Branding, Packaging & LabelingChapter 31

Branding Elements & Strategies

Brand – a name, term, design, or symbol (or a combination of them) that identifies a business or organization and it products.

Corporate Brands – Coca Cola, Citibank, McDonald’s (build relationships with customers)

General Mills Brands

6th largest food company $12.5 billion in net sales in 2005 28,000 employees VALUES:

Championship brands Championship people Championship innovation Championship performance

Success at General Mills

Every August, ALL employees redo learning plans

#1 ethical company in America 89% of employees – “a great place to

work”Sidebar – a “team of GM employees work in

Bentonville AK with Wal-Mart.” http://www.generalmills.com/corporate/brands/index.aspx

Branding (cont)

In 1999 Coca-Cola – valued at $83.8 billion Microsoft $56 billion IBM $43 billion

Brand Elements

Brand name – word, group of words, letters or numbers representing a brand (Mountain Dew, K2)

Brand mark – part of the brand that is a symbol or design (Apple’s apple, Greyhound’s greyhound, Nike swoosh)

Trade name – company or a division of a particular corporation (Dell, Kelloggs)

Brand Elements (cont)

Trade character – brand mark with human form (Snap, crackle & pop, Jolly Green Giant, Pillsbury Doughboy)

Trademark – brand name, brand mark, trade name, trade character, or a combination that is legally protected by the federal government.

Top Ten Brands - 1999

Chevrolet ATT Dodge Ford McDonald’s Toyota Sears Sprint Chrysler Nissan

The Trendmaster’s Guide

Author: Robyn Waters, former VP of Trend, Design, and Product Development of Target

Moved Target from 5 – 120 designersTrend rightGuest focusedDesign driven

www.rwtrend.com

Trends relating to Brand

Currently 30,000 SKU’s in supermarkets 15 years ago, 15,000 SKU’s

Starbuck’s 19,000 ways to order coffee Five new stores open each day Pours 4 million cups/day

Mini-coop – “Younique” ad Follow production with

“where’s my baby?”

http://www.miniusa.com/crm/load_mini.jsp

“Ready to Roll”“About the Boy

Ironically, Michael E. Brady, the nine-year-old boy who became the inspiration for the famous Dutch Boy® trademark, was not Dutch at all but an Irish-American who lived near the artist commissioned to create the logo.”

“The Name You TrustOver 90 years in the paint business and still the most recognizable brand on the

market.”

                                           

“Whirlpool® Duet® Front-

loading Washer#1 Rated

Front-Load Washer in AmericaENERGY STAR®

Qualified “

“Ferrari of Washing Machines!”

http://www.jonessoda.com/About Jones Soda

As of August 1st, 2000, Urban Juice and Soda Company Ltd. officially changed its name to Jones Soda Co ("JONES"). The story of the Company began in 1987, when Company founder and president, Peter van Stolk,

recognized the potential of emerging "alternative" products in the beverage industry.The company's start in the beverage world was not as a manufacturer of its own brand, but as a distributor in western Canada of other successful

lines, including Just Pik't Juices, Arizona Iced Tea and Thomas Kemper sodas. By 1994, Jones

was firmly established as a full line beverage distributor in western Canada, with a reputation

for picking winners.

CaldreaLuxurious Commodity

“Our purpose as a company is to create a premiere

homekeeping experience through beautiful cleaning

products and passionate know-how.”

Aeromatic Dishwashing Soap

Me, myself and IPod

http://www.apple.com/ipod/

Brands in Product Planning

® = registered trademark legally protected

Why do consumers purchase only certain brands?

Brand Loyalty

Why do consumers purchase only certain brands? Reputation Consistent quality Name recognition Risk reduction Image

50% of all corporate name changes occur because of company mergers and acquisitions

Brand names also change because of lawsuits (Great Wolf/Black Wolf Lodge)

Dean Kephart – Community Relations Marketing Director

Target gives $2 mill/week (5% off the top of profits) to the community

Demographics of customer 46 year old female $50,000+ annual income B.S. Degree 1.2 children Resides in suburbs ½ work, ½ do not work outside of home

Community Relations Support

Education Art Social services Target house (Memphis – St. Jude’s)

Target engages moms by making them aware of Target’s philanthropy and involving them in giving

“A motivated mom is ready to act!”

