Branding
Definition
• A brand is a name, term, sign, symbol or
design, or a combination of these, that
identifies that maker or seller of a product
or service.
• It is essentially a seller’s promise to deliver
a specific set of features, benefits and
services, consistently to the buyers.
Brand Name Selection
1. Should suggest something about the product’s
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benefits & qualities-e.g Fairglow, Kurkure
Should be easy to pronounce, recognise and
remember. E.g. Tide, Surf.
Name should be distinctive. E.g. Kodak, Xerox.
Name should transfer easily into foreign
languages.
Should be capable of registration or legal
protection.
Brand strategy: Four Choices
• Line Extension
• Brand Extension
• Multibrand
• New Brands
Brand Strategies
Existing
Products
New
Products
Existing
Brand
Line
Extension
Brand
Extension
New
Brand
MultiBrands
New Brands
Figure 2.4
Source: H. Igor Ansoff, “Strategic Diversification” , Harvard
Business Review, September-October 1957, pp.113-24
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Line Extension
• It occurs when a company introduces additional items in a given
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product category under the same brand name such as new flavours,
forms, colours, ingredients, or size.
E.g. Maggie Atta noodles, Maggie multi-grain
Advantage:
Low cost, low risky way to introduce variety
To utilise excess capacity
To command more shelf space.
Disadvantage:
Overextended brand may lose significance.
Can cause consumer confusion or frustration.
Brand extension
• Use of successful brand name to launch new or modified
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products.
Honda automobiles, bikes & generators
J & J, Wipro, Godrej
Advantage:
Gives new product, instant recognition and faster
acceptance.
Saves heavy advertising to build a new brand.
Disadvantage:
Extension may confuse the image of the main brand.
Multibrands
• Companies introduce additional brands in the
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same category.
HUL : Close up, Pepsodent
Lux, Lifebouy, Breeze
Taaza, Red Label
New brands
• A company may create a new brand name when
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it enters a new product category for which none
of the company’s current brand name may be
appropriate.
E.g J & J used new brand name, Clean & Clear
for its new product range of face wash and
moisturisers for teen agers.
Pepsi named its mineral water as aquafina and
Coke as Kinley.
Packaging
• Packaging involves designing and producing the container or
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wrapper for a product..
The package includes the primary container (the tube holding the
Colgate toothpaste), secondary package (cardboard box containing
tube) and a shipping package necessary to store, identify , and ship
the product.
Packaging is assuming a lot of importance as it acts as a silent
salesperson.
Innovative packaging can give a company an advantage over
competition.
These days environmentally responsible packaging is required.
Has become the 5th P of marketing.