43 Brand attitude associations Brand attitude associations is a consumer’s overall evaluations of a brand. It is a global level of liking of disliking about a brand or a product. Associating a brand with attitude – example, Nike and Adidas are associated with sporty attitude while Rolex is associated with premium attitude. Describe brand identity Define brand identity Brand identity is the visible elements of a brand such as colour, design, logotype, name, symbol, sounds or tagline that together identify and distinguish the brand in the consumers' mind. Brand identity is the way people recognize a brand through logo, sound, tagline and so on. A company's identity is how that business wants to be perceived by consumers. The components of the brand (name, logo, tone, tagline) are created by the business to reflect the value the company is trying to bring to the market and to appeal to its customers (Pooja Goyal, Quora, 2017) 99 Speedmart using its “Dekat lagi Murah” (which means Near and Save) to entice consumers to shop at theirs. © 99 Speedmart Explain the concept of brand identity Brand identity stems from an organization. This means, the organization itself creates identity for its brand. It is how an organization seeks to identify itself & how they want consumers to perceive them. An organization communicates its identity to the consumers through its branding and marketing strategies such as logotypes, logomarks, colours, tagline, jingles and so on. A brand is unique due to its identity. That is why brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors. Brand identity vs brand image Brand identity assembled or created by the brand owner (organization), while brand image is a customer's mental picture of a brand. The brand owner will seek to bridge the gap between the brand image and the brand identity to avoid customer’s disappointment.
44 BRAND IDENTITY BRAND IMAGE Brand identity develops from the source or the company. Brand image is perceived by the receiver or the consumer. Brand identity symbolizes firms’ reality. Brand image symbolizes perception of consumers. It is total promise that a company makes to consumers. It is total consumers’ perception about the brand. Brand message is tied together in terms of brand identity. Brand message is untied by the consumer in the form of brand image. Identity is active. Image is passive. Brand identity represents “your desire”. Brand image represnts “others view”. Table 5.1 Shows the difference between brand identity and brand image. Describe brand personality Define brand personality Brand personality is the way a brand speaks and behaves. This means, brand personality is “the set of human characteristics associated to the brand.” Every element of the brand identity including the colour or the logo and the typography on the brand name adds to the personality. Brands are much like humans, have certain personality traits. The personification of a brand that evokes certain emotions in customers is what builds brand equity. Brand personality is not applicable just to large corporations, this branding strategy helps small businesses and startups to expand too. When brand image or brand identity expressed in terms of human traits, it is called brand personality. SILKYGIRL’s brand personality is fun, young, colourful and exudes confidence. The core promise of the brand is delivered through the latest colour trend and high quality specifications of the products. A fun, young and trendy brand of colour cosmetics that unleashes your confidence – SILKYGILR’S brand personality. © Alliance Cosmetic Group
45 Explain importance of brand personality Differentiates your brand from the competition A distinct brand personality can make your brand appear to stand apart from your competition. You can make your brand appeal to youth by inferring personality traits like carefree or spirited. For example, Roxy brand appeals to fun-spirited teenage girls. A competitor’s brand may be offering their similar product as athletic by addressing different personalities, such as Skechers brand appeals to a more general crowd of young adults. This is how brand personality distinguish brands. Communicates good traits about your brand Personality traits such as trustworthy and desirable can help build customer confidence. With trustworthiness a brand can strengthen its belief in consumers to maintain its quality standards. For example, the use of a brand ambassador. Forming an emotional attachment with your brand Consumers are more likely to identify a brand that is closely resemble them in terms of personalities. A brand that showcases personality traits such as kindness or thoughtfulness is likely to be trusted by families. Johnson’s Baby is playing with the mommy’s emotion through its advertising campaign which shows a mother’s warmth love to her baby. Helps form sustained relationships with your brand Apple used the power of brand personality to great effect with its ad campaign to promote the Mac. It differentiated its product from other computers with the help of Apple distinct personality traits. “They represented the stylish and young Mac that was instantly more relatable than older and traditional PC.” This enable consumer to decide which brand they wanted to buy, depending on the traits they wanted to embody for themselves. Personality traits help consumers establish a relationship with a brand as they identify with the personality and not just the product. Conveying your brand’s message Your favourite childhood cookie brand could invoke personal memories of warmth and comfort. This may be the reason you prefer one cookie brand over another. When launching a new product, marketers can expand their reach by assigning personality traits that the audience can connect with.
