Branding and Packaging Decisions of the Product 26.10

8/6/2019 Branding and Packaging Decisions of the Product 26.10

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BRANDING AND PACKAGING DECISIONS

OF THE PRODUCT

At the end of this module the learning outcomes are

1. What is a brand?2. Importance of a brand

3. Concept of brand equity

4. Various types of brand name decisions

5. Concept of packaging

6. How packaging contributes to overall appealof the product


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Suggested Readings

1. Marketing Management by

Philip Kotler , Millenium edition

Chapter 13

2. Marketing Management by

Ramaswamy and NamakumariSecond edition Chapter 16

BRANDING AND PACKAGING DECISIONS OF

THE PRODUCT


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- Branding Decisions

- Thinks of Coca Cola

- A 100 Year old Company

- What is its main strength Coca Cola Brand name

- If Coca Cola name is to be sold

- How much will it fetch?- Estimate: 130 Billion $

- One of the most popular name in the world


THE PRODUCT


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WHAT IS A BRAND?

Is a name, term, sign, symbol or design, or a

combination of them, intended to identify thegoods or services of one seller or group of sellers

and to differentiate them from those of

competitions .


THE PRODUCT


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Brand Conveys

Identifies the sellers

Can be used in perpetuity

Sellers promise to deliver a specific set offeatures, benefits and services consistently to thebuyer.

A warranty of quality

-

McDonalds- Honda

- Pepsi

- Intel

- Ford


THE PRODUCT


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Brands - Six levels of meaning

1. Attributes

Certain attributesExample - Mercedes

Expensive

Well-built

Well engineered

Durable

High Prestige automobile


THE PRODUCT


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2. Benefits

Attributes

- Functional benefits

- Emotional benefitsExample Mercedes

Attributes durable

Functional benefit

I wont have to buy another car for several years

Attribute expensive

Emotional benefit

The car makes me feel important and admired


THE PRODUCT


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3. Values

Brand also says something about the producers

values

Example Mercedes

Stands for

-High performance

- Safety

- Prestige


THE PRODUCT


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4. Culture

Represents a certain culture

Example Mercedes

Represents

- German culture

yOrganizedy Efficient

y High quality


THE PRODUCT


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5. Personality

Projects a certain personality

Example - Mercedes

Appears as

- A no nonsense boss (person)

- A reigning lion (animal)- An austere palace (object)


THE PRODUCT


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6. User

Kind of user who buy or uses the product

Example Mercedes

You would expect a 40 years old chief

executive driving Mercedes

Not a20

year old stenographer


THE PRODUCT


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Brand Equity

- Is related to how many customers are in

- Satisfied and would incur costs by changingbrand

- Customer values the brand and sees it as a friend

- Customer is devoted to the brand

- Degree of brand name recognition- Perceived brand quality

- Strong mental and emotional associations


THE PRODUCT


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Worlds 10 most valuable brands 1997Order of Ranking

1. Coca Cola

2. Marlboro

3. IBM

4. McDonalds

5. Disney

6. Sony

7. Kodak

8. Intel

9. Gillette

10. Budweiser


THE PRODUCT


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Brand Equity Advantages

1. Reduced Marketing Costs

- Consumer brand awareness and loyalty

2. More bargaining power with dealers

- Dealers have to store brands which customerwant

3. Can launch brand extensions

- High credibility

Surf to Surf Ultramatic

Dettol lotion

Now soap, shaving cream


THE PRODUCT


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4. Offers the company some degree of cushion against

price competition

Between Oscar TV and BPL TV, which is likely to be

bought more?

Probably BPL TV.

Even if its prices are somewhat higher than Oscer TV


THE PRODUCT


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Brands require

Nurturing

Carefully managed

This means

Continuous Research and development

Skillful advertisingProper display

Excellent service


THE PRODUCT


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Product characteristics may change but Brand valuesremain the same

Mercedes of 1955

- Carburettor

- Manual steering

- Manual gear box

- No power windows

Mercedes of 2001

- Multi fuel injection

-Air bags

- Automatic gear box

- Power windows

:

etc ..


