Branding Packaging n Labeling

8/6/2019 Branding Packaging n Labeling

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BrandingINTRODUCTION:-The battle in the market takes place not between companies, but betweenbrands. Consumers buy brands; and brands generate income for the firm. It means that

developing strong brands is a major responsibility of the firm and it requires support of a good

marketing programme which includes a meaningful product differentiation and an aptpositioning for the brand, accompanied by the right distribution & promotion support. Branding

is the process by which companies distinguish their product offerings from competition.

Marketers develop their products into brands which help to create a unique position in the mindsof consumers. Branding shapes customers perception about the product.

Brandis a broad term encompassing most ways of identifying a product. A brand is a

symbol, a mark, or name that acts as a means of communication to bring about an identity

of a given product. A Brand is essentially a sellers promise to consistently deliver a specific set

of features , benefits, and services to the buyers. Brand is a product image, a quality, a value,

a personality.

According to AMA, A Brand is a name, term, symbol or a design or a combination of them,

intended to identify the goods or services of one seller or a group of sellers and todifferentiate them from those of competitors.

Branding, on the other hand, is the process of finding and fixing the means of identification, it isnothing but naming the product like naming a child as products are children of manufacturers.

Terms in branding:-

Brand Name:- According to AMA Brand name is part of a brand consisting of a word,

letter, or group of words or letters comprising a name which is intended to identify the

goods or services of a seller or a group of sellers and to differentiate them from those ofcompetitors

In other words , a brand name consists of words, letters and/or numbers which may be

vocalized or pronounced. Eg:- Usha Fans, Onida TV.

Brand Mark:- It is that part of the brand which appears in the form of a symbol, design,

or distinctive colouring or lettering. It is recognized only by sight but may ne

pronounceable. Eg-Maharaja of Air India

Trade Mark:-When a brand name or brand mark is registered and legalized it becomes

a trade mark. Thus, registered brands are trade marks. In that sense all trademarks are

brands but all brands are not trademarks.According to AMA A brand or part of a brandthat is given legal protection because it is capable of exclusive appropriation.

Trade name-This is frequently and erroneously used as a synonym for either brand name

or trademark. A trade mark is the name of the business preferably the name of the

organization itself. A trade name will also be the brand name, but it such a case it serves

two separate purpose. it brings out the identity of such a manufacturer and the


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product.TATAS is solely a trade name of the market of various brands of

cosmetics.GODREJ is both a trade name and a brand name for most of their products.

Patents-Patents are public documents conferring certain rights privileges, titles or

offices. A patent confers the right to the use of technical invention. it is applicable in thecase of new inventions such as a new process , a new product or a new machine.

Copyright-This is applicable in the case of books and is used in the same meaning as thatof patents. It is Sole right to reproduce literary, dramatic, musical or artistic work.

Copyright is available for the whole the authors life-time and fifty years after his death..

Brand extension & Brand Proliferation:-it is the opposite of brand extension.While in

brand extension new new items are added using an existing brand name, in brand

proliferation, more items are are brought in with new brand names.~In other words, firmhas several brands in the same product/product category.For eg:- P&G has more than a

dozen brands of detergents.

Brand equity:- Brand Equity refers to a set of assets & liabilities linked to brand, itsname and symbol that add to or subtract from the value provided by the product or

service to a firm & or that firms competitions. Brand assets can be categorized into 5

groups :- 1)Brand loyalty, 2) Brand name, 3)Brands perceived quality, 4) Brandassociation in addition to the perceived quality, 5)other assets like patents, trademarks

etc.

Brand strategy and policy:-Branding strategy indicates how the firm chooses to use brandingas an integral part of its overall marketing strategy. In a sense, branding is simply another

dimension of marketing strategy. To a consumer, a brand name is a means of identificationof the product as well as means of differentiation of the branded products from its rivals.Thebrand name is a centre around which the entire marketing mix is built up. The brand name

can incorporate all marketing efforts together either in consumer mind or in the marketing

programme. It gives necessary promotional and advertising support in order to make productrecognisable and to create consumer patronage.

FUNCTIONS OF BRANDING:-

1) Ensures better quality of goods:- Branding ensures products of better quality to the

buyer. If the firm has one or more lines of branded goods, it can add new items to its

product mix more easily than a firm selling unbranded goods.