46 Comfort foods such as cookies need to display personality traits that invoke strong emotional responses in consumers. Athletic shoe brands are likely to have traits of being rugged and outdoorsy while a stiletto company will be personifying desirability traits such as allure or status. Setting the tone for your brand The tone of your brand is helpful in establishing marketing strategies. For instance, if you want your brand to invoke the feeling of sincerity such as kind or thoughtful, your marketing needs to focus on this tone to send the same message to consumers. Then again, you can make your apparel brand appears friendly and cool or sophisticated but fun. Describe brand positioning Define brand positioning What is brand positioning? Brand positioning is a marketing strategy that aims to make a brand occupies a distinct position, relative to competing brands, in the mind of the customer. It is finding ways on what is the best way to position our brand in consumer’s mind. Explain the concept of brand positioning Brand positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. In example of Daiso outlet, it positions itself as a one-stop “inexpensive” centre where consumers can buy so many unique items with discounted prices. The same goes with “Kedai RM2 or One-Stop Centre” which always pop into our mind whenever we opt for a cheaper product’s price. Brand positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and its similarity with the competitive brands, as well as the reasons for buying and using that specific brand.
47 REVISION QUESTIONS 1. Define the brand elements below: a. Brand awareness b. Brand image c. Brand identity d. Brand personality e. Brand positioning 2. Describe any five importance of brand personality. 3. Explain two types of brand awareness by using suitable examples. 4. Compare five differences between brand identity and brand image.
48 CHAPTER 6 PACKAGING AND LABELLING LEARNING OBJECTIVES In this chapter you will learn about another important aspect of a product, packaging & labelling. You will get to know the concept of packaging, types of packaging, functions of packaging, packaging designs, concept of labelling, functions of labelling, and types of label. Describe packaging Define packaging Explain types of packaging Identify the functions of packaging Identify the packaging designs Describe labelling Define labelling Identify the types of labelling
49 Describe packaging Define packaging Packaging can be defined as the activities of designing and producing the container or wrapper for a product. Today, packaging has become an important marketing tool due to an increase of competition on retail store shelves. Packages now perform many sales tasks including attracting attention and describing product to make sales. A package must reflect value of product and consistent with the product’s advertising, pricing and distribution. PUMA Innovative packaging from Puma - The Clever Little Box - is not just friendly to the environment, also very friendly to consumer’s feelings and company’s objective. Real clever! Explain types of packaging Packaging may consist of a primary package, such as a bottle of perfume; secondary package such as the paper box containing bottle and shipping package necessary to store, identify and ship the product. Primary Packaging Primary package holds the actual product. For example, perfume bottle or jam bottle. © 2018 Victoria's Secret
50 Secondary Packaging Secondary packaging protects the first level package individually. For example, box holding the perfume bottle. © 2014 HCube Shop Shipping Packaging This packaging is used to transport customer package through the supply chain. It holds multiple packages and protect against higher level of damage. Shutterstock Identify the functions of packaging 1. Containing and protect the product. 2. Promoting product. Packaging can also be used as seasonal marketing tools. 3. Facilitating storage. An efficient packaging helps in storing and organization of products at home or selling outlets. 4. Facilitating use. Provides convenience while using the product. 5. Identify the company’s product easily. Packaging helps buyers to identify company’s brand through packaging label. 6. Facilitating transportation. Well-designed packaging makes it easier to transfer and arrange products while loading and unloading process. 7. Packaging also ensures safety and hygiene of a product. Easy-squeeze Kimball Tomato Ketchup helps consumer to use it conveniently. Kimball's success story began in the 70’s with the launch of its trademark Kimball Tomato Ketchup, followed by the Kimball Chilli Sauce. The flavours quickly became a staple among Malaysians, and today, Kimball enjoys the distinction of being one of Malaysia’s most trusted brands for sauces. © 2016 Campbell Soup Southeast Asia Sdn. Bhd.
