Page 154 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 8: Learning and Attitude

Notes
Example: Bajaj, Philips, Sony, Lakme, Pepsi, Coke, etc. follow a policy of generalisation
and use family branding. On the other hand, Hindustan Lever Ltd., Procter & Gamble and ITC
avoid it and employ stimulus discrimination.
Product line extension is the strategy of introducing variations of the same product. This variation
may be simply of colour, packaging, size, or flavour, etc., but the core product value remains the
same. For example, Palmolive soap is available in pink, white and light bluish pack. Maggi
noodles are available in different flavours.
Product form extension means that the same product is available in different physical forms
such as Dettol soap cake and Dettol liquid soap. Many drugs are available as tablet, syrup,
injections, or as inhalers.
Product category extension is diversifying into producing products in different categories and
using the same established brand name. For example, Maggi noodles and Maggi tomato chilli
sauce. Similarly, there is Lux toilet soap and Lux shampoo, Ponds talcum powder and Ponds
soap, etc.
The success of product category extension strategy depends on the quality image of the parent
brand because only then consumers are more likely to bring positive associations to the new
category extensions. Milkmaid has successfully extended its product category on the strength of
Milkmaid condensed milk and introduced Milkmaid Gulabjamun, Kesar Kulfi, Shahi Rabri and
Milkmaid pudding.

Family branding refers to the practice of marketing the entire product mix of a company under
the same family brand name. The aim of the company is to take advantage of consumers’
tendency to generalise favourable brand associations from one successful product to the next.

Example: Lakme, Ponds, PepsiCo, Coca Cola, Tata, Sony, Nikon, Canon, Epson, Microtek
and Hewlett Packard, etc., produce different products under the same family brand name.

Stimulus Discrimination

Stimulus discrimination is just opposite to stimulus generalisation. Unlike reaction to similarity
of stimuli, discrimination is a reaction to differences among similar stimuli. The ability of
humans to discriminate among stimuli is learned. For example, frequent users of a brand are
better able to notice relatively small differences among brands in the same product category.
Not taking any chances, marketers use advertising to communicate brand differences that looking
at physical characteristics alone would not convey. The concept of “product or brand positioning”
is based on stimulus discrimination, which strives to create a brand’s unique image in the
consumers’ minds. Marketers who offer me-too type of products attempt to encourage among
consumers stimulus generalisation, while innovators and market leaders strive to convince
consumers to discriminate and consider their brands as different from generic-type of products
and other brands in the same product category. For example, the entire ad campaign of Maggi
Hot and Sweet Tomato Chilli Sauce focused on convincing consumers that “it is different” and
thereby position the brand. In this case, the company encouraged the consumers for stimulus
discrimination.

Did u know? The key to achieve stimulus discrimination is effective product or brand
positioning.

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