1. AIM: What is Branding? Do Now Think about a brand name product that you own (clothes, electronics, etc.). Why did you purchase that specific brand?

2. Branding A term, name, design, or symbol (or combination) that identifies a business or organization and its products Used to identify a business or product and reflect quality, value, and reliability 1.Corporate Brand –Coca-Cola, McDonald’s, Mattel 2.Product Brand –Coke, Big Mac, Barbie

3. Elements of Brands 1.Brand Name = the word, group of words, letters, or numbers representing a brand that can be spoken (Apple, Honda Civic, Diet Coke) 2.Brand Mark = part of the brand that is a symbol or design; distinctive coloring or lettering; not spoken Brand Mark Brand Name

4. Elements of a Brand (cont.) 3.Trade Name= identifies the company or division of a particular corporation; the legal name used by a company (Kellogg’s) 4.Trade Character = brand mark with human form or characteristics (Kellogg’s Tony the Tiger) Trade Character Trade Name Dinner Rolls = Brand Name

5. Trademark A brand name, brand mark, trade name, trade character, or combination of these that is given legal protection by the federal government Followed by a ® symbol denoting “registered trademark” –Frito Lay’s Dorito’s ® –Kellogg’s Rice Krispies Treats ® Trade Name Trade Character Brand Name

6. Importance of Brands Build customer loyalty Assures customers that products carrying the same brand are of a consistent quality, thus reducing risk of customer dissatisfaction Reaches out to different target markets Establishes a company/product image

7. Types of Brands 1.Manufacturer Brands/Producer Brands Owned and initiated by manufacturers –GE, Heinz, Motorola –70% of all food products –65% of all appliances –80% of all gasoline –100% of all automobiles –Appeal to customers who want consistent quality, dependable product performance, and status

8. Types of Brands (cont.) 2.Private Distributor/Store/Dealer Brands –Owned and initiated by wholesalers and retailers –Examples: CVS Brand, ShopRite Brand, Target Brand –Appeal to customers who want the quality and performance of manufacturer brands at a lower price –Popular with retailers because they tend to be more profitable than manufacturer brands

9. Types of Brands (cont.) 3.Generic Brands Represent a general product category and do not carry a company or brand name Packaging carries a description 30-50% less than manufacturer brands 10-15% less than private distributor brands Not heavily advertised or promoted

10. Branding Strategies The ways companies use brands to meet sales and company objectives ________________________________________ 1.Brand Extension –Use an existing brand name for an improved or new product in the product line or product mix –Problem = over-extension can lead to brand dilution

11. 2.Brand Licensing –legal authorization by a trademarked brand owner to allow another company to use its brand, brand mark, or trade character for a fee –Done to enhance company image; sell more products

12. Branding Strategies (cont.) 3.Mixed Brands –Offering a combination of manufacturer, private distributor, and generic brands at the same time –Vera Wang manufactures clothing under her own brand name as well as Kohl’s –Allows a business to reach several target markets, maintain brand loyalty, and increase overall product mix

13. 3.Co-Branding –Combines 1+ brands to increase customer loyalty and sales for each individual brand –Starbucks Coffee Co. has an agreement with Barnes & Nobles bookstores to open coffee shops inside the store –Build brand recognition for each business; works well when each brand complements the other

14. Packaging The physical container or wrapper fo ra product that represents the size, shape, and final appearance of a product

15. Functions of Packaging 1.Promoting and Selling the Product –can make a product stand out from its competition 2.Defining Product Identity –Invoke prestige, convenience, status 3.Providing Information –Directions, guarantees, nutritional values 4.Meeting Customer Needs –family size, individual, on-the-go 5.Ensuring Safe Use –Tamper resistant packaging; plastic instead of glass 6.Protecting the Product –Prevent tampering, shoplifting, breakage, spoilage

17. Contemporary Packaging Issues 1.Environmental Packaging 2.Cause Packaging –Promote social and political causes –Ben & Jerry’s promotes saving the rain forest –Body Shop products feature packaging the promotes social justice and environmental responsibility

18. Labeling An information tag, wrapper, seal, or imprinted message that is attached to a product or its package Information on labels help customers decide if the product is right for them Main Purpose = inform customers about a product’s contents and give directions for use Protect from legal liability

19. Types of Labels 1.Brand Label –Gives the brand name, trademark, or logo 2.Descriptive Label –Gives information about the product’s use, construction, care, performance, and other features 3.Grade Label –States the quality of the product

20. Labeling Requirements Product illustrations must represent what is in the package Date and storage information is necessary for food items –When it was packed; sell by date; best if used by; expiration date –How to store product so it doesn’t go bad Nonfood labels provide instructions for the proper use and care of a product –Include symbols and words Manufacturer’s name and address, website, customer service phone number

21. Labeling Laws Federal laws require the name and address of the manufacturer, packer, or distributor, and the quanitty of the contents Fair Packaging and Labeling Act 1966 –Mandatory labeling requirements; provides the US Food and Drug Administration (FDA) and the Federal Trade Commission (FTA) to establish packaging regulations –Amendment = Packaging must include weight Federal Food and Drug Administration –Federal Nutrition Labeling and Education Act 1990 –Health warnings on alcoholic beverages, cigarettes Federal Trade Commission –Responsible for monitoring deceptive advertising –Care Labeling Rule 1972