Branding, Packaging and Labeling

Branding, Packaging and Labeling

Chapter 31.1Chapter 31.1

BrandBrand

A name, term, design, symbol, or combination of these elements that identifies a product or service and distinguishes it from its competitors

Can be used to identify one product, a family of related products, or all products of a company

A name, term, design, symbol, or combination of these elements that identifies a product or service and distinguishes it from its competitors

Can be used to identify one product, a family of related products, or all products of a company

Elements of BrandingElements of Branding

Developed to target customers’ needs and preferences and include elements such as: Brand Names Trade Names Brand Marks Trade Characters Trademarks

Developed to target customers’ needs and preferences and include elements such as: Brand Names Trade Names Brand Marks Trade Characters Trademarks

Brand NameBrand Name

Also called a product brand Is a word, group of words, letters,

or numbers that represent a product or service

Should be easily pronounced, distinctive, and recognizable

Also called a product brand Is a word, group of words, letters,

or numbers that represent a product or service

Should be easily pronounced, distinctive, and recognizable

Brand Name ExamplesBrand Name Examples

PT Cruiser Pepsi Barbie Pop-Tarts Big Mac

PT Cruiser Pepsi Barbie Pop-Tarts Big Mac

Trade NameTrade Name

Corporate brand Identifies and promotes a company

or a division of a particular corporation

The legal name that a company uses when it does business and is used to promote a positive image of the organization such as quality, value and reliability

Corporate brand Identifies and promotes a company

or a division of a particular corporation

The legal name that a company uses when it does business and is used to promote a positive image of the organization such as quality, value and reliability

Trade Name ExamplesTrade Name Examples

Proctor and Gamble Dell Disney Kellogg’s Nike Yahoo!

Proctor and Gamble Dell Disney Kellogg’s Nike Yahoo!

Brand MarkBrand Mark

Many brands incorporate a unique symbol, coloring, lettering, or other design elements

Recognizable visually and does not need to be pronounced

Examples include: US Postal Service’s Eagle Apple Computer’s Apple

Many brands incorporate a unique symbol, coloring, lettering, or other design elements

Recognizable visually and does not need to be pronounced

Examples include: US Postal Service’s Eagle Apple Computer’s Apple

Trade CharactersTrade Characters

A specific type of brand mark, one with human form or characteristics

Examples include: Green Giant’s Jolly Green Giant Pillsbury Doughboy Keebler Elves

A specific type of brand mark, one with human form or characteristics

Examples include: Green Giant’s Jolly Green Giant Pillsbury Doughboy Keebler Elves

TrademarkTrademark

A word, name, symbol, device or a combination of these elements that is given legal protection by the federal government

Used to prevent other companies from using a similar element that might be confused with the trademarked one

A word, name, symbol, device or a combination of these elements that is given legal protection by the federal government

Used to prevent other companies from using a similar element that might be confused with the trademarked one

Trademark ExamplesTrademark Examples

McDonald’s Golden Arches Peacock for NBC

No other company can use these symbols

The US Patent and Trademark Office grants trademark rights. Disputes regarding trademarks are settled in federal courts

McDonald’s Golden Arches Peacock for NBC

No other company can use these symbols

The US Patent and Trademark Office grants trademark rights. Disputes regarding trademarks are settled in federal courts

Trademark ExtensionsTrademark Extensions

Companies may want to extend trademark branding of products and services to include additional elements of sound, color, and smell

Boston Duck Tours received a sound trademark for the sound of a human voice making ducklike quacking noises

Companies may want to extend trademark branding of products and services to include additional elements of sound, color, and smell

Boston Duck Tours received a sound trademark for the sound of a human voice making ducklike quacking noises

Registered Trademark Symbol

Registered Trademark Symbol

Trademarks are followed by a registered trademark symbol

When brand names, brand marks, trade characters, and other elements of branding are registered as trademarks, they cannot be used or misused by other companies

Trademarks are followed by a registered trademark symbol

When brand names, brand marks, trade characters, and other elements of branding are registered as trademarks, they cannot be used or misused by other companies

