Chapter 31 – Branding, Packaging, and Labeling
____________ - a name, term, design, symbol, or combination of these elements that identifies a business,
product, or service, and sets it apart from its competitors
 a brand strategy consistently and repeatedly tells customers and prospective customers why they
should buy the company's products or services
Brand Name - word or group of words that __________________________ (Toyota Highlander, Big Mac,
Cherry Coca Cola)
Trade Name (corporate brand) - identifies and promotes ______________________________ of a
particular corporation (Proctor & Gamble, Disney, Nike)
Elements of Branding
Brand mark - a ____________________, coloring, lettering used to identify a business
Trade character - brand mark that has ______________________________ (Aflac Duck, Cap'n Crunch,
Jolly Green Giant, __________________________)
Trademark - brand name, brand mark, trade name, trade character, or combination that is registered with
the federal government and ____________________________
Importance of Brands in Product Planning
 Build product recognition and ______________________
 Ensure ____________________________
 Capitalize on brand exposure (extend product lines)
 Change company or product _________(Cadillac)
Generating Brand Names
 Create ______________
 _______ branding agencies, naming consultants, or public relations firms
 Computer _________________________
Types of Brands
_______________ Brands (Producer brands) - owned by national manufacturers or by companies that
provide services (________________, Hershey Foods, Ford, Apple, Nike)
 generate the ________________of sales for most product categories
 65% appliances; 78% food products; 80% gasoline; _____% cars
Private distributor brands - developed and owned by ____________________________
 manufacturer's name may not appear on the product
 examples: Sears – ____________________________; Wal-Mart - Sam's Choice
 _________ profitable for retailers
_____________ brands - products that do not carry a company identity
 priced ___________________ than manufacturer brands
 price 10-15% lower than private distributor brands
Branding Strategies
______________________ - branding strategy that uses an existing brand name to promote a new or
improved product
 ____________________ of product failure by using an already established brand name
 risk of ______________________ brand
Brand licensing - legal authorization by a brand owner to allow _____________________ to use its brand,
brand mark, or trade character for a _____
Chapter 31 – Branding, Packaging, and Labeling
Mixed Brands - strategy of offering a __________________ of manufacturer, private distributor, and
generic brand to consumers
Examples:
 __________________manufacturers its own line of refrigerators and also contracts to make
Kenmore for Sears
 Michelin manufactures its own brand of tires as well as Sears brand of tires
Co-branding - combines one or more brands in the manufacturing of a product
 Examples: _________________________________________________________
 capitalize on the popularity of other companies' goods and services
Package – the __________________ container or wrapping for a product (estimated 10% of price spent on
package, design and development)
Functions of Packaging
 ___________________________
 Communicating Product Identity
 ___________________________
 Meeting Customer Needs
 Protecting Consumers
 Protecting the Product
 Theft Reduction
Mixed bundling - packaging two or more different goods or services in ________________ (airfare and
lodging package)
Price bundling - placing two or more similar products on sale for ____________________ (cheaper than
purchased separately)
____________________ - packages with preformed plastic molds surrounding individual items arranged on
a backing
Contemporary Packaging Issues
 Aseptic packaging - uses technology to keep foods fresh _______________________ for long
periods
 _____________________ Packaging - environmentally sensitive designs
 Cause packaging - use of package to promote ____________________________
Labeling - an informative tag, wrapper, seal, or imprinted message that is attached to a product or its
package
Three types of label - brand label; descriptive label; grade label
 __________________ - gives the brand name, trademark, or logo
 Descriptive label - gives information about the product's use, construction, care, performance, and
other features (ingredients, date and storage information, proper use and care)
 _____________________ - states the quality of the product
Chapter 31 – Branding, Packaging, and Labeling
Labeling Laws
 Fair Packaging and Labeling Act of 1966 - established __________________________ requirements
(FDA and FTC)
 Nutrition Labeling and Education Act of 1990 - requires that labels give _______________________
(fat, carbs, protein, sodium, cholesterol, calories)
 FDA requires health ______________ on alcoholic beverages, cigarette packages, genetically
engineered animals (voluntary for genetically altered animals)
 ______________________________ responsible for regulating labeling and monitoring false or
misleading advertising
 1992 - guidelines for _________________________claims on labels
USDA - responsible for the following
 ______________________________________ - guidelines and penalties for misuse of organic
labels (produced without hormones, antibiotics, herbicides, chemicals)
 ______________________________________ - country of origin label be placed on all fruits,
vegetables, peanuts, meats, and fish