1. Branding and Packaging13
Branding and Packaging

2. Objectives To explain the value of branding
To understand brand loyalty
To analyze the major components of brand equity
To recognize the types of brands and their benefits
To understand how to select and protect brands
To examine three types of branding policies
Copyright © Houghton Mifflin Company. All rights reserved.

3. Objectives (cont’d) To understand co-branding and brand licensing
To describe the major packaging functions and design considerations and how packaging is used in marketing strategies
To examine the functions of labeling and describe some legal issues pertaining to labeling
Copyright © Houghton Mifflin Company. All rights reserved.

4. Chapter Outline Branding Packaging Labeling
Copyright © Houghton Mifflin Company. All rights reserved.

5. Branding: Key Terms Brand Brand Name Brand Mark
An identifying name, term, design, or symbol
One item, family of items, or all items of a seller
Corvette, Chevrolet, General Motors
Brand Name
The part of a brand that can be spoken
Words, letters, numbers
Union 76, NBA, 49’ers
Brand Mark
The part of a brand not made up of words
Symbols or designs
Nike swoosh, Mercedes star, McDonald’s arches
Copyright © Houghton Mifflin Company. All rights reserved.

6. Branding: Key Terms (cont’d)
Trademark
A legal designation of exclusive use of a brand
Coca-Cola®, Hewlett-Packard®
Trade Name
Full legal name of an organization
American Telephone and Telegraph Corporation (AT&T)
Copyright © Houghton Mifflin Company. All rights reserved.

7. Value of Branding For Consumers
Helps speed consumer purchases by identifying specific preferred products
Provides a form of self-expression and status
Evaluates product quality to reduce the risk of purchase
Copyright © Houghton Mifflin Company. All rights reserved.

8. Value of Branding (cont’d)
For Marketers
Identifies and differentiates a firm’s products from competing products
Helps in the introduction of new products
Facilitates the promotion of all same-brand products
Fosters the development of brand loyalty
Can create valuable intangible assets
Copyright © Houghton Mifflin Company. All rights reserved.

9. Has the Silk Brand Name Helped This Brand Achieve an 80% Market Share?
Soy Milk Market Share (conventional grocery-store sales)
White Wave’s Silk
80%
General Mills’ 8th Continent
12%
All others (including Eden Soy and Imagine Foods’ Soy Dream) 8%
Source: General Mills; Information Resources; White Wave; as reported in Business 2.0, April 2004, p.74.
Copyright © Houghton Mifflin Company. All rights reserved.

10. Brand Loyalty: Key Terms
A customer’s favorable attitude toward a specific brand
Brand Recognition
A customer’s awareness that a brand exists and is an alternative purchase
Copyright © Houghton Mifflin Company. All rights reserved.

11. Brand Loyalty: Key Terms (cont’d)
Brand Preference
The degree of brand loyalty in which a customer prefers one brand over competitive offerings
Brand Insistence
The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute
Copyright © Houghton Mifflin Company. All rights reserved.

12. Persons Who Try to Stick With Well-Known Brand Names
How has loyalty toward well-known brands changed over the last quarter of the twentieth century?
Source: “Like Glue,” American Demographics, The Marketing Tools Directory, 2002, p. D46. Adapted with permission.
Copyright © Houghton Mifflin Company. All rights reserved.

13. Major Elements of Brand Equity
Source: Adapted with the permission of The Free Press, a division of Simon & Schuster Adult Publishing Group, from Managing Brand Equity: Capitalizing on the Value of a Brand Name by David A. Aaker. Copyright © 1991 by David A. Aaker.
FIGURE 13.1
Copyright © Houghton Mifflin Company. All rights reserved.

14. Source: “The Ones That Whiffed,” Buiness 2.0, April 2004, p. 83.
Putting Your Brand Name on a Stadium: What Are the Benefits and the Costs?
Naming Company
Field and Location
Amount Paid (in millions)
Filed for Bankruptcy
New Name
Adelphia Communications
Adelphia Coliseum Nashville, TN
$30
(over 15 years)
2002
The Coliseum
ANC Rental
National Car Rental Center Sunrise, FL
$25
(over 10 years)
2001
Office Depot Center
Enron
Enron Field Houston, TX
$100
(over 30 years)
Minute Maid Park
PSINet
PSINet Stadium Baltimore, MD
$105.5
(over 20 years)
M&T Bank Stadium
TWA
Trans World Dome St. Louis, MO
$26
Edward Jones Dome
Source: “The Ones That Whiffed,” Buiness 2.0, April 2004, p. 83.
Copyright © Houghton Mifflin Company. All rights reserved.

