Ch 14: Branding and Packaging

Brand

A name, term, design, symbol, or identifying brand feature

Brand name

Part of brand that can be spoken

Trade Character

A representation of a person, animal, or being that is personified to identify a company, brand, or product

Recognition

The degree to which customers can identify the brand under a variety of circumstances

How did Apple use product differentiation in its Ad to promote the Mac?

They differentiated on being cool, modern, and the Mac only being one easy to set up piece

How did Evian use emotion differentiation to promote water in their ad?

They used a “Live Young” slogan and showed people seeing themselves as dancing babies so that customers would associate Evian with that emotion

Brand Equity

The value the firm derives from consumers’ positive perception of its products

Increases the likelihood of consumers purchasing the firm’s brand over a competing brand

What is Brand Equity based on (4)?

1. Differentiation- Point of differentiation

2. Relevance- How it relates to you

3. Esteem- How well regarded it is

4. Knowledge- Understanding of the brand

What are the benefits of Brand Equity

• Increases firm’s ability to succeed in a difficult competitive environment

• Helps a brand’s expansion into new markets

• Contributes to positive perceptions of product quality

• Shown to increase public companies’ market (shareholder) value

Individual branding

A policy of naming each product differently

Family Branding

Branding all of a firm’s products with the same name

Brand extension

Using an existing brand to brand a new product in a different product category

BUT, it must “fit” the brand

What example did we see of a bad brand extension?

Harley Davidson- tried to release fragrances

Brand Revitalization or Rebranding

Recapture lost value and identify and establish new sources of brand equity

Begins with rebuilding trust with consumers

Co-branding

Use the equity of another firm’s brand to increase own brand equity

Ex: Tim Hortons and Cold Stone joint locations

Private-Label Brands (Store Brand)

Lower-cost alternatives to manufacturer’s brand

• Ex: Walgreens’ aspirin costs less than the name brand

How did Converse Revitalize their Chuck Taylor Shoes?

After the shoes lost their popularity as a basketball shoe, they began to remarket as casual wear shoe.

They went from the image of basketball player Chuck Taylor, to artists like Andy Warhol.

Packaging as added marketing value

A package can make a product more convenient or appealing

It provides the opportunity to display design

Ex: Mountain Valley’s green bottle is iconic

Why did Gwyneth Paltrow bring Mountain Valley water into the courtroom instead of her own water brand?

The brand is relatively affordable, yet upscale because of the green glass bottle. It conveys a message of relatability and sophistication, appealing to the public. It also protected her own water brand from negative association.

Garments must be labeled with…

The name of the manufacturer, country of manufacture, fabric content, cleaning instructions

Labels on non-edible items must include…

Safety precautions and directions for use

The Nutrition Labeling Act of 1990

Requires the FDA to review food labeling and packaging for nutrition content, label format, ingredient labeling, food descriptions, health descriptions

What government agency provides legal protection for a brand?

U.S. Patent and Trademark Office