Module 3. Elements of marketing mix – I. product
Lesson 15
PRODUCT BRAND AND PACKAGING
15.1 Introduction
The American Marketing Association gives following definition of brand:
‘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 competitors’. E.g. - Nokia, Puma, Levis, Adidas etc.
Brands are valuable assets to companies and are important for consumers and they obtain their value due to its ability to obtain exclusive, positive and permanent place in the mind of large number of consumers. Consumers use large number of products. In order to identify and differentiate the product while making a purchase, it is required to give a name to each product. The earlier branding strategy adopted by the companies relied on naming a product and then developing a brand communication strategy around it. It aims at developing brand benefits around the product so that consumer can remember, recall, retrieve make a choice while making a purchase. The earlier branding orientation considered brand name as a part of brand consisting of letters or words which distinguish a company's offer.
Brand name and logo is face of the brand. It consists of word or combination of words/letters which can be spoken e.g. Amul, Nestle, Britannia, etc. Brand logo is unique for a particular product or company as a product design and signage.
From legal perspective also branding is very important. It is employed to make sure the legally enforceable statement of ownership. E.g. – HCL – Hindustan Computers LTD., TISCO – TATA IRON AND STEEL COMPANY, ICICI – INDUSTRIAL CREDIT AND INVESTMENT CO_OPERATION OF INDIA
15.2 Role of Brands
Branded products are manufactured by specific firm, thus it is possible to fix the responsibility for its satisfactory performance. In today's fast pace of life, people face time shortage. In such a scenario, purchase of a branded product proves to be valuable.
Brands carry out many functions for the manufacturing organization. They help in easy identification/location of products. They facilitate inventory management. Brand play decisive role in legal issues viz. patent, copyright, intellectual property rights etc. consumers perceive the branded products to possess certain level of quality. This criterion helps to make a choice. A renowned brand may help the firm to receive more revenue by increasing price of their products, as compared to competitors e.g. milk products marketed under Nestle brand are usually priced higher than most others.
15.3 Important Decision Variables in Branding
To use a brand name is a strategic decision. The decision to use or not to use a brand name depends upon type of product and the relative cost and benefit of using the brand name. With respect to brand strategic decisions, organization can either use new brand elements for new product, or use same existing brand element for new product. For example Dove: (Shampoo, soap, Creams). Giving a brand name is a very important decision for organizations. The brand name should be unique not used by other firms. It should be such that it is easy to remember. There are no specific rules for choosing a brand name but in general following guidelines prove useful.
a) Brand name should be acceptable to the society.
b) It should be easy to recognize, spell and remember
c) It should be distinct to rise above the clutter.
d) It should be legally protected.
The organization has to decide about single branding
or umbrella branding. In umbrella branding one common brand name is used for
all the products e.g. each state cooperative milk marketing federation has its
own brand name under which it markets various milk products. Along these lines,
Saras is the brand name of Rajasthan Dairy
Cooperative Federation and Vita is that of Haryana Dairy Cooperative
Federation. Umbrella branding reduces the cost of product launching, marketing
and promotional expenditure. But if the products quality is of more uneven
quality then this strategy is not fruitful. In single branding strategy, each
product is given a different brand name. This branding strategy is costly but
gives a separate identity to each product and also an adverse effect, if any,
will be limited to that product only. Other products of the company are not
affected by it. E.g.
(1) Make design the focus of packaging
(2) Create fun packaging
(3) Let the true colours of brand shine
(4) Focus packaging on specific target.
15.4 Packaging
In marketing terminology packaging involves all the activities of designing and producing the container in which product is sold. Packaging is considered as fifth 'P' in addition to product, price, place, promotion by some marketing experts. Attractively designed packages increases brand equity and lead to higher sales. Following aspects of packaging are important for marketing organization.
15.4.1 Packaging materials
Wide varieties of packaging materials are available in the market. The firm has to choose suitable packaging material considering the cost and quality aspects of products.
15.4.2 Package aesthetics
The size and shape of the package, the materials used, the finish, the colour, the labelling, the branding on the package etc. are important components of package aesthetics and contribute to sales.
15.4.3 Package size and convenience
This also play important role in the total product appeal. This varies from bottles, tubes, sachets, re-useable containers, refill packs etc.
15.4.4 Self service
With more and more big superstores coming up across the country, this function of package assumes higher importance. As a self service package, it performs the sales tasks of attracting attention, explain product features, build customers confidence and create a favourable impression.
15.4.5 Response of consumer
With increase in purchasing power of consumers, they do not hesitate to pay a higher amount for more convenience, appearance, dependability and more prestige.
15.4.6 Brand image
Package leads to easy recognition of brand. For example Colgate toothpaste in special coloured packets.
15.4.7 Scope of innovation
Use of different types of packages such as upside down bottles, re-sealable spouts etc. are examples of innovative packages.
15.4.8 Functions
In a competitive world, apart from preserving the product, package carryout some of the functions like identifying the brand, provide descriptive and persuasive information, helps in product transportation and protection, aid consumption of the product and help in home storage.