1. Branding, Packaging and Labeling

2. Topics Branding Packaging Labeling Importance Types Strategies
Function
Issues
Labeling

3. Branding Brand Corporate brands Product brands
Name, term, design, or symbol that identifies a business and its products
Corporate brands
Identify the business and reflect image across all products
Coca-Cola, Daimler-Chrysler
Product brands
Among most important assets and powerful selling elements
Coke, Dodge

4. Brands Brand Name Brand Mark Trade Name
Words, letter numbers the represent brand
Corvette, Airwalk, FedEx
Brand Mark
Logo or symbol
Trade Name
Legal name a company uses to conduct business
Dell, Xerox

5. Brands Trade Character Trademark
Brand mark as a character with human qualities
Keebler, Doughboy
Trademark
Any combination of these that is legally protected
Have been expanding to include sound, color, smell
Harley trademarked its engine sound

6. Importance of Branding
Builds customer loyalty
Customers pay more for recognized names
Assures customer of quality & reduces risk of dissatisfaction
Assists in extending lines
Customers more willing to try familiar names

7. Generating Brands
Estimated that 75% of companies introduce a new product brand annually
In 1999, 79,000 trademarks were registered
Global brands often consolidate names
Confusion can result from multiple names for the same product
In UK, 3 Musketeers is known as Mars Bar

8. Types of Brands Manufacturer Brands
Producer brands, owned by manufacturer
Gives impression of standard quality, performance & status
Most brands are manufacturer brands
65% of appliances
70% of food
80% of gas
100% of cars

9. Types of Brands Private distributor brands
Store or dealer brands, owned by retail stores
Item is purchased to be sold exclusively at certain stores, i.e. Radio Shack brand
Manufacturer name is not displayed
Higher returns for store
Builds retailer loyalty
Craftsman, Kenmore sold only at Sears

10. Types of Brands Generic Brands
Carry no company name, just product description
Sold much cheaper, 30 – 50% lower than manufacturer brands, and 10 – 15% lower than store brands
Jewel supermarkets in Chicago were the first to offer

11. Branding Strategies Brand extension Brand Licensing
Uses existing brand name to promote new products
Dilution may become a problem
Brand Licensing
Allow other companies to use trademarks for a fee, plus royalties on sales
Enhances image & helps sales of core products

12. Branding Strategies Mixed branding
Offer combination of manufacturer, store & generic brands
Manufacturer will sell under a national brand, then sell extra to a store to be repackaged under a store brand, then make a generic
Maximizes profit by appealing to all segments

13. Branding Strategies Co-Branding
Uses two or more brands to increase loyalty and sales for individual brands
Builds recognition for each, work best if product complement each other
Starbucks in Barnes & Nobles
Smuckers jelly in Pop-Tarts

14. Packaging Physical container or wrapping
Approximately 10% of retail price is spent on package
In some cases, package is most expensive part of production

15. Function of Packaging Key selling tool Promoting & selling
Reaction to packaging is important to overall success or failure
New designs may not replace old, but complement it
Pump soap containers
Defining product identity
Invoke prestige, convenience, status, etc.

16. Function of Packaging Provide information Meet customer needs
Directions on how to use, warnings, ingredients
Meet customer needs
Various sizes for different market segments
Must adapt to meet changing lifestyles

17. Function of Packaging Ensure safe use Protection
Tamper resistance, child proofing
Blisterpacks, molded plastic with foil or cardboard backing
Gums and some medicine
Protection
Shipping, storage, display
Prevent shoplifting, breakage & spills

18. Contemporary Issues
Changing social and political atmosphere leads to changes in product & package
Environmental packaging
Surveys indicate consumers will pay more for these packages
Cause packaging
Promoting unrelated issues on package, usually socially or politically motivated
Ben & Jerry’s, Body Shop

19. Labeling Informational tag, wrapper, seal or imprinted message
Main function is to inform about contents and give directions
Protects company from liability & lawsuits

20. Labels Brand label Descriptive label Grade label
Gives name, logo & trademark
Descriptive label
Gives information about use, construction, care, performance, etc.
Does not contain all the information that a consumer might want
Grade label
Give product quality

21. Labels
Food labels must contain weight, dating and storage information, UPC, etc.
Net weight is entire product minus the weight of package and packing materials
Dating options are
Date packed
Sell by date – last day it should be sold
Best if – last day for best quality
Expiration – should not be used after

22. Labeling Laws
Public outcry has lead to regulations on what needs to be incorporated on labels
Fair Packaging & Labeling Act (FPLA) gives the FDA and FTC authority over labeling
Not all countries have the same label laws
Coke was pulled off Italian shelves because they would not list the “secret ingredient”

23. Labeling Laws
FDA
Enacted a law to require labels to give information on how the product fits into a daily diet
Developed definitions for light, free, low, reduced and good source
Warning labels on cigarettes and alcohol
Developing regulations for genetically modified foods

24. Labeling Laws FTC Responsible for ensuring labels are not deceptive
Released guidelines for environmental claims
Requires proof for all claims