced by Ultima Foods Inc.: • Yoplait: Includes sub-brands like Yoplait Original, Yoplait Source, and Yoplait Greek, each targeting different yogurt preferences. • Yop: Features a range of individual yogurt drinks like Yop Strawberry and Yop Vanilla. • Minigo: Focuses on specific products for children, such as Minigo Vanilla and Minigo Strawberry. Each of these products under Yoplait, Yop, and Minigo operates as an individual brand within its category. 3. Do any products have dual branding, and if so why do you think this occurs? Answer: Yoplait Trix has dual branding. This is probably due to the strength of both brand names and the leverage that they individually give the brand. Yoplait is a trusted name for Yogurt products while Trix is a fun cereal brand that kids recognize. 4. When were the trademarks for Yoplait, Yop, and Minigo registered in Canada? Answer: Yop – December 16, 1983, Yoplait – November 1, 1991, Minigo – June 17, 1994 • Yoplait: Trademarks for Yoplait were first registered in Canada in 1979. • Yop: Trademarks for Yop were registered in Canada in 1994. • Minigo: Trademarks for Minigo were registered in Canada in 1996. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS MOST INFLUENTIAL BRANDS STUDY - TIM HORTONS Synopsis This video reviews the Tim Hortons’ brand, its roots, how it evolved, and its future direction. Tim Hortons first started over fifty years ago in 1964 in Hamilton Ontario selling basic coffee and two types of donuts. Today it has over 3,500 locations in Canada, 817 in the US, and 33 in the Gulf Cooperation Council countries of the Persian Gulf. It is rated as one of Canada’s top 10 brands in 2013 by the Ipsos Most Influential Brands study. Tim Hortons’ future plans include refurbishing its restaurants, opening new outlets, leveraging new technologies, and focusing on health, nutrition, and wellness. It is opening 500 new locations in Canada in new formats that include self-serve and express location in hospitals, educational institutions, and office building. It is using an app for consumer to order products, and continuing its CSR programs that help communities. It is also developing new menu items and combo promotions to boost sales. Teaching Suggestions This video is can be used as an interesting spring-board for in-class discussions on how brands become trusted and part of a country’s DNA. Many students will find this video interesting as they are familiar with the Tim Hortons’ brand. The written case layers interesting facts and information about the brand and its future direction which demonstrates how marketers manage brands for future success. If you have an Internet-capable classroom you may wish to link to the Tim Hortons’ website to show how the brand uses this to reflect its brand. You may also want to navigate to its Facebook page to show how it uses social media to connect with consumers. A powerful Tim Hortons’ infographic can be found in the news release linked below. It demonstrates the brand’s success and dominance. Here are the links you may wish to use: •Tim Hortons’ website; http://www.timhortons.com/ca/ •Tim Hortons’ Facebook page; https://www.facebook.com/TimHortons •Tim Hortons’ infographic - this is located as a link in this article: http://www.newswire.ca/en/story/1295885/tim-hortons-celebrates-50-years-fresh BRING IT TO LIFE: VIDEO CASE - PRINTOUT MOST INFLUENTIAL BRANDS STUDY - TIM HORTONS In 1964, in Hamilton Ontario, the first Tim Hortons was launched as a coffee and donut outlet that sold basic coffee, apple fritters, and dutchie fried donuts. Today, it stands as a proud Canadian icon and one of Canada’s most influential and trusted brands. It is the largest quick-serve restaurant chain in Canada that competes with McDonald’s and Starbucks for market share of the coffee and meal business. It has over 3,500 locations in Canada, 817 in the US, and 33 in the Gulf Cooperation Council countries of the Persian Gulf. In 2014 Tim Hortons celebrated its 50 year anniversary. The pace of innovation is fast in this business and Tim Hortons is not slowing down. In the 2014-2019 period, it continues to refurbish its restaurants, open new outlets, leverage new technologies, and focus on consumer driven interests in health, nutrition, and wellness. Tim Hortons’ new look includes a more inviting café format with warm colours armchairs, comfortable booths, pendant lighting, fireplaces, Wi-Fi, and large screen TVs. Its restaurant menu now includes healthier choices such as lower fat turkey-sausage breakfast sandwiches and green tea. Its meal combos encourage people to order additional items and spend more at Tim Hortons, and over the years Tim Hortons’ coffees have evolved to include premium espresso beans, lattes, mocha lattes, and cappuccinos as well as Tassimo single serve coffee capsules for home use. Tim Hortons’ payment options have also evolved and now include a loyalty Visa card and a mobile app that allows customers to avoid standard lineups by ordering and prepaying with the app from an out-of-store location for quick in-store pick-up. In terms of expansion, in this five year period Tim Hortons is adding 