15. Copyright © Houghton Mifflin Company. All rights reserved.

16. Copyright © Houghton Mifflin Company. All rights reserved.

17. Can You Name the Brands Associated With These Trade Characters?
Charlie the Tuna- © Heinz North America.; Trump the Monster- Courtesy of Monster.com; Used with permission. Courtesy of PILLSBURY and the Pillsbury Company.
TONY THE TIGER® and SNAP CRACKLE & POP® are registered trademarks of Kellogg Company. All rights reserved. © 2002 Kellogg Company.
Copyright © Houghton Mifflin Company. All rights reserved.

18. Reprinted with permission of Morton Salt.
Why Is Morton Salt Using Its Trade Character on the Package and in This Ad?
Reprinted with permission of Morton Salt.
Copyright © Houghton Mifflin Company. All rights reserved.

19. Private Distributor Brands
Types of Brands
Manufacturer Brands
Brands initiated by producers
Private Distributor Brands
Brands initiated and owned by resellers
Dealer brands, private brands, store brands
Generic Brands
Brands indicating only the product category
Copyright © Houghton Mifflin Company. All rights reserved.

20. Consumers’ Perceptions of Store and Manufacturers’ Brands for Selected Product Groups
Source: “Store Brands at the Turning Point,” Consumer Research Network, 3624 Market Street, Philadelphia, PA.
FIGURE 13.2
Copyright © Houghton Mifflin Company. All rights reserved.

21. Selecting a Brand Name The name should
be easy to say, spell, and recall.
indicate the product’s major benefits.
suggest the product’s major uses and special characteristics.
be distinctive, setting it apart from competing brands.
be compatible with all products in line.
be designed for use and recognition in all types of media.
Copyright © Houghton Mifflin Company. All rights reserved.

22. Class Exercise
In developing a brand name, it is important to consider the requirements of an effective choice. For each of the following requirements, give several examples of brand names that satisfy that requirement.
Easy to say, spell, and recall
Communicates major product benefits
Suggests product uses or special features
Distinctive enough to set the product apart from competing brands
The purpose of this exercise is to have students consider the importance of the major requirements of an effective brand name.
Easy to say, spell, and recall:
Tide detergent; Biz detergent; Zee paper towels; Tone soap; Jif peanut butter; Pert shampoo
Communicates major product benefits:
No-Yolks pasta; Clean & Clear (skin care products); Dustbuster (hand-held vacuum); Quick-Lash mascara; Reach toothbrush; Carpet-Fresh (rug and room deodorizer)
Suggests product uses or special features:
Glass Works (glass cleaner); Mop & Glo (floor cleaner); Soft Scrub (cleanser) 
Distinctive enough to set it apart from competitors:
Orville Redenbacher (popcorn); Reebok (athletic shoes); Häagen-Dazs (ice cream); Molly McButter (butter substitute); Yoplait (yogurt)
Copyright © Houghton Mifflin Company. All rights reserved.

23. Protecting a Brand Degree of brand protection through registration
Fanciful
Arbitrary
Suggestive
Descriptive
Generic
Surnames and descriptive, geographic, or functional names are also difficult to protect.
Registration with the U.S. Patent and Trademark Office protects a brand for ten years with indefinite renewals.
Most
Least
Copyright © Houghton Mifflin Company. All rights reserved.

24. Branding Policies Individual Branding Family Branding
A policy of naming each product differently
Avoids stigmatizing all products due to a failed product
Family Branding
Branding all of a firm’s products with the same name
Promotion of one item also promotes all other products
Copyright © Houghton Mifflin Company. All rights reserved.

25. Branding Policies (cont’d)
Brand-Extension Branding
Using an existing brand name for an improved or new product
Provides support for new products through established brand name and image
Copyright © Houghton Mifflin Company. All rights reserved.

26. Co-Branding
Using two or more brands on one product to capitalize on the brand equity (customer confidence and trust) of multiple brands
Brands involved must represent a complementary fit in the minds of consumers.
Helps differentiate a firm’s product from those of its competitors
Helps take advantage of distribution capabilities of co-branding partners
Copyright © Houghton Mifflin Company. All rights reserved.

