CAHS 2000 March 24, 2009 Global Consumer Culture

Brands

A brand is a name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and sets it apart from competition Brands should –be memorable –have a positive connotation –convey a certain image

Creating Product Identity: Brand Names Each year, 17,000 new products or line extensions are introduced 25% are new brands billion per year spent on new brands 80-90% fail

The Functions of Brands Identification of source of product Assignment of responsibility to maker Risk reducer Search cost reducer Promise or pact with maker Symbolic device Signal of quality

Good Brand Names Easy to say Easy to spell Easy to read Easy to remember Fit the target market Fit the product’s benefits Fit the customer’s culture Fit legal requirements

Brand Elements Slogans and jingles “I'd like to buy the world a Coke…” “Breakfast of Champions” “Tastes great, less filling” “Just do it” Logos Particularly important for services due to abstract nature of product

Brand Logos and Recognition How many of these logos can you recognize from just a single letter?

Brand Elements Characters: Brand symbol that takes on human characteristics –Characters are very useful for creating brand awareness –The more realistic the character, the greater the need to update it periodically.

Trademarks Legal term for a brand name, brand mark or trade character Trademarks established by the Lanham Act of 1946 and updated by the Trademark Revision Act of 1989 ® is used when registered with the USPTO; ™ is used when a name or mark has not been legally registered but the user is claiming ownership Only protects in U.S. - if a firm wants multinational recognition, it must register in each country ® TM

Branding Strategies Individual brands versus family brands National and store brands Generic brands Licensing Co-branding

Licensing Example: Harry Potter

Packaging and Labeling Packaging functions –Protects product –Provides information –Functional benefits Effective packaging designs –Communicates brand’s personality Even color matters: consumers assume that beer in a clear bottle is less hearty than beer in a dark bottle. –Enhances brand image –Provides brand and name recognition

Packaging and Labeling Labeling regulations –Federal Fair Packaging and Labeling Act –FDA requires labels with nutrition information

Management of Existing Products Brand Manager responsible for positioning of brands, developing brand equity Product Category Managers responsible for coordinating the mix of product lines within the more general product category Market Managers focus on customer groups rather than on the products made by the firm

Brands have Staying Power In ten major product categories, the #1 U.S. brand in 1925 is still on top today, such as Kodak cameras, Goodyear tires, Ivory soap In the U.K., the same is true, such as Stork margarine, Brooke Bond tea, Cadbury’s chocolates... P&G spent $1 million to develop, name, and package Coast soap!

Brand Equity The Brand’s value to its organization Provides customer loyalty, perceived quality, brand name awareness, competitive advantage Provides competitive advantage Used to establish brand extensions

Brand Positioning and Extensions

Quiz 8 Write down your favorite CLOTHING BRAND. –Target Market –Logo/Slogan/Packaging –Brand Positioning in the Marketplace –Explain any emotional attachments you have with the brand –Brand Strategies: Generic, Individual or Family brand, National or Store brand?

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Extra Credit Opportunity Survey on causes and brands 5 points extra credit You will receive an Click the link Click next Print the thank you page