Contents

Introduction..........................................................................................................................................2
Product Characteristics & Classification....................................................................................3
Product Characteristics.....................................................................................................................3
Functionality.....................................................................................................................................3
Durability............................................................................................................................................3
Quality..................................................................................................................................................4
Affordability.......................................................................................................................................6
Usability..............................................................................................................................................7
Maintainability.................................................................................................................................8
Safety....................................................................................................................................................8
Marketability.....................................................................................................................................9
Product classification.........................................................................................................................9
Consumer Products........................................................................................................................9
Convenience Goods........................................................................................................................10
Shopping Goods..............................................................................................................................10
Specialty Goods...............................................................................................................................11
Industrial Goods:...........................................................................................................................11
Raw Materials:................................................................................................................................11
Fabricating Materials and Parts:...................................................................................................12
Installations:....................................................................................................................................12
Accessory Equipment:....................................................................................................................12
Supplies:...........................................................................................................................................13
Services:...........................................................................................................................................13
Product Differentiation...................................................................................................................14
Types of Product Differentiation.................................................................................................14
Price....................................................................................................................................................15
Performance and Reliability......................................................................................................15
Product mix and product lines.....................................................................................................15
Co-branding.........................................................................................................................................17
Elements of Product Strategy........................................................................................................18
Branding............................................................................................................................................18

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 Packaging..........................................................................................................................................19
Labeling.............................................................................................................................................20
Warranty...........................................................................................................................................21
Conclusion............................................................................................................................................23

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Introduction

A product is anything that can be offered to satisfy a need.  A product is the item offered
for sale. A product can be a service or an item. It can be physical or in virtual or cyber
form. Every product is made at a cost and each is sold at a price. The price that can be
charged depends on the market, the quality, the marketing and the segment that is
targeted. Each product has a useful life after which it needs replacement, and a life cycle
after which it has to be re-invented. 

A product needs to be relevant: the users must have an immediate use for it. A product
needs to be functionally able to do what it is supposed to, and do it with a good quality.
A product needs to be communicated: users and potential users must know why they
need to use it, what benefits they can derive from it, and what it does difference it does
to their lives. Advertising and brand building best do this. A product needs a name: a
name that people remember and relate to. A product with a name becomes a brand. It
helps it stand out from different products and names. A product should be adaptable:
with trends, time and change in segments, the product should lend itself to adaptation
to make it more relevant and maintain its revenue stream.

Product is one of the important elements of marketing mix. A marketer can satisfy
consumer needs and wants through product. A marketer tries to produce and sell such
products that satisfy needs and wants of the target market. Other words used for
product are good, commodity, service, article, or object. A product consists of both good
and service. Decisions on all other elements of marketing mix depend on product. For
example, price is set for the product; promotional efforts are directed to sell the product;
and distribution network is prepared for the product. Product is in the center of
marketing program. Therefore, product has a major role in determining overall success
of marketing efforts.

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Product Characteristics & Classification
Product characteristics and classification help marketers focus their efforts using
consumers’ buying behavior. Your business can use these buying habits to design your
marketing efforts for a clearly-defined target audience

Product Characteristics
Product Characteristic can be defined to complete the definition of a product using
variants. Product Characteristics are attributes that can be added to the product
definition to extend the description of each product. Examples of Characteristics
are Size, Color, Quality, Shape or Weight. These characteristics can be used later to filter
or search products. We can define this characteristics as:

Functionality

Whatever else a product does, it must fulfill its purpose in a larger context - it
must function. What exactly should the product do? When should it do it? When should
it not do something? Some products work better if they exhibit certain physical
characteristics. Consider a laptop computer: it must be light in order to be portable. This
affects usability, but is also affects functionality. After all, what good is a laptop
computer that is too heavy to carry around?

Durability

Durability is the capacity of a product to maintain performance of the function(s) for

which it was engineered over its lifetime. (We say "maintain performance" because we
expect a product's actual performance to vary with time within some range. The product
is durable so long as its actual performance falls within the allowable range.)