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What do we observe?

Mercedes of1955 has features very different

from 2001Styling, looks have changed

What has remained the same?

The brand name

Mercedes Product features will keep changing

Brand values will remain the same.


THE PRODUCT


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Brand name Decisions

1. Individual names

2. Blanket family names

3. Separate family names for all products

4. Company trade name combined with

individual product names


THE PRODUCT


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1. Individual names

Company does not tie its reputation to theproducts

If product fails, companys image not hurt

Examples

1. Titan Industries Ltd.

y Lower end watch - Sonata

2. Proctor & Gamble Ltd.

y Throat soothers - Vicks

3. Pidilite Industries Ltd.

yFevicol adhesive

y M-Seal adhesive


THE PRODUCT


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2. Blanket Family Names

Company name reflected as product name

Has advantages

Development cost is less

No need to spend huge amount of money on brandbuilding

Example

GE - Company

GE Refrigerators

GE Aircraft Engines

GE Financial Services

GE Medical Equipment


THE PRODUCT


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3. Separate family names for all products

Example

Hindustan lever Ltd.

1. SoapsLifebuoy

2. Flour

Annapurna

3. TeaBrooke Bond

Used when company markets different type of products.


THE PRODUCT


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4. Company trade name combined with individualproduct names

Company tie their company name to anindividual brand name for each product.

Company name legitimizes and the individualname individualizes, the new product

Examples

Kelloggs Products Co. Kelloggs Corn Flakes

Kelloggs Rice Krispies

Kelloggs Biscuits.


THE PRODUCT


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Include the activities of designing and producing thecontainer for a product

Container is called package

Includes upto three levels of packaging

Example

Old Spices aftershave lotion

Primary package

Bottle

Secondary package

Cardboard box

Shipping package

In a corrugated box


THE PRODUCT


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PACKAGING AS A MARKETING TOOL

Factors contributes to this:

1. Self service

Most products sold on a self service basis Consumers watch many packaging everyday

What packaging creates

Attract attention

Describe product features

Create consumer confidence

Favorable overall impression


THE PRODUCT


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2. Consumer affluence

Rising consumer affluence Consumers are willing to pay a little more for the

Convenience

Appearance

Prestige of better packaging3. Company and brand image

Instant recognition of the company

First thing visible to consumer is packaging

Links with image4. Innovation opportunity

Bring large benefits to consumers and profits toproducers


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LABELING

Written information about the product

Understand the nature of the product, its distinctivefeatures, its composition, its performance.

Statutory requirement

- As per law

- In India

Manufacturers name

Marketers name

Maximum retail price

Date of manufacture

Date of expiry


THE PRODUCT


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Innovation in packaging

1. Tetra packs

y Launch of bottles

y No need of bottle

y

No need to send back bottley Avoid breakages


THE PRODUCT


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2. Pouches / Sachets

y New technology

y Introduce products in small quantities

y Include trial

y Very useful in rural areas

Airtel, Surf , Pan Parag, Colgate

y Increasing their sales.


THE PRODUCT


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3. Ponds Cold Cream

- Initially launched in bottles

- Placed on dressing tables

- Wanted to increase sales

- Introduced in tubes

- Portable

- Sales doubled


THE PRODUCT


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4. Application Convenience

Harpic liquid toilet cleaner

Fitted with a nozzle

Could effectively clean toilets

S

ales increased


THE PRODUCT


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5. Re-usable containers

Nescafe coffee

Attractive glass jar

Could be used as glass

6. Retail packs

Bournvita, Nescafe

Retail packs

Economy

Price lower than standard packs


THE PRODUCT


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7. Unique shape of products

- Le Sancy soap

- Bean shape

- How to show this

- Transparent packaging

- Product shape could be seen


THE PRODUCT


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TO CONCLUDE

Packaging is an important part of the product

Valuable contribution to product personality


THE PRODUCT

Documents

Branding and Packaging Decisions of the Product 26.10