Product Analysis

Product Analysis

Length: 1351 words (3.9 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Product Analysis


Imagine buying Coca-Cola from a vending machine and getting an unmarked can of pop with no familiar logo, no red-and-white markings, nothing to identify it as a soft drink, let alone as the Real Thing. Would that product still be Coke as we know it? And would consumers purchase this product without its world-famous packaging?

The truth is, the only physical product that the Coca-Cola Company sells is soft drink syrup to bottlers – not the bottles and cans of Coke that consumers buy. The company's greatest success comes from selling its brand, says William Dillon, associate dean for academic affairs and Herman W. Lay Professor of Marketing and Statistics in SMU's Cox School of Business. Dillon's research helps to differentiate among the threads of association and bias that affect consumer product choices and enables companies to make sense of where and why their products achieve their market positions.

To find these results, Dillon says, it's important to distinguish among the factors involved in consumer decisions and how they affect aspects of a brand's identity. He first makes the distinction between brand equity and brand valuation. Brand equity, like equity in a home, "is meant to reflect appreciation – the good things and positive associations that accrue because the brand has delivered on its stated promises," Dillon says. "Equity is the brand's asset." Brand valuation, as determined through such exercises as Interbrand's annual top 100 brands list published in Business Week, attempts to attach a measurable value to that asset.


"Strong brands build emotional attachments. They attempt to develop a relationship," says William Dillon of Cox School of Business.
"Typically, one looks at the market share of the brand and the price premium that the brand commands," Dillon says. "The notion is that brands that have created equity command a price premium in the marketplace." Hence consumers may pay $1.89 for a cup of Starbucks coffee when they could purchase the same volume for about 69 cents at another coffee shop. Most equity research tries to assess the strength of a brand through price premium or market share, he says.

One simple way of assessing this is to "equalize the products, label them, and then see how much someone is willing to pay," Dillon says. For example, a coffee company may put the same brew in two containers – one labeled "Starbucks" and the other, perhaps, "Bill's Fresh Coffee." If consumers prefer the Starbucks coffee and will pay more for it simply because of the label, their choices appear to be determined by their positive associations with the Starbucks' name.

How to Cite this Page

MLA Citation:
"Product Analysis." 123HelpMe.com. 19 May 2019
    <https://www.123helpme.com/view.asp?id=166966>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Federal Express Product Analysis

- Introduction Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1). Federal Express Product FedEx specializes in guaranteed overnight delivery of high-priority packages, documents, and heavy freight. How does Courier Pak fit in Federal Express. For services users Courier Pak is a guarantee overnight delivery service, and is expected to be delivered to anywhere within the FedEx system for the cost of $12.5 with the weight up to 2 pounds regardless the distance of the destination....   [tags: Product Analysis Business]

Research Papers
1222 words (3.5 pages)

Mondelez International's Product Analysis Essay

- Mondelez International Inc. is a global snacking powerhouse with 2012 revenue of $35billion. ("Mondelez international reports," 2013) Mondelez International Inc. is selling its products in 165 countries, and it is a leader in the world in selling candy, coffee, chocolate, biscuits, etc, with brands such as Milka Chocolate, Cadbury Dairy Milk, Cadbury, LU, Jacobs coffee, Oreo biscuits and Nabisco, Trident Gum and Tang. ("Mondelez international reports," 2013) In the second quarter of 2013, Net Revenues were $8.6billions (increased by 0.8%)....   [tags: milka brand, snacking powerhouse, mondelez ]

Research Papers
1048 words (3 pages)

Product Analysis Essay

- Product Analysis Imagine buying Coca-Cola from a vending machine and getting an unmarked can of pop with no familiar logo, no red-and-white markings, nothing to identify it as a soft drink, let alone as the Real Thing. Would that product still be Coke as we know it. And would consumers purchase this product without its world-famous packaging. The truth is, the only physical product that the Coca-Cola Company sells is soft drink syrup to bottlers – not the bottles and cans of Coke that consumers buy....   [tags: Marketing Advertising]

Free Essays
1351 words (3.9 pages)

