BRANDING AND PACKAGING DECISIONS

OF THE PRODUCT

At the end of this module the learning outcomes are

1. What is a brand?
2. Importance of a brand
3. Concept of brand equity
4. Various types of brand name decisions
5. Concept of packaging
6. How packaging contributes to overall appeal
of the product
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BRANDING AND PACKAGING DECISIONS OF
THE PRODUCT

Suggested Readings
1. Marketing Management by
Philip Kotler , Millenium edition
Chapter 13
2. Marketing Management by
Ramaswamy and Namakumari
Second edition Chapter 16

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BRANDING AND PACKAGING DECISIONS OF
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- Branding Decisions
- Thinks of Coca Cola
- A 100 Year old Company
- What is its main strength Coca –Cola Brand name
- If Coca – Cola name is to be sold
- How much will it fetch?
- Estimate: 130 Billion $
- One of the most popular name in the world
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BRANDING AND PACKAGING DECISIONS OF
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WHAT IS A BRAND?
Is a name, term, sign, symbol or design, or a
combination of them, intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of
competitions .
 

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 BRANDING AND PACKAGING DECISIONS OF
THE PRODUCT
Brand Conveys
• Identifies the sellers
• Can be used in perpetuity
• Seller’s promise to deliver a specific set of features, benefits
and services consistently to the buyer.
• A warranty of quality
- McDonald’s
- Honda
- Pepsi
- Intel
- Ford

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 BRANDING AND PACKAGING DECISIONS OF
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Brands - Six levels of meaning

1. Attributes
– Certain attributes
Example - Mercedes
– Expensive
– Well- built
– Well – engineered
– Durable
– High – Prestige automobile
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BRANDING AND PACKAGING DECISIONS OF
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2. Benefits
– Attributes
- Functional benefits
- Emotional benefits
Example – Mercedes
– Attributes “durable”
– Functional benefit
I won’t have to buy another car for several years
– Attribute “expensive”
– Emotional benefit
“The car makes me feel important and admired”

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BRANDING AND PACKAGING DECISIONS OF
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3. Values
• Brand also says something about the producer’s
values
Example – Mercedes
• Stands for
- High performance
- Safety
- Prestige

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BRANDING AND PACKAGING DECISIONS OF
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4.  Culture
• Represents a certain culture
Example – Mercedes
• Represents
- German culture
 Organized
 Efficient
 High quality
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BRANDING AND PACKAGING DECISIONS OF
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5. Personality
• Projects a certain personality
Example - Mercedes
• Appears as
- A no – nonsense boss (person)
- A reigning lion (animal)
- An austere palace (object)

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BRANDING AND PACKAGING DECISIONS OF
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6. User
– Kind of user who buy or uses the product
Example – Mercedes
– You would expect a 40 – years – old chief
executive driving Mercedes
– Not a 20 year old stenographer

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BRANDING AND PACKAGING DECISIONS OF
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Brand Equity
- Is related to how many customers are in
- Satisfied and would incur costs by changing
brand
- Customer values the brand and sees it as a friend
- Customer is devoted to the brand
- Degree of brand – name recognition
- Perceived brand quality
- Strong mental and emotional associations
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 BRANDING AND PACKAGING DECISIONS OF
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World’s 10 most valuable brands 1997
Order of Ranking
1. Coca – Cola
2. Marlboro
3. IBM
4. McDonald’s
5. Disney
6. Sony
7. Kodak
8. Intel
9. Gillette
10. Budweiser

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BRANDING AND PACKAGING DECISIONS OF
THE PRODUCT

Brand Equity Advantages

1. Reduced Marketing Costs
- Consumer brand awareness and loyalty
2. More bargaining power with dealers
- Dealers have to store brands which customer want
3. Can launch brand extensions
- High credibility
• Surf to Surf Ultramatic
• Dettol lotion
Now soap, shaving cream

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 BRANDING AND PACKAGING DECISIONS OF
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4. Offers the company some degree of cushion against

price competition

Between Oscar TV and BPL TV, which is likely to be

bought more?
 
Probably BPL TV.
Even if its prices are somewhat higher than Oscer TV

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BRANDING AND PACKAGING DECISIONS OF
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Brands require
• Nurturing
• Carefully managed
• This means
– Continuous Research and development
– Skillful advertising
– Proper display
– Excellent service
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Product characteristics may change but Brand values remain the same
Mercedes of 1955
- Carburettor
- Manual steering
- Manual gear box
- No power windows
Mercedes of 2001
- Multi – fuel injection
- Air bags
- Automatic gear box
- Power windows
:
etc ..