Lifetime

How long should the product last? Does downtime count? For automobiles, lifetimes are
generally measured in miles/kilometers. But what happens to a car that is up on blocks;
it does age - why do we put cars up on blocks anyways? How quickly does a product age
when it is not being used? The lifetime of a airplane is measured in number of flights,

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but the lifetime of an airplane's engines is measured in hours of operation. How can you
convert airplane life times into engine life times? What effect does distribution (e.g.
shipping from a manufacturing facility to the end user) have on lifetime? What effect
does durability have on the product's end of life? How does it affect its ability to be
recycled, remanufactured, or reused? How long is the shelf-life of the product? Does it
depend on how or where the product is stored?

Reliability

Reliability is often used as a synonym for durability. However, while durability is a

product characteristic (it is or it is not durable), reliability is usually defined as a
measure of performance; i.e. the probability that a product has performed successfully
over a period of time (not necessarily its lifetime). So the two concepts are really quite
different: reliability is a statical measure of the durability of actual products. A designer
may set durability goals for a design, but once the product is designed, tests can reveal
its actual ability to endure. Reliability is particularly important for products where safety
is of special interest.

Packaging

Does the product need to be packaged for shipping? For sale? For storage? What is the
purpose of the packaging? Does it prevent damage during transportation, or is it to keep
components from getting lost? If the packaging protects theproduct, what does it protect
the product from: shock loading, being turned over, corrosion....? What is the cost of
packaging? What is the environmental impact of the packaging? How is the packaging
disposed of? Can the packaging be used for something else once the product is installed?

Quality

Quality is the ability of a product to conform to its requirements. This includes all the

requirements, not just the engineering requirements. Quality is usually treated from the
perspective of the user/customer, so it is important that the requirements be prioritized
from the user/customer's point of view to determine which requirements will most
affect product quality.

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Customer Requirements

When we say a product is of high quality, we mean that it meets or exceeds all the
user/customer's requirements. So what does the customer want? How can we be sure?
Can the customer's wants change with time? Does the customer want things that we can
provide? What if we can't provide them? How do we measure quality?

Standardization

Are there any standards to be followed to ensure a quality product? Are there any best
practices that should be followed that will help ensure high quality? How exactly to
these standards affect cost? Using standard parts can significantly reduce cost and lead-
time, but they can also stifle innovation - where do you draw the line? What about
standards of conduct (i.e. professional ethics)?

Documentation

A key aspect of quality is the ability to justify the decisions taken during a product's
development. Indeed, standards like ISO 9000 have substantive components devoted to
precisely what kinds of development information must be documented and how that
documentation should be used.

How will the product be documented? Who will need to read the documentation?
Answering these questions helps determine the general level of technical language
needed in the documentation. Are there documentation standards that have to be
followed? What legal requirements must be documentation fulfill? How is the
documentation maintained? What revision system is to be used for updating the
documentation? How can you make sure that the available documentation matches the
revisions of the product itself?

Testing

How will the product be tested during design and fabrication? What extent of testing is
needed? What regulatory bodies oversee such testing? What kinds of tests are needed?
How many times should each test be conducted? Are there special facilities needed to

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conduct the tests? How long will the tests take? Has the testing period been included in
the schedule for product release? How are the test results assessed? What happens if a
test goes wrong? What is the cost associated with testing?

Affordability

Cost and quality are often seen as the dominant drivers in product development, but
acting in opposition to one another. In a very general way, the higher the quality of a
product, the higher its cost. Finding an appropriate balance of quality and cost is a key
task of any designer. Cost is not price. The cost of a product is the total of the expenses
you incur to get a product to market. Price is what your income will be per unit sold.
(The difference is your profit margin.) What target exists for the total cost of the
product? How was this target set? Is the reason for setting the target reasonable? Can it
change with time? Why might it change? How compatible is your target with products
made by your competitors?

Cost of Design

Often referred to as development costs, the cost of a design is the amount of money
needed to reach a point where fabrication of the product can commence. Development
costs include all resources needed to produce a complete and tested design. What kind
of testing is needed, during the design process, to ensure that the product will work?
What fraction of the product's total cost should be allocated for design?

