Branding, Packaging, and

Labeling
Chapter 31

Branding

Brand a name, term, design, or symbol that

identifies a business/organization, its products, and
distinguishes it from competitors
Used for one product, a family of related products,
or all products of a company
Used to identify quality and reliability
One of companys most important assets
Includes brand name, brand mark, trade name,
trademark, trade characters, etc.
Frequently become global brands which appeal to
consumers beyond cultural, political, geographic
boundaries

Elements of Branding

Brand name (product brand) a word, group of

words, letters, or numbers representing a product or
service

Usually spoken

Ex: PT Cruiser, Pepsi, Barbie, Big Mac

Should be easily pronounced, distinctive, and

recognizable
Trade name (corporate brand) identifies the
company or a division of a corporation

Legal name that a company uses in business

Supports other brands owned by the company

Ex: Kelloggs, Proctor & Gamble, Disney, Nike

Elements of Branding

Brand mark a unique symbol, coloring, lettering, or other

design element
Recognized visually, usually not spoken
Ex: Apple Computers apple or US Postal Services eagle
Trade character type of brand mark with human form or
characteristics
Ex: Jolly Green Giant, Tony the Tiger, Pillsbury Doughboy,
Keebler Elves, etc.
Trademark word, name, symbol, sound, device, or
combination that has been given legal protection by the federal
government; Has the next to it
Prevents other companies from using a similar element
Ex: McDonalds golden arches; NBC peacock
Granted by the US Patent and Trademark Office

Importance of Branding in Product Planning

Establishes an image for a product/company

Builds product recognition and customer loyalty
Ensures quality and consistency
Ex: 90% of people will pay 25% more for a GE light
bulb rather than the competing brand
Identifies the company that manufactures the product
Capitalizes on brand exposure
Helps reach new target markets and extending
product lines

Generating Brand Names

75% of all companies introduce a new product name

every year
Some ways to create a brand name
Computer software (checks to see if already owned)
Often generated internally by employees
Branding agencies
Over 60% of all companies do research to test new
brand names before released
Brand loyalty research helps gauge effectiveness

Types of Brands

National brands (producer brands) owned by national

manufacturers or by companies that provide services
Generate majority of sales for most consumer product
categories (70% food, 65% appliances, 80% gas, 100%
automobiles)
Hershey Foods, Colgate-Palmolive, Whirlpool, Hilton, Avis
Private distributor brands (private brands, store brands, dealer
brands, private labels) developed and owned by wholesalers
and retailers; help cultivate customer loyalty, profitable
Manufacturers name does not appear on the product
Quality and performance of national brands at lower prices
Ex: Wal-Marts George brand
Represents 80% of apparel sales at Target
Generic brands do not carry a company identity
Packaging description of the contents pancake mix
Sold in discount stores & some supermarkets

Branding Strategies

Brand Extension - Use the existing brand name for a

new/improved product in product line
Ex: Ocean Spray added CranApple, Cherry, Grape
May cause brand dilution (too many products)
brand loses strength
Costly, failure rate is high for new products
Brand Licensing - Legal authorization to allow another
company to use its brand, brand mark, etc.
Licensing company receives a fee such as a royalty
in return for authorization
Ex: NFL licenses to Visa and Pepsi

Branding Strategies
Mixed Brands offer a combination of manufacturer,
national, generic brands
Maintain loyalty through national brand and private
brands, reach several target markets
Maximize profitability by selling a private brand product
without damaging national brand reputation
Ex: Michelin makes own brand and private label for
Sears
Co-Branding - Combines one or more brands in the
manufacturing of a product or delivery of a service
Increase customer loyalty and sales for each brand
Ex: Pop Tarts has Smuckers fruit filling; Starbucks
coffee sold at Barnes & Noble, Target, Kroger

Packaging

Package the physical container or wrapping for a

product
10% of a products retail price is spent on developing,
designing, and producing just the package

Functions of Packaging

Promote and sell the product visually appealing

Customer reaction to a products package & brand name is an
important factor in its success or failure in the marketplace
Mixed bundling - package complementary products together
Price bundling two or more similar products packaged for
one price
Define product identity prestige, convenience, status
Provide information directions, contents, guarantees, nutrition
Meet customer needs various sizes
Ensure safe use improve product safety
Blisterpacks preformed plastic molds surrounding individual
items arranged on a backing; avoids tampering
Protect the product protect during shipping, storage, and
display, breakage, spoilage, shoplifting, etc.

Packaging Issues

Aseptic Packaging
Uses a technology that keeps foods fresh without
refrigeration for extended periods
Sterilizes the package and food, sealed in a
sterile environment
Environmental Packaging
Customers willing to pay more for products that
reduce waste; recyclable, safer for the environment
Cause Packaging
Promote social and political issues
Campbells soup and Yoplait yogurt breast cancer

Labeling

Label

an information tag, wrapper, seal or imprinted message

that is attached to a product or its package
Informs customers about a products contents and gives
directions for use
Helps customers decide if the product is right for them
Protects businesses from legal liability for mishaps
Types of Labels

Brand supplies logo, does not provide much info

Descriptive info about the products use, care,
performance, expiration dates, warnings, etc.

Grade states quality of the product (eggs, produce)

Labeling Laws

Fair Packaging and Labeling Act (1966) mandatory labeling

requirements and authorized the US FDA and the FTC to
require packaging regulations
Product weight (metric and American)
Nutrition Labeling and Education Act (1990) by FDA
protects consumers from deceptive labeling

requires nutrition info (fat, calories, etc.), health warnings,

genetically modified food info
Federal Trade Commission (FTC) monitors deceptive
advertising, care labels, recycling info
Care Labeling Rule (1972) care labels must be placed in
textile clothing
US Department of Agriculture monitors agricultural market,
including organic foods

Country of Origin Labeling (2002) label must be placed

on all produce, nuts, meats, fish

Activity
Select

a branded food product and identify how the

package for the product fulfills one or more of the
functions of packaging.
Redesign the product packaging and labeling for the
product
Ex: Kraft Miracle Whip

New bottle meets customers needs b/c it has

extra large opening, plastic

The label has larger font and uses bright red font
color.