Branding, Packaging, and
Labeling
Branding Elements & Strategies
What you’ll learn:
• The nature, scope, and importance of
branding in product planning
• The various branding elements
• The different types of brands
• How to classify branding strategies
A brand is a name, term, design, or
symbol (or combination) that identifies
a business or organization and its
products.
Brands can include a number of
elements:
• Brand name – the word, group of words, letters, or numbers
representing a brand that can be spoken. Ex: Mountain Dew, PT
Cruiser, SnackWells
• Also called a product brand
• Trade name – identifies the company
or a division of a particular corporation
– the legal name a company uses
when it does business. Ex: Kellogg’s,
Dell, Xerox
• Also called a corporate brand.
• Brand mark – the part of the brand
that is a symbol or brand name – it
may include distinctive coloring or
lettering. It usually is not spoken
• Trade character – a brand mark with
human form or characteristics. Ex:
Jolly Green Giant, Pillsbury Doughboy,
Kellogg’s Tony the Tiger
• Trademark – a brand name, brand
mark, trade name, trade character, or
a combination of these that is given
legal protection by the federal
government
• Trademarks are followed by a registered
trademark symbol
Characteristics of a
Good Brand Name
• The name should describe the product's
benefits and use(s)
• The name should convey what the
product does for the consumer or how it
works.
• EXAMPLE: The name Jiffy Lube gives
consumers the impression that their motor oil
will be changed quickly, which benefits them
by saving time.
• The name should be easy to read,
pronounce, and remember
• Makes the product easy to recognize
• Effective names are often brief
• EXAMPLES: Joy, Raid, Tide
Deciding Whether or Not to Brand
• Without brands, consumers couldn’t tell one product from
another, and advertising would be nearly impossible.
• Since branding is an expensive process, companies must
make sure that their investment will be worth the effort
• Involves researching, developing, and marketing new brands
• Can cost $20 to $50 million
Use of Brands
• Brands must be built on differences in images, meanings,
and associations
• When consumers feel good about brands, they buy them
• EXAMPLE: Compare your feelings about a Jaguar with your
feelings about a Yugo
Importance of Brands
in Product Planning
• To build product recognition and
customer loyalty
• To Ensures quality and consistency
• To Capitalize on brand exposure
Generating Brands
• Hard to find the right name
• Generated by employees, computer
programs, PR agencies
• Most companies do research to
determine if the brand name is
effective
Types of Brands
• National Brands –owned and initiated by manufacturers. Ex:
General Electric, Heinz, and Motorola.
• When consumers buy food products, they buy manufacturer
brands nearly 75 percent of the time.
• Private Distributor Brands – also called Private Brands, Store
Brands, or Dealer Brands – owned and initiated by wholesalers
and retailers. Ex: Radio Shack and Kmart, Craftsman, Kirkland
• This type of brand can be controlled by retailers and it yields the
highest profits.
• Generic Brands – represent a general
product category and do not carry a
company or brand name. The packaging
only describes the product – “pancake mix”
or “paper towels”
• Often priced below branded products
Branding Strategies – the ways
companies use brands to meet
sales and company objectives
Branding Strategies
• Brand Extension – uses an
existing brand name for an
improved or new product in
the product line.
• Ex: Cheerios
Branding Strategies
• Brand Dilution occurs when the
original brand loses its strength in
brand identity because it has been
stretched to too many products.
• Brand Licensing – legal authorization by a
trademarked brand owner to allow another
company (the licensee) to use its brand, brand
mark, or trade character for a fee (royalty)
Ex: McDonald’s pays Disney to associate Disney
related toys in Happy Meals
• Mixed Brands – simultaneously
offering a combination of
manufacturer, private distributor, and
generic brands
Ex: Michelin manufactures tires for
Sears as well as under its own brand
name
• Co-Branding – combines one or more brands to increase
customer loyalty and sales for each individual brand
Ex: Ford creates the limited edition Harley Davidson pickup truck
Ex: Starbucks Coffee opens outlets in Barnes & Nobel Bookstores
Brand Image
• One of the most important strategic purposes of marketing.
• All advertisements in all media should present the same brand
image.
Businesses Benefit from
Brand Loyalty
• This is evidence by repeat sales and pre-sold items
• When consumers get into the habit of buying certain
brands, they automatically buy them again, thereby
reducing the amount of time needed to make a sale
• The obvious goal of all marketers is to build a high
degree of loyalty for their brands
Now that’s Brand Loyalty!