Does developing a new product violate existing patents, copyrights, or other legal
restrictions? Do you have the legal right to develop the product? If the product
incorporates new ideas, have you secured patents/copyrights on those ideas? What is
the cost of such measures, and how will those costs be recouped?

What personnel requirements are needed to design product? What operating costs are
needed to support the design? What's the corporate culture in which the design will be
carried out and its effect on cost? How does the infrastructure of the company affect the
cost of design?

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Cost of Fabrication

Fabrication (manufacture and assembly) costs are greatly affected by the number of
units (expected to be) produced: mass production allows economies of scale to be used.
How many units are expected to be produced? At what rate must they be produced?

How are costs distributed across the product's parts and assemblies? If you insist that
every part must cost as little as possible, you may still end up with a very expensive
product because of the time, resources, and effort you have to invest in meeting that
target. Look for parts that are difficult to design or manufacture and allocate a greater
fraction of the cost to them.

Cost of Storage, Distribution

These costs usually depend on the sensitivity of the product to the environment during
storage and distribution. Storing delicate scientific instruments costs more than storing
paperclips. How long will products have to be stored before delivery to customers? How
much space is needed to store and distribute them? Location affects cost too: can the
products be stored in an inexpensive location?

Operating Cost

How much will it cost for your customers to operate your product? What will it cost to
maintain the product (including service labour as well as parts)? Some customers
considering training in product use as an operating cost. Thus usability can affect the
operating cost as well. What does it cost a customer to learn to use your product
correctly?

Usability

Usability contributes to quality: a usable product will be perceived as being of higher

quality. Usability is, however, primarily a matter of design, whereas quality is a matter
of both design and manufacturing.

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What about the man/machine interface? Is the product easy to use? What level of
expertise or training is expected of users? What kind of interface is needed? How was
the interface designed and tested? Did only engineers test the interface? What about
representatives of the customer? Can the product be used by disabled users? Is the
product's use affected by the operating environment? For example, how easy is it to
drink coffee from a porcelain cup while driving a car? If you have a watch that has a light
for seeing in the dark, how do you find the switch to turn it on?

Can you yourself use the product to open a new market segment? Would such a move be
seen as seeking a monopoly position? How can you use the product to further your
business goals? Can the product contribute to refining your corporate image?

Maintainability

Is regular maintenance required or desirable? How does the frequency of maintenance

affect product cost? Who should perform the maintenance: a qualified operator, or the
end-user? How does maintenance affect warranty issues? What waste products result
from maintenance? How are those waste products disposed of? What is the cost of
maintenance? Is the customer aware of these costs? Can a separate business division be
set up to provide maintenance services? How accessible are the parts of the product that
are most likely to require maintenance? How does maintenance impact your company’s
ability to stock and supply spare parts? Are there special (expensive) tools needed for
maintenance?

Safety

One of the most important considerations, especially these days when products tend to
be so complex, is the safety of the product. Are there any regulations governing the
product's performance with regards to safety? Is the product safe to use? How is safety
determined? How does one ensure proper use of a product to ensure safety? Are
warning labels needed? Where on the product should they be located?

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Are sharp corners or edges acceptable on the product? Is padding needed? Do certain
parts of the product have to be 'protected'? Should a product be 'fail-safe'? (Fail-
safe operation of a product means that a failure of a product will not cause injury to its
users or other people.

How will you ensure against legal liability? What legal aspects need to be addressed by
the product's warranty? How can you protect yourself against negligent use of the
product by users? How can you protect yourself against negligent actions by
manufacturers, distributors, retailers, and your own engineers?

Marketability

For how long is the product marketable? Is it likely to remain in production for 20 years,
or for 6 months? This impacts the design approach and market interaction with
competitors, tooling policy, manufacturing facilities, etc. Note that some product like
spans are shrinking rapidly - for example, Sharp changes its calculator designs
approximately every six months. People used to buy a television every 10 years; now
they tend to buy a new one every 3 years or less. How does this shrinking product life
affect design processes?

Product classification
Product classification that is also known as different types of products. These types of
products or product classification are as below in two different forms.

