Chapter 11

Brands, Packaging, and

Other Product Features
Sommers  Barnes
Ninth Canadian Edition

Presentation by
Karen A. Blotnicky
Mount Saint Vincent University, Halifax, NS

Copyright © 2001 by McGraw-Hill Ryerson Limited

Chapter Goals
To gain an understanding of:
• The nature and importance of brands
• The characteristics of a good brand name
• Branding strategies of producers and
intermediaries
• How to build and use brand equity
• The nature and importance of packaging and
labelling
• Key packaging strategies
• Marketing implications of various product
features.
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 2
Brands
• a brand identifies and differentiates the
products or services of a particular company
• a brand name is the words, letters or,
numbers that can be vocalized
• a brand mark involves a symbol, logo, or
design that identifies a brand
• a trademark is the brand name and brand
mark that are the legally-registered property
of a specific company or organization
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 3
The Role of the
Brand
• brands may be applied to companies and
other entities as well as to their products
or services; thus, Bell is a brand, as is
Celine Dion
• brands are important in promoting
products and in giving customers
confidence in quality
• companies have to support their brands
• it is difficult to brand services
successfully because of their intangibility
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 4
Pros and Cons
of Branding
• Advantages of branding for consumers:
• Easier to identify products.
• Helps assure consistency in quality.
• Advantages for sellers:
• Brands can be advertised and
recognized.
• Price comparisons are reduced.
• Brands can differentiate
commodities.
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 5
To Brand or
Not to Brand?
• some companies will not brand their
products if they don’t wish to promote
them or if their quality is not consistent or
high
• products that are not easily differentiated,
such as industrial raw materials, are often
not branded
• a brand offers the consumer protection as it
names the owner of the brand and allows
their products and services to be identified

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 6

Characteristics of a
Good Brand Name
• says something about the product or
service
• is easy to pronounce, spell, and remember
• is distinctive
• is adaptable when new products are added
to the company’s product line
• is capable of registration under the Trade
Marks Act and other laws
• some brands are lost because of generic use

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 7

Evaluating Brand Names
Characteristics of a
Burger
Fast Food
good brand name
McDonald’s King Restaurants
Suggests something
about the product’s Rate these
benefits and use: products with
Easy to pronounce, respect to
spell, and remember: each
characteristic
Distinctive:
, using a
Adaptable to additions scale of
to product line: Excellent-
Good-Fair-
Capable of being Poor.
legally protected:
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 8
Producer’s Rationale for
Branding Strategies
• Producer uses own brand only —
control over entire output. (Maytag,
IBM)
• Producer brands fabricating parts and
materials to develop market preference.
(DuPont, Fiberglas)
• Producer markets under middlemen’s
brands — generate additional sales and
utilize plant capacity. (Make for Sears,
President’s Choice)
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 9
Intermediary’s Rationale
for Branding Strategies
• Middleman carries only producer’s
brands. (Future Shop, small retailers)
• Middleman carries own and
producer’s brands — more control,
higher gross margins. (The Bay)
• Middleman carries generic products —
appeal to most price-sensitive
consumers. (Bulk food)

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 10

Strategies Common to Producers
and Intermediaries
• Branding a line of products and services
• Family/blanket brand: Heinz, Kraft, McCains
• Separate, unrelated brand name: Pampers (owned
by Procter & Gamble)
• Separate family brand for each product line:
Kenmore appliances, Allstate Insurance, Whole
Home furnishings (all from Sears)
• Company trade name plus an individual name:
Kellogg’s Rice Krispies
• Branding for market saturation (multiple brand
strategies)
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 11
Brand Equity
• the value that a brand adds to a product is
know as brand equity; companies now realize
that popular brands are valuable assets
• a well-known brand can create a differential
advantage for the brand’s owner
• it will create a barrier to other firms wishing
to enter the market with competing products
• it can help a product survive market changes
• valuable brands must be protected

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 12

Branding of Services
• Branding decisions are often the same as for
marketers of tangible products
• Service brands should be:
• Relevant to the service or its benefits
• Distinctive
• Easy to pronounce and remember
• Adaptable to additional services or
regions

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 13

Labelling
The function of the label is to communicate image
and functional information
• many types of labelling:
• brand labels present the brand
• grade labels communicate quality levels
• descriptive labels provide information
• often an issue over how much information the label
should carry to protect the consumer
• growing use of eco-labelling
• statutory labelling requirements regulate this
marketing activity
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 14
Canadian Packaging
Legislation

• Competition Act
• Hazardous Products Act
• Food and Drug Act
• Textile Labelling Act
• Consumer Packaging and
Labelling Act

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 15

Packaging Strategies
Revitalize a product by using packaging
strategically:
•Change the package appearance
•Package a product line in similar
way
•Create a reuseable package
•Package several items together
(multiple packaging)
packaging
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 16
Criticisms of
Packaging
• Depletes natural resources in its
production
• Expensive
• May result in health hazards from some
plastics and aerosols
• Deceptive packaging (may look larger
than they are)
• Package disposal

Copyright © 2001 McGraw-Hill Ryerson Limited 11- 17

Other Strategic
Product Features
• product design and colour are often used to
distinguish products from competitors’
offerings
• high quality levels are important in products
and services to ensure customer satisfaction
• some companies offer warranties on their
products and increasingly on services
• postsale service is important to deal with
repairs, maintenance, customer questions
and complaints; a major satisfaction-building
tool
Copyright © 2001 McGraw-Hill Ryerson Limited 11- 18