CHAPTER 31
Branding, Packaging, and Labeling
Pick a brand which is familiar. Is selling a product, service, or idea? Is it a name, term, symbol, or combination? Does it identify 1 product? Family of products?
Of whole company? What benefits/features does the brand
connote?
What is a brand? Brand: name, term, design, or symbol
(or combination) that identifies a business or organization
Important part of product planning Distinguishes from competition Can identify 1 product,
family of related products, or all products made by 1 company
Can connote number of benefits (ex. Quality & Excellence vs. Fun & Exciting
Important Asset & powerful marketing tool
Elements of Branding Need target
market’s needs/preferences
Includes:Brand NameTrade NameBrand MarkTrade
CharacterTrade Mark
Have Value & can be Global
Branding Terms
Brand Name: word, group of words, letters, or numbers representing a product that can be spoken
Should be: Easy to recognize Easy to say Distinctive
Branding Terms Brand Mark: the
part of the brand that is a symbol or design
Usually not spoken
10 Most Recognized Brands
Branding Terms
Trade Name: identifies company or division of particular corporation. Legal name (e.x. Dell, Kellogg’s)
Trade Character: brand mark with human form (e.g. Bird’s Eye Jolly Green Giant, Kellogg's Tony the Tiger, Pillsbury Doughboy)
Trademark: brand name, brand mark, trade name, or trade character, or a combination that is legally protected by the federal government (can trade mark sounds- Duck, fonts, colors, and smell-Mandalay Bay Hotel)
Why are brands important?
Builds customer loyalty
Assures customers consistent quality = reduced risk
Identifies firm that manufacturers product
Helps address new target markets Helps to establish an image for product
or company Note: Brand/slogan quiz
Generating Brand Names 75% of companies introduces a new product
name yearly U. S. Patent and Trademark Office registers
350,000 trademarks yearly Some companies use software to develop
name (check to see if name is already owned) Other companies hire branding agencies,
name consultants, or PR firms 60% Companies conduct research on name
before released
3 Types of BrandsNational Brands: also called producer brands; owned
and initiated by manufacturers. (Kraft, Whirlpool, Hilton, Avis, Ebay). Generate majority of sales for consumer products: 70% food, 65% appliances, 80% gas, & 100% car.
Private Distributor Brands: owned and initiated by wholesalers and retailers; private labels (e.g. Targets Xhiliration line of clothes, Sears Kenmore appliances). Manufacturer’s name does not appear on product.
Generic Brands: brands that represent a general product category and do not carry a company or brand name. (usually just state “pancake mix”, or “paper towels”)
BRANDING STRATEGIES
4 types: Brand Extension Brand Licensing Co-Branding Mix Branding
BRAND EXTENSION Uses existing brand
name for new or improved product in the product line
Ex: Nabisco extended to add different flavors to Fig Newtons
Problem: risk brand dilution (original brand loses strength because it is stretched too much to encompass different products.)
Pampers Pocket Bibsters
Strawberry Fig Newtons
BRAND LICENSING Brand owner legally allows another
company to use it’s trade character, brand, or brand mark for a fee ( royalty)
Enhances image of company and sell more of core products
E.x. McDonald’s paid $75 million to associate Happy Meals with the 2000 movie Dinosaurs
CO- BRANDING Combines one or
more brands to increase customer loyalty and sales for each individual brand.
Ex: GM and MasterCard joined to develop credit card without annual fee; Pop Tarts only use Smuckers Fruit Filling
See Pepsi/Yahoo Case study
MIXED BRANDS
Simultaneously offering a combination of national, private, and generic brands
E.g. Michelin manufacturers tires for Sears with the Sears brand name as well as under the Michelin brand name
Allows business to reach different target markets, maintain brand loyalty, and increase overall product mix. 7 all for Mankind $200
(fine retailers)Seven at Kohls $50
PACKAGING
Physical container or wrapping for a product
10 percent of product’s retail price is spent on package development & design
List examples of packages that…
Create a low product image
Discount merchandise image
High End merchandise image
Prestige Product image
FUNCTIONS OF PACKAGING
Promoting and selling the product Defining product identity Providing information Meeting customer needs Ensuring safe use Protecting the product
PROMOTING and SELLING THE PRODUCT
Customer reaction to a product determines the success or failure of a product Mixed bundling: Packaging different types of
products/services together Price Bundling: 2 or more are on sale for the
price of 1 Need to be well-designed packages,
attractive, colorful, & artistic Better packages help create new sales and
minimize possible losses Yoplait Yogurt—upside down design
DEFINING PRODUCT IDENTITY Used to invoke prestige & status in eyes
of consumer
Very crucial advertising component E.g. Dominos Pizza Box
Saks Fifth Avenue Shopping Bags
PROVIDING INFORMATION
Package provides information for customer
Nutritional value, directions, & potential hazards
Universal product code placed on products to assist with inventory control and management
Directions
Bake cookies at 350 degrees for 12-14 minutes or until golden brown.