1. Consumer products
2. Industrial products

Each are discussed below:

Consumer Products

We classify consumer products into three:

 Convenience Goods

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  Shopping Goods

 And specialty

Convenience Goods

A convenience good is one that requires a minimum amount of effort on the part of the
consumer. Extensive distribution is the primary marketing strategy. The product must
be available in every conceivable outlet and must be easily accessible in these outlets.
These products are usually of low unit value, they are highly standardized, and,
frequently, they are nationally advertised. Yet, the key is to convince resellers (i.e.,
wholesalers and retailers) to carry the product. If the product is not available when,
where, and in a form desirable by the consumer, the convenience product will fail. From
the consumer’s perspective, little time, planning, or effort go into buying convenience
goods. Consequently, marketers must establish a high level of brand awareness and
recognition. This is accomplished through extensive mass advertising; sales promotion
devices, such as coupons and point-of-purchase displays; and effective packaging. The
fact that many of our product purchases are often on impulse is evidence that these
strategies work. Availability is also important. Consumers have come to expect a wide
spectrum of products to be conveniently located at their local supermarkets, ranging
from packaged goods used daily (e.g., bread and soft drinks) to products purchased
rarely or in an emergency, such as snow shovels, carpet cleaners, and flowers.

Shopping Goods

In contrast, consumers want to be able to compare products categorized as shopping

goods. Automobiles, appliances, furniture, and homes are in this group. Shoppers are
willing to go to some lengths to compare values, and, therefore, these goods need not be
distributed so widely. Although many shopping goods are nationally advertised, often, it
is the ability of the retailer to differentiate itself that creates the sale. The differentiation
could be equated with a strong brand name, such as Sears Roebuck, effective
merchandising, aggressive personal selling, or the availability of credit. Discounting, or
promotional price -cutting, is a characteristic of many shopping goods because of
retailers’ desire to provide attractive shopping values. In the end, product turnover is

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slower, and retailers have a great deal of their capital tied-up in inventory. This,
combined with the necessity to price discount and provide exceptional service, means
that retailers expect strong support from manufacturers with shopping goods.

Specialty Goods

Specialty goods represent the third product classification. From the consumer’s
perspective, these products are so unique that they will go to any lengths to seek out and
purchase them. Almost without exception, price is not a principle factor affecting the
sales of specialty goods. Although these products may be custom-made (e.g., a
hairpiece) or one-of-a-kind (e.g., a statue), it is also possible that the marketer has been
very successful in differentiating the product in the mind of the consumer. For example
the strong attachment some people feel toward a particular hair stylist or barber. A
person may wait a long time for that individual and might even move with that person to
another hair salon. It is generally desirable for a marketer to lift the product from the
shopping to the specialty class. With the exception of price cutting, the entire range of
marketing activities are required to accomplish this goal.

Industrial Goods:
In many cases the same goods may be classified as industrial or consumer goods, but
classification is important because their market strategies required in the distribution of
the two are entirely different.
Industrial goods may be divided into the following categories:

Raw Materials:

Raw materials used in the production of other goods are called industrial goods. Such
goods may be sold in their natural state or may be processed.
(a) Natural products such as iron ore, crude petroleum, lumber.
(b) Farm products such as livestock and agricultural products, fruits, cotton, vegetables,
etc.
Raw materials in their natural state are characterized by limited supplies and small
number of large producers. Since extractive industries must be located where the

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product is found, the cost of transportation is a major part of the total cost of product.
Marketing strategy should reduce the cost of transportation. Brand identification is
unimportant to industrial users, who are more concerned with low prices and certainty
of supply.
Agricultural products are sold in the industrial market to businesses like restaurants,
hotels, packers. Such goods must be graded and standardized. They are generally
produced by small farmers. This means that the goods need a great deal of handling
which can be done through long channels of distribution

Fabricating Materials and Parts:

Many manufacturers purchase rather than construct some of the component parts of
their product. These parts become part of the product. The automobile industry is a
classic example of the industrial market for fabricating materials. The major producers
are essentially assembly plants that put together such parts as tyres, batteries, etc., that
have been purchased from affiliated companies rather than internally produced.
Producers of fabricating materials and parts are usually located near their important
customers. Sale of such goods is usually by contract and for a long period of time and as
a result marketing is minimal.