Importance of Brands in Product Planning

Importance of Brands in Product Planning

Branding establishes an image for a product or company and projects that image to its customers and the marketplace

Is important to Build product recognition and

customer loyalty To ensure quality and consistency To capitalize on brand exposure

Branding establishes an image for a product or company and projects that image to its customers and the marketplace

Is important to Build product recognition and

customer loyalty To ensure quality and consistency To capitalize on brand exposure

Generating Brand NamesGenerating Brand Names

75% of all companies introduce a new product name every year

Companies can use computer programs to generate a name

Branding agencies, naming consultants or public relation firms can generate and check availability as well

75% of all companies introduce a new product name every year

Companies can use computer programs to generate a name

Branding agencies, naming consultants or public relation firms can generate and check availability as well

Types of BrandsTypes of Brands

Wholesalers and retailers also brand their products

Three types of classifications National Brand Private Distributor Brands Generic Brands

Wholesalers and retailers also brand their products

Three types of classifications National Brand Private Distributor Brands Generic Brands

National BrandsNational Brands Owned and initiated by national

manufacturers or by companies that provide services

Generate the majority of sales - 70% of all food products, 65% of all appliances, 80% of all gasoline and 100% of all automobiles

Examples: Hershey Foods Whirlpool Ford

Owned and initiated by national manufacturers or by companies that provide services

Generate the majority of sales - 70% of all food products, 65% of all appliances, 80% of all gasoline and 100% of all automobiles

Examples: Hershey Foods Whirlpool Ford

Private Distributor BrandsPrivate Distributor Brands

Also called private brands, store brands, dealer brands or private label

Developed and owned by wholesalers and retailers

Examples include: Radio Shack Wal-Mart’s George Kohl’s Villager

Also called private brands, store brands, dealer brands or private label

Developed and owned by wholesalers and retailers

Examples include: Radio Shack Wal-Mart’s George Kohl’s Villager

Generic BrandsGeneric Brands

Products that do not carry a company identity

Packaging usually features a description of the product

Generally sold in supermarkets Priced 30-50% lower than National

Brands and 10-15% lower than Private Brands

Products that do not carry a company identity

Packaging usually features a description of the product

Generally sold in supermarkets Priced 30-50% lower than National

Brands and 10-15% lower than Private Brands

Branding StrategiesBranding Strategies

Brand Extensions Uses an existing brand name to promote a

new or improved product Example: Ocean Spray extended its Cranberry

Juice line by adding flavors such as CranApple

Brand Licensing Allowing another company to use their brand,

brand mark, or trade character for a fee Example: The NFL has licensing arrangements

with Pepsi and Visa

Brand Extensions Uses an existing brand name to promote a

new or improved product Example: Ocean Spray extended its Cranberry

Juice line by adding flavors such as CranApple

Brand Licensing Allowing another company to use their brand,

brand mark, or trade character for a fee Example: The NFL has licensing arrangements

with Pepsi and Visa

Mixed Branding Combination of manufacturer, private

and generic brands Example: Michelin makes tires for its

own brand and tires for sale at Sears under the Sears name

Co-Branding Combines one or more brands in the

manufacture of a product or in the delivery of a service

Example: Kellogg’s Pop-Tarts with Smucker’s fruit filling

Mixed Branding Combination of manufacturer, private

and generic brands Example: Michelin makes tires for its

own brand and tires for sale at Sears under the Sears name

Co-Branding Combines one or more brands in the

manufacture of a product or in the delivery of a service

Example: Kellogg’s Pop-Tarts with Smucker’s fruit filling

ReviewReview

1. What is the difference between a brand name and a trade name?

2. List the three types of brands3. What are the different types of

branding strategies?

1. What is the difference between a brand name and a trade name?

2. List the three types of brands3. What are the different types of

branding strategies?

AssignmentAssignment

Carefully read pages 660-667 You will be responsible for the

information in this section so make sure you really read it!

Answer questions 1-3 on page 667 Complete 14-27 of the Chapter

Review on page 669

Carefully read pages 660-667 You will be responsible for the

information in this section so make sure you really read it!

Answer questions 1-3 on page 667 Complete 14-27 of the Chapter

Review on page 669