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BRANDING AND PACKAGING DECISIONS OF
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What do we observe?
– Mercedes of 1955 has features very different
from 2001
– Styling, looks have changed
What has remained the same?
– The brand name
Mercedes
– Product features will keep changing
– Brand values will remain the same.
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BRANDING AND PACKAGING DECISIONS OF
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Brand name Decisions

1. Individual names
2. Blanket family names
3. Separate family names for all products
4. Company trade name combined with
individual product names

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 BRANDING AND PACKAGING DECISIONS OF
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1. Individual names
– Company does not tie its reputation to the products
– If product fails, company’s image not hurt
Examples
1. Titan Industries Ltd.
  Lower end watch - Sonata
2. Proctor & Gamble Ltd.
 Throat soothers - Vicks
3. Pidilite Industries Ltd.
 Fevicol – adhesive
   M-Seal – adhesive

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 BRANDING AND PACKAGING DECISIONS OF
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2. Blanket Family Names
– Company name reflected as product name
– Has advantages
– Development cost is less
– No need to spend huge amount of money on brand building
Example
GE - Company
– GE Refrigerators
– GE Aircraft Engines
– GE Financial Services
– GE Medical Equipment

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 BRANDING AND PACKAGING DECISIONS OF
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3. Separate family names for all products

Example
Hindustan lever Ltd.
1. Soaps
Lifebuoy
2. Flour
Annapurna
3. Tea
Brooke Bond

Used when company markets different type of products.

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BRANDING AND PACKAGING DECISIONS OF
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4. Company trade name combined with individual product
names
– Company tie their company name to an individual brand
name for each product.
– Company name legitimizes and the individual name
individualizes, the new product
Examples
Kellogg’s Products Co. 
– Kellogg’s Corn Flakes
– Kellogg’s Rice Krispies
– Kellogg’s Biscuits.

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 BRANDING AND PACKAGING DECISIONS OF
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Include the activities of designing and producing the container for a
product
– Container is called package
– Includes upto three levels of packaging
Example
Old Spices aftershave lotion
• Primary package
Bottle
• Secondary package
Cardboard box
• Shipping package
In a corrugated box

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 BRANDING AND PACKAGING DECISIONS OF
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PACKAGING AS A MARKETING TOOL

Factors contributes to this:
1. Self – service
– Most products sold on a self – service basis
– Consumers watch many packaging everyday
– What packaging creates
» Attract attention
» Describe product features
» Create consumer confidence
Favorable overall impression

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2. Consumer affluence
– Rising consumer affluence
– Consumers are willing to pay a little more for the
• Convenience
• Appearance
• Prestige of better packaging
3. Company and brand image
• Instant recognition of the company
• First thing visible to consumer is packaging
• Links with image
4. Innovation opportunity
– Bring large benefits to consumers and profits to producers

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 BRANDING AND PACKAGING DECISIONS OF
THE PRODUCT
LABELING
• Written information about the product
• Understand the nature of the product, its distinctive features, its
composition, its performance.
• Statutory requirement
- As per law
- In India
 Manufacturer’s name
 Marketers name
 Maximum retail price
 Date of manufacture
 Date of expiry

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BRANDING AND PACKAGING DECISIONS OF
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Innovation in packaging

1. Tetra packs
    Launch of bottles
    No need of bottle
    No need to send back bottle
    Avoid breakages

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BRANDING AND PACKAGING DECISIONS OF
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2. Pouches / Sachets
      New technology
      Introduce products in small quantities
      Include trial
      Very useful in rural areas
Airtel, Surf , Pan Parag, Colgate
      Increasing their sales.
 

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BRANDING AND PACKAGING DECISIONS OF
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3. Pond’s Cold Cream

- Initially launched in bottles

- Placed on dressing tables
- Wanted to increase sales
- Introduced in tubes
- Portable
- Sales doubled

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BRANDING AND PACKAGING DECISIONS OF
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4. Application Convenience

– Harpic liquid toilet cleaner

– Fitted with a nozzle
– Could effectively clean toilets
– Sales increased
 

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BRANDING AND PACKAGING DECISIONS OF
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5. Re-usable containers
• Nescafe coffee
• Attractive glass jar
• Could be used as glass
6. Retail packs
• Bournvita, Nescafe
• Retail packs
• Economy
• Price lower than standard packs

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BRANDING AND PACKAGING DECISIONS OF
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7. Unique shape of products

-         Le Sancy soap

-    Bean shape
-         How to show this
-         Transparent packaging
-         Product shape could be seen

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BRANDING AND PACKAGING DECISIONS OF
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TO CONCLUDE

• Packaging is an important part of the product

• Valuable contribution to product personality
 

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