What comes to mind when someone says Coca Cola or Nike or Microsoft? According to BusinessWeek magazine, the Coca-Cola brand is the world’s strongest brand. However, a global consumer study sponsored by Reuters found that Apple has the best record. What is a “brand” and what these studies mean when reporting that a brand is the strongest or best?
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We have mentioned in this chapter marks periodically. But what is a brand? A brand is a name, an image, a design or a symbol, or a combination of those items, used by a vendor to identify and differentiate their offerings from competitors’ offerings. The brand is the set of activities designed to create a brand and position in the minds of consumers. Did you know that The Beatles started a recording studio called Apple? When Apple Computer (the company’s iPod), Apple Corp., Ltd. (the recording studio the Beatles) was formed Apple Computer sued because two companies with the same name can create confusion among consumers. This was not a big problem when Apple only sold computers, but after the launch of the iPod and the launch of Apple’s iTunes program, you could argue that offers companies are sufficiently similar so that consumers confuse the two companies and their products. In fact, it was not until recently that demand for the name was resolved, some thirty years after the filing of the initial application. However, the situation means how important brands for companies that own them.
A successful brand strategy
A successful brand strategy is one that accomplishes what Coke and Apple have done: make an acknowledgment by the consumer of what the brand (represented by its name, image, design, symbol, etc.). Consequently, when marketers are considering whether a potential new offer fits the image of a company, they are very concerned about whether the offer brand supports the organization and position in the consumer’s mind. For this reason, many believe that the brand is much more than the way the product is packaged or labeled, and they are right. The characteristics of the offer, including price and quality, should support the position of the mark. If Apple (the brand) is synonymous with innovation, the products and services must be innovative. But the brand itself refers to strategies that are designed to create an image and a position in the minds of consumers.
A brand like Apple, is spoken of brand identity part. A brand is a symbol, like Coca wave or multicolored apple Apple Computer (not to be confused with green apple of Apple Records), associated with a brand. Trademarks and brand names are important for companies because consumers use them to make decisions. So it was important to classify the Apple brand. Each company wanted to ensure that consumers got what they wanted and they would know what it meant each brand.
Decide what to Choose
An important decision to be taken by companies is under what marks a new offer will be marketed. For example, Black & Decker manufactures power tools for consumers under its brand Black & Decker, while tools for professionals and the most important professionals under their brand Dewalt. If Black & Decker decided to add to its line Dewalt new products such as refrigerators, portable radios, CD players and other accessories that construction professionals might find useful in a work site, the company would be creating a brand extension. A brand extension involves the use of a trademark or existing brand for a new product category.
Why Black & Decker add these accessories to Dewalt line? If the company did, it would be because Dewalt already has a good reputation for high quality, long lasting durability and performance among construction professionals. These same professionals would trust the brand to deliver Dewalt. The way a company like Black & Decker is dedicated to building this trust is the subject of later chapters. For now, consider whether it is better for a company to market a new product through a brand extension or create a completely new brand for the product.
One thing that companies should consider when you are promoting a new offer is the degree of cannibalization that can occur in all products. Cannibalization occurs when the new offer of a company’s sales of its older bids eat. (Ideally, when selling a new product, he expects all of its sales come from buyers of its competitors or are new to the market).A completely new offer will not result in cannibalization, while a line extension will probably do so. A brand extension will also result in some cannibalization if you sell similar products under another brand. For example, if Black & Decker already had an existing line of refrigerators, portable radios and CD players when the Dewalt line was launched, Dewalt’s new offerings could cannibalize some of Black & Decker’s offerings.
Some marketers argue that cannibalization can be good because it is a sign that a company is developing new and better deals. These people believe that if they do not cannibalize its own line, your competitors will.
Another set of questions to consider has to do with the package that brands and brand name prominently displayed. Sometimes the package itself is part of the brand. For example, the curvilinear shape of the bottle Coke Coke is a registered trademark. If you choose to market your drink in a bottle Similarly, Coca-Cola lawyers have grounds to sue.
The packaging has to fulfill a number of important functions, including
- Communicate the brand and its benefits;
- Protect the product from damage and contamination during shipping and handling damage and once you are in retail outlets;
- Avoiding leakage of the contents;
- Present warning labels and information required by the government.
Sometimes the packaging may perform other functions, such as serving as part of a display in shop designed to promote the offer.
The primary packaging containing a single unit retail of a product. For example, a coke bottle, a bag of M & M or a ream of printer paper (five hundred sheets) are all examples of primary packages. The primary packaging can be used to protect and promote products and capture the attention of consumers. The primary packaging can also be used to demonstrate the correct use of an offer, provide instructions on how to assemble the product or any other necessary information. If warning labels or nutrition are required, they should be on the primary packaging. The primary packaging can also be grouped. Consumers can purchase Coca-Cola bottles sold in packs of six or cans Coke twelve packets.
The Big Examples
Secondary packaging contains a single wholesale unit of a product. A case of bags of M & M is an example, like cartons of reams of paper. Secondary packaging is designed more for retailers to consumers. You do not have to carry warning labels or nutrition, but you probably have brands and labels. Secondary packaging further protects individual products during shipment.
The tertiary packaging is a packaging designed specifically for efficient shipping and handling large quantities. When a Coca-Cola sends boxes of Coca-Cola to a grocery store, stacked on pallets (wood pallets) and then wrapped in plastic. Palettes can be easily moved with a forklift and can even move into the grocery store with a small truck.
The packaging of a product can benefit the customer beyond just protecting supply ships while. Caps without spillage, for example, can facilitate the use of laundry detergent or prevent spillage when adding oil to the engine of your car. And, as noted, the secondary packaging (and tertiary packaging) can serve as part of an exhibition at the store, adding value to its retailers.