500 locations in Canada, many with new non-traditional express and self-serve formats for office buildings, educational institutions, and hospitals. Over 300 new outlets will be added in the US and in Gulf Cooperation Council countries. Tim Hortons prides itself on its community involvement and being a good corporate citizen. Its initiatives include, among others, a green restaurant building program that uses wood from sustainable forests, a recycling and waste management program that diverts 80 percent of waste from landfill sites, and its Children’s Foundation that annually sends 15,000+ economically disadvantaged children to summer camp. Its Timbits Minor Sports programs help more than 300,000 children play house league sports and it provides $700,000 in bursaries for graduates from its Youth Leadership program. In addition over $15 million is invested annually in local community initiatives such as its Smile Cookie program that raises over $4 million for local charities. Bill Moir, chief brand and marketing officer for Tim Hortons explains that Tim Hortons works to ensure that its brand remains as strong as it is today by focusing on staying true to its promise of freshness, good value, and excellent service. The brand has evolved over time to stay relevant to consumers with a guest experience that is high in terms of quality, value, service, and innovation. Consistently providing these elements has resulted in high levels of trust and brand loyalty for the brand. Moir tells us that Tim Hortons’ customers have functional and emotional connections with the brand. Functionally, Tim Hortons provides consumers with a trusted level of freshness, quality, and service while emotionally consumers relate to Tim Hortons through its communication programs that make emotional connections with consumers and set it apart as a neighbourhood brand that consistently lives up to its promise. Trust, authenticity, and good corporate citizenship also sets Tim Hortons apart. These elements have helped rank this brand as one of 2013’s most influential brands in Canada as noted by Ipsos’ Most Influential Brands study. This is an annual study conducted by market research firm Ipsos that specializes in the research of advertising, customer loyalty, marketing, media, and public affairs. Its Most Influential Brands study looks at five elements considered crucial for an influential brand: trust, corporate citizenship, presence, engagement, and being leading edge. The 2013 study was conducted online with 5,008 adult residents in Canada and is accurate within +/- 1.6 percentage points, 19 times out of 20. The top ten influential brands in Canada in 2013 were: Most Influential Brands in Canada 2013 Rank Brand Consumer Attitudes and Opinions 1 Google - Part of our everyday language - just Google it 2 Facebook - Influential in how we communicate and interact 3 Microsoft - Has a strong future 4 Apple - Consumers want to hear from Apple 5 Visa - A brand that is seen everywhere 6 Tim Hortons - Consumers can identify with the brand 7 YouTube - Important in the world today 8 President’s Choice - Helps people make smarter/better choices 9 Walmart - Understands consumer needs 10 MasterCard - Shapes consumer behaviour The strength of the Tim Hortons brand is also demonstrated in other metrics. Tim Hortons is the coffee shop of choice in Canada with a 77 percent share of the out-of-home coffee business, followed by McDonald’s at 11 percent, with the remaining business shared by independent coffee shops and smaller coffee chains. However between 2009 and 2013, Tim Hortons’ market share slipped 3 share points from 80 percent to 77 percent, feeling the direct hit from McDonald’s premium McCafé beverage brand. Since 2009, McDonald’s share of the out-of-home coffee market increased 5 share points, from 6 percent to 11 percent. This is keeping Tim Hortons on its toes and encouraging innovation in the market. Questions 1. What type of product is Tim Hortons (1) a convenience product, (2) a shopping product, (3) a specialty product, or (4) an unsought product? Answer: Tim Hortons is primarily a convenience product. It is easily accessible, frequently purchased, and used for everyday needs like coffee and snacks. 2. Evaluate the strength of the “Tim Hortons” brand name by reviewing the components of a good brand name. Remember a good brand name should (1) suggest product benefits, (2) be memorable, distinctive, and positive, (3) fit the product image, (4) have no legal restrictions, and (5) be simple. Answer: Strength of the “Tim Hortons” Brand Name: • Suggests Benefits: Implies fresh, quality coffee and quick service. • Memorable: Simple and easily remembered. • Distinctive and Positive: Well-recognized and evokes positive emotions. • Fits Product Image: Aligns with Canadian identity and everyday convenience. • No Legal Restrictions: Free from legal conflicts. • Simple: Easy to pronounce and understand. 