2) It leads to consumer protection:- the prices of branded products are fixed by the

manufacturers. This protects the interest of consumers because the retailers can notcharge more than fixed price.

3) It is an advertisement:- If brand name attains goodwill, it will serve as a useful mediumof advertisement. A registered brand name & mark is a protection from imitation of the


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product by other manufacturers. Brand name is highly used for advertising a product &

maintaining its individuality.

4) It serves as a bridge between seller & buyer:- Brand/Trademark ia an effective bridge

between seller & buyer in thye market place, it has become n indispensable tool of any

business / corporate strategy.

5) Leads to product differentiation:-branding helps in distinguishing a product from other

similar products in the market.thus it makes recall and shopping easy.the stronger abrand is, the stronger it is to recall it.

6) Protection of goods:-the branded products are packed in suitable containers or wrappers

which offers protection to goods against heat & moisture and facilitate convenienthandling. They are assured of quality of branded products.

Reasons for branding

In the olden days when the demand was greater than the supply branding was not necessary.When supply is more than the demand companies not only need to create customers, but also

keep them; and to keep them one needs to create customer loyalty.To create customer loyalty one needs to project a personality of a brand to which the customer

will be loyal. This personality is called as a brand.

Branding is the most powerful instrument of sales promotion due to the following reasons:

Ever increasing competition

Importance of packaging as a distinct marketing function.

Need for advertising and publicity

Development of consumer brand-consciousness.

Not only branding gives separate identity and easy recognition to the product it alsocreates special consumer preference and the consumer enters the shop to demand andinsist upon specific brand of products.

Characteristics/Requisites/Qualities of a good brand name:-

1) It should reflect Product Dimensions:-It should suggest something about the

products qualities, benefits or functions. Example-Sunsilk Shampoos implies silkyhair, EZEE of Godrej is really easy to use, GOOD-NIGHT mosquito repellant implies

that the user will have a good night free of mosquitos.

2) It should be easy to pronounce and remember: The name suggested should not

give tongue-twister consonants. Eg-HOECHST is difficult to pronounce whereasClick is easy to remember.

3) It should be short and sweet: The name must be short and sweet appealing to eyes,ears and brain.Eg:-Bata, Tata, Tide, Crest

4) It should point out the producer: The name or the mark or the symbol should

suggest the name of the producer. It is so because most of the consumers believe in

producers than products.Eg:-Amul,


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5) It should be original: The original name is one which is quite distinctive which is

not imitation of others. It must be such that others cannot copy. Eg:- Philips,

Maggi, Mustang, Kodak6) It should not carry poor meanings in other countries and languages:-Eg:-Nova

is a poor name for a car to be sold in Spanish speaking countries as it means doesnt

go.7) It should be legally protectable: The name, selected to be used over a long time and

to avoid imitation, is to be legalized.

ADVANTAGES OF BRANDING:-

To consumers:-

1) It assures quality and value: A branded product is a quality product with right value

for the money spent on it.

2) Branded Products reflect status and lifestyle: The brand is a prestige builder or

status evaluator. Branded products speak of the personality of a product and therefore

the personality and lifestyle of consumers.3) It saves time and effort: Good deal of time and energy can be saved in shopping for

goods, if they are branded. A branded product renders product identification mucheasier and convincing.

4) Consumer protection against cheating-It gives trade and legal protection to

Consumers against the unscrupulous and unfair trade practices. Manufactures print oneach pack the date of manufacture & expiry, MRP etc.

5) The brand name assures fixed prices. Branded products have prices printed as to

what the consumer is to pay as MRP. Even the distributors cannot unjustifiably varyprices.

To the manufacturers:-(1) Products get individuality-It helps to identify the product and distinguishes it from othercompeting products. Thus, it protects the interests of the manufacturer.

(2) Control of Product Prices:- Controlling the retail price is a significant factor because

each consumer is quality & price conscious. Each pack will have MRP printed on it andthe producers need not worry about the consumers being exploited by the retailers or

wholesalers

(3) Increases Bargaining power:- Good Brands give greater bargaining power to themanufacturers with the dealers as there is already a pull in favour of the product. as it is

easier to sell branded products , wholesalers & retailers prefer to stock and deal in

branded products and the manufacturers will be in apposition to dictate the terms in their

favour.(4) It reduces advertising cost:- If the brand name is popular, then it hardly needs extra

advertising expenses each time. It improves the effectiveness of product advertising and

promotion. Product identity can be created easily which would help easy repeat sales.(5) Introduction of new product is made easy:-Consumers who are loyal to the brands or

products of a particular company will easily accept any new product launched by that

company due to the past trust.


