1. Branding, Packaging, and Labeling
Chapter 31

2. Sec. 31.1 – Branding Elements & Strategies
What you’ll learn
The nature, scope, and importance of branding in product planning
The various branding elements
The different types of brands
How to classify branding strategies

3. A brand is a name, term, design, or symbol (or combination) that identifies a business or organization and its products.

4. Brands can include a number of elements:
Brand name – the word, group of words, letters, or numbers representing a brand that can be spoken. Ex: Mountain Dew, PT Cruiser, SnackWells
Also called a product brand

5. Brand mark – the part of the brand that is a symbol or brand name – it may include distinctive coloring or lettering. It usually is not spoken

6. Trade name – identifies the company or a division of a particular corporation – the legal name a company uses when it does business. Ex: Kellogg’s, Dell, Xerox
Also called a corporate brand.

7. Trade character – a brand mark with human form or characteristics
Trade character – a brand mark with human form or characteristics. Ex: Jolly Green Giant, Pillsbury Doughboy, Kellogg’s Tony the Tiger

8. Trademark – a brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government
Trademarks are followed by a registered trademark symbol

9. Importance of Brands in Product Planning
To build product recognition and customer loyalty
To ensures quality and consistency
To capitalize on brand exposure
To address new target markets
To establish an image

10. Generating Brands Hard to find the right name
Generated by employees, computer programs, PR agencies
Most companies do research to determine if the brand name is effective

11. Types of Brands
National Brands –owned and initiated by manufacturers. Ex: General Electric, Heinz, and Motorola.
When consumers buy food products, they buy manufacturer brands nearly 75 percent of the time.

12. Private Distributor Brands – also called Private Brands, Store Brands, or Dealer Brands – owned and initiated by wholesalers and retailers. Ex: Radio Shack and Kmart, Craftsman, Kirkland
This type of brand can be controlled by retailers and it yields the highest profits.

13. Generic Brands – represent a general product category and do not carry a company or brand name. The packaging only describes the product – “pancake mix” or “paper towels”
Often priced below branded products

14. Branding Strategies – the ways companies use brands to meet sales and company objectives

15. Branding Strategies
Brand Extension – uses an existing brand name for an improved or new product in the product line.
Ex: Cheerios

16. Branding Strategies
Brand Dilution occurs when the original brand loses its strength in brand identity because it has been stretched to too many products.

17. Brand Licensing – 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 (royalty)
Ex: McDonald’s pays Disney to associate Disney related toys in Happy Meals

18. Mixed Brands – simultaneously offering a combination of manufacturer, private distributor, and generic brands
Ex: Michelin manufactures tires for Sears as well as under its own brand name

19. Co-Branding – combines one or more brands to increase customer loyalty and sales for each individual brand
Ex: Ford creates the limited edition Harley Davidson pickup truck
Ex: Starbucks Coffee opens outlets in Barnes & Noble Bookstores