BRANDING PACKAGING & LABELING

What is a product?

• A product is any offering by a company to a market that serves to satisfy customer needs and wants.

• It can be an object, service, idea,etc.

New Product Development

• Most new product development is an improvement on existing products

• Less than 10% of new products are totally new concepts.

Success rate of new products

• The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.”

• Product obsolescence is rapid with improvements in technology

• Shorter PLCs

Brands are much more than logos

What is a brand ?Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers.It is a form of marketing.

A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers.These associations help customers understand

what the brand or company is, why it is potentially relevant to them,how it is different or similar to other products

made by the company,and how it is similar or different from

competitor’s products.

What is a brand ?Branding is a combined effort of the company which is projected to the consumer.

Company

Brand

Consumer

Marketing

Design

What is a brand ?

What a brand means to common person ?

In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste!

(1) Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers’ choice.(2) These added emotions and trust help create a relationship between brands and consumers, which ensures consumers’ loyalty to the brands. (3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers.

What is a brand ?

(4) The branded lifestyles extol values over and above the brands’ product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets.(5) The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

What is a brand ?

Brand

• A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service

• It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers

Brand Equity

• When a commodity becomes a brand, it is said to have equity.

• The premium a brand can command in the market

• The difference between the perceived value and the intrinsic value

Brand Power• Customer will change brands for price

reasons• Customer is satisfied. No reason to

change.• Customer is satisfied and would take

pains to get the brand• Customer values the brand and sees it as

a friend• Customer is devoted to the brand

Advantages of branding• Easy for the seller to track down problems and

process orders• Provide legal protection of unique product

features• Branding gives an opportunity to attract loyal

and profitable set of customers• It helps to give a product category at different

segments, having separate bundle of benefits• It helps build corporate image• It minimises harm to company reputation if the

brand fails

Brand parity

• Consumers buy from a set of acceptable/ preferred brands

Umbrella Brand• Products from different categories under

one brand• Dangerous to the brand if the principal

brand fails• Sometimes the company name is prefixed

to the brand. In such cases the company name gives it legitimacy. The product name individualises it.

Naming the Brand

• Product benefits• Product qualities• Easy to pronounce• Should be distinctive• Should not have poor meanings in other

languages and countries

Brand strategy• Line extension – existing brand name extended

to new sizes in the existing product category• Brand extension – brand name extended to new

product categories• Multibrands – new brands in the same product

category• New brands – new product in a different

product category• Cobrands –brands bearing two or more well

known brand names

Brand Repositioning

• This may be required after a few years to face new competition and changing customer preferences

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Packaging and Labeling

Why It's Important

While branding gives a specific brand personality, packaging puts a face on a product. Effective packaging creates a good impression, helps to sell the product, and communicates benefits to customers.

Packaging

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Packaging and Labeling

A package is the physical container or wrapping for a product.10 percent of a product's retail price is spent on package development and design and the package itself.

Packaging

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Packaging and LabelingFunctions of Packaging

A package is a selling tool. Its functions include: promoting and selling the product defining product identity providing information meeting customer needs ensuring safe use protecting the product

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Packaging and Labeling

Functions of Packaging

Promoting and Selling the Product Customer reaction to a package and brand name is an important factor in determining marketplace success or failure. Defining Product Identity Packages can invoke prestige, convenience, status, or other positive attributes.

Slide 1 of 3

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Packaging and LabelingFunctions of Packaging

Providing Information Packages give directions for product use, information about contents, guarantees, nutritional information, and potential hazards.Meeting Customer Needs Various sizes meet the needs of different market segments: family packs meet the needs of larger families; smaller packages are made for individuals.

Slide 2 of 3

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Packaging and Labeling

Ensuring Safe Use Plastic packaging, tamper-resistant packaging, and childproof containers protect customers.Protecting the Product Packages protect a product during shipping, storage, and display, prevent tampering, and sometimes help prevent shoplifting of the product.

Functions of Packaging

Slide 3 of 3

Packaging

• Includes the activities of designing and producing the container for a product

• Packaging is done at three levels - primary - secondary - shipping

Designing packaging• Packaging concepts• Technical specifications• Engineering tests• Visual tests• Dealer tests• Consumer tests• Packaging innovations• Environmental considerations

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Packaging and LabelingLabeling

A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to:

inform about a product’s contents and direction for use

protect companies from legal liability contain a brand name, logo, ingredients,

special promotional messages, and other useful information

Labels

• Identification• Grade classification• Description of product• Manufacturer identity• Date of mfg., batch no.• Instructions for use• Promotion

Labels as a marketing tool

• Labels need to change with time or packaging changes to give it a contemporary and fresh look