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(6) It is a powerful weapon of product differentiation:-as the markets are getting more

competitive and consumer driven, companies that succeed in differentiating the product

can carve niches for themselves through branding.(7) Ever increasing demand:-Powerful brands have the capacity to create, maintain and

extend demand for a product. once a brand has built its position , it leads to word of

mouth marketing and leads to increased demand.

To the wholesalers and retailers:-

(1) Quicker sales:-Widely popular brands ease the selling process and lead to large

sales. As there is already a pull in favour of the product it becomes easier for

wholesalers & retailers to sell the products.

(2) Adverting and display of products is made easy:-It helps in advertising and sales

promotion programmes. The distributor can easily find out the quick moving products.(3) Branded products have more stabilized prices.

(4) Special selling efforts need not be undertaken. This reduces the cost of distribution and

hence the final price.

(5) Introduction of new products is made easy.(6) Economical way of doing business:- when the wholesalers and retailers decide to trade

on the brands of manufacturers , they need not create any brand which is a time andmoney consuming process.

Demerits to consumers

1. It creates confusion and chaos : When consumers are provided with too many brands of

products in a product line theyll get confused as to which to select.

2. It makes losing sight of better products : It might save time and effort but it alsodeprives the consumer of other new brands of products which might be really better than

the accepted one.

3. It hikes product prices : Popular brands demand high price. It is the premium price thatmakes this difference because brand is quality, value, status and price.4. Brand names do not always assure good quality . Manufacturers sometimes place

inferior goods in the market under a glamorous brand name.

5. Branding is expensive :- It is difficult to establish a brand and the expense of advertisingin the initial stages is very high which raises the costs.

The severe criticism leveled against branding is that it leads to some kind of monopoly known as

BRAND MONOPOLY. The brand monopoly is created by gradually creating a brandloyalty to the products in the minds of the consumers. This criticism is baseless since such a

situation is not possible in the case of consumer goods unless they are really necessary

items. When a monopolistic tendency is found, consumers will show a response to it by

changing the brand. Types of brands:1)Individual or Single brand name:When all of a company's products are given different brand

names, this is referred to as individual branding. The advantage of individual branding is thateach product has a self image and identity that's unique. This facilitates thepositioning process.

The manufacture has to promote each individual brand in the market separately. This creates a

practical difficulty in promotion. For eg:- in laundry detergents, Procter & Gamble has uniquelypositioned brands like Tide, Cheer, Bold etc
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2)Family brand name: Family name is limited to one line of products. Several related products

can efficiently be promoted with a single advertisement or campaign. Family branding facilitates

new product introductions . When considering purchasing a new type of product, potential

customers tend to evoke in their minds a product with a familiar brand, this can lead to trial

purchase, product acceptance, or other advantages.

Family branding puts a greater burden on the brand owner to maintain consistent quality and

brand equity. If the quality of one product in the brand family is compromised, it could reduce

sales of all the others. For this reason family branding is generally limited to product lines that

consist of products of similar quality.Eg:- Amul for dairy products, Johnson & Johnson for

baby care products.

3) Umbrella brand: A brand name that covers diverse kinds of products of a company. We may

have for all products the name of the company or the manufacturer. For example, all products

such as soaps, textiles, chemicals etc manufactured by the Tata concerns will have the Tatas

as one umbrella brand. Similarly for Nivea- Nivea Visage, Nivea Beaute, Nivea for Men, Nivea

Crme etc.Godrej-has several product lines such as almirahs, office furniture, refrigerators, ACs

etc which all go by the name Godrej.

4) Multi-brand or Combine device: Tata house is using a combination device. Each product has

an individual name but it also has the umbrella brand to indicate the business house producingthe products. HLL has several individual brands like Dove, Sunlight etc but it also uses umbrella

brands like Kissanfor foods line, Lakme for cosmetics, Brooke Bond for Tea & Coffee.

