Chapter 6

Branding, Packaging and Labeling

 BRANDS AND TRADEMARKS
Despite the common practice of speaking of brands, brand names, and trademarks as if all these
terms meant the same thing, there are some technical differences among them.
 Brand : An identifying feature that distinguishes one product from another; more
specifically, any name, term, symbol, sign, or design or a unifying combination of these.
 Brand name : The verbal part of a brand.the part that can be spoken or written.
 Brand mark : A unique symbol that is part of a brand.
 Logo : A brand name or company name written in a distinctive way; short for logotype.

Brands: A brand is any name, term, symbol, sign, design, or unifying combination of these. A
brand name is the verbal part of the brand. For example, Lux, Usha and Rediff.com are brands.
When these words are spoken or written, they are brand names. Many branded goods and services
rely heavily on some symbol for indentification. Asian Paints, makes considerable use of a boy
named Gattu and Microsoft Windows is represented by a window that materializes out of an
expanding pattern of rectangles floating to its left.

Brand marks: A brand name or company name written in a distinctive way.for example, Coca-Cola
written in white script letters on a red background.is called a logo, short for logotype.

It can convey up to six levels of meaning:

 Attributes: A brand brings to mind certain attributes. Mercedes suggests expensive, well-
built, well-engineered, durable, high-prestige automobiles.
 Benefits: Attributes must be translated into functional and emotional benefits.
The attribute .durable. could translate into the functional benefit .I won.t have to buy another car for
several years.. The attribute .expensive. translates into the emotional benefit .The car makes me feel
important and admired..
 Values: The brand also says something about the producer.s values. Mercedes stands for high
performance, safety, and prestige.
 Culture: The brand may represent a certain culture. The Mercedes represents German culture;
organized, efficient, high quality.
 Personality: The brand can project a certain personality. Mercedes may suggest a no-
nonsense boss (person), a reigning lion (animal), or an austere palace (object).
 User: The brand suggests the kind of consumer who buys or uses the product.

Trademarks: A brand or brand name can be almost anything a marketer wants to be, but it does
not have any legal status. A trademark, on the other hand, is a legally protected brand name or
brand mark. The owners of trademarks have exclusive rights to their use. Thus, the word trademark
is a legally defined term. Either a brand name is a registered trademark or it is not.

Importance of Branding
 Product identification is eased. A customer can order a product by name instead of
description.
  Customers are assured that a good or service has a certain level of quality and that they will
obtained comparable quality if the same brand is reordered.
 The firm responsible for the product is known. Unbranded items cannot be as directly
identified.
 Price comparisons are reduced when customers perceive distinct brands. This is most likely if
special attributes are linked to different brands.
 A firm can advertise (position) its products and associate each brand and its characteristics in
the buyer’s mind. This aids the consumer in forming a brand image, which is the perception a
person has of a particular brand.
 Branding helps segment markets by creating tailored images. By using two or more brands,
multiple market segments can be attracted.
 For socially-visible goods and services, a product’s prestige is enhanced via a strong brand
name.
 People feel less risk when buying a brand with which they are familiar and for which they
have a favourable attitude. This is why brand loyalty occurs.
 Cooperation from resellers is greater for well-known brands. A strong brand also may let its
producer exert more control in the distribution channel.
 A brand may help sell an entire line of products, such as Britannia Biscuits.
 A brand may help enter a new product category, like Samsung Mobile.

Choosing a Brand Name

There are several potential sources when a firm chooses brand names :
 Under brand extension, an existing name is used with a new product (BusinessToday)
 For a private brand, the reseller specifies the name (St. John.s Bay.an apparel brand of J.C.
Penney).
 If a new name is sought, these alternatives are available :
(a) Initials (HBO).
(b) Invented name (Kleenex).
(c) Numbers (Century 21).
(d) Mythological character (Samsonite luggage).
(e) Personal name (Heineken)
(f) Geographical name (Air France)
(g) Dictionary word (Scope mouthwash)
(h) Foreign word (Nestle)
(i) Combination of words, initials, numbers, etc. (Head & Shoulders shampoo).
 With a licensing agreement, a company pays a fee to use a name or logo whose trademark
rights are held by another firm. Due to the high consumer recognition of many popular
trademarks, sales for a product may be raised by paying a royalty fee to use one. Examples of
names used in licensing are Coca-Cola, Dallas Cowboys, and George Foreman.
 In co-branding, two or more brand names are used with the same product to gain from the
brand images of each. Typically, a company uses one of its own brand names in conjunction
with another firm.s.often, via a licensing agreement.

Name Communicating the Functions/Attributes of the Product

Most companies select brand names, which communicate the functions/some key attributes of the
product. In the above cited examples, Goodknight, the mosquito repellant, offers a good night.s
sleep; Boost is the energy booster drink; Aquaguard gives protected water and Fair & Lovely
promises fair and lovely skin.

Brand-strategy Decision
A company has five choices when it comes to brand strategy. The company can introduce line
extensions (existing brand name extended to new sizes or flavours in the existing product category),
brand extensions (brand names extended to new-product categories), multibrands (new brand names
introduced in the same product category), new brands (new brand name for a new category product),
and cobrands (brands bearing two or more well-known brand names).