Target.com – 3rd most visited website in world (behind Ebay and Amazon); Wal-Mart is #4

ROI (Return on investment) – watch Web visits (time spent, path of visits) Program participation Coupon return Market Research Local business climate Corporate image reports blogs

http://sites.target.com

Baseball

MN Twins 2005 – 2 million fans “Circle Me Bert” campaign “Give ‘em something to talk about Cause-related marketing (Yoplait, GM

Boxtops)

Red Sox, Yankees – can market everywhere

Michael Keller – Chief Brand Officer, American DQ$2.5 billion in sales/year (2005)5,500 “units” – average age of a DQ is 32 years1998 – Warren Buffet purchased Brand “relationship between a company and its

customers.” Make a promise, deliver a promise, brand identity Touch points – how does brand touch customers? Think beyond product/service to experience & touch

points DQ – Emotion-filled response (a smile and a story)

Brand ExperienceProduct/MenuProduct QualitySpeed of ServiceCustomer ServiceFacility (Interior & Exterior)LocationsAdvertising

Geek Squad Brand

AGENTS Look only through windshield Sit forward in car just a bit “men on missions” Wear pants slightly short Speed – 5 MPH over speed

limit www.geeksquad.com

Types of Brands

Manufacturer, Private Distributor, Generic Manufacturer Brands – GE, Heinz, Motorola;

generate the majority of sales (70% of all food products, 65% of all appliances, 80% of all gasoline, 100% of automobiles are manufacturer brands).

Types of Brands

Private Distributor Brands – private, store, dealer

Types of Brands

Generic Brands – do not carry a company or brand name

30 – 50% lower prices than mfg brands

Branding Strategies

The ways companies use brands to meet sales and company objectives

Brand Extension Brand Licensing Mixed Brands Co-Branding

Brand Extension

Using an existing brand name for a new or improved product i.e.: Ocean Spray Cranberry–CranApple, etc.Starbucks, Caribou Coffee – ice creamAnn Taylor – personal care productsOther examples of Brand Extensions?

(“some marketing specialists believe that Arm & Hammer Brand became diluted when the brand was extended to laundry detergent, antiperspirant, tooth paste, cat litter”)

Brand Licensing

Legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee. Caterpillar Corporation has licensed its name to more

than 700 products McDonald’s pays over $75 million licensing fee to

associate Happy Meals with Disney movies.

Mixed Brands

Simultaneously offering a combination of manufacturer, private distributor, and generic brands Michelin manufactures tires for Sears with the Sears

brand name, and manufactures its own brand name Union Carbide produces and sells Glad garbage bags

and another generic brand Allows businesses to reach a variety of target

markets, maintain brand loyalty, & increase product mix

Co-Branding

Combines one or more bands to increase customer loyalty and sales i.e.: Pop-Tarts only use Smucker’s fruit filling Ford created “Limited Edition 2000 Harley-

Davidson F-150 truck” Starbucks, Barnes & Noble

Top-10 the most popular brands in the USA

Sony has successively appeared the most quoted brand in the USA. Ten leader brands: 1. Sony2. Dell 3. Coca-Cola 4. Toyota 5. Ford 6. Honda 7. Hewlett-Packard 8. General Electric 9. Kraft Foods 10. Apple Computer.

10 Most Popular Brands With Teens Worldwide

Favorite Brand 20051. Sony2. Nokia3. Adidas4. Nike5. Colgate6. Nestle7. Cadbury8. Coca-Cola9. M&Ms10.Kodak

Favorite Brand 19951. Coca-Cola 2. Sony 3. Adidas4. Nike5. Pepsi6. Kodak7. Colgate8. Disney9. M&Ms10.Reebok

Mytoybox.com

Myhealthpro.com

Popular Brands of vitamins: FuturebioticsGaia HerbsGlobal Health TraxHerbs For KidsHylandsInholtraNatrolNaturally VitaminsNature's WayNorth American HerbRainbow LightSchiffTrimedicaTropical OasisTwinlab

Coolcookinggadgets.com

Popular Gas Scooter BrandsBestgasscooters.com

Xcooter Vespa Lambretta Honda Yamaha

Kraft Brands

U.S. Brands Beverages Convenient Meals Cheese & Dairy Grocery Snacks http://www.kraft.com/brands/namerica/us.html

Angel Soft Video Clips

http://www.angelsoft.com/bathroommoments/clips.html