Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management and equipment management. Production control ensures that production team can achieve required production target, optimum utilization of resources, quality management and cost savings. Planning and control are an essential ingredient for success of an operation unit.
The benefits of production planning and control are as follows:. Production planning is one part of production planning and control dealing with basic concepts of what to produce, when to produce, how much to produce, etc. It involves taking a long-term view at overall production planning. Therefore, objectives of production planning are as follows:.
The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absense of controlling, no purpose can be served by.
Therefore, planning and controlling reinforce each other. According to Billy Goetz, " Relationship between the two can be summarized in the following points. Some products, like Viagra, are inherently directed at the needs and requirements of a particular customer segment. Others, like the Black Pride beer once sold actively in the African-American neighborhoods of Chicago, are generic products positioned for a specific segment. Its laundry detergents, too—Tide, Gain, Cheer, Ivory, Bold—are differentiated more by target customer segment than by product features. Each of its customer segments has its own named brand and personality.
The company makes the high-end Dana Buchman brand for professional women; the stylish Ellen Tracy brand for sophisticated but casual women; the young, upscale Laundry brand for individualists; the Liz Claiborne brand for its traditional casual market; and the Elizabeth brand for plus-size women.
Brand Management: Planning and Control. Front Cover. J. R. Bureau QR code for Brand Management Macmillan studies in marketing management. In marketing, brand management is the analysis and planning on how a brand is perceived in .. Brand managers & Marketing managers may try to control the brand image. Brand managers create strategies to convert a suspect to prospect, .
The lines are so well differentiated by brand, fit, and style that few consumers know they are made by the same company. As advances in technology and customer information make such segmentation easier, this trend is likely to become even more pronounced. And it should. If the customer is central, then the purpose of a brand should be to satisfy as small a customer segment as is economically feasible. Allowing for the fact that some breadth is desirable for its own sake, the tendency should be toward brands that are increasingly narrow over time.
Once your frame of reference has shifted to customer management, the central problem of brand management becomes: How big should the brand be? Customers are individuals with unique tastes and desires. Suppose, for example, a customer named Benito was being targeted by a company.
Not quite. To some extent, customers look to brands to provide safety in numbers. So even if it were financially and operationally feasible to create millions or billions of separate brands, it would not be advisable. Still, brands should cater to individual needs as specifically as possible, given the current threshold of economies of scale. The magazine industry is a good indicator of how narrow the niches can become, given the technology and consumer information available today.
People used to subscribe to general interest magazines. Depending on the woman, the right magazine might focus on general fitness Shape , health Natural Health , self-esteem Self , parenting Working Mother , high fashion Vogue , high fashion in midlife More , shopping Lucky , ethnic women Essence , gay women Curve —the choices go on and on.
Long-term historical trends indicate that this trade-off point is steadily shifting toward even narrower brands, due primarily to changes in both customer tastes and production capabilities. In the United States and other developed countries, explosions of immigrant populations and the proliferation of media have made for increasingly fragmented customer markets. Meanwhile, computerization and modular manufacturing are making it progressively cheaper to customize goods and services—and individualized communication networks like the Internet, combined with computerized data analysis, enable companies to microtarget their messages.
The shift to narrower and more numerous brands is difficult for even the most astute marketers to accept. Unilever, for example, fought against market fragmentation by instituting a brand consolidation program in Its management eliminated hundreds of brands in search of economies of scale.
Among the discarded were such successful brands as Elizabeth Arden cosmetics and the Diversey cleaning and hygiene business. Many companies are guilty of brand overextension—usually because they evaluate extensions according to how similar the new product is to the old one. Clearly, it makes no sense to try to extend a brand to a dissimilar product with dissimilar customers. It also caused headaches for IBM when the company entered the personal computer market in In fact, IBM had a far more difficult time than expected.
Personal computer buyers had much less attachment to IBM and were open to competing products from Apple, Atari, and other previously minor players in the computing market. Brand extensions are more likely to be successful if the customers are similar, even if the products are not. Virgin, for example, has extended into a wide variety of unrelated products, including airlines, music stores, soft drinks, and mobile phones. Disney is involved with products as diverse as movies, hotels, and amusement parks.
These extensions work because the target market the young and the young at heart who want to be entertained does not change. The best results, though, come when both the products and customers are similar. This is one reason that line extensions are so common. It was not difficult to predict that Caffeine-Free Coke would be an easy stretch for Coca-Cola or that Visa could extend from credit cards to debit cards.
Even when the brand extension is not just a line extension, a similar enough product and a similar customer make success more likely. Yamaha could extend from organs to pianos to guitars with some confidence because all were musical instruments and all had similar customers. The brand equity that a musician accorded to Yamaha pianos could easily be extended toward guitars. In extreme cases, a company might even encourage some customers to abandon a brand to which they are loyal if another brand will better cultivate the relationships and increase customer equity.
Under traditional brand management, nothing would happen; Fairfield Inn would hold on to its customer at all costs. But most of us would agree that the company should forfeit the Fairfield Inn brand relationship for a higher-value customer relationship with the Marriott brand.
In practice, that would mean that if Fairfield customers who begin traveling more frequently and more widely tend to switch to the Marriott brand, then customers who fit that profile should be actively invited to try the Marriott brand, perhaps with promotional hotel stays or special deals. Reversing that impression might simply be too hard to do.
By analogy, suppose you went on a summer vacation for two weeks, left the car at home, and returned to find that a skunk had jumped into it, sprayed, then died. Given your investment in the car and its replacement cost, you would labor mightily to get that smell out of the car. But we can tell you with some authority, it would be a lost cause. Now suppose such a lingering stench has attached itself to your brand. At what point would you cut your losses and invest in a new one?
For discount airline ValuJet, that point came just as the brand had started to build momentum. ValuJet was off to a stellar start when in May one of its airliners crashed, killing all aboard. The National Transportation Safety Board accused ValuJet of failing to ensure the safe handling of the hazardous materials that had set the plane on fire and caused the crash.
No question: The brand stunk. Rather than try to redeem it, ValuJet dumped the name. It merged with another carrier, AirTran, and its fleet was soon back in business under that brand. AirTran is currently one of the few U. In a ValuJet situation, the decision seems obvious.
Now think of the discussion going on at Martha Stewart Omnimedia. Nabisco phased out its Mr. Painting over the WorldCom sign was an easy decision. But would it make sense to walk away from the Tyco name? Brands should never be scrapped frivolously, but companies should retain only those that have avid customers—not sentimental owners or overly aggressive brand managers. Retiring ineffective brands is easier to do if the marketing resources of the firm are controlled by customer segment managers, as we propose, rather than brand managers.
If brand managers control the resources, they will persist too long with a brand that has lost its punch in a particular segment. To do any less would feel like a personal failing. If brand managers control the resources, they will persist too long with a brand that has lost its punch. To the contrary, improving brand equity remains one of the most important marketing tasks. And that means it needs to be reliably measured and tracked. The task is greatly complicated—but not rendered impossible—by the realization that brand equity varies dramatically from customer to customer.
The method then involves an analysis of the drivers of brand equity. To manage something, you need to be able to measure it, and brand managers have long struggled to find the right formula for measuring brand equity. If what we care about most is customer lifetime value, then that has two major implications for how we measure brand equity.
First, we must put it in the context of customer equity.