4. Introduction
• Branding and packaging are two of the most important
components of marketing. Branding is a term used to
describe the name, description and design of a product.
Branding differentiates a company's product from their
competition.
• Packing is a marketing tool used to reflect the brand. A
company uses packaging to sell the product inside. The
colors, fonts, descriptions and logo are designed to drive
consumers to buy the product.
7. What is a brand ?
A traditional scenario of market
Company A
Consumer
Product / services
• In a traditional market scenario, the company is catering to
the consumer.
• The number of competitors are small.
• In these markets the companies can come with advanced
technologies and other strategies to capture more market
share.
• (The size and power of the players is important.)
Company B
Company C
8. What is a brand ?
Company A
Consumer
Product / services
• In complex markets, the differences between
companies are not much.
• The companies can not differentiate much
themselves from others on the basis of quality and
technology etc. factors as all the companies are
competent enough.
• This scenario explains the need for the
differentiation for the companies.
Company B
Company C
9. What is a brand
Branding is an effort to give a unique identity to
the company’s products and create emotional
associations with consumers. It is a form of
marketing.
A brand is a set of associations that are linked to a
product range, a division, or company. These
associations reside in the memory of customers.
These associations help customers understand
• what the brand or company is,
• why it is potentially relevant to them,
• how it is different or similar to other products
made by the company,
• how it is similar or different from competitor’s
products.
10. What is a brand ?
Branding is a combined effort of the company
which is projected to the consumer.
Company
Brand
Consumer
Marketing
Design
11. What is a brand
What a brand means to common person ?
In 'blind' taste tests, people prefer the taste of Pepsi
over the taste of Coke. However, if the test is not
'blind' and the tasters know which beverage is
which, they prefer the taste of Coke over Pepsi!
That is the emotional power of a brand. The Coca-
Cola brand has the power to actually change an
individual's taste!
Coca-cola is the no.1 brand in the world.
The first shape that was registered is the coca cola
bottle.
12. (1) Products and services have become so alike that
they fail to distinguish themselves by their quality,
efficacy, reliability, assurance and care. Brands add
emotion and trust to these products and services,
thus providing clues that simplify consumers’ choice.
(2) These added emotions and trust help create a
relationship between brands and consumers, which
ensures consumers’ loyalty to the brands.
(3) Brands create aspirational lifestyles based on
these consumer relationships. Associating oneself
with a brand transfers these lifestyles onto
consumers.
What is a brand ?
13. (4) The branded lifestyles extol values over and
above the brands’ product or service category that
allow the brands to be extended into other product
and service categories. Thus saving companies the
trouble and costs of developing new brands, while
entering new lucrative markets.
(5) The combination of emotions, relationships,
lifestyles and values allows brand owners to charge a
price premium for their products and services, which
otherwise are barely distinguishable from generics.
What is a brand ?
14. Company
Product A
Product B
Product Packaging
Websites
Advertisements
A brand is a promise. A promise to achieve certain
results, deliver a certain experience, or act in a
certain way. A promise that is conveyed by
everything people see, hear, touch, taste or smell
about your business.
logo
Integrity of Brand
15. Branding
• Brand – a name, term, design, symbol, or other feature that
identifies a seller’s products and differentiates them from
competitors’ products.
• Brand name – part spoken, including letters, words, and
numbers
• Brand mark – part not made up of words, such as a symbol
or design
• Trademark – legal designation of exclusive use of a brand
• Trade name – full legal name of organization
16. Value of Branding – Buyer
• Identify specific products
• Form of self-expression
• Evaluate product
• Reduce perceived risk of purchase
• Status
17. Value Of Branding – Seller
• Identify product
• Aids in new product introduction
• Facilitates promotion
• Fosters brand loyalty
• Cultural branding
18. Brand Loyalty
A customer’s favorable attitude toward a specific brand.
• Recognition – aware brand exists and is alternative if
preferred brand unavailable
• Preference – preferred over competitive offerings
• Insistence – strongly preferred, no substitute
21. Differentiating features of brands
• How purchased/used/experienced.
cg products are traditionally dependent on wide distribution
networks. However, through the use of e-commerce many
have started to sell direct to consumers.
• Frequency of purchase/use/experience.
cg products are bought much more frequently, as the name
suggests, than big ticket items.
22. Differentiating features of brands
• Amount of thought/research/comparison typically undertaken
prior to purchase/experience.
The consumer decision process will vary according to how
much risk they perceive in buying a product or service – the
risk will depend on price, quality variance, trust in the brand
and other factors.
• Degree of customization available.
The intangibility of services makes them much more suited
to customization than cg products, which offer a wide variety
but little customization.
23. All brands have one goal
– to enhance their perceived value.