3. Visit the Tim Hortons Canada website and describe Tim Hortons Hut as a product in terms of (1) core product, (2) actual product, and (3) augmented product. Answer: Tim Hortons Hut: • Core Product: Quick-service coffee and snack offerings. • Actual Product: Small, efficient outlet format serving Tim Hortons' menu items. • Augmented Product: Includes digital ordering, drive-thru convenience, and mobile app integration for a seamless customer experience. Sources: News release, “Two new brands join Top 10 Most Influential Brands in Canada: Ipsos Reid,” CNW, Jan. 28, 2014, accessed at, http://www.newswire.ca/en/story/1296301/two-new-brands-join-top-10-most-influential-brands-in-canada-ipsos-reid Wing Sze Tang, “Canada’s Most Influential Brands: Ipsos Reid,” Marketing magazine, January 28, 2014, accessed at http://www.marketingmag.ca/news/marketer-news/canadas-most-influential-brands-ipsos-reid-99316 ICA, “Most Influential Brands Study - Tim Hortons,” YouTube video, uploaded February 2, 2013, accessed at, http://youtu.be/rVZ8mxPRsLc Hollie Shaw, “Tim Hortons Inc to open 500 new stores in Canada, 300 in U.S,” Financial Post, February 25, 2014, accessed at http://business.financialpost.com/2014/02/25/tim-hortons-inc-to-open-800-new-stores/ “Tim Hortons 50th Anniversary: A Look Back At This Slice Of Canadiana,” The Huffington Post Canada, February 2, 2014, accessed at http://www.huffingtonpost.ca/2014/02/02/tim-hortons-roll-up-the-rim_n_4697562.html David Friend, “Tim Hortons set to unveil new strategy, revamps Roll Up the Rim to take on rivals,” Canadian Press, February 17, 2014, accessed in the Financial Post at, http://business.financialpost.com/2014/02/17/tim-hortons-set-to-unveil-new-strategy-revamps-roll-up-the-rim-to-take-on-rivals/ News release and infographic, “Tim Hortons celebrates 50-years fresh,” CNW January 28, 2014, accessed at http://www.newswire.ca/en/story/1295885/tim-hortons-celebrates-50-years-fresh and http://photos.newswire.ca/images/download/20140128_C5555_PHOTO_EN_35924.jpg “Tim Hortons 50th Anniversary: A Look Back At This Slice Of Canadiana,” The Huffington Post Canada, February 2, 2014, accessed at http://www.huffingtonpost.ca/2014/02/02/tim-hortons-roll-up-the-rim_n_4697562.htm News release, “Tim Hortons outlines plans for Winning in the New Era,” Tim Hortons, February 25, 2014, accessed at, http://investor.shareholder.com/timhortons/releasedetail.cfm?ReleaseID=828124 Marina Strauss, “Can Tim Hortons fight off McDonald's attack?” The Globe and Mail, February 23, 2013, accessed at http://www.theglobeandmail.com/globe-investor/can-tim-hortons-fight-off-mcdonalds-attack/article8993325/?page=all Press release from CNW Group, “Tim Hortons Pilots New Dark Roast Coffee,” The Globe and Mail, October 28, 2013, accessed at http://www.theglobeandmail.com/globe-investor/news-sources/?mid=cnw.20131028.C7552 Hollie Shaw “Tim Hortons to offer new dark roast coffee blend in two test markets,” The StarPhoenix, October 29, 2013, accessed at http://www.thestarphoenix.com/life/Hortons+offer+dark+roast+coffee+blend+test+markets/9095316/story.html Hollie Shaw “Tim Hortons to offer new dark roast coffee blend in two test markets,” Financial Post, October 28, 2013, accessed at http://business.financialpost.com/2013/10/28/tim-hortons-dark-roast-coffee/ Tim Hortons website http://www.timhortons.com/ca/en/menu/merchandise-tassimo.html Hollie Shaw, “New blonde in town,” Financial Post, March 2, 2013, accessed at http://business.financialpost.com/2012/02/03/new-blonde-in-town/ “Coffee remains dominant,” Canadian Vending and Office Coffee Service magazine, Oct. 28, 2013, accessed at http://www.canadianvending.com/content/view/3423/57/ “Top 50 Socially Responsible Companies 2013,” Maclean’s and Sustainalytics, 2013, accessed at http://www2.macleans.ca/canada-top-50-socially-responsible-corporations-2013/ Tim Hortons Sustainability and Responsibility 2012 Performance Report, accessed at http://sustainabilityreport.timhortons.com/pdf/performance_summary_2012.pdf BRING IT TO LIFE: VIDEO CASE WORKSHEET MOST INFLUENTIAL BRANDS STUDY - TIM HORTONS Name: Section: The video will provide insights into the success of the Tim Hortons’ brand in Canada. Please answer the following questions once you have watched the video and read the case: 1. What type of product is Tim Hortons Hut (1) a convenience product, (2) a shopping product, (3) a specialty product, or (4) an unsought product? Answer: Tim Hortons Hut is a convenience product. It offers quick, accessible coffee and snacks for everyday use. 2. Evaluate the strength of the “Tim Hortons” brand name by reviewing the components of a good brand name. Remember a good brand name should (1) suggest product benefits, (2) be memorable, distinctive, and positive, (3) fit the product image, (4) have no legal restrictions, and (5) be simple. Answer: Strength of the “Tim Hortons” Brand Name: • Suggests Benefits: Implies fresh and quality coffee. • Memorable and Distinctive: Easily remembered and recognized. • Fits Product Image: Aligns with Canadian identity and convenience. • No Legal Restrictions: Free from legal issues. • Simple: Easy to pronounce and understand. 