UNIT - MARKETING MANAGEMENT BRANDING CREATE PRODUCT IDENTITY Branding Decisions Brand: a name, term, symbol, or any other unique element of a product, which identifies one firm’s product(s) and sets them apart from the competition, {A good brand name may position a product because it conveys a certain imagelor describes how it works. Ex: Apple's use of “leverything” is a brilliant branding strategy, as it Conveysii personalization Good brand designers say there are four “easy” tests: easy to say, easy to spell, easy tread and easy to remember and the name should also “fit” four ways: 1. Fit the target market 2. Fit the product's benefits 3. Fit the customer's culture, and 4, Fit legal requirements. Trademark: the legal for a brand name, brand mafkor tratde chatacter, a trademark legally registered bya government obtains protection for exclusive use in that country. The rule of graphics for a brand symbol, name, Onareithat it must be Recognizable, memorable, and have visual impact (catch your attention easily) Brand equity The value of a brand to’ an otganization. This term describes a brand’s value over and above the value of the generic version of the product. Ex: how much extra will you payifor 2 golf shirt,with a Lacoste logo on it than with no logo? The difference reflects the gator’s brand equity in your mind, Brand Identity: it refers to a unique set Of brandjassociations that the brand strategist aspires to create or maintain. Brand Image: It involves the ifipression in thélconsumers’ mind of a brand's total personality which is developed over timelthrough advertising campaigns with a consistent theme, and is authenticated through the consumers’ direct experience. ividuality and A list of 10 characteristics of the world’s top brands: 1. The brand excels\at delivering the benefits customers truly desire, The brand stays relevant. The pricing)strategy is based on consumers’ perceptions of value. The brand is properly positioned, The brand is consistent. The brand portfolio and hierarchy make sense. The brand makes use of and coordinates a full repertoire of marketing activities to build equity. The brand's managers understand what the brand means to consumers. The brand is given proper support, and that support is sustained over the long run. 10. The company monitors sources of brand equity. Branding Strategies dividual ids versus Family Brands ‘TALVIR SINGH - 95923-65456 (COMMERCE NET ACHIEVERS) Page 1Individual brand: use a separate, unique brand for each product item Gives a company the opportunity to market its product to unique demographic groups and introduce products vastly different from one another there are several reasons why a brand needs a separate identity: + The product may be competing in a new market segment where failure could harm the main family brand name + The family brand name may be positioned inappropriately for the target market Segment. Ex: the family brand name might be positioned as an up market brand for affluent consumers. * The brand may have been acquired; in other words it has already established itself as a leading brand in the market segment. The fact that it has been acquired by a company with a strong family brand name does not mean that the acquired brand has to be changed. Ex: take the cas@jof Heinz. Heinz is a leading global food manufacturer with a very strong family brand. However, it also operates many well- known individual brand names. Family brand (umbrella brand strategy): a brand that a group of individuallproduets or indi share. The products often competed each other Ex: Apple products 2. National and Store Brands National or manufacturer brands: Brands that the product maniifacturehiowns Private-label brands: Brands that a certain retailer or distributor own)and sells. Ex: Waymart sells store brand Sam's Cola and Sam's cookies along with Nationalibrands such as Coke and Oreos. 3. Generic branding: A strategy in which productsjare not, branded and afe sold at the lowest price possible. The strategy to meet customers’ demand for the lolest prices on standard products 4, Licensing: An agreement in which one firm sells another firfh,the fight to use a brand name for a specific purpose and for a specific period of time. -Can provide instant recognition and cofisumer interest in a newproduct -Can quickly position a product for a certain target marketias ft trades on the licensed brand among consumersin that Segment Ex: "Harry Potter” name in cand, clothing, and all manner of back-to- school items 5. Co-branding: An agreement between)two Brands to work together to market a new product. The benefits:- 1. It attracts customers to thejhost brand betause the ingredient brand is Familiar and has a strong brand reputation forquality. 2. The ingredient brand's firm can sell more of its product, not to mention the additional revenues it gets from the lieensing arrangement Ex: “Intebinside", campaign that convinced millions of consumers to ask by name for a computer part (a processor), 6. Brand)Metrics: the characteristics of a brand that we measure to determine the strength of the brand, jual brands recognition of the ighly technical Brand Strategy Decision ‘© Line Extension This means existing brands extended to new sizes, flavors, forms, colors in the existing product category. Some companies also introduce branded variants that are specific brand lines supplied to specific retailers or distribution channels. Line extensions involve b\risks and have provoked heated debate among marketing professionals. But line extensions have a better chance of survival than brand-new products. Its also fueled by fierce competition in some cases. ‘TALVIR SINGH - 95923-65456 (COMMERCE NET ACHIEVERS) Page 2Brand Extension This means brand names extended to a new product category. Brand extension strategy offers some of the same benefits like line extensions. But brand extension can bring with it disadvantages too. The new product may fail and damage the image of the old products. Brand dilution may occur if the brand loses its specific positioning in the minds of the customers. But some brand extensions like that of Virgin have been very successful. ‘Multibrands New brands introduced in the same product category. This happens sometimes when the company wants to establish different features or appeal to different buying motives. A multibranding strategy also enables the company to lock up more distributor shelf space and to protect\its major brand by creating flanker brands. But cannibalization can be 2 major pitfall. New Brand New brand name adopted for a new category product. (CREATING PRODUCT IDENTITY 1. The Package and Label Package: the covering or container for 2 product, which provides préduct frotection, facilitates product use and storage, and supplies important marketing communications. The Important functional of package is to protect the product, Another functions are: *Communicating the brand personality through colors, words)shapes)Designs, and pictures used *Provides product facts including flavor, fragrance)idirections fot\use, “Suggestions for alternative uses {for example, recipes), safety warnings, and ingredients include Warranty information and a toll-free telephone number for customer services *A final communication element is the Universal Product Code (UPC), which is the set of black bars or lines printed on the side or bottohinof most items sold in grocery stores and other mass-merchandising. outlets Labeling regulations: This law aims tolmake ‘labels more helpful to consumers by providing useful information -Force marketers to be more @tcuratéwhen they describe the contents of their products. The label must contain how muchifat, saturated fat, cholesterol, calories, carbohydrates, protein, and vitamins are in each serving of the product Packaging Packaging includes activities of désigning and producing the container for a product Container is called package, Primary package - Bottle of Old Spice Secondary ~ Cardboard box Factors affecting the increasing importance of packaging 1. Self Service — Patkaging becomes an “impulse purchase” stimulus 2. Consumer affluence — People are willing to pay more for attractive packaging 3. Co. and brand image - contribute to brand recognition 4. Innovation opportunity ~ Scope for innovation Key decisions: What the package should do Size dimensions, attributes, etc Engineering testing Consumer testing ‘TALVIR SINGH - 95923-65456 (COMMERCE NET ACHIEVERS) Page 3