Installations:

Machinery and equipment of an industrial producer are depreciated by long use and
new ones are to be installed. Examples are blast furnaces, locomotives, factory
buildings, etc. Middlemen are rarely used for the purchase of installations and the
channel of distribution is short, running from the producer directly to the industrial
user. The marketing of such products should only be entrusted to engineers trained in
selling.

Accessory Equipment:

Accessory equipment facilitates rather than perform the basic operations of a

manufacturing plant. Small motors, computers, office furniture are examples of

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accessory equipment. Advertising and other sales promotion strategies are used in
marketing accessory goods.
The more expensive is the accessory product, the shorter is the channel of distribution.
This is because the higher-priced articles have a smaller market and their sales are large
enough to make it worthwhile for a producer to send a salesman to a prospective
customer.

Supplies:

Supplies are materials used in the operation of a business that do not become a part of
the finished product. Lubricating oil, coal, stationery are examples of supplies. Supplies
are the convenience products of the industrial market. They are relatively low priced and
usually bought in small quantities. The channel of distribution for these goods is short
and the goods are frequently negotiated in large contract lots by top executives.
Low cost industrial supplies need extensive channels of distribution. Wholesalers, by
carrying the lines of many manufacturers, are able to have their salesman call on many
users and sell large quantities of the goods of various producers to make the call
profitable.

Services:

Nearly half of all consumer expenditures are for services. There is a big market for
industrial services. The growing complexity of business has reached a point where even
the largest manufacturers are unable to fulfil all their needs internally. When they face
problems, they turn to highly specialized service companies for help. These may be
trained engineers or management consultants or programmers.
Services are defined as activities, benefits or satisfactions which are offered for sale or
are provided in connection with the sale of goods.
Services are:
a. Intangible
b. Perishable
c. Unstandardized
d. Based on buyer involvement.

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Services cannot be seen, touched, tasted, smelled or heard. They are difficult to display,
demonstrate or illustrate. For this reason, they cannot be marketed by normal
promotion but need special and imaginative programs.
Perishability of services is obvious. Most services are used up the moment the job is
done. When the move is over the service is complete. Services cannot be stored for later
use.
Services are difficult to standardize. Different hairdressers will give different results.
Buyers are very much involved in the service product. Tax specialists give advice on the
specific problems of each of their customers.
Since sales of services are essentially one-on-one transactions, personal selling is the
most important marketing feature and service industries depend heavily on training
programs. Some marketers advocate the creation of a tangible product in the minds of
their potential customers. Service companies often charge cost-plus while others charge,
what the traffic will bear.
The most important factors in the success of a service company are speed and
satisfaction. For that purpose, they must be located near its customers, maintain an
adequate stock of parts and should have sufficient number of skilled service personnel.
Services are rarely sold through middlemen. The normal distribution channel is from
the service company directly to the user.

Product Differentiation
Product differentiation is a marketing strategy that strives to distinguish a company's
products or services from the competition. Successful product differentiation involves
identifying and communicating the unique qualities of a company's offerings while
highlighting the distinct differences between those offerings and others on the market.
Product differentiation goes hand-in-hand with developing a strong value proposition to
make a product or service attractive to a target market or audience.

If successful, product differentiation can create a competitive advantage for the

product's seller and ultimately build brand awareness

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Types of Product Differentiation
Ideally, a product differentiation strategy should demonstrate that the product can do
everything the competing choices can but has an additional benefit that no one else
offers. Below are a few of the most common strategies employed to differentiate a
product or service:

Price
Price can work both ways, meaning companies can charge the lowest price to attract
buyers that are cost-conscious–Costco, for example. However, companies can also
charge higher prices to emphasize that it's a luxu0ry product and worth it–such as a
luxury car.

Performance and Reliability

Products that are considered reliable and offer long-term value are often touted as
better than the competition. Also, increased performance is often used as a
differentiating factor for products such as batteries.