27. Brand Licensing
An agreement whereby a company permits another organization to use its brand on other products for a licensing fee
Advantages
Low-cost and/or free publicity
Revenues from royalty fees
Disadvantages
Lack of manufacturing control
Creating too many unrelated products
Licensing arrangements can fail
Copyright © Houghton Mifflin Company. All rights reserved.

28. Packaging
Involves the development of a container and a graphic design for a product
Packaging Functions
Protect the product from damage
Offer convenience to consumers
Prevent waste and make storage easier
Promote the product by communicating its features, uses, benefits, and image
Copyright © Houghton Mifflin Company. All rights reserved.

29. Major Packaging Considerations
Cost of Packaging
Limited consumer willingness to pay for better packaging
Tamper-Resistant Packaging
FDA regulations and consumer safety concerns
Family Packaging
Similar packaging for all of a firm’s products or packaging that has one common design element A A
Copyright © Houghton Mifflin Company. All rights reserved.

30. Major Packaging Considerations (cont’d)
Promotional Role (Informing the Consumer)
Verbal and nonverbal symbols
Size, shape, texture, color, and graphics
Reseller Needs
Transportation, storage, and handling
Environmentally Responsible
Biodegradable and recyclable
Copyright © Houghton Mifflin Company. All rights reserved.

31. Packaging and Marketing Strategy
Altering the Package
To update style and to meet increased competition
To highlight new features
To take advantage of new packaging materials
To make the product safer or easier to use
To reduce packaging costs
Secondary-Use Packaging
Reusable packaging adds customer value
Category-Consistent Packaging
Packaging reflects customer expectations for the expected appearance of products in a category
Copyright © Houghton Mifflin Company. All rights reserved.

32. Packaging and Marketing Strategy (cont’d)
Innovative Packaging
Unique features or ways of packaging that make a product more distinct from its competitors
Multiple Packaging
Bundling multiple units of a product together to encourage usage and to increase demand
Handling-Improved Packaging
Packaging that has been changed to facilitate product handling in the distribution channel
Copyright © Houghton Mifflin Company. All rights reserved.

33. Net Sights
The Institute of Packaging Professionals is a resource for information about packaging and the packaging industry. The organization’s website ( includes discussions about packaging issues, news and press releases, contact information for packaging organizations around the world, and winners of Worldstar, an international award in packaging.
Copyright © Houghton Mifflin Company. All rights reserved.

34. Class Exercise
Look at the nearest snack food wrapper or soft drink container and identify the
brand name.
brand mark.
trademark.
trade name.
Using the wrapper or container, explain how packaging performs three functions: protection, convenience, and communication.
The purpose of this exercise is to reinforce an understanding of brand components and policies and the functions of packaging.
Students often get these components mixed up, particularly the first two. Coke cans offer a good chance to explain the difference between the brand name Coca-Cola and the script design that makes up the brand mark. The students will usually note the trademark registration ®. The trade name—the official name of the company—is marked on the back of the can. The fact that “Coke” is referred to generically may also bring up the point that firms spend a great deal of resources to retain brand name rights.
Replaceable caps (on 16-oz. drinks) help preserve taste; airtight containers and expiration dates help ensure freshness. Package sizes are generally produced in amounts that meet individual consumer needs (e.g., 2-oz. candy bars; 12-oz. drinks, five sticks of gum) for appropriate prices. A production orientation might only produce one size, for instance. Most students are so accustomed to the packages of these items that they rarely recognize the role of communication. Effective packaging rein-forces successful promotional campaigns by reminding consumers of the benefits and image produced by advertisements at the point of purchase.
Copyright © Houghton Mifflin Company. All rights reserved.

35. Class Exercise (cont’d)
Is the manufacturer of the product using individual, family, or brand-extension branding?
You work for a firm that is introducing a new chocolate candy bar that contains an extra amount of caffeine. Develop a brand name that
is easy for customers to say, spell, and recall.
positively suggests uses and special characteristics.
indicates major product benefits.
can be protected easily through registration.
Coca-Cola products are good examples of individual and brand-extension branding, although students may be unaware that besides Coke, many bottlers also produce other soft drinks that do not carry the Coke brand name. Examples are Fresca and Barq’s Root Beer. Some candy bars may provide examples of family branding (Nestlé or Hershey’s).
Usually, students will violate one of these guidelines, which points to why some consulting firms now specialize in developing new company or brand names.
Copyright © Houghton Mifflin Company. All rights reserved.