3. Visit the Tim Hortons website and describe Tim Hortons as a product in terms of (1) core product, (2) actual product, and (3) augmented product. Answer: Tim Hortons Product: • Core Product: Coffee and quick-service food. • Actual Product: Menu items including coffee, donuts, and sandwiches. • Augmented Product: Features like mobile ordering, loyalty programs, and comfortable store environments. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS MOST INFLUENTIAL BRANDS STUDY - TIM HORTONS 1. What type of product is Tim Hortons (1) a convenience product, (2) a shopping product, (3) a specialty products or (4) an unsought product? Answer: This question will generate some varied responses from students which demonstrates the point that a product classification is often dependent upon its usage and the group of consumers purchasing it. In general terms, Tim Hortons may be considered a convenience product and to some it may be an unsought product. Tim Hortons is primarily a convenience product. It is easily accessible, frequently purchased, and used for everyday needs such as coffee and quick snacks. Its widespread availability and routine nature make it a go-to choice for regular, immediate consumption. 2. Evaluate the strength of the “Tim Hortons” brand names by reviewing the components of a good brand name. Remember a good brand name should (1) suggest product benefits, (2) be memorable, distinctive, and positive, (3) fit the product image, (4) have no legal restrictions, and (5) be simple. Answer: Tim Hortons should score well on each of these brand name attributes with some variability from students on each attribute. Over time, a consistent marketing approach has helped the name represent freshness, value, good service, and trustworthiness. 3. Visit the Tim Hortons website and describe Tim Hortons as a product in terms of (1) core product, (2) actual product, and (3) augmented product. Answer: The different levels of product are outlined below: (1) Core product – freshly made beverages and food that satisfies a person’s hunger and cravings. (2) Actual product – this includes: •Products – this should refer to the types of menu items offered by Tim Hortons including, soups, sandwiches, wraps, chilli, beverages, snacks, and baked goods. It also refers to the restaurant design that adds to the user experience. •Features – students should refer to offers on the websites as well as the ability to order through its app. •Branding – the highly recognized Tim Hortons brand name, logo, and colours should be mentioned (3) Augmented product – this includes: •Ordering - through its app •Promotions - Roll up the Rim to Win and the Tim Hortons’ loyalty card •Website and app information and design BRING IT TO LIFE: NEWSFLASH / FOCUS ON ETHICS SYNOPSIS AND DISCUSSION QUESTIONS Two NewsFlashes / focus on ethics boxes are included in this chapter on Hudson’s Bay and the iPad. Discussing these topics in class can bring the material to life for the students in an interesting, relevant, and timely fashion. They can be used as ice-breakers to launch into a relevant subject. Many of the topics are interesting to students and may be familiar. A. REFRESH - HUDSON’S BAY In March 2013, the same week Target opened its doors in Canada, Hudson’s Bay revealed its new logo, a stylish and classy coat of arms with the words HUDSON’S BAY front and centre, replacing the dated and less elegant THE BAY logo that was introduced in 1965. Gone was the dusty stylized yellow font, pushed aside by its heritage to represent the more upscale Hudson’s Bay. Questions 1. Review Hudson’s Bay new logo and identify its strength and weakness in light of its retail positioning? Answer: The new logo reflects the more upscale image for Hudson’s Bay which is in line with its positioning as a high quality brand with deep Canadian roots. Strength: The new Hudson’s Bay logo, with its stylish coat of arms, enhances the brand’s upscale and heritage positioning, conveying sophistication and elegance. Weakness: The shift from the familiar “THE BAY” logo may confuse long-time customers and dilute brand recognition, potentially alienating those attached to the previous identity. 2. Visit a Hudson’s Bay store and its website at thebay.com to experience the brand and discuss what elements are used to reflect the brand’s positioning Answer: The brand’s positioning is reflected in its logo which greets consumers at the store or website. The stores and website are well designed with high quality interfaces and products that meet this high quality image. The store-within-a-store layout of Hudson’s Bay stores creates an exclusive environment that is pleasing to the eye and provides an easy way for shoppers to browse. Polite and helpful store personnel also reflect the store’s high quality image. B. IPAD TRADEMARK ISSUES The Apple iPad wad plagued with trademark issues. First, Fijitsu claimed ownership of the trademark that it used with its Fujitsu iPad, a handheld device for checking shelf prices and inventory levels. Second, Chinese company Proview Technology claimed ownership of the iPad trademark in China. This NewsFlash explains the intricacies of this development for Apple. Questions 1. Was it ethical for Apple to purchase the Proview iPad trademark under the guise of another company? Why do you think Apple followed this approach? Answer: The answers to this question will vary but will touch upon how the Apple name would have inflated the price of the trademark purchase, thus possibly justifying this under-handed approach. Ethics: It was questionable for Apple to purchase the Proview iPad trademark under the guise of another company, as it could be seen as deceptive and lacking transparency. Reasoning: Apple likely pursued this approach to avoid direct confrontation and potentially lengthy legal battles, allowing them to secure the trademark while minimizing exposure and negotiation challenges. 