51 Tupperware Hari Raya Aidilfitri special packaging. Seasonal packaging during holiday season can really help gaining customers. How? It’s holiday season! Everybody wants to get into the spirit, and one of the way to get the spirit is by giving the shelve a “newcomer”. © 2018 I Wanted These Identify the packaging designs Packaging must look professional and attractive in order to compete. It is the packaging that will determine the first purchase, while the quality of your product will bring repeat business. The first and most important step you must take in designing your package is to establish the product requirements for; ❖ The appropriate amounts in which you will sell the product (these may be based on adequate portion sizes, competitors' offerings or customer preferences) ❖ The volume and weights of the different sales amounts ❖ Physical packaging attributes that help the customer use the product ❖ Protective needs, including shipping and handling factors ❖ The appropriate shape of the packaging, not only for aesthetic appeal but also for efficient shipping and stocking; and legal requirements. Bottles, boxes, plastics, cans and vacuums are packaging design which are being widely used nowadays. Vacuum packing is a method of packaging that removes air from the package prior to sealing. The intent of vacuum packing is usually to remove oxygen from the container to extend the shelf life of foods and, with flexible package forms, to reduce the volume of the contents and package. Wikipedia® © 2018 Keropok Original Terengganu
52 Criteria of good packaging 1. Appropriately designed for target market. Creating packaging based on target customers’ suitability, for example, easy grip and soft edges packaging for children products. 2. Eye – catching. The more your packages stand out to consumers, you can mark up the price of your products while leaving a positive impression about your brand. 3. Suitable to product. Practicality deals with the actual shape, size and functionality of the packaging, not just the label or wrap. The more practical the product, the more sales it gets. Good packaging helps the product to function better. 4. Facilitate distributors and retailers. Packaging should be practical for shipping and handling. 5. Distinguishable and unique. Unique packaging design, shape and colour can inspire consumers to buy your products simply because the packaging is agreeable to their personal taste. Custom packaging can offer you the opportunity to get creative and decorative as you desire. 6. Honesty. Packaging represents the product in the best way possible but keep in mind that consumers – you included – deserve to be treated right. 7. Safe. Packaging must be safe for consumers to handle. It should not have sharp edges on the package to avoid cuts. Also, packaging should not confuse consumers. For example, a non- food product must not be packaged in a way that might lead consumers to consume them. 8. Free from dangerous chemical that may harm consumers’ health. Packaging does not represent real product’s size (content) Laundry-in-pod packaging is responsible for several cases of poisoned children. Children often confused transparent packaging like this as food or candies. chiefpackagingofficer.com
53 Describe labelling Define labelling Labelling refers to visual labels, symbolic or textual information (containing combinations of pictures, letters and numbers) about a product for product identification and recognition. Identify the types of labelling Brand Label This type of label portray only the brand name appears on the label of the product. It focuses on the identity of the product and to make the brand name popular. Information for consumer is not highlighted. An example of brand label is Pizza Hut’s packaging label. The box does not contain any information for consumers. Only the identity of Pizza Hut is highlighted here. Photo from packaging-matters blogspot Descriptive Labeling Descriptive labelling focuses on the information that will aid consumers to make proper selection. Descriptive label gives information about the feature, using instruction, handling and security of the products. © 2018 Baby Shower Address Labels
54 Grade Label Grade label shows the grade of the product. It shows the quality of products by words, letters or figure. For example, L, M and S grade can be put on egg in a pack. Similarly, grade label can be mentioned as 1, 2, 3 or 4 grades for packed wheat. Some firms may also use labels as good, better and best on their products. Example of grade label to indicate size of eggs used by NutriPlus
55 REVISION QUESTIONS 1. Explain any five functions of packaging by giving appropriate examples. 2. Environmental friendly marketing is one of the important aspects in marketing nowadays. One of the aspects that can be used in environmental friendly marketing is packaging. Interpret the impact of the following packaging types towards green marketing. a. Primary packaging b. Secondary packaging 3. ABC food producer is trying to market their products. ABC needs to study the various types of labelling to attract consumers and help consumers to recognize company’s product. Help ABC by explaining three types of labelling.
