Journal

Why do you brand products? Why not just call it the product name…pancakes…not Bisquick?

Chapter 31

Branding, Packaging, and Labeling

What is a brand?

� Brand: a name, term, design, or symbol (or a combination of them) that identifies a business or organization and its productsand its products

� Two types of brands: 1. Corporate Brands: Coca-Cola,

McDonald’s, PepsiCo, Mattel2. Product Brands: Pepsi, Coke, Barbie, Big

Mac, Whopper

Branding Terms

� Brand Name: word, group of words, letters, or numbers representing a representing a product that can be spoken.

� E.g. PT Cruiser, Mountain Dew, Snackwells, Nike.

Branding Terms

� Brand Mark: the part of the brand that is a symbol or design.Usually not spoken� Usually not spoken

� E.g. Nike’s swoosh, Apple computers apple,

Branding Terms

� Trade Name: identifies the company or a division of a particular corporation. Legal name a company uses when it does business. (e.g. Dell, Kellogg’s)Kellogg’s)

� Trade Character: a brand mark with human form or characteristics. (e.g. Bird’s Eye Jolly Green Giant, Kellogg's Tony the Tiger, Pillsbury Doughboy)

� Trademark: a brand name, brand mark, trade name, or trade character, or a combination of these that is given legal protection by the federal government.

Why are brands important?� Helps build customer loyalty (remember a

brand name and make repeat purchases� Assures customers of consistent quality =

reduced risk� Identifies the firm that manufacturers the

product� Helps address new target markets

– Customers are more willing to try a new product if they trust the brand

� Helps to establish an image for product or company.

Assignment…

� Ben & Jerry’s Project– Guidelines– Rubric & Assignment– Rubric & Assignment– Samples– Sample 2 Red Bird

3 Types of Brands

� Manufacturer Brands: also called producer brands; brands owned and initiated by manufacturers. (Kraft macaroni and cheese, Whirlpool appliances)Private Distributor Brands: brands owned and � Private Distributor Brands: brands owned and initiated by wholesalers and retailers (e.g. Targets Xhiliration line of clothes, Sears Kenmore appliances

� Generic Brands: brands that represent a general product category and do not carry a company or brand name. (usually just state “pancake mix”, or “paper towels”)

BRANDING STRATEGIES

� 4 types:� Brand Extension� Brand Licensing� Brand Licensing� Co-Branding� Mix Branding

Co-branding efforts have resulted in the Solae (soy products) label being placed on such popular items such as Snapple-A-Day and V8 Splash Smoothies.

Oreo Label on Jello pudding

BRAND EXTENSION� Uses existing brand name

for new or improved product in the product line.

� Ex: Nabisco extended to add different flavors to Fig Pampers Pocket Bibstersadd different flavors to Fig Newtons

� Problem is that risk brand dilution: original brand loses strength because it has been stretched too much too encompass different products.

Pampers Pocket Bibsters

Strawberry Fig Newtons

BRAND LICENSING

� When the brand owner legally allows another company to use it’s trade character, brand, or brand mark for a fee (called royalty).

� This is done to enhance the image of a company � This is done to enhance the image of a company and sell more of their core products.

� E.g. McDonald’s paid $75 million to associate Happy Meals with the 2000 movie Dinosaurs

CO- BRANDING

� Combines one or more brands to increase customer loyalty and sales for each individual brand.brand.

� Ex: GM and MasterCard joined to develop credit card without annual fee; Pop Tarts only use Smuckers Fruit Filling

� See Pepsi/Yahoo Case study

MIXED BRANDS

� Simultaneously offering a combination of national, private, and generic brands

� E.g. Michelin manufacturers tires for Sears with the Sears brand name as well as with the Sears brand name as well as under the Michelin brand name

� Allows business to reach different target markets, maintain brand loyalty, and increase overall product mix.

What makes a package a What makes a package a What makes a package a What makes a package a What makes a package a What makes a package a What makes a package a What makes a package a package?package?package?package?package?package?package?package?

Look at the packages below…what do you think about the packages? What is your

favorite package? What is your least favorite package? Why or why not?

ObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectivesObjectives

�� Describe the functions of packagingDescribe the functions of packaging�� Analyze what product information that Analyze what product information that

packaging providespackaging providespackaging providespackaging provides�� Locate a new product with new Locate a new product with new

packaging and describe the marketing packaging and describe the marketing concept behind the packagingconcept behind the packaging

PACKAGING

� Physical container or wrapping for a product.10 percent of � 10 percent of product’s retail price is spent on package development, design.