Shure - Headset Analysis Essay

- Known for decades as a supplier of professional audio products, Shure moved into the consumer market a few years ago with high-quality MP3 player earbuds and headphones. I purchased my first Shure earphones a few years ago (the E2c), and have used them frequently ever since. So, before I go further, I declare myself a user and a fan. Building on their success, Shure is now moving quickly into another consumer space: the smartphone headset. One of the company’s latest offerings, the Shure SE115m+ Sound Isolating Headset, is designed to provide not only the superior sound that’s been the trademark of their previous products, but also the ability to make hands-free calls on compatible handsets...   [tags: Product Analysis]

Research Papers
741 words (2.1 pages)

Essay on Case Study Analysis: IDEO Product Development

- Case Study Analysis: IDEO Product Development The business model for IDEO began as an open-minded place to design, develop and manufacture new products. The last 20 years of proven product design driven by innovation has translated into profit margins for their clients and continuous refinement for IDEO’s process. IDEO pioneered “concurrent engineering” where design and engineering work together to produce aesthetically pleasing products that are also highly functional. This was different from many other similar companies that placed more emphasis on the industrial design than the engineering....   [tags: Business Product Development]

Research Papers
1535 words (4.4 pages)

Marketing Analysis : Company / Product Overview Of Ceo Sugarman Hired A New Chief Sales Officer

- Company/Product Overview Sonance is a well-established company providing high quality customized speakers for in-home entertainment. After launching their Sonance 1 model, they progressed into multi-room amplification and eventually designed the first built-in system that would support the iPod. Operating as a lean organization with only 60 employees, they relied heavily on a network of dealer and installer word-of-mouth advertising. By 1999 Sonance had reached $46 million in sales. Similar to other companies affected by innovations in technology, Sonance was forced to change strategic direction in the early 2000’s....   [tags: Product management, Marketing]

Research Papers
1699 words (4.9 pages)

Case Analysis : Product Offerings Essay

- (1) Product Offerings: What are your main product offerings*. The agency provides law enforcement and security services in the protection of government employees and GSA owned and leased facilities. The main product offerings are: • Enforce Federal Laws, conduct criminal investigations, serve warrants through law enforcement authority granted by the Secretary of Homeland Security derived from Section 1315 of Title 40 (40 USC 1315) of the United States Code. • Provide law enforcement coverage for high security events to include major sports events such as the Super bowl and Final 4....   [tags: Security, Security guard, Police]

Research Papers
1038 words (3 pages)

Essay on Nokia Product Improvement

- Materials Our main objectives for materials are that we know all the substances in our products, not just those that raise concerns,and that they will all be safe for people and the environment when used in the proper way. We concentrate on what is in our products rather than what has been excluded. Nokia is the first mobile phone manufacturer which, in close cooperation with its suppliers, has full material declaration for our mobile devices. This means we can respond swiftly if new concerns arise about substances we use....   [tags: Business Product Development Analysis Environment]

Free Essays
1869 words (5.3 pages)

Product Manager Report for Heinz Tomato Ketchup Essay

- Product Manager Report for Heinz Tomato Ketchup Paper 1: I am the marketing manager for the H. J. Heinz Company’s tomato ketchup, which is a spicy, thick tomato sauce. Tomato Ketchup is used for hamburgers, French fries, spaghetti, sandwiches, and grilled or fried meat. . The Heinz company has a long history. The German-born Henry John Heinz founded the company in 1869 in Sharpsburg, Pennsylvania. The company’s first product was horseradish, followed by pickles and tomato ketchup....   [tags: Business Product Marketing Strategy Analysis]

Research Papers
1086 words (3.1 pages)

Product Life Cycle Analysis For The Apple Ipod Essay

- The alarm clock rings and its time to go for a jog and get the morning routine off to a good start. After my morning jog I take a shower while listening to my favorite high-energy-time-to-wake-up music. The weather channel says it is going to be a rainy morning, so I grab my umbrella and head for the door. During the car ride I toggle between the news and my French audio lessons. All of these events are done through the use of a little device that seems to be everywhere you look. For the past years we have seen how APPLE Computers Inc....   [tags: Business Analysis Marketing Apple]

Research Papers
1616 words (4.6 pages)



Such methods encounter obstacles, however, when it comes to finding an unbranded alternative to use as a base case. Typically, the benchmark is a product with no brand effect, such as a store brand or an unmarked generic. "But there really aren't unbranded products any more," Dillon says. Many in-house and regional brands have established strong presences in the modern marketplace.

