brands, packaging and product

8/3/2019 Brands, Packaging and Product

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BrandsBrands,, PackagingPackaging andandProduct FeaturesProduct Features

Prof. Rushen Chahal



BrandsBrands

y a brandbrand identifies and differentiates the products

or services of a particular company

y a brand namebrand name is the words, letters or, numbers

that can be vocalizedy a brand mark brand mark involves a symbol, logo, or design

that identifies a brand

y

a trademark 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 theThe Role of the

BrandBrand

y brands may be applied to companies andother entities as well as to their products orservices; thus, Bell is a brand, as is Celine

Diony brands are important in promoting products

and in giving customers confidence in quality

y companies have to support their brands

y it is difficult to brand services successfullybecause of their intangibility

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Pros and ConsPros and Cons

of Brandingof Branding

y Advantages of branding for consumers:

Easier to identify products.

Helps assure consistency in quality.

y Advantages for sellers: Brands can be advertised and recognized.

Price comparisons are reduced.

Brands can differentiate commodities.

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To Brand orTo Brand or

Not to Brand?Not to Brand?

y some companies will not brand their productsif they don·t wish to promote them or if theirquality is not consistent or high

y products that are not easily differentiated,such as industrial raw materials, are often notbranded

y a brand offers the consumer protection as it

names the owner of the brand and allowstheir products and services to be identified

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Characteristics of aCharacteristics of a

Good Brand NameGood Brand Name

y says something about the product or service

y is easy to pronounce, spell, and remember

y is distinctive

y is adaptable when new products are addedto the company·s product line

y is capable of registration under theTradeMarks Act and other laws

y some brands are lost because of genericgenericuse

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Evaluating Brand NamesEvaluating Brand Names

Char acteristics of a

good br and name

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Rate these

products with

respect to

each

characteristic,

using a scaleof Excellent-

Good-Fair-

Poor.

Suggests something

about the product¶sbenefits and use:

Easy to pronounce,

spell, and remember:

Distinctive:

McDonald¶s

Burger

King

Adaptable to additions

to product line:

Capable of being

legally protected:

Fast Food

Restaurants



Producer·s Rationale forProducer·s Rationale for

Branding StrategiesBranding Strategies

y Producer uses own brand only ³ controlover entire output. (Maytag, IBM)

y Producer brands fabricating parts and

materials to develop market preference.(DuPont, Fiberglas)

y Producer markets under middlemen·s

brands ³ generate additional sales andutilize plant capacity. (Make for Sears,President·s Choice)

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Intermediary·s RationaleIntermediary·s Rationale

for Branding Strategiesfor Branding Strategies

y Middleman carries only producer·s brands.

(Future Shop, small retailers)

y

Middleman carries own and producer·sbrands ³ more control, higher gross

margins. (The Bay)

y Middleman carries generic products ³

appeal to most price-sensitive consumers.(Bulk food)

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Strategies Common to ProducersStrategies Common to Producers

and Intermediariesand Intermediariesy Branding a line of products and services

y Family/blanket brand: Heinz, Kraft, McCains

y Separate, unrelated brand name: Pampers (owned

by Procter & Gamble)y Separate family brand for each product line:

Kenmore appliances, Allstate Insurance, Whole

Home furnishings (all from Sears)

y Company trade name plus an individual name:

Kellogg·s Rice Krispies

y Branding for market saturation (multiple brand

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Brand EquityBrand Equity

y the value that a brand adds to a product is knowas brand equity;brand equity; companies now realize thatpopular brands are valuable assets

y

a well-known brand can create a differentialadvantage for the brand·s owner

y it will create a barrier to other firms wishing toenter the market with competing products

y it can help a product survive market changesy valuable brands must be protected

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Branding of ServicesBranding of Services

y Branding decisions are often the same as for

marketers of tangible products

y Service brands should be:

Relevant to the service or its benefitsRelevant to the service or its benefits

DistinctiveDistinctive

Easy to pronounce and rememberEasy to pronounce and remember

Adaptable to additional services or regionsAdaptable to additional services or regions

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LabellingLabelling

The function of the label is to communicateThe function of the label is to communicateimage and functional informationimage and functional information

y many types of labelling:

brandbrand labels present the brand gradegrade labels communicate quality levels

descriptivedescriptive labels provide information

y often an issue over how much information the label

should carry to protect the consumery growing use of ecoeco--labellinglabelling

yy statutory labelling requirementsstatutory labelling requirements regulate thismarketing activity

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Canadian PackagingCanadian Packaging

LegislationLegislation

y Competition Act

y Hazardous Products Act

y Food and Drug Act

y Textile Labelling Act

y Consumer Packaging and Labelling Act

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Packaging StrategiesPackaging Strategies

Rev italize a product by using packaging Rev italize a product by using packaging strate gically:strate gically:

Change the package appearance

Package a product line in similarway

Create a reuseable package

Package several items together(multiple packagingmultiple packaging)

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Criticisms of Criticisms of

PackagingPackaging

y Depletes natural resources in itsproduction

y Expensive

y May result in health hazards from someplastics and aerosols

y Deceptive packaging (may look larger than

they are)y Package disposal

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Other StrategicOther Strategic

Product FeaturesProduct Featuresyy product design and colourproduct design and colour are often used to

distinguish products from competitors· offerings

y high qualityquality levels are important in products and

services to ensure customer satisfactiony some companies offer warrantieswarranties on their

products and increasingly on services

yy postsale servicepostsale service is important to deal with repairs,

maintenance, customer questions and complaints;a major satisfaction-building tool

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