5) Private/Store/ Middlemans brand: sometimes manufacturers leave their products for

branding by the distributors or retailers. Small maufacturers who do not have the financial &

management resources to brand & market their products rely on the middlemen for marketing.Eg:- Spencers is a middlemans brand ,Stop is a store brand of retail chain Shoppers stop.

6) Generic brand- A brand becomes generic when the buyer refers the type of product he wants

by the producers brand name. The brand name becoming generic is dangerous for the marketer.Eg:- Dettol, Jeep, Xerox etc. The brand name becoming generic is dangerous for the marketer.

The owner of the brand who has spent money & time to popularize & promote the brand has

cautious enough buyers to buy only this brand & not the products of the other brands sold under

his brand name. it is better to have a distinctive brand name to avoid its becoming generic.

Thomas F. Schutte in The Semantics of Branding classifies the brands into two broad categories: manufacturer brands and own-label brands.

I) Manufacturer brands:-Manufacturer brands are created by producers and bear their chosen

brand name. The producer is responsible for marketing the brand. The brand is owned by the

producer.


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By building their brand names, manufacturers can gain widespread distribution (for example by

retailers who want to sell the brand) and build customer loyalty (think about the manufacturer

brands that you feel loyal to).

(a) National Brands - the same brand used on a national level.

(b)Regional Brands - brand for particular region.(c)Advertising Brands - brands stressing symbols.

(d)Blanket/ Single/Family Brands - one brand name for all the products of a manufacturer,e.g. Godrej Products

(e) Multiple/ Individual - brand name given for each variety of product, e.g. various

brand soaps of Tata.

2) Own label brands/Distributors Brand:-

own-label brands are created and owned by businesses that operate in the distribution channel

often referred to as distributors.

Own-label branding if well carried out can often offer the consumer excellent value formoney and provide the distributor with additional bargaining power when it comes to negotiating

prices and terms with manufacturer brands.

Packaging

Packaging is the science, art and technology of enclosing or protecting products for distribution,storage, sale, and use. Packaging also refers to the process of design, evaluation, and production

of packages. Package labelling orlabeling is any written, electronic, or graphic

communications on the packaging or on a separate but associatedlabel.

The definition of "packaging" is a container or wrapper for a consumer product that serves a

number of purposes including protection and description of the contents, theft deterrence, and

product promotion. Innovative packaging may actually add value to the product if it meets a

consumer need such as portion control, recycle-ability, tamper-proofing, child-proofing, easy-open, easy-store, easy-carry, and non-breakability.

When designing packaging, the cost to manufacture, ship, and display the package must beconsidered. Packaging must be small enough to accommodate available shelf space and large

enough to deter theft. It must also contain an adequate amount of product to keep the unit pricecompetitive. Packaging should be designed to highlight product benefits and can be an integralpart of the product itself, like facial tissue box.

Packaging is another side of product identification. Traditionally the function of packaging was

to protect goods. However, it is a promotional tool and major image builder contributing to the

product success. Packing is a process that speaks of companys ability to contain economically
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mean made or natural products for shipment, storage, sale or final use. In simple words packing

the act of housing the product in the packages or containers like tins, cans, bags, jars, bottles,

boxes, kegs, casks, etc. A package is a wrapper or a container in a which product is enclosed,encased, housed and sealed. Packaging on the other hand deals with activities of planning and

designing of different means of packing the products.

DEFINITION

Packaging is the general group of activities in designing or the containers or wrappers for the

products.-Professor William Stanton.Package design is the unique combination of colors, graphics, and symbols to distinguishing the

product.

Packaging is an activity which is concerned with the protection, economy, convenience and

promotional considerations. - Professor Philip Kotler.

Types of packaging:

Packaging may be looked at as several different types. For example a transport package or

distribution package is the package form used to ship, store, and handle the product or innerpackages. Some identify a consumer package as one which is directed toward a consumer or

household.It is convenient to categorize packages by layer or function: "primary", "secondary", etc.

Primary packaging is the material that first envelops the product and holds it. This

usually is the smallest unit of distribution or use and is the package which is in directcontact with the contents.

Secondary packaging is outside the primary packaging perhaps used to group primary

packages together.

Tertiary packaging is used forbulk handling,warehouse storage andtransportshipping.

The most common form is apalletizedunit load that packs tightly into containers.

