CHAPTER 31 Branding, Packaging, and Labeling. Pick a brand which is familiar. Is selling a product,...

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