Branding, Packaging, and Labeling

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Branding, Packaging, and Labeling!

• Abercrombie

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Branding

• An important part of product planning is the use
  of brands.
• A brand is a name, design, or symbol that
  identifies the products of a company.

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• Can you recognize the following companies just by
  their symbol?

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Look familiar?
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Falling Prices????
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QuestionWhy was the name Kentucky Fried Chicken
changed to KFC?
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Everyone knows this fine machine!
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And who is this man? What product is he famous
for?
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Branding

• Almost every product has a brand.
• Can you think of what the most recognized and
  respected world-wide brands are?

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Top 10 List

• 10) Pepsi-Cola
• 09) IBM
• 08) McDonalds
• 07) Toyota
• 06) Nestle

• 05) Disney
• 04) Kodak
• 03) Mercedes Benz
• 02) Sony
• .and the 1 brand-why of course!
• 01) Coca-Cola!!!!

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Brand Importance

• Because it identifies the products of a
  company and is often what SELLS a product, a
  brand can be a companys most important asset!

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Financial World magazine

• Recently estimated the market value of some top
  worldwide brands to be in the BILLIONS!
• The net worth of Coca Cola is any guesses?
• How about 24.4 billion.
• Pepsi- a mere 9.6 billion
• Nescafe instant coffee (yuck) -8.5 billion

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Brands include

• Brand Name
• Brand Mark
• Trade Name
• Trade Character
• Trademark

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Brand Name

• Like the word implies, a brand name is the word,
  group of words, letters, or numbers of a brand
  that can be SPOKEN.
• Since brand-name products are advertised
  EXTENSIVELY, they usually cost more than similar
  unbranded merchandise.

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Diet Coke
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Brand Mark

• A brand mark is the part of the brand that is a
  symbol, design, or distinctive coloring or
  lettering.
• Examples Disneys castle, Target, UPS-brown,
  Deltas red and blue triangle.

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Brand Marks
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Trade Name/Character

• A trade name identifies the company or division
  of a particular corporation. Kelloggs
• A trade character is a personified brand mark
  (given human form or characteristics) Pillsbury
  Dough Boy, Jolly Green Giant, Kebler elves.

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I LOVE this guy!!!!
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Trademark

• A trademark is a brand name, brand mark, trade
  character, or a combination of these that is
  given legal protection.
• When used, it is followed by a registered
  trademark symbol.
• Examples include Frito-Lay Doritos, Kelloggs
  Rice Krispie Treats, and VISA.
• THEY CAN NOT BE USED BY COMPETITORS!

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YUMMY!
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Importance of Brands

• Assures customers that the product will have a
  consistent quality.
• Identifies the firm that manufactures the
  product.
• Addresses new target market (brand extension).
• New product lines introduction(familiar name).
• Helps establish an image for a product.

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Types of Brands

• National Brands
• Private Brands
• Generic Brands

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National Brands

• Also called manufacturer brands.
• Examples include Pepsi, Kelloggs, IBM.
• National brands generate the majority of sales
  for most product categories 70 of all food
  products, 65 of all appliances, 80 of all
  gasoline, and 100 of all automobiles are sold
  under national brands.

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• National brands not only identify a given product
  but also indicate a standard quality and price.
• They appeal to people who want CONSISTENT
  quality, dependable product performance, status,
  and who will NOT take risks with unknown products.

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Private Brands

• Owned and initiated by wholesalers and retailers.
  
• There is NOT a manufacture name on the product.
• They appeal to those who are price conscience.
• They carry higher gross margins for the
  retailers.
• Example Craftman tools, Kenmore

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Interesting.

• A Gallup Poll found that nearly 80 percent of
  people who try a product with a store-brand label
  become repeat buyers.
• Typically the store-brand buyer is a
  better-educated, affluent person who reads and
  understands the labels.

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Private Brand

• Thomas E. Moore, Inc. proudly introduces
  EVERFRESH Farms, our new label being used in
  conjunction with our potato operation and
  reserved for only the finest quality produce.

• Private Brands

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Hmmmmm.

• Many consumers do study labels and prices. The
  Gallup Poll indicates that 40 percent of shoppers
  shop selectively They do not just choose the
  national brand, but compare products on a variety
  of dimensions (quality, price, and special
  offers). Nonetheless, nationally, only 2 or 3
  percent of store-brand sales are generics.

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Generic Brands

• no frills products and do not carry a brand
  name.
• Found usually in grocery stores/discount stores.

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Generics

• Unbranded products are generally 30-50 lower
  than nationally advertised brands and 10-15 less
  than private.

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Branding Extension

• The way the companies use brands to meet sales
  and company objectives.
• Brand Extensions
• Brand Licensing
• Co-branding
• Mixed Brands

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Brand Extension

• To use an existing brand name for a new or
  improved product in the product line.
• Example Nabisco extended its Fig Newton brand
  by adding Apple, Blueberry, Strawberry and
  Cranberry fig newtons.
• Companies reduce their costs and risk of failure
  (name recognition).

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APPLE

• WOW! Apple came out with iPod- and what a GREAT
  extension to their product line!

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Brand Licensing

• Is the 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! (it is all about the money!)
• Licensing must be done carefully and should
  always parallel and support the core products
  market strategy.

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The Red Zone sells Officially Licensed UGA
Apparel UGA Merchandise. Gear up for the 2006 UGA
Football Season

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Co-Branding

• Combines one or more brands to increase customer
  loyalty and sales for each individual brand.
  HUH????
• An example may help here The GM credit card put
  together GM and MasterCard.

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GM MasterCard

• What a GREAT idea!
• GM wanted to find a tool that would strengthen
  customer loyalty and provide prospective
  customers with a financial incentive to buy their
  next car or truck from GM.
• In 1993, the 2 teamed up and created this card
  with no annual fee.

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I WANT ONE!!!!
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More Incentives.

• The GM card offers a 5 cash rebate on each
  transaction toward the purchase of a new GM
  car/truck.
• After 1 month, how many NEW MC customers do you
  think they had???
• Anyone care to guess? Anyone?

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Lets see if you came close..

• How about 1 MILLION new MasterCard customers
  opened accounts.and
• 130,000 cardholders put their rebate earnings
  towards a new GM car purchase or lease.
• WOW! What do you think about these results?

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Mixed Brands

• Involves simultaneously offering a combination of
  national, private, and generic brands.
• Example Union Carbide (who?) produces and sells
  generic and national brands of garbage bags.
• Heard of GLAD BAGS?

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Union Carbide

• Glad bags is their national brand. They are
  advertised as superior to the thin, bargain
  bags!
• Guess what?
• They produce those thin bargain bags also! They
  sell it as a generic brand!
• Ponder why and lets discuss!

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Useless Information Slide

• The Garbage Bag (invented 1950s)
• Inventor Harry Wasylyk (can you pronounce this
  name???)
• Every garbage day, millions of metal garbage cans
  would make a huge clatter as the bins were
  emptied and thrown back down. Harry wanted to
  come up with a solution to this irritation.

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• Harry, after the Second World War, began
  experimenting with a new material called
  polyethylene. Harry made his first plastic bags
  in his kitchen and supplied them to the Winnipeg
  General Hospital to line their garbage cans.

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• Larry Hanson, an employee at Lindsay, Ontario's
  Union Carbide plant began to make garbage bags to
  use around the plant. Union Carbide knew a great
  idea when it saw one. The company bought
  Wasylyk's business and began producing the
  garbage bags from the leftover polyethylene resin
  piling up at its Montréal plant

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NOW YOU KNOW!!!!