1. Branding, Packaging, and Labeling
Chapter 31
Branding, Packaging, and Labeling

2. Branding Elements and Strategies 31.1
After finishing this section you will know:
Define the nature, scope, and importance of branding in product planning
List the various branding elements
Identify the different types of brands
Explain how to classify branding strategies

3. Branding
Brand- name, term, design, or symbol that identifies a business or organization and its products
Divided into two categories:
Corporate brand- used to identify the business and refer to quality and reliability
Examples: Coca-Cola, McDonald’s, and Citibank

4. Branding Product brands- used to relate quality and reliability
Examples: Pepsi, Coke, Barbie, and Whopper

5. Branding
Brand name- the word, group of words, letters, or numbers representing a brand that can be spoken
Examples: PT Cruiser and Mountain Dew

6. Branding Brand mark- part of the brand that is a symbol or design
Can include distinct coloring or lettering which is usually not spoken
Examples: Apple Computer’s Apple or Greyhound Bus Company’s Greyhound

7. Branding
Trade name- identifies the company or a division of a particular corporation
The legal name the business uses when it does business
Examples: Dell, Kellogg’s, or Xerox

8. Branding
Trade character- brand mark with human form or characteristics
Examples: Jolly Green Giant, Pillsbury Doughboy, or Keebler Elves

9. Branding
Trademark- brand name, brand mark, trade name, trade character, or a combination of these that is given legal protection by the federal government
Followed by a registered trademark symbol “®”
Trademarks last 10 years after which they need to be renewed to be valid

10. Importance of Brands in Product Planning
Helps build 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

11. Generating Brands
75% of all companies introduce a new product name on an annual basis
Procter and Gamble has reduced its number of brand names from 600 to 400
Often generated internally by employees
Computer software programs specialize in generating brand names
Some of these programs can automatically check to see if the names are already trademarked by another company

12. Generating Brands
Branding agencies, name consultants, or public relations firms can be hired
Names may change when new products are added, image is modified, or when entering new markets
50% of name changes take place because of mergers

13. Manufacturer Brands
Manufacturer Brands-aka producer brands, are owned and initiated by manufacturers
Examples: General Electric, Heinz, Motorola
Generate the majority of sales
Identify and indicate a standard quality and price for products

14. Private Distributor Brands
Private distributor brands- aka private brands, store brands, or dealer brands, owned and initiated by wholesalers and retailers
The manufacturers name does not appear on the product
Appeal to customers who want the quality and performance of manufacturer brands at a lower price
Popular with retailers because they are more profitable
Examples: Kmart, Radio Shack

15. Generic Brands
Generic brands- represent a general product category and do not carry a company or brand name
Package carries only a description of the product such as “pancake mix”
Sold in supermarkets and discount stores
30-50% lower priced than- manufacturer brands
10-15% lower priced than- private distributor brands

16. Brand Extension
Brand extension- uses an existing brand name for an improved or new product in the product line
Example: Ocean Spray Cranberry juice extended its product line by adding Cran ® Apple and other various fruit blends.
Potential problem- causes brand dilution when the original product loses its strength in brand identity because it has been stretched to include too many products

17. Brand Licensing
Brand licensing- legal authorization by trademarked brand owners to allow another company to use its brand, brand mark, or trade character for a fee
Fees are known as royalty fees

18. Mixed Brands
Mixed-brand strategy- involves simultaneously offering a combination of manufacturer, private distributor, and generic brands
Markets products under its own name and that of a reseller because the market segment attracted to the reseller is different from their own market

19. Co-Branding
Co-branding strategy- combines one or more brands to increase customer loyalty and sales for each individual brand
Example: Ford Motor Company wanted to increase brand loyalty among Harley-Davidson riders so they created a Limited Edition 2000 F-150 Harley-Davidson pickup truck.

20. Assignment
Reviewing Key Terms/Thinking Critically
Page 573
#1-5

21. Packaging and Labeling 31.2
After finishing this section you will know:
The principal functions of product packaging
The main functions of labels

22. Packaging Package- the physical container or wrapping for a product
Represents the size, shape, and final appearance of a product at the time of sale

23. Functions of Packaging
A selling tool
The Functions of Packaging:
Promoting and selling the product- more sales focus on self-service layouts
Attractive, colorful, and artistic packages have promotional value
Brand name on a package reminds the customer of the product’s manufacturer
A better container can even create new sales or minimize sales lost to competitors

24. Functions of Packaging
Defining product identity- packages are used to invoke prestige, convenience, or status
Providing information- packages give directions for using the product, information about its contents, product guarantees, nutritional value, and potential hazards

25. Functions of Packaging
Meeting customer needs- product packages come in various sizes to meet the needs of different market segments
Examples: Family packs for larger families, or smaller packages for individuals
Ensuring safe use- package can improve product safety for the customer
Example: Many products formerly packaged in glass now come in plastic. Many products are packaged in child proof containers.

26. Functions of Packaging
Protecting the product- must protect a product during shipping, storage, and display
Should prevent tampering while on display
Must protect product from breakage or spoilage

27. Contemporary Packaging Issues
Packaging offers companies unique opportunities to address lifestyle changes and social and political concerns

28. Environmental Packaging
Most Americans support less wasteful packaging
Willing to pay more for products that reduce waste

29. Cause Packaging Can be used to promote non-product issues
Printing messages on packages, bags, and bills encourages consumers to participate in politics
Example: Ben & Jerry’s Ice Cream promotes saving the rain forests and opposes the use of bovine growth hormone to stimulate milk production in cows.

30. Labeling
Label- an information tag, wrapper, seal, or imprinted message that is attached to a product or its package
Information on labels helps customers to decide if the product is right for them
Main functions of a label is to inform customers about a product’s contents and give directions for use

31. Three Kinds of Labels
Brand label- gives brand name, trademark, or logo
Descriptive label- gives information about the product’s use, construction, care, performance, and other features
Grade label- states the quality of the product

32. Labeling Laws
Past- public criticized product labeling for failing to offer complete and truthful information
Now- many package labels must meet local, state, and federal standards
Federal mandates require:
Name and address of manufacturer
Quantity of the contents

33. Labeling Laws
Fair Packaging and Labeling Act (FPLA) requires mandatory labeling requirements and provides the authority to the U.S. Food and Drug Administration and the Federal Trade Commission to establish packaging regulations

34. Labeling Laws
1992 Amendment to FPLA- packaging of selected products to include metric measurements as well as standard

35. The Federal Food and Drug Administration
The Federal Nutrition Labeling and Education Act requires labels to give nutritional information on how a food fits into an overall daily diet
Must clearly state the amount of- calories, fat, carbohydrates, sodium, cholesterol, and protein in each serving, as well as the percentage of a daily intake of 2000 calories
Health warnings must also be placed on certain packages

36. Federal Trade Commission
Responsible for monitoring for deceptive advertising that is false or misleading
Care Labeling Rule- passed by the FTC in requires that care labels be placed in textile clothing

37. Federal Trade Commission
Guidelines in environmental terms previously had loose definitions and could be used freely on labels and in advertisements
Recycled content- proof must be given about the amount of material in a product or package that has been kept form landfill or retrieved as manufacturing scraps

38. Federal Trade Commission
Recyclable- can only be used if the product or package can be reused as raw material for a new product or package
Ozone friendly or ozone safe- can only be used if the product does not contain ozone-depleting chemicals
Degradable, biodegradable, and photodegradable- can only be used if the product will decompose into elements found in nature within a reasonable short period of time

39. Assignment
Reviewing Key Terms/Thinking Critically
Page 580
#1-5