24. Different types of brands
• Product Brands
• Service Brands
• E-brands
• Media Brands
• Not-for-profit Brands
• Nation Brands
• Government Brands
• Global Brands
• Organization Brands
25. Product brands: FMCG
• Characteristics:
• Cost Inexpensive.
• Balance of product to service
• Almost exclusively tangible product, although service
component can be present (eg, customer-care lines).
• How purchased
• Mainly through conventional fmcg distribution networks –
supermarkets, other shops, vending machines, relatively large
volume outlets.
26. Product brands (FMCG: cont.)
• Frequency of purchase : Frequent.
• Degree of research/thought/search prior to purchase
• Typically none, the brand is part of the consumer
repertoire, likely to be habitual.
• Degree of customization
• Very little. Often wide range of variants but no real
customization for individual customers.
27. Product brands (Big Ticket Items)
Characteristics:
• Cost Expensive.
• Balance of product to service
• Service is likely to take on a more important role, before,
during and after purchase.
28. Product brands (Big Ticket Items)
How purchased
• Traditionally through specialized outlets
• (luxury = high status outlets) but increasingly more widely
distributed. Frequency of purchase Infrequent.
• Degree of research on purchase
• A great deal of thought, research and comparison goes
into the decision, although with luxury goods, investment
is more
• emotional than financial.
• Degree of customization Can be considerable.
29. Service brands
• Service brands are characterized by the need to maintain a
consistently high level o service delivery throughout
hundreds, or even thousands of staff.
• Although a product component may be involved, it is
essentially the service that is the brand.
• These are more complex than product brands for two
reasons:
• because it is always harder to brand something you can’t
touch
• because they are delivered directly by employees.
30. Service Brands
Characteristics:
• Intangibility
• Service brands can seldom be tried out in advance, which
requires the establishment of a greater degree of trust.
• Inseparability of production and consumption
• Services cannot generally be stockpiled in advance but are
produced and consumed in real time.
• Inconsistency
• Since humans are usually instrumental in delivering
services.
31. Categories of service brands:
• Classic service brands eg, airlines, hotels, car rentals and banks.
• Pure service providers eg, member associations
• Professional Service Brands eg, advisors of all kinds – accountancy,
management consultancy.
• Agents eg, travel agents and estate agents.
• Retail brands
• eg, supermarkets, fashion stores and restaurants.
• Retail Brands are complex and multifaceted.
• Consumers have a much more involved and interactive experience
with retail brands. The meanings of retail brands are more heavily
• derived from consumer’s direct experience rather than from
advertising.
32. Brands from other spheres
• E-brands
• The Internet is a medium that presents new challenges for brand
owners, but the underlying principles of branding are unchanged.
• The Internet is developing a more direct style of relationships
between customers and brand owners, and all those interactions
• give an opportunity for strengthening thebrand identity.
• A distinction needs to be made between ‘e-tailers’,
• - e-brands’ primary activity is to deliver physical products like
Amazon.com
• - e-brands focus on delivering a service or experience, like
GTA.com
• In both cases, however, it is the intangibles, the brand values that
will attract online customers.
33. • eg, newspapers, magazines, television channels.
• Not-for-profit organization brands
• Non-profits are often at a disadvantage when it comes to
branding.
• they don’t have the deep pockets of corporations who can
afford to hire brand specialists
• they don’t have staff whose job it is to protect the integrity
of the brand, and promote it at every turn.
• But successful branding can have a great effect on raising
awareness of the charity and its mission, and on fund-
raising
Media brands
34. • Nation brands
• New ways of thinking lead to countries being
positioned as tourist destinations, enhancing status of
goods and services produced, and aiding under-
developed countries.
• Government brands
• Governments and political parties often have strong
brands as they are centerd on passionately held core
values, Branding is important in both securing votes
and in international diplomacy.
• Global brands
• Companies have been marketing their products and
brands in different countries for decades. However
they were almost always marketed according to local
conditions.
35. Features of Global Brands
• Strong in home market – cash flow generated from domestic
market enables the company to fund a global roll-out
• At least minimum level of awareness, recognition and sales
all over the world
• The products meet the same human needs world-wide,
even though the physical product may be adapted locally
(eg, McDonald’s).
• Consistent positioning
• Consumers value the provenance of the brand, its country
of origin, and even associate the country’s expertise with
specific products (eg, German cars, American jeans).
• Focus on a specific product category
• Use single corporate brand name.
36. Act local, think global
“While there are global brands that have a
global presence, they don’t have global
consumers. The brand’s core values can be
global, although the brand needs to have local
relevance. To bring it to life you need to be
flexible and re-enact the brand as appropriate.
It is the think global, act local strategy.”