These broad categories can be somewhat arbitrary. For example, depending on the use, a shrinkwrap can be primary packaging when applied directly to the product, secondary packaging whencombining smaller packages, and tertiary packaging on some distribution packs.

Objectives

1. PRODUCT PROTECTION

The primary objective of packaging is protection of goods. It is the packages that keeps thecontents fresh, clean and uncoil by using moisture proof, vermin-proof and damage resistant

materials. It also avoids shop lifting, stealing in shops. Product is protected against the possible

theft, spilling, breakage, evaporation etc.

2. PRODUCT IDENTIFICATION

Next to brand names, packaging is another easy and convenient method to identify products of

different producers and marketers. The size, color, graphics used in each package are unique thatcan be easily remembered and recalled.

3. PRODUCT CONVENIENCE
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A packaging aims at providing maximum convenience to the producers, purchasers and

distributors. Good packaging facilitates the ease of product use by consumers. The best examples

of these are: cans, pull tubes, flitops etc. a nicely designed product package facilitates productshipping, storage; shipping etc. it is caused by product density.

4. PRODUCT PROMOTIONPackaging performs many good advertising functions: At least four are emphasized:

A. Self advertising- package design has supreme significance as it attracts consumers.

B. Point of purchase- the 2 possibilities of display are window and counter where the firstdoes the work of attracting consumers and the second one gives the comparison of competitive

products for consumer choice.

C. Media of advertising- the general appearance and the selling features created by the packaging

techniques decide the product successD. Product publicity- free advertising is done through package insert or flap advertising.

Role of packaging IT PROTECTS THE CONTENTS

The basic function of packaging from the time is to protect the contents of it from damage, dust,dirt, leakage, watering so on. Thus the contents are kept fresh, clean.unspoilt and unaffected. The

canning and deep freezing of some perishable products like strawberries, orange juice, and

mango pulp enable all the year round consumption on the part of consumers.

IT PROVIDES PRODUCT DENSITY

It is packaging that increases the product density. Product density implies selecting such a

package materials, design, shape that it helps to use the limited space in the best way. It improves

relations with common carriers, permits better use of space in storage and usage and increasesthe grace.

IT ACTS AS A PROMOTIONAL TOOLGood packaging can sell more easily and quickly as it works as a promotional tool. It is a silentsalesman. As a promotional tool it does it self- advertising, displaying, publishing, and acts as

an adverting medium. It is the package, design, size etc that catch the attention of the consumers.

IT PROVIDES USER CONVENIENCEConvenience in storage, transportation handling and usage the product is another requirement.

Consumers are generally assisted so long as the product is in usage. In fact, neat packaging has

brought home reduction in inventory costs, space and time costs.

IT FACILITATES PRODUCT IDENTIFICATION

The process of product differentiation is furthered by effective product identifiers, one is

branding and other is packaging. Consumers confusion over the large variety need not confound

them and mislead them in consumer decision making because, they go by distinctive productpackaging.

IT ALLOWS EASY PRODUCT MIX

Product mix relates to the product lines and assortment of sizes, colors, measures, grades,package types etc offered by the selling house. Changes in product mix can be possible as

packaging is to influence weight, size and dimensions of the product. Such a selected sales of

product mix will facilitate product pricing, shipping, storage, stocking, handling, and display indiversified market segments.


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IT EXTENDS PRODUCT LIFE CYCLE

The package of a product may be used in an effort to extend the product life cycle. It is difficultto come up with totally new products, but any variety of packaging innovations can be

introduced which offers features of consumer wants and willingness to pay for a form of product

innovation.

Kinds of packages

Kinds or methods of packaging will depend largely on the nature of the contents in terns of their

value, physical composition and durability. The length of the distribution channel, the amount ofhandling which the container will receive, and variations inc climatic conditions which may be

encountered between the point of manufacture and sales are also to be taken in account. For

example, products in liquid form require containers made of glass or similar materials. Forfragile articles wooden containers are used.

On the basis of nature, packaging is classified into:

1. Family Packing : The products of a particular manufacturer when packed in an identical

manner are known as family packaging. The shape, color, size etc. will be same in all his

products. Family brands are made useful by family packaging. In such cases,packaging methods, materials used for packaging, the appearance will be one and the

same for all products.2. Re-use Packaging: Packages that could be used for some other purposes after the packed

goods have been used is known as re-use packaging. This increases the sales value of the

product considerably.3. Multiple Packaging: it is the practice of placing several units in one container. This helps

to introduce new products and increase sales.

