Marketing Essentials

UNIT

Branding, Packaging, and Labeling

n

Branding Elements and Strategies

Chapter 31 n Branding, Packaging, and Labeling 1

Branding Unit What You'll Learn

Branding Elements and Strategies

 The nature, scope, and importance of branding in product planning  The various branding elements  The different types of brands  How to classify branding strategies Chapter 31 n Branding, Packaging, and Labeling 2

Branding Unit Why It's Important

Branding Elements and Strategies

The right name is an important part of every successful business. The name and symbols of a business or a product reflect the personality of the company, product, or service.

Chapter 31 n Branding, Packaging, and Labeling 3

Branding Unit

Branding Elements and Strategies

Branding

A

brand

is a name, term, design, or symbol (or combinations of them) that identifies a business or organization and the products that they offer. Brands are divided into two categories:  corporate brands  product brands Chapter 31 n Branding, Packaging, and Labeling 4 Slide 1 of 6

Branding Unit

Branding Elements and Strategies

Branding Corporate brands

identify the business and reflect quality, value, and reliability.

Product brands

show quality and reliability for a particular product. Chapter 31 n Branding, Packaging, and Labeling 5 Slide 2 of 6

Branding Unit

Branding Elements and Strategies

Branding

A

brand name

is the word, group of words, letters, or numbers of a brand that can be spoken. A

brand mark

is a symbol, design, or distinctive coloring or lettering that identifies a brand. Chapter 31 n Branding, Packaging, and Labeling 6 Slide 3 of 6

Branding Unit

Branding Elements and Strategies

Branding A trade character

is a brand mark with human form or characteristics.

A trademark

is a brand name, brand mark, trade name, trade character, or a combination of these given legal protection by the federal government and noted by the trademark symbol (  ).

Chapter 31 n Branding, Packaging, and Labeling 7 Slide 4 of 6

Branding Unit

Branding Elements and Strategies

Branding

Brand names, brand marks, trade names, trade characters, and trademarks are often combined to form a firm's

corporate symbol

or name.

Chapter 31 n Branding, Packaging, and Labeling 8 Slide 6 of 6

TOP BRANDS

• GO TO BRANDZ 2013 TOP 100 PDF

Chapter 31 n Branding, Packaging, and Labeling 9

Branding Unit Top Ten Brands

Branding Elements and Strategies

Brands are often a company’s most valuable asset. What is the total 2012 advertising spending for these top ten brands? Do you think these brands would continue to be valuable if the companies reduced or eliminated their advertising?

Chapter 31 n Branding, Packaging, and Labeling 10

Branding Unit

Branding Elements and Strategies

Importance of Brands in Product Planning

The use of brands is important in product planning for several reasons. Branding:   builds customer loyalty assures customers that products carrying the same brand are of a consistent quality   addresses new target markets establishes an image for a product or company Chapter 31 n Branding, Packaging, and Labeling 11

Branding Unit Branding Elements & Strategies Generating Brands

Seventy-five percent of companies introduce a new product name each year. Brand names are generated by:  company employees  specialized computer software programs  branding agencies, naming consultants, and public relations agencies Half of all corporate name changes occur because of company mergers and acquisitions.

Chapter 31 n Branding, Packaging, and Labeling 12

Branding Unit Types of Brands

Branding Elements and Strategies

Three classifications of brands are:  manufacturer brands  private distributor brands  generic brands Chapter 31 n Branding, Packaging, and Labeling 13 Slide 1 of 3

Branding Unit Types of Brands

Branding Elements and Strategies

Manufacturer brands,

also called

producer brands

, are owned and initiated by manufacturers.



Example:

General Electric, Heinz, Motorola

Private distributor brands,

also called

private brands, store brands,

or

dealer brands

, are owned and initiated by wholesalers and retailers.

 Slide 2 of 3

Example:

Radio Shack, Kmart Chapter 31 n Branding, Packaging, and Labeling 14

Branding Unit Types of Brands

Branding Elements and Strategies

Generic brands

represent a general product category and do not carry a company or brand name. The packaging carries only a description of the product, such as “pancake mix” or “paper towels.” They are usually much cheaper than brand-name products.

Chapter 31 n Branding, Packaging, and Labeling 15 Slide 3 of 3

Branding

Graphic Organizer

Types of Brands TYPES OF BRANDS Manufacturer Brands Private Distributor Brands Generic Brands

Chapter 31 n Branding, Packaging, and Labeling 16

Branding Unit Brand Strategies

Branding Elements and Strategies

Branding strategies are the ways companies use brands to meet sales and company objectives. Strategies include: 1. Brand Extensions 2. Brand Licensing 3. Mixed branding  co-branding Chapter 31 n Branding, Packaging, and Labeling 17

Branding Unit Brand Extension

Branding Elements and Strategies

Brand extension

is a branding strategy that uses an existing brand name for an improved or new product in the product line. 

Example:

Ocean Spray Cranberry Juice extended to Cran Apple, Cran-Raspberry, etc.

Advantages:

Reduces risk of new product failure

Disadvantages:

Over-extending a product line can cause brand dilution Chapter 31 n Branding, Packaging, and Labeling 18

Licensing

Licensing Basics A license is a grant of permission to allow another to make use of intellectual property rights. The intellectual property right may be for a patent, trademark, trade secret, or copyright. The license may even be for technical or business "know-how." In the Sports World… License—the legal right to reproduce a team’s logo in exchange for payment.

Protect the use of the name and symbols

Advantages of Licensing

In order to be successful, a licensing agreement should: Be mutually beneficial to both parties One of the benefits to the licensor may be maximizing income by expanding market opportunities without large capital expenses. A benefit to the licensee may include rapid entry into a market using technology developed and tested by others. The licensor wants to maximize income from the license Chapter 31 n Branding, Packaging, and Labeling 19

Branding Unit Brand Licensing

Branding Elements and Strategies

Brand licensing

is the legal authorization by a trademarked brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee.

Advantages

: Enhance company image, sell more products Chapter 31 n Branding, Packaging, and Labeling 20

Branding Unit Mixed Brands

Branding Elements and Strategies

A

mixed-brand strategy

involves simultaneously offering a combination of manufacturer, private distributor, and generic brands. 

Example:

Union Carbide sells Glad brand garbage bags and generic brand garbage bags.

Chapter 31 n Branding, Packaging, and Labeling 21

Branding Unit Co-Branding

Branding Elements and Strategies

A

co-branding strategy

combines one or more brands to increase customer loyalty and sales for each individual brand.



Example:

Kellogg’s Pop-Tarts are made only with Smucker’s fruit filling. Starbucks Coffee Co. opens coffee shops inside Barnes & Noble bookstores.

Chapter 31 n Branding, Packaging, and Labeling 22

Branding

A

SSESSMENT

Reviewing Key Terms and Concepts

1.

What is the difference between a brand name and a brand mark?

2.

Why is branding important to product planning?

3.

4.

Name three types of brands.

List four different branding strategies.

Chapter 31 n Branding, Packaging, and Labeling 23