56 CHAPTER 7 BRAND DECISIONS LEARNING OBJECTIVES In this chapter you will learn about brand sponsor decision, brand name decision and brand strategy decision. Identify brand sponsor decision Justify brand sponsor decision Selecting brand names decision Identify the brand name decision Recognize brand strategy decision Explain brand strategy decision
57 Identify brand sponsor decision Justify brand sponsor decision There are many sources that a manufacturer may get its brand name from. They may be coming from the manufacturer themselves, retailer, licensor or another company that gives its name to be used together with our brand. These are called the types of branding decision or brand sponsor decision. Manufacturer Brand Manufacturer brand is also called as a national brand. The brand is created, used and owned by the manufacturer. The manufacturer is selling its output under its own brand name. Some of the manufacturers that are using this strategy are Nestle, Sony and Samsung. Private Brand Private brand is also called as retailer brand, wholesaler brand, store brand, distributor brand or an own-label. Private label brands are owned by the retailer or supplier but the items are made by other manufacturers. Retailer or supplier will then repackage the products. Resellers will give the product their brand name. This brand strategy stresses on the identity of the retailer, not the manufacturer. Common example of retailers that are using this strategy are Watsons, Guardian and Giant Malaysia. BRAND SPONSORSHIP Manufacturer’s Brand Distributor’s Brands Licensed Brands Co - Branding
58 Nestlé (Malaysia) Berhad The above photo shows all Nestlé products bearing their manufacturer’s name – Nestlé. Naturals by Watsons is one of Watsons’ s inhouse brand © Watsons A private brand is a product that is exclusively manufactured for a retailer. The retailer will market the product under its own brand name. Prices for private brands are usually set cheaper than competing name brands. Consumers often think that private brands are of lower quality, but that perception is changing. © 2003-2018 Study.com Co-branding Co-branding occurs when two established brand names of different companies used on the same product. For example, CIMB and AirAsia collaborate and come out with a CIMB AirAsia savers account.
59 Licensed Brand Licensed brand is the leasing of a brand name to a company other than the owner of that particular brand. The leased name may be the company own name, names of well-known celebrities or characters from movies or books. For example, sellers of children’s products often attach character names to clothing, toys and so on. These licensed character names include Disney, Star Wars, Hello Kitty and many more. What is licensing? It is a legal business arrangement in which one company (licensor) gives another company (licensee) permission to manufacture, manage and market its product for a specified payment for a specified time frame. Walt Disney the largest licensing company controlling the children section from its Disney’s characters like Mickey Mouse, Donald Duck etc. to adult category with Star Wars and Marvel Studio. © 2016 – 2018 Unicornomy Selecting brand names decision Identify the brand name decision (brand name strategy) There are four important strategies for creating a brand name. Individual Brand Name Under this strategy, different brand names are used for different products offered by a single company in the market. Individual brand name has no association with any of the company’s other brands. Individual product has distinctive logo, name and marketing strategy. P&G for example, has product lines consists of many different brand names – Rejoice, Pantene, SK-II, Olay to name a few. Despite the extensive brands a company is having, the main limitation of this strategy is that it is very costly. Only few firms follow
60 this strategy. On the other hand, the advantage of using individual brand name is that if one product does not perform well, it will not hurt other product’s image in the company. Blanket Brand Name (Umbrella brand name) Blanket family branding refers to the use of same brand name for all the products. A product is introduced as part of a large family where marketing the product using a single brand name. It provides familiarity of the logo and name of the product because the use of established brand name. This strategy is very economy since it requires very minimal introduction or promotional effort. Samsung and Tune Group are good example for this strategy. Founded by Tan Sri Tony Fernandes and Datuk Kamarudin Meranun; the Tune family of companies share a passion for creativity and ingenuity. The group thrives on providing exciting products and services for all walks of life. From filling the skies with their signature red Airbuses to mobile prepaid, Tune Group is driven by their mission to improve and impact the lives of all who use their services. The group is meeting an ever rising demand for affordable yet high-quality services by innovating and revolutionizing the way services are made available to the masses; employing efficient and intuitive webbased technologies to better reach, engage and serve their customers. © 2018 Tune Group Sdn. Bhd. Separate Family Name for different categories of product (Family Branding) Some companies categorize products produces by them in different families and then give separate brand name to each family. This means, a product is introduced by family name and one brand name identifies several related products. Usually used by companies which produce products of different categories. A separate brand name for each line / category is used. A good example of company apparently is using this strategy is Apple - Mac for computers, iPhone for mobile phone, iPod for music player and iPad for tablets. Company trade name combined with individual product names Nestlé is one of many companies that are using this strategy. This strategy involves the combination of the company name with its individual brand name. The idea is to use the reputation of the established family or company name to launch a new associated product. This helps new product to enter the market quickly.