Location and Service

For smaller, local companies that are trying to stand out from national brands, it's
common to emphasize that they're a local business. Also, the added level of service that
results from being in "your neighborhood" is a way for companies to showcase their
high-quality service or product but also justify a higher price versus national brands.

Product mix and product lines

A company's product line consists of a set of products that relates to one another
because they perform a similar function, sold to same customer groups or fall within a
price range. The product mix combines several product lines. A company may sell a line
of breakfast cereals, a line of laundry detergents and a line of household cleaners.
Building and managing a profitable product mix can give a company a large market
share and create multiple income sources.

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The best way that a company can build and manage its product mix and product lines is
through continual analysis and monitoring. A comprehensive analysis on each product
line and on the product mix is the most powerful tool that management has at its
disposal. When a proper analysis is performed, we reduce the chances that we're
missing a significant part of the target market, and we're reducing the chances that the
product lines won't really cater to the needs of our target market.

Coordinate With the Production Department

When you contemplate adding a new product line to your mix, you must ensure you
have the production capacity to meet the demands of your project. Advertising a new
product does little good if you cannot produce and ship that product in a timely manner.
Meet with your production department to discuss what will be needed from it if you add
a new product line.

Seek Consistency for Branding Purposes

Your product mix should be consistent -- that is, it should represent a general category
of products in the consumer's mind so that they he will recognize your company as a
brand that offers a type of product. For example, you can offer T-shirts, shoes and
sportswear and still represent yourself as a clothing company. While some large
corporations offer dissimilar products, they generally do this under different brands for
the different types of products.

Go for Depth
You don't always have to look for a new product to increase your offerings. You can
provide different versions of the same product, which is often called product depth. You
could, for example, offer a computer for students, a more advanced model for
businesspeople and smaller, portable models for travelers. This kind of product depth
can increase sales without changing the type of product you offer.

Assign Mangers to Different Lines

Each product line may require a specialized knowledge in production, marketing and
sales. In fact, you may have entirely different customers for each line. Assign a manager

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to each product line so that someone is dedicated to the success of that set of products.
You can then manage the overall operation by consulting with your managers as a group
from time to time.

Know Your Limits

Adding too many products to the mix can overwhelm you and your company resources.
See that each addition to your product mix contributes to your bottom line and fits in
with your manufacturing, marketing and advertising capabilities.

Another important factor in building and managing product lines and the product mix is
through internal coordination of processes. The marketing dept. should be working with
production supervisors, and there should be a coordinated effort between product mix,
product lines, and marketing. This ensures that all necessary members of management
are thoroughly aware of the product mix, the target, and the product lines. This
management team can then devise a strategy that best meets the company's goals in
regards to their product line and product mix strategies.

Co-branding
Co-branding is an arrangement that associates a single product or service with more
than one brand name, or otherwise associates a product with someone other than the
principal producer. The typical co-branding agreement involves two or more companies
acting in cooperation to associate any of various logos, color schemes, or brand
identifiers to a specific product that is contractually designated for this purpose. The
object for this is to combine the strength of two brands, in order to increase the
premium consumers are willing to pay, make the product or service more resistant to
copying by private label manufacturers, or to combine the different perceived properties
associated with these brands with a single product.

1. Company Co-branding: this is when the company with more than one product
promotes their own brands together simultaneously
2. Promotional Co-branding: co-branding with persons or event
3. Ingredient Co-branding: Creating brand equity for materials, components or
parts that are contained within other products

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 4. Joint venture Co-branding: is another form of cobranding that is defined as two
or more companies going for a strategic alliance to present a product to the target
audience.
5. Multiple sponsor Co-branding: this form of co-branding involves two or more
companies working together to form strategic alliance in technology, promotion,
sales etc.
6. Retail Co-branding: two retail establishments which use the same location to
optimize profits

Elements of Product Strategy

Branding

Brand Management holds the key in the modern markets. In a world where products are
multiplying and becoming more and more similar, management of brands is critical for
survival of the products as well as the companies making them. A brand mark is a
symbol or a design used for the purpose of identification.

The sole purpose of branding is to distinguish your branded product from those of
competitors. The term ‘brand’ is broadly applied to all identifying marks such as trade
names, trademarks, trade symbols, picture, design of the package, distinctive coloring or
lettering with or without some attractive slogan.

