Branding, Packaging & Labelling

Brand

A name, term, sign, symbol or design or a combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors.

Brand name

That part of a brand which can be vocalised Eg: Fiat car, Sony TV, Bata shoes

Brand mark

That part of a brand which can be recognised but not utterable, such as a symbol, design or distinctive colouring or lettering.

Reasons for branding

It is an instrument for sales promotion in the market, where stiff competition exists. It facilitates easy advt & publicity It creates special consumer preferences over the product Sales can be increased through brands It arrests the immediate attention of buyers It differentiates the goods of a producer from those of its competitors. It ensures standard quality and satisfaction to buyers.

Conditions favourable to branding

There must be wide spread supply of the products. The quality and standard of the products must be maintained regularly Enforcement of product identification and differentiation by brands must be strictly adhered to There must be enough demand from the general public. Brand must carry through the product to the ultimate consumer, to be more effective Product must have distinctive and special approach.

Undesirable characteristics of a brand

Should not deceive or cause confusion Should not be contrary to any law Should not contain scandalous or obscene matter Should not hurt religious sentiments Should not be similar to the existing one

Different approaches in selecting brand names

names communicating the functions/attributes of the product Names which communicate the speciality of the product Use of acronyms Use of the company name

Kinds of brand name

Descriptive name

it includes all words that describe the product

The name suggests something about the function of the product It is a name which neither relates to the product nor the producer Importance is given to the producers identity

Suggestive name

Arbitrary name

Coined name

Options in branding

Individual brand names

Here each product of the company is given an independent brand name In this case different products of the company are marketed under one brand name In certain cases, the company name itself is used as brand name under which varied products are marketed Some manufacturers leave their products for branding by the distributors/ retail chains as per choice

Family/ umbrella brand

Company name as brand name

Middlemens brand/ store brand

Benefits of family branding

Promotion becomes easier and less expensive Advertising and promotion efforts can be combined for all the products falling under the family brand. New product launches becomes easier and cheaper New products enjoy a ready recognition and a market set up.

Logo

Logo is a pictorial symbol intended to communicate with the consumers

Brand extension

Basically means extending a brand name to more products An effective weapon in brand management

Why firms opt for brand extensions?

Helps the new item to acquire instant brand recognition Saves cost, a brand extension costs much less than launching a new brand. Helps leverage the strength of the existing brand to new additions within the line, within the category and outside the category.

Why firms opt for brand extensions?

When a brand lends for premium pricing, benefit of brand extension is all the more significant It is a tremendously less expensive way of introducing new products. Extensions also help build the brand into a super brand in the minds of consumers.

Types of brand extensions

Line extension

Extended to other items in the same product line Simplest form of brand extension

Category extension

Here the brand is extended over different products, but the products are related in someway, ie, they belong to a category
Here the brand is extended across completely new & unrelated products, falling under altogether different product categories

Outside category extension

Main requirements for success of brand extension

Consistency factor

There must be consistency between the parent brand & the extensions Extension of brand name has a better chance of success when it is to a product which is within the brands area of expertise Parent brands benefits must be transferable and be transferred to extensions

Brands area of expertise

Benefit transfer

Brand rejuvenation

Involves adding value to an existing brand by improving product attributes and enhancing its overall appeal. Intended to refocus the attention of consumers on an existing brand Helps overcome the consumers boredom in seeing the same product on the shelves year after year Key factor behind it is consumers desire for change

Objectives of brand rejuvenation

aims at revival of a brand. The intention is to breathe some life into a brand that may be showing signs of decline. Even healthy, successful brands may need occasional rejuvenation. It helps keep the brand live and in focus. Brands appear with the tag new

Brand equity

The unique set of brand assets and liabilities that is linked to a brand. It is the net result of all the investment & effort that a marketer puts into building a brand

Label
a part of the product which carries verbal information about the product or the seller

Types of labels

Brand label

Simply popularising the brand name of the product Identifies or emphasises the quality standards or grades
Gives written or illustrative objective information about the use, care, performance and other features of the product

Grade label

Descriptive label

Functions of labelling

It enables the producer to give clear instructions about the uses of the product Price variations caused by the middlemen are avoided bcoz price is printed and maintained. Manufacturer buyer relation is established Buyers can easily identify the product

A complete label gives the following information :

Brand name Address of the producer Gross and net quantity of the content Ingredients in the product Directions for use Precautionary measures Nature of the product Date of packing and expiry Retail price

Packaging

An activity which is concerned with protection, economy, convenience and promotional considerations of a product

Functions of packaging

product protection Product containant Product attractiveness Product identification Product convenience Effective sales tool

Kinds of packaging

Consumer package

Is a kind of package which holds the required volume of product for the household consumption
When products are related in use and are of similar quality, the firm makes the packages identical for all products by using common features on all the packages

Family package

Reuse package Multiple packages

The practice of using several units in one container