#8B Branding & Packaging Ch.9

7/30/2019 #8B Branding & Packaging Ch.9

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Branding & Packaging

Chapter 9(p.348)


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Branding

Name, term, sign,

symbol or design or a

combination intendedto identify goods or

services of a seller or

group to differentiate

them from

competitors

Battle of the brands


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Branding

Gives personality

Helps find productswith desired benefits

Aids repeat purchase

Suggests quality ofproduct

Basis of product story

Gives legal protection Helps in segmenting

markets

Symbol of ongoing

promise

Buyers viewpoint Sellers viewpoint


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Brand Equity p.348

High consumer brandawareness

Brand loyalty

Leverage bargainingwith resellers

Aids launch of line

and brand extensions

Defence againstfierce price

competition

THE major enduring

asset

Set of loyal customers

Customer equity Customer lifetime value


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Branding Terms

Co-brands (p. 354):2 established brand names on the same

package of product- Pillsbury and Nabisco creating PillsburyOreo bars; Sony & Ericsson cell phones; Heineken Beer &Pert Shampoo; Tim Horton & Esso; Baskin-Robbins & DunkinDonuts; Pizza Hut & KFC; Swifter & Febreeze; HomeHardware & Harveys.

Brand equity (p. 348): a products increased value due to itsreputation.


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Ghost Brands - Retromarketing

Examples include Brim; Underalls; Eagle Snackfoods; Salon Selections; Nuprin (sold at CVS); Coleco (agame maker); White Cloud (toilet tissue). All that exist are positive memories, which are cheaper torevive than starting brand new. Most of these fell victim to brand portfolio consolidation when parent firmswere merged with another player. White Cloud was owned by P&G then made exclusively for Wal-Mart.

Reference source = New York Times Magazine May 18 2008 P.47-51

[Traditional remarketing is done by original firm, retro is done by a new firm]


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Major Branding Decisions

To brand ornot to brand

Brand No brand

Brand nameselection

Brand sponsor

Brand strategy

Brandrepositioning

Selection Protection

Manufacturers brand Private brand Licensed brand Co-branding

New brands Line extensions Brand extensions

Multibrands

Brand repositioning No brand repositioning


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Major Brand Strategy Decisions

Brand equity:

Positive differential effect that knowing the brand name has

on customer response to the product or service

Value of the brand based on awareness, recognition, loyalty

Major enduring asset of a company; outlasts products,

facilities Used for line and brand extension strategies

Brand positioning:

Levels: product attributes, desirable benefits, beliefs and

values Figure 10.3
http://www.eharlequin.com/


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Determinants for Brand Naming

2. Status: Facial Royale

Fancy Feast

Presidents Choice

3. Perceivedvalue:

True Value

hardware

Budget Thrifty

Discount

Enterprise

1. Psychological:

Chevrolet Malibu

CK Obsession


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Family Brands

The use of the same brand for several products bythe same company (Beaumark or Sears - Kenmoreappliances)

Pros:

Cost of advertising may decrease marginally May induce dealer to carry full line

Easier to introduce a new product

Cons: If only one product is disliked by consumer, this may carry

over onto entire line. Cannibalization; (ie Pepsi One vrs Diet Pepsi)

Stereotyping in terms of price ranges and client types.


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Individual Brands

Are recommended when:

Contents between product lines are completely

different (can openers, light bulbs, stereos, etc.)

Products require different promotional campaigns New product failure risks are high; only brand's

reputation is damaged.


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Fighting Brands

Brands designed to

compete with each

other in order to

stimulate the overall

market and shut out

competition.

Example:

Tide vs. Cheer (P&G) Chevrolet vs. Buick (GM)


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National (Manufactured) Brands vs. Private

(Store, or Dealer) Brands (p.351)

National brands:

advantages to the dealer:

ready made market

intangible prestige (Maytag)

avoids quality problems

less inventory, higher turnover

co-op advertising allowances

disadvantages to the dealer:

lower gross margins

manufacturing maintains distributorship control

brand loyalty may be stronger than dealer loyalty


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National (Manufactured) Brands vs. Private

(Store, or Dealer) Brands (p. 351)

Private brands:(Microbyte store brand; Presidents Choice) advantages to the dealer:

bigger profit margins

better price flexibility

better shelf positioning and promotional support

not tied to any one supplier

dealer brands give the retailer, not the manufacturer, a claim tocustomer loyalty

disadvantages to the dealer:

must stimulate your own demand

responsible for quality and service

bulk purchasing ( higher inventory & carrying risks) ie Sears Kenmore


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Four Brand Strategies ( fig 9.4 p. 354)

Lineextension

New brands

Brandextension

Multi-brands

Existing

New

Existing NewProduct Category

BrandN

ame


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Brands

Multi-Brand (Flanker): Ralston Purina Dog Chow' vs. Butchers Blend Dry dog food

IBM vs. Ambra

GM vs. Saturn

Line extension: cherry Coke

Ragu's new sauce

Brand extension: Nautilus sports clothes

Disney

Donald Trump line of clothes; golf Resorts; Condos; etc


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Packaging:Developing a Good Package

The 5th P

Primary container

Secondary package

Shipping package

Labelling

Contains and protects

product As a marketing tool

Reinforce positioning

Competitive advantage

Packaging concept

Product safety

Green packaging


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Factors in Package Design

1. Environmental & resource considerations:

- litter, the use of recycled material ie cotton shopping bags

2. Financial & cost factors:

- Pringles, perfume bottle.

3. Government regulations:

- bilingual labeling; content listing by volume; unit pricing; 'mouseprint'; childproof bottles; 'best before' dating; metric sizing.

4. Consumer behaviour & market strategy factors:

- Wondra bottle upside down


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Questions to consider

The Brand is much more important than the product itself. Comment

What is Brand Equity?

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#8B Branding & Packaging Ch.9

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