Branding, Packaging, and Labeling!

Abercrombie

BrandingAn important part of product

planning is the use of brands.

A brand is a name, design, or symbol that identifies the products of a company.

Can you recognize the following companies just by their symbol?

Look familiar?

Falling Prices????

Question:Why was the name Kentucky

Fried Chicken changed to “KFC?”

Everyone knows this fine machine!

And who is this man? What product is he famous for?

Branding• Almost every product has a

brand.

• Can you think of what the most recognized and respected world-wide brands are?

Top 10 List10) Pepsi-Cola

09) IBM

08) McDonald’s

07) Toyota

06) Nestle

05) Disney

04) Kodak

03) Mercedes Benz

02) Sony…….and the #1 brand-

why of course!

01) Coca-Cola!!!!

Brand Importance

Because it identifies the products of a company and is often what SELLS a product, a brand can be a company’s most important asset!

Financial World magazine

• Recently estimated the market value of some top worldwide brands to be in the BILLIONS!

• The net worth of Coca Cola is ………any guesses?

• How about $24.4 billion.

• Pepsi- a mere $9.6 billion

• Nescafe instant coffee (yuck) -$8.5 billion

Brands include:• Brand Name

• Brand Mark

• Trade Name

• Trade Character

• Trademark

Brand Name• Like the word implies, a brand name

is the word, group of words, letters, or numbers of a brand that can be SPOKEN.

• Since brand-name products are advertised EXTENSIVELY, they usually cost more than similar unbranded merchandise.

Diet Coke

Brand Mark• A brand mark is the part of the

brand that is a symbol, design, or distinctive coloring or lettering.

Examples: Disney’s castle, Target, UPS-brown, Delta’s red and blue triangle.

Brand Marks

Trade Name/Character• A trade name identifies the company or

division of a particular corporation. “Kelloggs”

• A trade character is a personified brand mark (given human form or characteristics) “Pillsbury Dough Boy, Jolly Green Giant, Kebler elves.”

I LOVE this guy!!!!

Trademark• A trademark is a brand name, brand mark,

trade character, or a combination of these that is given legal protection.

• When used, it is followed by a registered trademark symbol.

• Examples include Frito-Lay Doritos, Kellogg’s Rice Krispie Treats, and VISA.

• THEY CAN NOT BE USED BY COMPETITORS!

YUMMY!

Importance of Brands• Assures customers that the product will have a

consistent quality.

• Identifies the firm that manufactures the product.

• Addresses new target market (brand extension).

• New product lines introduction(familiar name).

• Helps establish an image for a product.

Types of Brands•National Brands

•Private Brands

•Generic Brands

National Brands• Also called “manufacturer brands.”

• Examples include Pepsi, Kellogg’s, IBM.

• National brands generate the majority of sales for most product categories: 70% of all food products, 65% of all appliances, 80% of all gasoline, and 100% of all automobiles are sold under national brands.

National brands not only identify a given product but also indicate a standard quality and price.

They appeal to people who want

CONSISTENT quality, dependable product performance, status, and who will NOT take risks with unknown products.

Private Brands• Owned and initiated by wholesalers and

retailers. • There is NOT a manufacture name on the

product.• They appeal to those who are price

conscience. • They carry higher gross margins for the

retailers.• Example; Craftman tools, Kenmore

Interesting…….A Gallup Poll found that nearly 80

percent of people who try a product with a store-brand label become repeat buyers.

Typically the store-brand buyer is a better-educated, affluent person who reads and understands the labels.

“Private Brand”Thomas E. Moore, Inc.

proudly introduces EVERFRESH Farms, our new label being used in conjunction

with our potato operation and

reserved for only the finest quality produce.

Private Brands

Hmmmmm….• Many consumers do study labels and

prices. The Gallup Poll indicates that 40 percent of shoppers shop selectively: They do not just choose the national brand, but compare products on a variety of dimensions (quality, price, and special offers). Nonetheless, nationally, only 2 or 3 percent of store-brand sales are generics.

Generic Brands• “no frills” products and do

not carry a brand name.• Found usually in grocery

stores/discount stores.

Generics• Unbranded

products are generally 30-50% lower than nationally advertised brands and 10-15% less than private.

Branding ExtensionThe way the companies use brands

to meet sales and company objectives.

• Brand Extensions

• Brand Licensing

• Co-branding

• Mixed Brands

Brand Extension• To use an existing brand name for a

new or improved product in the product line.

• Example: Nabisco extended its Fig Newton brand by adding Apple, Blueberry, Strawberry and Cranberry fig newtons.

• Companies reduce their costs and risk of failure (name recognition).

APPLE• WOW! Apple came out with iPod-

and what a GREAT extension to their product line!

Brand Licensing• Is the legal authorization by a trademarked

brand owner to allow another company (the licensee) to use its brand, brand mark, or trade character for a fee! (it is all about the money!)

• Licensing must be done carefully and should always parallel and support the core product’s market strategy.

The Red Zone sells Officially Licensed UGA Apparel UGA Merchandise. Gear up for the 2006 UGA

Football Season•

                 

             

                           

Co-Branding• Combines one or more brands to

increase customer loyalty and sales for each individual brand. HUH????

• An example may help here: The GM credit card put together GM and MasterCard.

GM MasterCard• What a GREAT idea!

• GM wanted to find a tool that would strengthen customer loyalty and provide prospective customers with a financial incentive to buy their next car or truck from GM.

• In 1993, the 2 teamed up and created this card with no annual fee.

I WANT ONE!!!!

More Incentives….• The GM card offers a 5% cash

rebate on each transaction toward the purchase of a new GM car/truck.

• After 1 month, how many NEW MC customers do you think they had???

• Anyone care to guess? Anyone?

Let’s see if you came close..

• How about 1 MILLION new MasterCard customers opened accounts….and

• 130,000 cardholders put their rebate earnings towards a new GM car purchase or lease.

• WOW! What do you think about these results?

Mixed Brands• Involves simultaneously offering a

combination of national, private, and generic brands.

• Example: Union Carbide (who?) produces and sells generic and national brands of garbage bags.

• Heard of GLAD BAGS?

Union Carbide• Glad bags is their national

brand. They are advertised as “superior to the thin, bargain bags!”

• Guess what?• They produce those thin

bargain bags also! They sell it as a generic brand!

• Ponder why and let’s discuss!

Useless Information Slide

• The Garbage Bag (invented 1950’s)The Garbage Bag (invented 1950’s)

• Inventor: Harry Wasylyk (can you Inventor: Harry Wasylyk (can you pronounce this name???)pronounce this name???)

• Every garbage day, millions of metal Every garbage day, millions of metal garbage cans would make a huge clatter garbage cans would make a huge clatter as the bins were emptied and thrown back as the bins were emptied and thrown back down. Harry wanted to come up with a down. Harry wanted to come up with a solution to this irritation.solution to this irritation.

• Harry, after the Second World War, began experimenting with a new material called polyethylene. Harry made his first plastic bags in his kitchen and supplied them to the Winnipeg General Hospital to line their garbage cans.

• Larry Hanson, an employee at Lindsay, Ontario's Union Carbide plant began to make garbage bags to use around the plant. Union Carbide knew a great idea when it saw one. The company bought Wasylyk's business and began producing the garbage bags from the leftover polyethylene resin piling up at its Montréal plant

NOW YOU KNOW!!!!