The owner of a registered brand personally stands behind the branded product and
offers personal guarantee for maintaining the quality and standards of the product as
per advertisement. The pronounceable part of the brand is the brand name. Example-
Pepsi, Lifebuoy are brand names. The part of the brand that appears as symbol, design
or distinctive lettering is brand mark or logo. It is recognizable by sight but is not
normally pronounceable.

A brand is more than just a product. It is a contract between the customer and the
creator. It embodies a meaning, gives direction, and defines unique identity. Brands are
not merely symbols on a product or a graphic and cosmetic exercise. A brand is a

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signature on a constantly renewed, creative process. A product is what the company
makes.

A brand is what a customer buys-hopes/expectations/service. The word ‘brand’ is a

comprehensive term. To brand is to name or mark indelibly as proof of ownership. It
means a sign or symbol of quality. It is the best means of advertising and positioning
(unique selling point) in the market. Branding is the best means to capture and retain
the consumer demand in a competitive market.

Branding is the practice of giving a specified name to a product or group of products

from one seller. The specified name creates individuality in the product, hence, it can be
easily distinguished or recognized in the market from the rival products.

Packaging

Once the decision is taken on the brand, we have to consider the design and the makeup
of the package and the labelling of the package. In reality it is not the product which is
displayed and sold but it is the brand together with the package and the label, which are
sold or which enable to sell the product. In a sense, your brand, package and label
represent the product personality.

Brandings packaging, labelling, the product warranty, and service after sale are the
product related strategies and they are responsible to make the marketing program
effective. They also are the best means of promotion. They project the product in the
most favorable way. Package is critically important to the buyer’s recognition of the
product. Aesthetically pleasing package can secure higher sales and profit.

Packaging may be defined as formulating a design of the package and producing an

appropriate and attractive container or wrapper for a product. The container itself can
act a forceful though silent and powerful salesman at the point of purchase or an
effective medium of advertisement encouraging impulse buying.

Many a time, package design itself can act as a registered brand. Packing is necessary to
prevent flowing out of such liquids as milk, drinks, etc. It is essential to maintain

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freshness and quality, e.g., ghee, sauce, etc. It can prevent the danger of adulteration,
e.g., butter, cheese, spices, edible oil, etc.

However, packaging is much more than mere packing. Packaging is a marketing

necessity. The public does not want just the product. They want explanation, assurance,
encouragement, confidence, and praise, i.e., pat-on-the-back, all integrated or combined
with a pleasant and eye-catching get-up appearance on the top to gain action, i.e., close
the sale.

Thus, a good package ensures ultimate success of the product as a commercial venture.
Under keen competition, the consumer needs an effective means to recognize a
difference and establish preference that will ensure repeated repurchases. Packaging
does this job in a competitive market.

Functions of Packaging:

From the marketer’s point of view- (1) Packaging is a sales tool, (2) It identifies the
maker as well as the product and carries the brand name, (3) The packaging label
informs the buyer about inner contents and how to use them and (4) It is the biggest
advertising and promotion tool.

Labeling

Packaging, branding and labelling go together and constitute an integral part of product
planning and development. Label is a part of a product. It gives verbal information
about the product and the seller. The purpose of labelling, like the purpose of branding,
is to give the consumer information about the product he is buying and what it will and
will not do for him.

A label is also a part of a package or it may be attached directly to the product. There is a
very close relationship between labelling and packaging as well as labelling and
branding or grading.

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Labelling is the act of attaching or tagging labels. Label is anything — may be a piece of
paper, printed statement, imprinted metal, leather — which is either a part of a package
or attached to it indicating contents, price names of product and produces and such
useful information beneficial to the consumer. Example- labels on drugs and dangerous
products contain factual information.

Labels are classified as- (a) brand, (b) grade, (c) descriptive, and (d) informative. Brand
label mentions the brand name or mark. Grade label identifies the quality by a letter,
number, or word, e.g., AAA, Fancy Grade, Grade No.1 and 2. Descriptive and
informative labels are similar.