Labelling

Labeling means putting identification marks on the package. Label consists of verbal informationthat accompanies the product. A label identifies: Who made the product? Date of manufacturing

and expiry, the price to be charged, brand name, net quantity of contents (weight, measure,

numerical count, etc). Some labels consist of tags attached to the product or package, as in thecase of most clothing or hosiery articles. Labels are part of the printed material on the package.

The label is a strong sales tool and an integral part of the point of purchase advertising.

Although some products maybe adequately identified by giving the name of the product and theproducer, most require a some what more extensive description of their nature and use. For

example, processed foods, patent drugs, some cosmetics, textiles and other goods are required by

law, to carry a fairly complete idea about their ingredients. Many products also must furnish

instructions for their use, as in the case of commercial plant food. Safety warnings are alsonecessary on labels of all potentially hazardous products or packages. If a substance is

poisonous, the label must tell the user what steps to take if any is ingested and must list the

antidotes. For example, there is often a warning on medicines to be used under direction of amedical practitioner

Label is a small slip placed on or near anything (product) to denote its nature, contents,ownership, destination, etc. the function of standardization is made perfect and known to the


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users through labels. Packages afford a place where the labels could be affixed. It is a medium

through which the manufacturer gives necessary information to the user or consumer. It is

defined as a product which carries verbal information about the product of the seller. A labelplays an important role in making the packaging and branding functions meaningful. Hence,

these 3 functions are closely related. Furthermore, any legal restriction imposed is evidenced

through labeling. The recently passed Packaged Commodities (Regulation) Order 1975, makes itobligatory on the part of the manufacturers to show details about the identity of the commodity,

its weight, date or manufacturer, etc. The provision of this enactment is carried out with the help

of labeling

Function of labeling

It gives definiteness to the product and therefore, the identification of a product is easy.

It stresses the standard and other special features of the product which are advertised.

It enables the manufacturer to give clear instructions to the consumer about the proper

use of his product.

By mentioning prices, undue price variations, caused by the intermediaries are avoided.

In other words, price is recorded, registered, and maintained. It encourages to produce only standardized and quality products.

It provides a method for the manufacturer by which a contact with the consumer isestablished.

Kinds of labels

William J. Stanton classifies the labels into four:

Brand, Grade, Descriptive, and Information labels.

Brand Labels: These labels are exclusively meant for popularizing the brand names of theproduct. Cosmetics manufacturers prefer to use this kind. They are names for their

products, e.g., cigarettes, sweets.

Grade Labels : These labels give emphasis to standards or grades. This is used as an

indirect method of product identification, e.g., cloth, leaf, dust tea.

Descriptive Labels: The labels which are descriptive in nature are typified as descriptive

in nature. In addition to the product feature they explain the various uses of the products.

Most of the milk-food products and other similar household products invariably havedescriptive labels.

Informative Labels : the main object of these labels is to provide maximum possible

information. These may contain the products characteristics and in addition the method of

using it properly. In the case of medicines detailed labels are attached which even specifythe side effects is using them.

Advantages of labeling

It is a social service to customers, who very often do not know anything about the

products characteristic features. False claims are prevented by using labels.

It avoids price variations by publishing the price on the label.


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It helps advertising activity of the organization.

It helps the customers to assess the superiority of a product.

It is a guarantee for the standard of the product. Hence it raises the prestige of the

product and of the manufacturer.

Disadvantage of labeling For an illiterate population this is of no use.

It increases the cost of the product, since labeling involves expenditure on the part of the

manufacturer.

Labeling is effective only where standardization is compulsory.

It enables the customer to weigh and compare the advantages of products before they are

used. This ultimately ends discarding of one product in favour of one another.

In spite of these defects, under legislated atmosphere it could play an effective role and

protection to customers.

What is the information provided by a label?

Brand name

Name and address of manufacturer

Weight, measure, count

Ingredients by %, where possible

Directions for the proper use of the product

Nutritional guidelines

Date of packing and expiry

Retail price

Recipes on food products

Documents

Branding Packaging n Labeling