MEETING CUSTOMER NEEDS
Product come in various sizes to suit different people
Family packs, lunch containers E.g. Coke comes in six packs or cases Must keep up with changing lifestyle
ENSURING SAFE USE
Can improve product safety for customer Ex: many packages that used to be in
glass now come in plastic, cosmetics come in tamper-resistant packages, & child-proof containers Blisterpacks: packages with preformed
plastic molds surrounding individual items arranged on a backing
PROTECTING THE PRODUCT
Package must protect product from harm during shipping & handling ( Also, food from spoiling)
Basic materials are wood, glass, plastic, and metal
•Aseptic Packaging: keeps food fresh w/out refrigeration
Creative ThinkingCreative Thinking
1. What else can it be used 1. What else can it be used for? (W/out any changes)for? (W/out any changes)
2. What could be used 2. What could be used instead? What else is like instead? What else is like this?this?
3. How can it be modified 3. How can it be modified for a new use?for a new use?
4. What if it were larger 4. What if it were larger (thicker, heavier, stronger)?(thicker, heavier, stronger)?
5. What if is were smaller 5. What if is were smaller ( thinner, lighter, shorter)?( thinner, lighter, shorter)?
PACKAGING ISSUES
Environmental Packaging: recent polls show most Americans prefer less harmful packages. Companies make recyclable & reusable packages. Can recycle most plastic containers
Cause Packaging: companies use packages to promote social and political causes. Ben and Jerry’s promotes saving the rainforests
Stoneyfield Farms donates 10% Earth Restoring
Companies
LABELING
Information tag, wrapper, seal, or imprinted message that is attached to a product
Informs customer of contents and directions for use
Protects business from legal liability contain brand name, logo, ingredients,
promotional messages.
Types of Labels
Brand Label: brand name, trademark, or logo
Ex. Chiquita Bananas are stamped Descriptive Label: gives info about product
use, construction, care, and performance Ex. Food products have illustrations,
weight, date and storage, ingredients, guarantees, and manufacturer’s name and address
Grade Label: quality of product. Grade AA, A, B, C, D, or E (editable)
LABELING LAWS
Federal nutrition labeling and education actpassed in 1994 Protects consumers from deceptive
labelingregulates use of terms such as light, fat free,
low, reduced Must put warnings on Alcohol for
pregnant women and cigarettes for cancer
Labeling
Federal trade commission labeling rules & guidelines
Care labels must be placed in clothing Ensures that specific detailed information
about the care of garments related to washing, ironing, and cleaning directions
If put the term recycled content- must show
proof of it. Same with the use of terms suchas ozone safe, degradable, and biodegradable
Packaging Types
Skin packaging- plastic film mounted tightly over product & mounted on a card. Visible, clean, card gives rigidity (napkins, knee highs)
Blister - plastic bubble placed over card
Aerosol/ pump dispenser- releases its contents when value is pressed (Hairspray)
Flexible pouch- formed from plastic film that is filled with product and sealed with heat (Nutrigrain bar, cereal)
Package Types
Shrink wrap- made by placing clear film around the product itself. It fits the contour of the product
Multipack- Special package design that groups two or more products into a unit for easier display, carrying, or convenience
Aseptic packaging- keeps germs out of food that needs no refrigeration
(Velveeta)
Dispensing closure- cap or lid in which contents can be dispensed in controlled manner (lotion)
Designing the package
Promotes product acceptance Promotes a company and image Gives old product new image Preserves product Helps customers use old products better New uses for products Reduces costs Increases sales & profits