Product Line Management—Convergence of Architectures and Market Analyses for Operational Benefits in Maritime Safety and Security

Purpose – This article aims to estimate the relationship between brand loyalty and price promotions on the German yoghurt market. It considers consumer loyalty to various corporate brands and their respective sub-brands to analyze promotional strategies between and within certain corporate brands with a larger loyal consumer segment and a moderate strength of consumer loyalty are well suited for effective price promotions following the idea of loss leader by Lal and Matutes (1994). Design/methodology/approach – The paper’s approach follows Allender and Richards’ (2012) and extends to explicitly considering the product line management of every manufacturer in the market. In the first step, a random coefficient logit specification is estimated to compute measures of brand loyalty for each brand. In the second step, the relationship between brand loyalty measures and the frequency and depth of price promotions is analysed. Findings – The results suggest that weaker corporate brands are promoted more aggressively supporting the model hypotheses by Koças and Bohlmann (2008). Within the manufacturer’s product line, sub-brands with a larger loyal consumer segment and a moderate strength of consumer loyalty are more often used for effective price promotions which reflects the idea of loss leading first introduced by Lal and Matutes (1994). Research limitations/implications – The results are limited to a static relationship between brand loyalty and price promotions. Analyzing the dynamics of the relationship between brand loyalty and price promotions should prove fruitful in enhancing the understanding of retailer strategies and provides additional implications for managerial decisions in retailing. Practical implications – Managers need to be more aware of the linkages between product line management and promotional strategies. Changes in the product line management may require a redirection of the promotional measures and strategies. Social implications – Consumer behavior with respect to brand loyalty to some extent determines price promotional strategies of retailers. The promotional strategies provide opportunities to save expenditures, especially for non-loyal and low income households. Originality/value – Matching and analyzing two detailed (consumer, retail) scanner data sets to investigate the relationship between the measures of brand loyalty and the retailers’ price promotional strategies. Novel is the modeling of two different dimensions of brand loyalty (size and strength) and the consideration of sub-brands. The results clearly show that promotional strategies vary not only between corporate brands but also between sub-brands of the same corporate brand.

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Absolut Vodka: The Spirit of a Brand

Darden Business Publishing Cases ◽

10.1108/case.darden.2016.000009 ◽

2017 ◽

pp. 1-15

Author(s):

Rajkumar Venkatesan ◽

Randle D. Raggio ◽

Katherine Noel

Keyword(s):

Brand Equity ◽

Product Line ◽

Economic Downturn ◽

Purchasing Behavior ◽

Product Line Management ◽

Line Management

This case is used in Darden's core Marketing course and in the Pricing elective. It would work well in course modules covering the topics of branding or product line management. A teaching note is available for instructors. Soon after Pernod Ricard acquires Absolut vodka and other brands, the economic downturn results in changes in purchasing behavior away from premium to standard products. Brand managers consider whether to introduce a “basic” Absolut, promote a lower-priced alternative, or rebrand other vodkas under the Absolut brand to trade on its considerable brand equity.

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Marketing/manufacturing trade-offs in product line management

IIE Transactions ◽

10.1080/07408170108936886 ◽

2001 ◽

Vol 33 (11) ◽

pp. 949-962 ◽

Cited By ~ 25

Author(s):

LESLIE OLIN MORGAN ◽

RICHARD L. DANIELS ◽

PANOS KOUVELIS

Keyword(s):

Product Line ◽

Trade Offs ◽

Product Line Management ◽

Manufacturing Trade ◽

Line Management

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