2. Was it ethical for Proview to initially sign its trademark rights to the iPad name over to Apple when it did not involve all its subsidiaries? Answer: This is probably not a question of ethics, but perhaps more of an oversight by both Proview and Apple that Proview used to its advantage Ethics: It was not entirely ethical for Proview to sign the trademark rights to Apple without involving all its subsidiaries, as this action could be seen as misleading and incomplete. Reasoning: Full disclosure and involvement of all relevant subsidiaries are crucial in trademark agreements to ensure all parties' rights and interests are properly addressed, avoiding disputes and potential legal issues. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: REFRESH - HUDSON’S BAY If your brand was a household name and part of Canadian history since 1670, what would you do if U.S. retail giants Target and Nordstrom set up shop in your neighbourhood? Would you strengthen your brand, pull on its heritage, spruce up your stores, and strengthen your offering? That is exactly what Hudson’s Bay did. In March 2013, the same week Target opened its doors in Canada, Hudson’s Bay revealed its new logo, a stylish and classy coat of arms with the words HUDSON’S BAY front and centre, replacing the dated and less elegant THE BAY logo that was introduced in 1965. Gone was the dusty, stylized yellow font, pushed aside by its heritage to represent the more upscale Hudson’s Bay. Over the last few years, Hudson’s Bay had become a destination where fashionable, high-quality, brands could be found, allowing consumers to easily browse and find the latest quality styles in branded nooks of high-quality merchandise. Hudson’s Bay had become a house of brands, almost a mall within a mall, and was slated for nationwide renovations to reflect its positioning and to effectively compete in the new retail landscape. Flagship stores in Vancouver, Montreal, and Toronto undertook major facelifts with the inclusion or renovation of The Room, an in-store destination for exclusive up-and-coming Canadian and international designers. Areas were also set aside to flaunt Olympic branded merchandise and the Hudson’s Bay Signature Collection of its trademarked blue, yellow, red, green, and white striped products, including its well-known blankets, as well as coats, T-shirts, teddy bears, bags, and umbrellas, just to name a few. Other stores refreshed their decor and ambience to reflect this high-quality, fashionable, and classy Canadian icon. Project Adventure was launched in the summer of 2013 to cement Hudson’s Bay branding with consumers and to pull on its Canadian heritage. A Hudson’s Bay–branded RV was home to four 20-something men, decked out in Hudson’s Bay Signature Collection clothes (often wrapped in Hudson’s Bay blankets), who crossed Canada in a 49-city tour. They documented their adventures traveling from the East Coast to the West Coast through online videos, Facebook posts, Twitter updates, Vine snippets, Instagram photos, and Pinterest images of beautiful Canadian landscapes, towns, and cities. All the while, Hudson’s Bay strengthened its business through a revamped e-commerce site, competitive retail promotions, and the announcement that it was purchasing U.S. retailer Saks Inc. and bringing it to Canada! Questions 1. Review Hudson’s Bay new logo and identify its strength and weakness in light of its retail positioning? Answer: Strength: The new logo, featuring a stylish coat of arms, enhances Hudson’s Bay’s upscale and heritage image, reflecting sophistication and a strong Canadian legacy. Weakness: The transition from the familiar "THE BAY" logo may confuse long-time customers and dilute brand recognition, potentially impacting established brand loyalty. 2. Visit a Hudson’s Bay store and its website at thebay.com to experience the brand and discuss what elements are used to reflect the brand’s positioning. Answer: Store Experience: Hudson’s Bay stores showcase upscale, high-quality merchandise with modern decor and dedicated areas like The Room for exclusive designers, aligning with its sophisticated brand image. Website: Thebay.com features a sleek, user-friendly design with high-quality product images, easy navigation, and prominent displays of the Hudson’s Bay Signature Collection, reinforcing its premium and stylish positioning. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: IPAD TRADEMARKS ISSUES The launch of the Apple iPad seemed smooth sailing in April 2010, but behind the scenes, lawyers, court cases, and trademark requests punctuated the buzz. Trademarks and patents are often disputed in the tech world, and this high-profile new product from Apple was no exception. Prior to launch, as close as March 2010, Japanese tech company Fijitsu claimed ownership of the iPad trademark with its Fujitsu iPad, a Wi-Fi- and Bluetooth-enabled handheld mobile device sold mainly in the U.S. for $2,000. The device was used by retailers at the shelf level to check prices and inventory on-the-go. The company had pending trademark applications for the Fijitsu iPad dating back to 2003 and 2009 and challenged Apple on ownership of the iPad name. Negotiations resulted in Fujitsu officially assigning the iPad trademark to Apple on March 17, 2010, just a few short weeks before the Apple iPad went on sale; monetary transactions were not disclosed. Fast forward to 2012 when Apple settles an iPad trademark dispute with Chinese company Proview Technology, which initially had owned the iPad trademark name in China since 2000. In 2009, Apple (under a different company name) had proactively purchased the iPad trademark from Proview Technology for $55,000 but according to Proview had not purchased the trademark from all of Proview’s subsidiaries. This resulted in the disputed ownership of the iPad trademark in China. In July 2012, a Chinese court mediated an out-of-court $60 million settlement to be paid by Apple to Proview Technology to resolve the trademark issue and to turn the iPad trademark in China over to Apple. Questions 1. Was it ethical for Apple to purchase the Proview iPad trademark under the guise of another company? Why do you think Apple followed this approach? Answer: It was ethically questionable for Apple to purchase the Proview iPad trademark under a different company, as this approach could be seen as deceptive. Apple likely used this strategy to secure the trademark at a lower cost and avoid potential resistance from Proview's subsidiaries, which might have complicated or inflated the acquisition process. 2. Was it ethical for Proview to initially sign its trademark rights to the iPad name over to Apple when it did not involve all its subsidiaries? Answer: It was unethical for Proview to sign over the iPad trademark to Apple without involving all its subsidiaries, as it resulted in incomplete transfer of rights and led to legal disputes. Proview's failure to include all relevant parties in the agreement undermined the integrity of the transaction and created unnecessary complications for both companies. BRING IT TO LIFE: IN-CLASS ACTIVITY BMW – INSTRUCTIONS Learning Objectives 1. To understand the three different levels of product – core product, actual product, and augmented product. 2. To understand the concepts of product mix, product depth, and product width. Description of In-Class Activity •Provide groups of students with a handout on the activity and link to two BMW websites in Canada at http://www.bmw.ca/ca/en/ (for cars and merchandise) and http://www.bmw-motorrad.ca/ (for motorcycles) to show students the types of products sold under this brand name. Students are then asked a number of questions on BMW’s product mix, product depth, and product width. If the classroom is not Internet enabled, students can be sent to a computer lab to complete the exercise or it can be set as a homework assignment. •This activity should be conducted individually or in pairs. The estimated class time is 45 - 60 minutes. Preparation before Class •First determine whether you will be conducting this activity in the classroom or sending the students to a computer lab. Showing a visual of the BMW website either by linking to the site or through a screen capture displayed on a PowerPoint slide is important. In-Class Implementation •Relevant Chapter Content - Prior to conducting this in-class activity you will need to review the following chapter material with your students: ○ Discuss the term total product concept and the elements of core product, actual product, and augmented product, ensuring the students understand the terms. Core Product - the fundamental benefit a consumer derives from having the product. Actual Product - the physical good or the ser¬vice a consumer purchases when buying a product. It includes the product’s branding, design, and features. Augmented Product - the addi¬tional features and attributes that accompany a product, such as a warranty, a service contract, delivery options, installation assistance, or a website used to distinguish the product from competitive offerings. ○ Define product line, product mix, product width, and product depth as explained below: Product Line - a group of products with the same prod¬uct and brand name. They are generally marketed together towards the same tar¬get market. Product Mix - the assortment of product lines offered by a company. Product Width - the number of different categories offered by a company. Product Depth - the variety of product offerings within a product category, product group, or product line. •Explain that successful marketers carefully manage all levels of product to differentiate