Krispy Kreme n IKEA

Chapter 8

Product, Services, and Branding Strategy

Individual Assignment 

1. Read the opening vignette to the chapter. Think about the answers to the following questions:
1. Krispy Kreme sells doughnuts. But what are customers really buying?
2. Discuss the brand equity of Krispy Kreme versus that of Dunkin’ Donuts.
3. In a product that is meant for almost immediate consumption, how important is packaging?
4. How might Krispy Kreme extend their brand?

Share your findings with the class.

Think-Pair-Share

1. Consider the following questions, formulate an answer, pair with the student on your right, share your thoughts with one another, and respond to questions from the instructor:
1. What is a product?
2. What is a service?
3. What is an experience? How is it similar and dissimilar to a product or service?
4. How is the augmented product different from the core product?
5. What is an example of a convenience, shopping, specialty, and unsought good?
6. What is social marketing?
7. What is brand equity?
8. What makes a brand name successful from a promotions standpoint?
9. What is the difference between a manufacturer’s brand and a private brand?
10. Give an example of co-branding.
11. What is a line extension? Give an example.
12. What is a product line?
13. What are the four characteristics of a service? Apply these to a dentist’s office.
14. What is interactive marketing?
15. What are the problems associated with international product and services marketing?

Outside Example

IKEA is a furniture store that is unlike most furniture stores in the world. First, it offers inexpensive furniture. It actually focuses on young people just starting out, those who can’t afford fine furniture, and frankly, those who don’t want to be saddled with expensive furniture that will last for 30 years. After all, not all of us want to see the sofa we bought when our first child was born when he or she is leaving for college!

Shopping at IKEA is an experience. They actually encourage you to bring your children, but they give you a safe place to drop them off so you can concentrate on the important task of picking out your furniture. Its “ball room” is a big hit with the little ones, and there are adults there to supervise to make sure no one gets hurt or lost.

IKEA furniture is also ready for you to take home. You need to assemble it yourself in most cases, but at these prices, who’s complaining? You can also buy your artwork, pots for your plants, rugs for your floors, utensils for your kitchen, and if all that is making you sleepy, you can go to their café and get coffee and a cinnamon roll!

In short, IKEA is unique. There is no six-week wait for your custom-built furniture; you can outfit your entire apartment or house with their goods, and they save you a lot of money. As stated above, IKEA has done what most others try to do: create a brand experience.

1. If you’ve never been to an IKEA store, and there is one local to you, visit the store. Describe the total experience.
2. Discuss the levels of products and services that IKEA offers. How does this differ from another furniture store?
3. What is IKEA’s brand positioning?
4. Could IKEA extend their brand? How?
5. IKEA started in Scandinavia. Have they adjusted their products to the United States market? Give examples.