List examples of packages that…

� Create a low product image

� Discount merchandise imagemerchandise image

� High End merchandise image

� Prestige Product image

FUNCTIONS OF PACKAGING

� Promoting and selling the product� Defining product identity� Providing information� Providing information� Meeting customer needs� Ensuring safe use� Protecting the product

PROMOTING and SELLING THE PRODUCT

� Customer reaction to a products packaging determines the success or failure of a product Need to be well-designed packages, � Need to be well-designed packages, attractive, colorful, and artistic.

� Better packages help create new sales and minimize possible losses– Yoplait Yogurt—upside down design

DEFINING PRODUCT IDENTITY

� Used to invoke prestige and status in eyes of consumer.

� Very crucial advertising component� Very crucial advertising component� E.g. Dominos Pizza Box

PROVIDING INFORMATION

� Package provides information for customer

� Nutritional value, � Nutritional value, directions, and potential hazards

� Universal product code placed on products to assist with inventory control and management.

Directions

Bake cookies at 350 degrees for 12-14 minutes or until golden brown.

MEETING CUSTOMER NEEDS

� Product come in various sizes to suit different people

� Family packs, lunch containers� E.g. Coke comes in six packs or cases.� Must keep up with changing lifestyle.

ENSURING SAFE USE

� Can improve product safety for customer.

� Ex: many packages that used to be in glass that used to be in glass now come in plastic, cosmetics come in tamper-resistant packages, and child-proof containers.

PROTECTING THE PRODUCT

� Package must protect product from harm during shipping and handling. Also food from spoiling.Basic materials are wood, glass, plastic, � Basic materials are wood, glass, plastic, and metal. For food, cans, boxes, and jars.

Creative ThinkingCreative Thinking

�� 1. What else can it be used 1. What else can it be used for? (W/out any changes)for? (W/out any changes)

�� 2. What could be used 2. What could be used instead? What else is like instead? What else is like this?this?this?this?

�� 3. How can it be modified 3. How can it be modified for a new use?for a new use?

�� 4. What if it were larger 4. What if it were larger (thicker, heavier, stronger)?(thicker, heavier, stronger)?

�� 5. What if is were smaller 5. What if is were smaller

�� ( thinner, lighter, shorter)?( thinner, lighter, shorter)?

PACKAGING ISSUES

� Environmental Packaging: recent polls show most Americans prefer less harmful packages. Companies make harmful packages. Companies make recyclable and reusable packages.– Can recycle most plastic containers

� Cause Packaging: companies use packages to promote social and political causes.– Ben and Jerry’s promotes saving the rainforests.

LABELING

� Information tag, wrapper, seal, or imprinted message that is attached to a product.Informs customer of contents and � Informs customer of contents and directions for use.

� Protects business from legal liability� contain brand name, logo, ingredients,

promotional messages.

LABELING LAWS

� Federal nutrition labeling and education act

� Passed in 1994.� Passed in 1994.� Protects consumers from deceptive

labeling� Regulates use of terms such as light, fat

free, low, and reduced.– Must put warnings on Alcohol for pregnant women and cigarettes

for cancer.

Labeling

� Federal trade commission labeling rules and guidelines.

� Care labels must be placed in textile clothingclothing

� Ensures that specific detailed information about the care of garments related to washing, ironing, and cleaning directions.– If put the term recycled content must show proof of it. Same with

the use of terms such as ozone safe, degradable,and biodegradable.

Packaging Types� Skin packaging-

plastic film mounted tightly over product & mounted on a card. Visible, clean,

� Aerosol/ pump dispenser- releases its contents when value is pressed (Hairspray)card. Visible, clean,

card gives rigidity (napkins, knee highs)

� Blister - plastic bubble placed over card (lightbulbs)

(Hairspray)� Flexible pouch-

formed from plastic film that is filled with product and sealed with heat (Nutrigrain bar, cereal)

Package Types

� Shrink wrap- made by placing clear film around the product itself. It fits the contour

� Aseptic packaging-keeps germs out of food that needs no refrigeration. (Velveeta)itself. It fits the contour

of the product� Multipack- Special

package design that groups two or more products into a unit for easier display, carrying, or convenience

refrigeration. (Velveeta)� Dispensing closure-

cap or lid in which contents can be dispensed in controlled manner (lotion)

Designing the package

� Promotes product acceptance� Promotes a company and image� Gives old product new imageGives old product new image� Preserves product� Helps customers use old products

better� New uses for products� Reduces costs

– Increases sales & profits

Reese’s PB CUPReese’s PB CUP

�� Reese’s would like to Reese’s would like to increase the sales increase the sales during Valentine’s during Valentine’s DayDay

�� Brainstorm 5 ways to Brainstorm 5 ways to �� Brainstorm 5 ways to Brainstorm 5 ways to enter the Valentine’s enter the Valentine’s MarketMarket

�� Create a Valentine’s Create a Valentine’s Day Slogan and Day Slogan and messagemessage