Branding and Packaging
Decision Part 1
Compiled by: Harold Magallanes
1. Individual Product and Service
Decisions
Product Product support
Branding Packaging Labeling
Attributes services
Product Attributes
•These are the benefits of the product or service.
It can be communicated and delivered by:
1. Quality
2. Features
3. Style and Design
1. Product Quality – characteristics of a
product or service that bear on its ability
to satisfy stated or implied customer needs
• Quality can also be defined as “freedom
from defects”.
“Quality is when our customers come back
and our product don’t” Siemens.
Product quality dimensions;
1. Product level – marketer must first choose quality level
that will support the product’s positioning. Here,
products quality means, performance quality.
2. Product Consistency – conformance quality, meaning
freedom from defects and consistency in delivering a
targeted level of performance.
2. Product Features – are a competitive tool for
differentiating a product from competitor’s product.
• It can be assessed based on the value to the customer
versus the cost to the company.
Some questions a company may ask to its customers;
1. How do you like the product?
2. Which specific features of the product do you like most?
3. Which features could we add to improve the product?
3. Product Style and Design
✔ Design – it is a larger concept than style, is more
than skin deep, it goes to the very heart of a
product; it contributes to a product’s usefulness
as well as to its looks.
✔ Style – simply describes the appearance of the
product, can be eye-catching or yawn producing
How do you
“brand” a product?
Branding
Brand is the "name, term, design, symbol, or any
other feature that identifies one seller's product
distinct from those of other sellers.“
•A modern example of a brand is Coca-Cola which belongs
to the Coca-Cola Company.
The Types of Brands
Few general types of brands that your
business could fall into:
1. Product brands
2. Service brands
3. Business brands
4. Personal brands
5. Personality brands
• Branding is giving products and services with
the power of a brand. ---- It’s all about
creating differences between products.
• Branding creates mental structures that help
consumers organize their knowledge about
products and services in a way that clarifies
their decision making and, in the process,
provides value to the firm.
Definition of Brand Equity
✔ Brand equity is the added value capable on
products and services.
✔ It may be reflected in the way consumers think,
feel, and act with respect to the brand, as well as
in the prices, market share, and profitability the
brand commands.
Brand Resonance Pyramid -
Keller's Brand Equity Model
Step 1: Brand Identity – Who Are You?
• In this first step, your goal is to create "brand salience," or
awareness – in other words, you need to make sure that
your brand stands out, and that customers recognize it and
are aware of it.
• You're not just creating brand identity and awareness here;
you're also trying to ensure that brand perceptions are
"correct" at key stages of the buying process.
Step 2: Brand Meaning – What
Are You?
• Your goal in step two is to identify and
communicate what your brand means,
and what it stands for. The two building
blocks in this step are: "performance"
and "imagery."
Step 3: Brand Response – What Do I Think, or Feel,
About You?
• Your customers' responses to your brand fall into two categories:
"judgments" and "feelings." These are the two building blocks in this
step.
• four key categories:
• Quality: Customers judge a product or brand based on its actual and
perceived quality.
• Credibility: Customers judge credibility using three dimensions – expertise
(which includes innovation), trustworthiness, and likability.
• Consideration: Customers judge how relevant your product is to their
unique needs.
• Superiority: Customers assess how superior your brand is, compared with
your competitors' brands.
Step 4: Brand Resonance – How Much of a
Connection Would I Like to Have With You?
• Brand "resonance" sits at the top of the brand equity
pyramid because it's the most difficult – and the most
desirable – level to reach. You have achieved brand
resonance when your customers feel a deep,
psychological bond with your brand.
Keller breaks resonance down into four categories:
❖ Behavioral loyalty: This includes regular, repeat purchases.
❖ Attitudinal attachment: Your customers love your brand or your
product, and they see it as a special purchase.
❖ Sense of community: Your customers feel a sense of community
with people associated with the brand, including other consumers
and company representatives.
❖ Active engagement: This is the strongest example of brand loyalty.
Customers are actively engaged with your brand, even when they
are not purchasing it or consuming it.
High Brand Equity provides a company with many competitive
advantages;
1. A powerful brand enjoys a high level of consumer brand awareness
and loyalty
2. Consumers expect stores to carry the brand, the company has more
leverage in bargaining with resellers
3. Because the brand name carries high credibility, the company can
more easily launch line and brand extensions
4. A powerful brand offers the company some defense against fierce
price competition
5. A powerful brand forms the basis for building strong and profitable
customer relationships
• Brand elements are devices, which can
be trademarked, that identify and
differentiate the brand. Most strong brands
employ multiple brand elements.
Ex. Nike has the distinctive “swoosh” logo,
the empowering “Just Do It” slogan, and the
“Nike” name from the Greek winged
goddess of victory.
The brand name 42BELOW has
both direct product meaning and
indirect meaning related to its
New Zealand origins.
Brand Valuation- is the process of estimating the total
financial value of a brand.
• common valuation approaches can be classified into
five categories:
1. Cost-based approaches
2. Market-based approaches
3. Economic use or income-based approaches
4. Formulary approaches
5. Special situation approaches
Devising a Branding Strategy
✔ A firm’s branding strategy—often called the brand
architecture—reflects the number and nature of both common
and distinctive brand elements. Deciding how to brand new
products is especially critical.
A firm has three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand
elements.
1. Line Extension – extending an existing brand
name to new forms, colors, sizes, ingredients or
flavors of an existing product category.
- A company might introduce line extensions as a low
cost, low – risk way to introduce new products; or it
may want to meet consumer desires for variety, to use
excess capacity or simply to command more shelf
space form resellers.
2. Brand Extension – extending an existing brand
name to product categories
----- brand extension gives a new product instant
recognition and faster acceptance; it also saves the
high advertising costs usually required to build new
brand name
3. Multi Brands – introduces additional brands in
the same category
----- this offers a way to establish different features
and appeal to different buying motives; also allows a
company to lock up more resellers shelf spaces
4. New Brands – a company might believe that the power
of its existing brand name is waning and new brand is
needed
---As with multi-branding, offering too many new brands
can result in a company spreading its resources too thin.
And in some industries, such as consumer packaged goods,
consumers and retailers have become concerned that there
are already too many brands, with too few differences
between them.
Desirable Characteristics of Brand
Names
1. It should suggest something about the product’s benefits and
qualities
2. It should be easy to pronounce, recognize and remember – short
names –
3. The brand name should be distinctive
4. It should be extendable
5. The name should translate easily into foreign languages
6. It should be capable of registration and legal protection
End of the slide
Thank you and God
bless