61 Examples of Nestlé products that has own name but is combined with their company trade name – Nestlé. Nestlé (Malaysia) Berhad Recognize brand strategy decision Explain brand strategy decision This strategy is also better known as “brand development”. To develop a brand a company has four options, line extensions, brand extensions, multibrands or new brands. Line extension Line extension is extending an existing brand name to new forms, colours, sizes, ingredients or flavours of an existing product category. A good example is Coca-Coca to Coca-Cola Light. This is a low cost strategy of introducing a new product using an existing brand name. Despite the cost effectiveness, manufacturers should not overdo their extension and confuse customers. Example of Coco-Cola line extension © 2018 INSEAD Knowledge Brand extension Brand extension is extending an existing brand name to a new product category. Take Anakku brand as an example.
62 It began with a passion to create and facilitate expressions of love to babies by its founder in 1973, when Anakku started manufacturing and marketing a wide range of basic baby (infant) apparel. As the company acquired more knowledge and experience in the baby business, Anakku recognized that parents wanted more than just comfortable attire that lasts. With this in mind, Anakku went the extra mile to expand its product range to include fashion wear for babies and toddlers, feeding equipment, toiletries, diapers, accessories, baby wipes, strollers, playpens and more. © Anakku Sdn Bhd. 2015-2016 Brand extension provides new products instant recognition, quicker acceptance and cost efficiency as its advantages. But if the extension fails, it may hurt consumer attitudes toward other products bearing the same brand name. Multi Brands Multibrands means marketing many different brands in the same product line. In other words, this company introduces additional brands in the same category. Procter and Gamble (P&G) for instance, has introduces several different brands in the same shampoo category such as Pantene, Rejoice, Head & Shoulders, Vidal Sassoon and Clairol. This strategy allows a company to have different market segment for each brand they created. New Brand A new brand means creating a “really-new brand”. A new brand is needed to give a spark so that consumers interest towards a company remain strong. A new brand name is also suitable when the company enters a new product category for which none of its current brand names are appropriate or the company wishes to get into a new market segment. This strategy is successfully practiced by Toyota Motor Corporation when it introduces Lexus as its new brand for its high end market. Co – Brands Co-brand is a combination of more than one brand in a single product. We can also define co-brand as the practice of using the established brand names of two different companies on the same product. The example of this may include Nike iPod, combination of Apple’s brand and Nike’s brand and Cimb AirAsia savers account, combination of CIMB and AirAsia.
63 REVISION QUESTIONS 1. Explain four differences between line extensions and new brand with suitable examples. 2. Aathif Co. is planning to appoint other company to conduct its selling activities by offering license. As a marketing manager of Aathif Co., explain two advantages of licensing to your top management. 3. Based on following situations, identify the correct brand strategy decision for each situation by giving examples. a. Situation I: A company is adding other variety of a product to an already established brand line products. b. Situation II: Developing two or more brand names in the same product category to suggest different functions or benefits. 4. Explain five benefits of Individual Brand Name and Family Brand Name in making brand name decisions. 5. Assess the implication of distributor brand in brand sponsor decision by giving appropriate examples. 6. Explain five brand strategy decisions with suitable example. 7. Instead of spending millions to create own brand names, some companies use license names or symbols previously created by other manufacturers. Based on this statement, formulate two factors that support how licensed brand helps companies.