They give helpful information on the following-

(a) Brand name, (b) Name and address of producer, (c) Weight, measure, count,

(d) Ingredients by percentages where possible, (e) Directions for the proper use of the
product, (f) Cautionary measures concerning the product and its use, (g) Special care of
the product, if necessary, (h) Recipes on food products, (i) Nutritional guidelines, (j)
Date of packing and date of expiry, (k) Retail price, and (I) Unit price for comparison.

Labelling, in general, is not a very reliable guide to quality or an assurance of uniformity.

The printing of labels costs very little and the superlatives given on the label cost
nothing. Hence, consumers should guard against deceptive labels.

Warranty

Informative labelling and informative advertisement will educate consumers in making

wise selection while purchasing the products. The Sale of Goods Act has given legal
protection in the form of implied conditions and warranties.

Warranty is a stipulation collateral to the main purpose of the contract. If it is broken,

the victimized party, i.e., the buyer can claim for damages but has no right to reject the
contract.

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A warranty is an obligation of the producer and seller to stand behind the product and
assure the buyer that he will derive certain services and satisfactions from the product.
The product warranty must be clear, unambiguous and meaningful. It has become an
important selling point and a means of product differentiation in a competitive market.
Warranties are also considered as promotional devices. Full disclosure of warranty
information will ensure the consumer’s “right to know.”

Warranty as Seller Aid:

1. A warranty is an assurance of the quality, service and performance. It is a written

guarantee of the intrinsic value of a product. It points out the responsibility of the maker
for repairs, service, and maintenance in the case of consumer durables. The producer
should use the word ‘warranty’ instead of the word ‘guarantee’.

2. The warranty is the outcome of the rule of a law viz., ”let the buyer beware. ”
Producers developed warranties to create buyers’ confidence and to provide redress to
aggrieved customers. Buyers could rely on the statements made by the seller. For
example, a manufacturer may warrant that his product is 100 per cent wool or that the
colour of the cloth will not fade. Such a warranty may be supported by money-back
guarantee.

3. The value of warranties to consumers depends upon the reliability of the warrantor
and the person who has specific responsibility of making good on the warranty. This is
true because in practice and in law, the consumer has little recourse. However, courts
have started awarding damages for an injury simply if the product is shown to be
defective or unfit for its intended use.

There are four guidelines as instruments for meeting social responsibilities of marketing
as well as for assuring a continuous customer interest- (1) warranty integrity, (2)
education of consumer in the use of the product, (3) product quality control, and (4)
service on demand.

4. Warranty must not be used to disclaim legal responsibility by a seller. He must live up
to the provisions of warranty or guarantee. Tell the truth to customers as they

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understand through a warranty. Warranty must build up consumer confidence. False
and deceptive warranties compel the consumer movement to demand for additional
legislation. The core of any warranty program ultimately lies in the quality of the
maintenance and repair services that can be offered to customers.

If the four guidelines are followed by the manufacturers, repeat sales can be stimulated
and Government may not be completed to enact additional consumer legislation. There
are millions of appliances being used by consumers all over the world. They are
complicated and need honest warranties from the manufacturers. Consumer satisfaction
is the key to successful warranty program. Customer satisfaction with product in use
provides the clue as to the effectiveness of the warranty program.

Conclusion
A brand is a name, trade mark, symbol, picture, or design that helps a customer in
instant recall, differentiating it thereby from the competing products of similar nature. A
brand name should reflect directly or indirectly some aspects of the product like benefits
and functions.

Branding is the best means of advertising and regaining consumer demand in the
market place. When goods are sold under brand name, they appear to be different from
each other and this gives an added advantage to the marketer. The packaging, apart
from protecting the contents, acts as a silent salesman at the point of purchase
encouraging impulsive buying. Labelling provides valuable information to the consumer
about the product.

A warranty assures the buyer that he will derive certain services and satisfaction from
the products. An efficient after sales service i.e. free service during the warranty period
and thereafter at fair charges has become an important selling point and means of
product differentiation in a competitive market. Quality product with appropriate brand
name, package, label, warranty, and service after sale constitute the total product
personality.

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