Brand Management

1. Consumer behavior analysis

2. Pricing decision

3. Retail promotion

4. Trade promotion

5. New product introduction

6. Distribution channel management

7. Marketing research

8. Advertising

1. Consumer behavior analysis Back to Top

  1. Perceptual model
  2. Preference model
  3. Choice model
  4. Stochastic model Random choice model (AAABBCAABAAA......)
  5. Hierarchy of effects model of consumer behavior

 Luce Model

Pri = Probability of choosing brand i

V = Preference level of brand i

N = Number of brands

Logit Model

Pri = Probability of Buying brand i

Vi = Intrinsic preference for brand i

Bk = Respondent's evaluation of attribute k

Xi, k = Brand i's level on attribute k


2. Pricing decision Back to Top

  1. Price and cross-price elasticity (Economics)
  2. Consumer perception of value (Marketing)
  3. Competitive reaction (Game theory)
  4. Mark-up (Costing)

Price should be near the price of the market leader, and higher margin.

3. Retail promotion Back to Top

  1. Price discount
  2. Display
  3. Newspaper advertisement
  4. Psychological pricing (**.99)
  5. S curve response to promotion
  6. Cannibalization from the other brands
  7. Consumers' stockpiling effect
  8. Deal decay (How long the deal effect continues)
  9. Tiered price (Good, better, best)

Retail promotion usually causes consumers' stockpiling

Retailers want to increase traffics of customers by retail (=consumer promotion)

Frequent purchasing products and leading products in a category are effective to increase customer traffics.

An sales increase in a brand may cannibalize the other brand.

4. Trade promotion Back to Top

  1. Off invoice (discount)
  2. Bill back (Retailer calculates an amount of discount)
  3. Free goods
  4. Cooperative advertisement allowance
  5. Display allowance
  6. Sales drive incentive (When wholesalers drive retailers to sell)
  7. Inventory financing
  8. Count-recount (Off invoice of an exact amount of sales)

Trade promotion usually causes retailers' forward buying

Retailers do not want to promote a weak brand, since it does not increase traffics of consumers.

Category expansion is preferable for retailers. (Ex. an initial category development)

5. New product introduction Back to Top

New product introduction plan

  1. Goals
  2. Target markets
  3. Product positioning
  4. Advertisement budget
  5. Media selection
  6. Promotion tactics (ex. Samples)
  7. Trade deals
  8. Retailer awareness
  9. Consumers' awareness
  10. Competitors' reactions

Distribution Gain

Awareness, Trial and Repeat





  1. Skim pricing: higher margin, no competition in the early stage, price reduction is easier than price raising.
  2. Penetration pricing: to acquire a broad market.

Test marketing

Product launch timing


6. Distribution channel management Back to Top

7. Marketing research Back to Top

8. Advertising Back to Top