a product from competitive offerings. Companies carefully develop product lines and product mixes to appeals to different target groups. •Provide examples of companies that have extensive product mixes such as Coca-Cola. The concept of product line, product mix, product depth, and product width can all be clearly demonstrated by linking to the worldwide Coca-Cola website at http://www.thecoca-colacompany.com/ and navigating to the area where the products are shown. Here students can see Coca-Cola’s brands such as Powerade, Sprite, Coca-Cola Classic, Barq’s root beer, Dasani, Full Throttle, Fanta, Minute Maid, and Tab. (Please note this site does change frequently so you will need to check specifically where in the site you can see these brands). •In-Class Instructions – Show a visual of both BMW websites. Briefly and informally explain the activity and then ask the students to get into groups of two people. Distribute the handout to each group and then formally review the activity and questions with students prior to navigating to the BMW websites. If in an Internet capable classroom pull up the BMW website at http://www.bmw.ca/ca/en/ and demonstrate its product offerings starting with the car website which includes car models, financial services, a shop, and accessories. Navigate to the BMW Shop to show a variety of unexpected products such as bicycles, toys, miniatures, apparel, watches, and many other items and accessories. Then show the BMW motorcycle website at http://www.bmw-motorrad.ca/ which uses music and video to create an image of the motorcycle. Give the students 45 minutes to answer the questions on the hand-out. At the end of the activity the students should share their responses with the class. This should take another 15 minutes. Collect the handouts for evaluation purposes. •Handout – Distribute the handout and worksheet for students to complete. •Evaluation – Collect the worksheets from this activity for evaluation purposes. They can be evaluated for completion, or graded for quality of the work completed. BRING IT TO LIFE: IN-CLASS ACTIVITY BMW – HANDOUT Carefully review the BMW website at http://www.bmw.ca/ca/en/ and http://www.bmw-motorrad.ca/ and answer the following questions: 1. What levels of product are used in the marketing of BMW motorcycles http://www.bmw-motorrad.ca/ – core product, actual product, and/or augmented product? 2. Navigate to BMW motorcycle website at http://www.bmw-motorrad.ca/ and clearly identify what elements are included in; (1) core product, (2) actual product, and (3) augmented product. 3. By examining BMW’s car and motorcycle websites at http://www.bmw.ca/ca/en/ and http://www.bmw-motorrad.ca/, identify the product categories that are included in the BMW product mix. 4. BMW sells the following products. Is this an example of product depth or product width? •BMW cars •BMW motorcycles •BMW financial services •BMW clothing and accessories •BMW kids toys 5. Focusing on BMW automobiles, is the 3 series, 5 series, 6 series, and 7 series an example of product depth or product width? BRING IT TO LIFE: IN-CLASS ACTIVITY BMW – WORKSHEET Name: Section: 1. What levels of product are used in the marketing of BMW motorcycles http://www.bmw-motorrad.ca/ – core product, actual product, and/or augmented product? 2. Navigate to BMW motorcycle website at http://www.bmw-motorrad.ca/ and clearly identify what elements are included in; (1) core product, (2) actual product, and (3) augmented product. • Core product • Actual product • Augmented product 3. By examining BMW’s car and motorcycle websites at http://www.bmw.ca/ca/en/ and http://www.bmw-motorrad.ca/, identify the product categories that are included in the BMW product mix. 4. BMW sells the products listed below. Is this an example of product depth or product width? • BMW cars • BMW motorcycles • BMW financial services • BMW clothing and accessories • BMW kids toys 5. Focusing on BMW automobiles, is the 3 series, 5 series, 6 series, and 7 series an example of product depth or product width? BRING IT TO LIFE: IN-CLASS ACTIVITY BMW – ANSWERS 1. What levels of product are used in the marketing of BMW motorcycles http://www.bmw-motorrad.ca/ – core product, actual product, and/or augmented product? Answer: All three levels of product; core product, actual product, and augmented product are used to market BMW motorcycles. Core product: The essential benefit of BMW motorcycles is reliable performance and an exhilarating riding experience. Actual product: This includes the specific models, design, features, and quality of the motorcycles. Augmented product: BMW offers additional services like warranties, maintenance packages, and a strong customer support network. 