Branding, Packaging and Other

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• Branding, Packaging and Other
• Product Features

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Brands

• a brand identifies and differentiates the
  products or services of a particular company
• a brand name is the words, letters or, numbers
  that can be vocalized
• a brand mark involves a symbol, logo, or design
  that identifies a brand
• a trademark is the brand name and brand mark that
  are the legally-registered property of a specific
  company or organization

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The Role of the Brand

• brands may be applied to companies and other
  entities as well as to their products or
  services thus, Bell is a brand, as is Celine
  Dion
• brands are important in promoting products and in
  giving customers confidence in quality
• companies have to support their brands
• it is difficult to brand services successfully
  because of their intangibility

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Pros and Cons of Branding

• Advantages of branding for consumers
• Easier to identify products.
• Helps assure consistency in quality.
• Advantages for sellers
• Brands can be advertised and recognized.
• Price comparisons are reduced.
• Brands can differentiate commodities.

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To Brand or Not to Brand?

• some companies will not brand their products if
  they dont wish to promote them or if their
  quality is not consistent or high
• products that are not easily differentiated, such
  as industrial raw materials, are often not
  branded
• a brand offers the consumer protection as it
  names the owner of the brand and allows their
  products and services to be identified

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Characteristics of a Good Brand Name

• says something about the product or service
• is easy to pronounce, spell, and remember
• is distinctive
• is adaptable when new products are added to the
  companys product line
• is capable of registration under the Trade Marks
  Act and other laws
• some brands are lost because of generic use

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Evaluating Brand Names

• Characteristics of a
• good brand name

Fast Food Restaurants
Burger King
McDonalds
Suggests something about the products benefits
and use
Rate these products with respect to each
characteristic, using a scale of
Excellent-Good-Fair-Poor.
Easy to pronounce, spell, and remember
Distinctive
Adaptable to additions to product line
Capable of being legally protected
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Producers Rationale for Branding Strategies

• Producer uses own brand only control over
  entire output. (Maytag, IBM)
• Producer brands fabricating parts and materials
  to develop market preference. (DuPont, Fiberglas)
• Producer markets under middlemens brands
  generate additional sales and utilize plant
  capacity. (Make for Sears, Presidents Choice)

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Intermediarys Rationale for Branding Strategies

• Middleman carries only producers brands. (Future
  Shop, small retailers)
• Middleman carries own and producers brands
  more control, higher gross margins. (The Bay)
• Middleman carries generic products appeal to
  most price-sensitive consumers. (Bulk food)

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Strategies Common to Producers and Intermediaries

• Branding a line of products and services
• Family/blanket brand Heinz, Kraft, McCains
• Separate, unrelated brand name Pampers (owned by
  Procter Gamble)
• Separate family brand for each product line
  Kenmore appliances, Allstate Insurance, Whole
  Home furnishings (all from Sears)
• Company trade name plus an individual name
  Kelloggs Rice Krispies
• Branding for market saturation (multiple brand
  strategies)

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Brand Equity

• the value that a brand adds to a product is know
  as brand equity companies now realize that
  popular brands are valuable assets
• a well-known brand can create a differential
  advantage for the brands owner
• it will create a barrier to other firms wishing
  to enter the market with competing products
• it can help a product survive market changes
• valuable brands must be protected

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Branding of Services

• Branding decisions are often the same as for
  marketers of tangible products
• Service brands should be
• Relevant to the service or its benefits
• Distinctive
• Easy to pronounce and remember
• Adaptable to additional services or regions

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Labelling

• The function of the label is to communicate image
  and functional information
• many types of labelling
• brand labels present the brand
• grade labels communicate quality levels
• descriptive labels provide information
• often an issue over how much information the
  label should carry to protect the consumer
• growing use of eco-labelling
• statutory labelling requirements regulate this
  marketing activity

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Canadian Packaging Legislation

• Competition Act
• Hazardous Products Act
• Food and Drug Act
• Textile Labelling Act
• Consumer Packaging and Labelling Act

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Packaging Strategies

• Revitalize a product by using packaging
  strategically
• Change the package appearance
• Package a product line in similar way
• Create a reusable package
• Package several items together (multiple
  packaging)

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Criticisms of Packaging

• Depletes natural resources in its production
• Expensive
• May result in health hazards from some plastics
  and aerosols
• Deceptive packaging (may look larger than they
  are)
• Package disposal

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Other Strategic Product Features

• product design and colour are often used to
  distinguish products from competitors offerings
• high quality levels are important in products and
  services to ensure customer satisfaction
• some companies offer warranties on their products
  and increasingly on services
• postsale service is important to deal with
  repairs, maintenance, customer questions and
  complaints a major satisfaction-building tool