To manage such dilemmas, Dillon's work separates the brand effect from the product effect. The brand effect demonstrates that a consumer will pay extra for a cup of Starbucks coffee simply because it's Starbucks, and not because the product is intrinsically better. On the other hand, if consumers believe that Starbucks uses a higher-quality bean, or that its brewing methods produce a better-tasting coffee, their choices are based on the product effect – a perception that Starbucks coffee is fundamentally better than that of its competitors.

A consumer may rate a product on a favorable characteristic – strength for a pain reliever, or decay prevention for a toothpaste – on a scale of 1 to 10. Dillon's models separate the customer's rating into two components: the Brand-Specific Association (BSA), or the actual linkage between the attribute and the brand; and the General Brand Impression (GBI), or the consumer's general like or dislike of the brand itself. This breakdown allows companies to understand the weight that general impressions can carry in driving consumer choice.

Dillon's summary of this work, co-written with Cox Associate Professor of Marketing Amna Kirmani, won the 2002 Paul E. Green Award, given each year to the paper published in the Journal of Marketing Research during the previous year that shows or demonstrated the most potential to contribute significantly to the practice of marketing research and research in marketing.

A benefit of Dillon's model is that it accommodates brand ratings as they typically are gathered in customer tracking surveys – for example, the 1-to-10 unfavorable-or-favorable scale. In addition, the model "provides information about the extent to which a brand has achieved superiority or 'ownership' of specific brand attributes," the authors write. A larger BSA rating indicates stronger consumer identification with a positive characteristic, while a larger GBI component indicates that a brand's overall image is playing the primary role in the customer's rating.

The ways in which consumers retrieve or compute personal brand ratings play an important role in the assessment. "When I say 'Starbucks,' that conjures up certain associations that may not only be about the product," Dillon says. "It's also about the environment in which you consume the product, the merchandise, the setting, the social ambience. That these associations build in people's minds, and that people rely on them in making choices, is another measure of the strength of the brand."

Research demonstrates that general brand impressions heavily favor the dominant brand in a category, Dillon says. "When people rate the market leader on a number of attributes, it's not surprising that it comes out the leader on all those attributes – even when we know they're not superior on all of them." Dillon calls this "halo error" and says it often distorts the reflection of how well a company has developed an association between its brand and an attribute.

Yet because much of building a brand occurs in its marketing activities, recognizing the social context of a product's use can be even more important than owning an attribute, Dillon says. "Strong brands build emotional attachments. They attempt to develop a relationship." He cites Jell-O as a prime example. "Jell-O historically is a product that allows mothers and children to bond," he says. "It's not the consumption of the Jell-O they remember, but the preparation, the colors, the fun they had in making it" – and Jell-O's marketing activities reflect this.

"A product's physical attributes do not represent a sustainable marketplace advantage," he adds. "Over time, competitors will imitate, patents will run out, buyers no longer can tell the difference among similar products. When the product effect dissipates, what's left is people's attachment to the brand. Strong brands recognize this."

Dillon's research also has clear implications for companies that wish to add products to a line or branch into different categories and who must assess whether their brands are capable of carrying a core success into these new endeavors. "As companies move further away from their key products, the brand may play a more prominent role in people's reactions to the new products," Dillon says.

He cites Nike as an example of a company using a strong image to expand its market. When the company began, it carved a strong but narrow niche as a maker of high-performance athletic shoes. Nike's fortunes changed permanently when "they realized that everybody wants to be an athlete for 15 minutes a day," Dillon says. The company's expanded product line, coupled with its "Just Do It" image campaign, transformed Nike from a specialty manufacturer into a global phenomenon. "It wasn't the physical attributes of the product that allowed them to extend the brand – it was the imagery they'd built around what it is to wear Nike."

In his classes on "Analytic Methods for Understanding What Consumers Value," Dillon teaches students to ask the right questions about consumer preference. "When our M.B.A. students graduate, they have to wrestle with fundamental questions. Who are your customers? Who should be your customers? What do they value in the categories they consume? People have certain preferences for certain kinds of products, and it's fundamentally important to know why."
Return to 123HelpMe.com