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

private distributor brand generic brand brand extension brand licensing mixed-brand strategy co-branding strategy brand brand name brand mark trade name trade character trademark manufacturer brand

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

PRODUCT RECOGNITION It is important that customers who are satisfied with a product can easily recognize and find a company’s branded products when they want to buy them again Nine out of ten people will pay 25% more for a GE Soft White light bulb over a private or generic brand because it is perceived by customers to be better than the competitors

Top Ten Brands Rank Brand Company 1999 Advertising (in millions of dollars) Brands are often a company’s most valuable asset. What is the total 1999 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? 1 Chevrolet General 762.4 vehicles Motors Corp. 2 AT&T AT&T Corp. 711.4 telephone services 3 Dodge Daimler- 651.7 vehicles Chrysler 4 Ford Ford Motor 629.5 vehicles Company 5 McDonald's McDonald's 627.2 restaurants Corp. 6 Toyota Toyota Motor 569.4 vehicles Corp. 7 Sears Sears, 556.1 department stores Roebuck & Co. 8 Sprint Sprint Corp. 470.1 telephone services 9 Chrysler Daimler- 426.5 vehicles Chrysler 10 Nissan Nissan Motor 416.9 vehicles Co.

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

BRAND EXPOSURE Helps companies extend their products into new target markets, new product lines, and new categories Customers are more willing to try new products that carry a name they are familiar with Example: GLAD family of products Started with trash bags and has now moved into food storage containers and baggies

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.

Types of Brands Three classifications of brands are: manufacturer brands (national or producer) private distributor brands generic brands

TYPES OF BRANDS National Brands (producer brands) owned by national manufacturers Generate the majority of sales for most categories Examples: Hershey Foods, Whirlpool, Ford, Hilton, American Airlines, Kraft and Nestle Internet based national brands Amazon.com, eBay, Monster

Both are private distributor brands from SEARS TYPES OF BRANDS Private Distributor Brands private brands, store brands, or dealer brands Developed and owned by wholesalers and retailers Examples: Arizona for JC Penney, George for Wal-Mart, Villager for Kohl's Both are private distributor brands from SEARS

TYPES OF BRANDS Generic Brands Does not carry a company identity Packaging usually features a description of the product Example: Pancake Mix, Paper Towels Usually sold in supermarkets and discount stores Often sold for 30 – 50% less than name brands

BRAND STRATEGIES Brand Extension Brand Licensing Mixed Brands Co-Branding

BRAND EXTENTION A branding strategy that uses an existing brand name to promote a new or improved product in a company’s product line

BRAND LICENSING Some companies allow other organizations to use their brand, brand mark, or trade character through brand licensing Licensing company gets a fee (royalty) in return for authorization Has licensing agreements with

MIXED BRANDS Offer a combination of manufacturer, private distributor, and generic brands Their own National Brand tires Private Brand for SEARS

Co-BRANDING Combines one or more brands in the manufacture of a product or in the delivery of a service

Re-Branding Rebranding Rebranding - a change to the brand name, logo, or image of a product or company brand owner revisits the brand with the purpose of updating or revising

Partial Rebrand Situations when a brand has been firmly established yet is simply outdated or needs to be refreshed. Tweaking is required Not a full rebrand

Total Rebrand Situations when a brand’s intent to erase any previous brand identity and replace it with completely new imagery

Why Rebrand? Rebranding can help change a businesses: Quality Target Market New Product Line Repositioning and Image Altered Public Image