64 References 1. Kotler, Philip & Armstrong, Gary (2013). Principles of Marketing (15th ed.). Pearson. 2. Crawford, C. Merle & Benedetto, C. Anthony Di (2010). New Product Management (10th ed). McGraw Hill/ Irwin. 3. Ulrich, Karl & Eppinger, Steven (2011). Product Design and Development (5th ed.) Irwin Professional Pub. 4. Wheeler, Alina (2012). Designing Brand Identity: An Essential guide for the Whole Branding Team (4th ed.). John Wiley & Sons Inc. 5. Kamarulzaman, Yusniza & Abu, Nor Khalidah (2013). Principles of Marketing (2nd ed.) Oxford Fajar Sdn. Bhd. 6. History Timeline: Post-it® Notes, https://www.post-it.com/3M/en_US/post-it/contactus/about-us/, accessed Jan 2018 7. “Brand known for snacks launches biscuit for children”, The Star Online, 24 Nov 2016, https://www.thestar.com.my/metro/community/2016/11/24/brand-known-for-snackslaunches-biscuit-for-children/, accessed Jan 2018 8. Tan Heng Hong, “Mamee diversifies into fortified biscuit category with Mamee Monster Biskidz (updated)”, minime insights, 5 Oct 2016, https://www.minimeinsights.com/2016/10/05/4950/, accessed Dec 2017 9. “Our Brands”, https://www.dearnestle.com.my/brands, accessed Jun 2018 10. Anthony Lim, “Perodua Myvi – through the years, from 2005 to 2017”, paultan.org, in Cars, Local News, Perodua, 16 Nov 2017, https://paultan.org/2017/11/16/peroduamyvi-through-the-years-from-2005-to-2017/, accessed July 2018 11. See tuck loong chui, “Elfira Loy kongsikan Coca Cola #ShareACokeMY”, youtube, 1 Aug 2016, https://www.youtube.com/watch?v=FMXzGV0wnk8, accessed Feb 2018 12. “MEGA REVIEW: Perodua Bezza EEV”, OTOREVIEW.MY - "otomobil" review..., http://otoreview.blogspot.com/2016/07/mega-review-perodua-bezza-eev.html, accessed Nov 2017 13. “Product Life Cycle”, Crack MBA, 30 Mar 2012, http://crackmba.com/product-life-cycle/, accessed May 2018 14. “Samsung”, Wikipedia, https://en.wikipedia.org/wiki/Samsung, accessed May 2018 15. “Models”, https://www.honda.com.my/, accessed June 2018 16. https://www.marriott.com/default.mi, accessed on June 2018 17. “About us”, http://www.yoyo-cafe.com/p.asp?l=3&w=t&id=2&m=2, accessed on June 2018 18. Press Association, “No Fatal Crashes In Volvo XC90since 2002 release”, Evening Express, 17 Apr 2018, https://www.eveningexpress.co.uk/motoring/no-fatal-crashes-involvo-xc90-since-2002-release/, accessed on July 2018 19. Pooja Goyal, “What is the difference between brand identity and brand association?”, Quora, 11 Feb 2017, https://www.quora.com/What-is-the-difference-between-brandidentity-and-brand-association, accessed on June 2018 20. “Story About Us”, Silkygirl, http://silkycosmetics.com/about-us/, accessed on July 2018 21. “Puma révolutionne le packaging de sa boite à chaussure”, La Communication Environnementale, 20 Jan 2011, https://saratorrao.wordpress.com/2011/01/20/pumarevolutionne-le-packaging-de-sa-boite-a-chaussure/, accessed on May 2018 22. “The Kimball Brand Evolution”, About Kimball, http://www.kimball.com.my/about.html, accessed on July 2018 23. “Pediatricians warn against unsafe packaging for laundry pods”, Chief Packaging Officer, 17 Nov 2014, https://www.chiefpackagingofficer.com/pediatricians-warnagainst-unsafe-packaging-for-laundry-pods/, accessed on June 2018 24. “Private Brands: Definition & Examples”, study.com, https://study.com/academy/lesson/private-brands-definition-examples-quiz.html, accessed on June 2018
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A COMPREHENSIVE NOTE OF NEW PRODUCT DEVELOPMENT AND BRANDING This comprehensive note of New Product Development and Branding 1st Edition is specially arranged for Malaysia’s Polytechnic students. This book summarizes key concepts of the subject in a concise and practical sentences, aided with visual images to enhance student’s interest and comprehension. This composition encompasses seven chapters of new product development, product life cycle, product decisions, brand and brand management, the brand elements, packaging and labelling and brand decisions. Key features • Comprehensive studying notes of New Product Development and Branding subject • Appropriate pictures, tables, and flow charts to enhance understanding.