Line Extensions. Line extensions consist of introducing additional items in the same product
category under the same brand name, such as new flavour, forms, colours, added ingredients, and
package sizes. The vast majority of new-product introductions consists of line extensions. Many
companies are now introducing branded variants, which are specific brand lines supplied to specific
retailers or distribution channels. They result from the pressure retailers put on manufacturers to
enable the retailers to provide distinctive offerings. A camera company may supply its low-end
cameras to mass merchandisers while limiting its higher-priced items to specialty camera shops.

 Surf: In detergents, HLL launched Surf Ultra, Surf Excel, Surf Excelmatic and International
Surf Excel as line extensions of Surf.
 Colgate: Tthe line extensions of Colgate, All of them exist under the strength of the mother
brand Colgate and simultaneously contribute to the spreading of the Colgate tentacles to new
market segments. What Colgate alone could not do. fighting competition, increasing
corporate revenue and profits.is now being accomplished by the new Colgate additions,
especially Colgate Gel, Herbal and Cibaca Top.
Brand Repositioning
However well a brand is currently positioned, the company may have to reposition it later when
facing new competitors or changing customer preferences. Consider the following repositioning story

 7-up. 7-up was one of several soft drinks bought primarily by older people who wanted a
bland, lemon-flavoured drink. Research indicated that although a majority of soft drink
consumers preferred a cola, they did not prefer it all the time, and many other consumers
were non-cola drinkers. 7-Up went for leadership in the noncola market by calling itself the
Uncola. The campaign featured the Uncola as a youthful and refreshing drink, the one to
reach for instead of a cola. 7-Up established itself as the alternative to colas, not just another
soft drink.
Logo
Selecting the Logo
Along with the brand name, companies also use a logo for visual identification. Logo enhances
recognition by the provision of a symbol of identity. A logo is a pictorial symbol intended to
communicate with the consumers. It is an accompaniment to the brand name and the two together
identify a company.s product. Flags, mascots, pictures, graphic designs or plain alphabets are all used
as logos.
  PACKAGING
Packaging
Packaging is the part of product planning where a firm researches, designs, and produces package(s).
A package is a container used to protect, promote, transport, and/or identify a product. It may consist
of a product.s physical container, an outer label, and/ or inserts. The physical container may be a
cardboard, metal, plastic, or wooden box; a cellophane, waxpaper, or cloth wrapper; a glass,
aluminium, or plastic jar or can; a paper bag; styrofoam; some other material; or a combination of
these. Packaging has become a potent marketing tool. Well-designed packages can create
convenience and promotional value. Various factors have contributed to

 Packaging growing use as a marketing tool :

Self-service : An increasing number of products are sold on a self-service basis. In an average

supermarket, which stocks 15,000 items, the typical shopper passes by some 300 items per minute.
Given that 53 percent of all purchases are made on impulse, the effective package operates as a .five-
second commercial. The package must perform many of the sales tasks : attract attention, describe
the product.s features, create consumer confidence, and make a favourable overall impression.
Consumer affluence : Rising consumer affluence means consumers are willing to pay a little more
for the convenience, appearance, dependability and prestige of better packages.
Company and brand image : Packages contribute to instant recognition of the company or brand.
The Campbell Soup Company estimates that the average shopper sees its familiar red and white can
76 times a year, creating the equivalent of $26 million worth of advertising.
Innovation opportunity : Innovative packaging can bring large benefits to consumers and profits to
producers.

 Basic Packaging functions

The basic packaging functions are containment and protection, usage, communication,
segmentation, channel cooperation, and new-product planning :
 Containment and protection.Packaging enables liquid, granular and other divisible
products to be contained in a given quantity and form. It protects a product while it is
shipped, stored, and handled.
 Usage.Packaging lets a product be easily used and re-stored. It may even be reusable after a
product is depleted. Packaging must also be safe for all, from a young child to a senior.
 Communication.Packaging communicates a brand image, provides ingredients and
directions, and displays the product. It is a major promotion tool.
 Segmentation.Packaging can be tailor-made for a specific market group. If a firm offers two
or more package shapes, sizes, colours, or designs, it may employ differentiated marketing.
 Channel cooperation.Packaging can address wholesaler and retailer needs with regard to
shipping, storing, promotion and so on.
 New-product planning.New packaging can be a key innovation for a firm and stimulate
sales.
 Labelling
Labelling
Sellers must label products. The label may be a simple tag attached to the product or an elaborately
designed graphic that is part of the package. The label might carry only the brand name or a great
deal of information. Even if the seller prefers a simple label, the law may require additional
information.

 Product Life Cycle

Product Life-cycle Marketing Strategies
A company.s differentiating and positioning strategy must change as the product, market, and
competitors change over time. Here we will describe the concept of the product life cycle and the
changes that are normally made as the product passes through each stage of the life cycle.

The Concept of the Product Life Cycle

To say that a product has a life cycle is to assert four things :
 Products have a limited life.
 Product sales pass through distinct stages, each posing different challenges, opportunities,
and problems to the seller.
 Profits rise and fall at different stages of the product life cycle.
 Products require different marketing, financial, manufacturing, purchasing, and human
resource strategies in each stage of their life cycle.

Most product life-cycle curves are portrayed as bell-shaped This curve is typically divided into four
stages : introduction, growth, maturity and decline.
Introduction: A period of slow sales growth as the product is introduced in the market. Profits are
nonexistent in this stage because of the heavy expenses incurred with product introduction.
Growth: A period of rapid market acceptance and substantial profit improvement.
Maturity: A period of a slowdown in sales growth because the product has achieved acceptance by
most potential buyers. Profits stabilize or decline because of increased competition.