36. Copyright © Houghton Mifflin Company. All rights reserved.

37. Criticisms of Packaging
Lack of functionality
Leak, difficult to open/close/seal, hard-to-use designs
Safety
Sharp edges, broken glass, health hazards
Deceptive
Shape, size, colors mask true nature of product
Cost of packaging
What customers prefer is costly
Copyright © Houghton Mifflin Company. All rights reserved.

38. Debate Issue
Should fast-food restaurants use environmentally responsible packaging even when such packaging is less effective in preserving product quality?
YES
Traditionally, fast-food marketers have used too much packaging, which creates unnecessary amounts of garbage going into landfills.
Traditionally, the type of materials used were not biodegradable.
Fast-food marketers must focus on the long-term impact on the environment rather than on product packaging that provides the greatest amount of customer satisfaction when the product is consumed. NO
A fast-food marketer should use a package that allows the customer to receive the highest-quality food product at the point of purchase.
Proper disposal of a package, after the customer no longer needs it, is not the responsibility of the fast-food organization.
Most fast-food customers prefer to have the highest-quality food product, even if the package is not environmentally responsible.
Copyright © Houghton Mifflin Company. All rights reserved.

39. Universal Product Code (UPC)
Labeling
Labeling
Providing identifying, promotional, legal, or other information on package labels
Universal Product Code (UPC)
A series of electronically readable lines identifying a product and containing inventory and pricing information
Copyright © Houghton Mifflin Company. All rights reserved.

40. Labeling (cont’d) Purposes of Labels Help identify the product
Display brand name and unique graphics
Support promotional efforts for the product
Coupons, discounts, product features
Provide legally required labeling information
Fair Packaging and Labeling Act of 1966
Nutrition Labeling Act of 1990
Copyright © Houghton Mifflin Company. All rights reserved.

41. Purposes of Labels (cont’d)
Labeling (cont’d)
Purposes of Labels (cont’d)
“Green Labeling” issues
Labeling packaging as made of recyclable materials
Provide information on product origin
“Made in the USA”
1st
Copyright © Houghton Mifflin Company. All rights reserved.

42. Why Is This Organization Concerned About Fraudulent Labeling?
Reprinted with permission of Organic Consumers Association.
Copyright © Houghton Mifflin Company. All rights reserved.

43. After reviewing this chapter you should:
Be able to explain the value of branding
Understand brand loyalty
Be able to analyze the major components of brand equity
Recognize the types of brands and their benefits
Understand how to select and protect brands
Know about three types of branding policies
Copyright © Houghton Mifflin Company. All rights reserved.

44. After reviewing this chapter you should:
Understand co-branding and brand licensing
Be able to describe the major packaging functions and design considerations and how packaging is used in marketing strategies
Understand the functions of labeling and its legal issues
Copyright © Houghton Mifflin Company. All rights reserved.

45. Chapter Quiz
Compared to creating and developing a brand from scratch, a firm sometimes buys a brand from another company at a premium price because outright purchase is
more challenging strategically.
less time consuming.
less risky.
less expensive.
less expensive and less risky. E D C
Copyright © Houghton Mifflin Company. All rights reserved.

46. Chapter Quiz (cont’d)
Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection?
Brand Protection Act
Lanham Act
Trademark Infringement Act
Trademark Law Revision Act
U.S. Patent and Trademark Act
Copyright © Houghton Mifflin Company. All rights reserved.

47. Chapter Quiz (cont’d)
To use co-branding effectively, which one of the following is probably least important?
The brands involved should represent a complementary fit in a customer’s mind.
The brands that are teamed together should not lose their individual identities.
The brands involved should be owned by two or more organizations.
To avoid confusion on the part of customers, co-branding should be done in a way so that it is obvious which brand is the main brand or key brand.
The co-branded product should be able to benefit from the distribution system of both brands involved.
Copyright © Houghton Mifflin Company. All rights reserved.

48. Chapter Quiz (cont’d)
To promote an overall company image, packages of Pillsbury cake and cookie mixes have similar designs and colors. This approach is known as
family branding.
brand managing.
line consistency.
family packaging.
product grouping.
Copyright © Houghton Mifflin Company. All rights reserved.