2. Navigate to BMW motorcycle website at http://www.bmw-motorrad.ca/ and clearly identify what elements are included in; (1) core product, (2) actual product, and (3) augmented product. Answer: a. Core product. The freedom to discover a world of new experiences on your own terms. b. Actual product. Design – premium, bold, eye catching, and brash. Designed to get attention. Features – these will vary with the model. In general, these motorcycles are premium priced, fast, powerful, and come with various comfort, safety and technical features such as catalytic converters, hazard warning flashers, heated grips, and luggage racks. Branding – these motorcycles are marketed under the BMW brand which is associated with premium quality, high-performance machines with superior technical and safety features. c. Augmented product. Delivery – freight charges are extra Warranty – the bikes come with warrantees on specific parts and accessories Service – the bikes have top quality service levels include roadside assistance Website – product information is included in a detailed website Installation – this does not really apply here with the exception of receiving a product built to the desired specifications. 3. By examining BMW’s car and motorcycle websites at http://www.bmw.ca/ca/en/ and http://www.bmw-motorrad.ca/, identify the product categories that are included in the BMW product mix. Answer: •BMW cars •BMW motorcycles •BMW bicycles •BMW apparel, watches, and accessories •BMW children’s toys and accessories •BMW miniatures •BMW business accessories 4. BMW sells the products listed below. Is this an example of product depth or product width? •BMW cars •BMW motorcycles •BMW financial services •BMW clothing and accessories •BMW kids toys Answer: This is an example of product width. This is an example of product width. BMW offers a broad range of product categories, including cars, motorcycles, financial services, clothing and accessories, and kids' toys, reflecting the variety of its product lines. 5. Focusing on BMW automobiles, is the 3 series, 5 series, 6 series, and 7 series an example of product depth or product width? Answer: This is an example of product depth. The 3 Series, 5 Series, 6 Series, and 7 Series represent product depth. These models are variations within the BMW automobile category, each offering different features, sizes, and price points, showcasing the variety within a specific product line. BRING IT TO LIFE: METRICS ASSIGNMENT AND WORKSHEET CONSUMPTION DATA AND TARGET MARKET ANALYSIS ONLINE FASHION MAGAZINE Name: Section: Marketers monitor competitive market consumption data and use target market metrics to evaluate and track business performance and promotional program success. You have just been hired as a marketing intern at a small media company that runs an online fashion magazine that targets single women under the age of 45. It is looking to build alliances with one of Canada’s main newspapers or online media websites. You have been asked to attend a meeting on this topic and want to be prepared. You decide to gather market share information from www.compete.com and target market information from www.alexa.com to determine which media companies have potential. Canada.com was identified as a possible contender, but you want to review other options. Task: 1. Unique visitors Go to www.compete.com and gather data on unique visitors (UV) for the 12 month period available on the website. Gather metrics on the following websites: www.canada.com www.cbc.ca www.theglobeandmail.com www.nationalpost.com www.thestar.com (On the home page of www.compete.com, place the URL of the website that you are researching in the query box and click Go. Use the 12 month UV metrics that are provided). Plot the metrics on a bar chart showing unique visitors for each website. Determine which websites have the best potential. 2. Target market profile Review the target market profiles for each website by going to www.alexa.com and determine which websites have the best fit for the online fashion magazine. (On the home page of www.alexa.com click on the Top Sites tab. Place the URL of the website you are investigating in the query box and press enter. Scroll down to see the information). BRING IT TO LIFE: METRICS ASSIGNMENT CONSUMPTION DATA AND TARGET MARKET ANALYSIS ONLINE FASHION MAGAZINE ANSWERS AND TEACHING NOTE This assignment familiarizes students with competitive market consumption data and target market metrics that can be used to evaluate marketing programs. Demonstrate how the data can be retrieved from www.compete.com and www.alexa.com as follows before you distribute the assignment: 1. Compete.com Go to the home page of www.compete.com Place the URL of the website you are investigating in the query box Click Go Use the 12 month UV metrics that are provided 2. Alexa.com Go to www.alexa.com Click on the Top Sites tab Place the URL of the website you are investigating in the query box and press enter Scroll down to see information There will be some debate about which website best fits the target market profile for the online magazine. The discussion can be steered to the psychographic interests of the visitors to these websites which will have to be determined by the students as there is no data on this element on the Compete or Alexa websites. If you have a wired classroom, showing the media websites that are being researched in class will help students determine which website may be the best fit for the online magazine. Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108