[Gavin Emsden, Nestle UK’s head of consumer
insight and planning for beverages]
37. Standardize or localize?
Several other factors may affect the decision:
• regulatory environments vary from country to
country, especially in pharmaceuticals, financial
services and utilities.
• the Internet allows adoption of a standardized
global strategy without investing in distribution
systems in each country.
• the threat of parallel imports from low-price to high-
price countries.
38. Organization brands
• What is an organization brand?
• It is neither a product/service nor a corporate brand, it is
wider than both.
• It relates to all stakeholders and in many cases is rarely
advertised.
• The organization brand represents the impression that
people inside and outside the organization have.
40. Packaging and Labeling
• A package is the physical container or wrapping for a
product. Developing a product’s package is an integral
part of product planning and promotion because the
package is a selling tool.
Objectives
• Explain the functions of product packaging
• Identify the functions of labels
41. Functions of Packaging
Packaging fulfills several functions, including:
• Promoting and selling the product
• Defining product identity
• Providing information
• Expressing benefits and features
• Ensuring safe use
• Protecting the product
42. Functions of Packaging
Attractive, colorful, and visually appealing packages have
promotional value and can carry important messages about
the product’s performance, features, and benefits.
Sometimes multiple complementary items are bundled
together in one package. The practice of packaging
different products and services together is known as mixed
bundling.
Price bundling occurs when two or more products are
placed on sale for one package price.
43. Functions of Packaging
Packages often promote an image such as prestige,
convenience, or status. They also give directions for using
the product and information about:
• Contents
• Product guarantees
• Nutritional value
• Potential hazards
Packaging comes in different sizes to meet the needs of
different market segments, from individuals to families.
44. Blisterpacks
• Packaging can help improve product safety for the
customer. Many products formerly packaged in glass now
come in plastic containers. To encourage customer safety,
goods such as non-prescription drugs, cosmetics, and
food items are sold in tamper-resistant blisterpacks.
• Blisterpacks are packages with preformed plastic molds
surrounding individual items arranged on a backing.
Packaging with preformed plastic molds surrounding
individual items arranged on a cardboard backing.
45. Aseptic packaging
• Packaging gives companies the opportunity to incorporate
the latest technologies and address lifestyle changes as
well as environmental, social, and political concerns.
• Aseptic packaging involves separately sterilizing the
package and the food product, and filling and sealing the
package in a sterile environment. Canning and bottling
are examples of this method, which keeps food fresh for
up to six months.
• Aseptic packaging is a food storage process that keeps
foods fresh without refrigeration for up to six months.
46. Packaging Issues
• Companies are trying to develop packages that respond
to consumer demand for environmentally sensitive
designs. Many companies that manufacture spray
products have switched to pump dispensers to cut back
on the release of ozone-damaging chlorofluorocarbons
(CFCs).
• Cause packaging X involves using packages to promote
social and political causes. The issues on the packages
may be totally unrelated to the products inside.
47. Packaging Functions
1. Protect product and maintain functional form
2. Offer convenience
3. Promote product
4. Communicate quality or premium nature of product
50. Labeling
• An information tag, wrapper, seal, or imprinted message
that is attached to a product or its package.
• A label is an information tag, wrapper, seal, or imprinted
message that is attached to a product or its package. Its
main function is to inform customers about the product’s
contents and give directions for its use.
There are three kinds of labels:
• Brand
• Descriptive
• Grade
51. Brand label
• Label giving the brand name, trademark, or logo.
• The brand label X gives the brand name, trademark, or
logo. It does not supply sufficient product information.
52. Descriptive label
• A label that gives information about the product’s use,
construction, care, performance, and other features.
• A descriptive label gives information about the product’s
use, construction, care, performance, and other features.
53. Grade label
• A label that states the quality of the product.
• A descriptive label includes date and storage information
for food items. Instructions for proper use and product
care are provided on nonfood items.
• A grade label states the quality of the product.
55. Summary
• Branding and Packaging design are inextricably linked, creating a
proposition that is greater than the sum of their parts. Even
supermarkets recognize the significance of this unique relationship,
as witnessed by their mirroring of brand leaders and attempts to
establish their own retailer brands.
• On packaging, the purpose of a brand mark is to provide a clear
endorsement of the product, perhaps being a beacon of category
leadership, sometimes providing consumer reassurance of quality &
heritage or maybe challenging established brands with fresh thinking
and a new approach.
• Packaging and its design are unique, due to the nature of their
relationship with each consumer. Insight demonstrates that packs are
the final point of purchase decision and must engage at that point in
time. Capturing a sale doesn’t just secure revenue for the brand; it
also gives a free pass into the consumers’ home, achieving prolonged
exposure, often to a wider family & friend’s audience.
