Branding, packaging & labelling 6

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Branding, Packaging & Labelling

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12Chapter

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American Marketing Association defined brand as “a name, term, sign,

symbol, or design, or a combination of them, intended to identify the

goods and services of one seller or group of sellers and to differentiate

them from those of competition.”

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A brand mark refers to that part of brand which is not made up of words, but

can be a symbol or design such as swoosh mark of Nike, or Golden Arches of

McDonald’s. A trademark is a legal registration indicating the owner’s exclusive

right to use a brand or some part of brand. A trade name is the full and legal

name of a firm, such as Maruti Udyog Ltd., and not the specific name of a

product.

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Brand Identity“A unique set of brand associations that the brand strategist aspires to create or

maintain. These associations represent what the brand stands for and imply a

promise to customers from the organisation members.” Brand identity and brand

image are sometimes used interchangeably in different texts. Brand identity

refers to an insider’s concept reflecting brand manager’s decisions of what the

brand is all about. Brand image reflects the perceptions of outsiders, that is

customers, about the brand.

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According to Jean-Noel Kepferer, a brand is complex symbol and capable of

conveying up to six dimensions or meanings:

Physique

Personality

Culture

Relationship

Reflection

Self-Image

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Brand Equity

Kevin Lane Keller defines brand equity:

“Brand equity is defined in terms of marketing effects uniquely attributed to

the brands – for example, when certain outcomes result from the marketing

of a product or service because of its brand name that would not occur if the

same product or service did not have the name.”

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Components of Brand Equity

Brand name awareness

Brand loyalty

Perceivedquality

Brand associations

Brand Equity

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Walfried Lasser. Banwari Mittal, and Arun Sharma identified five dimensions

of customer-based brand equity:

Performance

Social image

Value

Trustworthiness

Identification

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Brand ImageBrand image is the key concept intervening between the brand and its equity.

It is the driver of brand equity.

Types of brand associations can be hard and soft and brand sub-images

consist of three elements:

image of provider,

image of product, and

image of user.

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Brand image management requires determining brand concept. This concept

embodies the central meaning of the brand that the company chooses and is

derived from basic consumer needs. The more strongly the brand satisfies

these needs, the more differentiated and strong the brand image customers

carry. These needs can be put under three broad groups.

Functional needs

Symbolic needs

Experiential needs

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Types of Brand

There are several brand options that include manufacturer brand (also called

national brand), private brand (also called distributor, reseller, store, or house

brand), or a licensed brand.

Manufacturer brands are initiated by manufacturers and identify the producer.

Private brands is that they are resellers initiated brands.

Licensed brand is a relatively new trend and involves licensing of trademarks.

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Brand Name SelectionCompanies have four strategic options in choosing a brand name:

Company Name

Individual Names

Separate Brand Family Names

Combination of Company Name and Product Name

Desirable Qualities of Brand Names

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Branding StrategiesDifferent companies adopt different strategies, and since there is no best

strategy for all types of products, a company may adopt different branding

strategies across its product mix.

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Product Branding StrategyThis strategy focuses on promoting the brand exclusively so that it reflects

its own personality, identity, associations, and image. The brand does not

take on company associations and any benefits from its name.

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Line Branding StrategyThe term ‘line branding’ is altogether different than what product line refers to

in the context of product mix. In line branding, products share a common

concept. Line brands start with a single product conveying a concept and

later the brand name extends to other complementary products.

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Range Branding StrategyThis strategy seems to resemble line branding but is significantly different. It is also called brand extension. Product categories are different but brand name is the same, such as carrying the brand name Maggi is a range of different products: noodles, sauce, soup, Dosa mixes, etc.

In case of range branding, it is not the product concept but “the area of expertise.” This strategy permits expanding into products that do not complement each other.

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Umbrella Branding StrategyThe approach is driven by economic considerations. The company name itself is the brand name for all products across diverse categories. Investment in building one brand proves far more economical than investing in building several brands.

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Double Branding StrategyThis approach combines umbrella branding and product branding. Along

with the product brand name, the company name is associated to create

double branding, such as Tata Indica and, Bajaj Pulsar.

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Endorsement Branding StrategyThis is a minor variation of double branding strategy. The product brand name

gains a dominant position, while the company name merits a lower profile.

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Factors Influencing Branding Strategies Market Size

Competitive Situation

Company Resources

Product Newness

Innovativeness and Technology

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Packaging & LabellingPackaging includes all activities that focus on the development of a container

and a graphic design for a product. A package may have three levels; the

primary package is the container of the product such as a bottle, jar, or tube,

the secondary package is the box of cardboard or some other material

containing the primary package; and the last is shipping package that

contains more units of secondary package.

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LabellingA label may be a part of package or it may be a tag attached to the product.

The labels perform a descriptive function relating to a product’s source, its

contents, important features and benefits, use instructions, cautions or

warnings, storage instructions, batch number, date of manufacture, and date of

expiry.

Branding, packaging & labelling 6

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