BRANDING AND POSITIONING
- PACKAGING
- Who packages the items?
- Raw material processors, manufacturers, retailers
- Why and how are things packaged?
- Protection
- Convenience
- Information
- Environmentally Friendly
- Promotion
- Appearance and Branding
- Packaging is often referred to as “THE SILENT SALESPERSON”
6 FUNCTIONS OF PACKAGING
- Protection
- Protect from breakage (bubble wrap, foam)
- Protect from germs, air, sunlight, dust/dirt (air tight seals)
- Protect the consumer: safety seals, child-proof, warning labels, tampering, theft (sensor tags, cotton in medicine bottles)
- Helps to ensure the product remains safe and high quality
- Convenience
- Packaging a product so that it is easy to carry (transport) and use
- Special handles, grips, re-sealable bags and boxes
- Environmentally Friendly
- Minimal packaging
- Biodegradable material
- Reused and recyclable material
- Information
- Labelling laws regarding: ingredients (in order of quantity), nutritional content
- Name and address of mfr, distributor, name of business, slogan, logo, weight, volume, size, pricing (UPC code), storage, health warnings, contents, cooking instructions, recipes, coupons
- Appearance and Branding
- Packaging helps customers identify a brand or product (shapes, colour)
- Some products do not have packaging (appliances, furniture, electronics)
- Attractive packages are colourful and eye-catching with graphics
- Must design the packaging with the assumption that it will look good from any angle…”SHELF ALLOCATION”
- Promotion
- Some packages can be re-used after the original contents are consumed (Kinder Surprises, drinking glasses, jewellery)
- Tie-ins with movies, coupons for other products
- Using popular figures to attract attention
- Promoting a cause (environment, illnesses, poverty, children’s aid, natural disasters)
IMAGE AND BRANDING
- A brand and an image is the identity of a product – it’s what makes it different than the other products
- Product Differentiation: uses branding and imaging to create a different, distinct product
- Brand and image are based on:
- Brand names (Kleenex, Band-Aids)
- Logo or trademark (Nike swoosh)
- Slogans (“Built Ford Tough”)
- Jingles (Zoom, zoom, zoom…)
- Brand extension (different products by the same company)
- Unbranded products are called COMMODITIES (wheat, lumber, metal, fruits and vegetables)
- Brand names can be:
- corporate dominant – using the company name in the products name: Roots clothing, Shoppers Drug Mart Life brand)
- product dominant – using the product name alone to sell a product (Luv’s diapers, Zest soap, Fancy Feast, Acura)
- Logos are symbolic versions of a brand; a picture to illustrate the company
3 types of logos:
- Monogrammatic: writing only
- Visual symbols: pictures of people, animals or objects
- Abstract symbols: that don’t look like anything but represent something else
PRODUCT POSITIONING
- A position is a point of view, stance, perception, or attitude
- Positioning: to create an image in the consumer’s mind
- Types of Positioning:
- Benefit
- Target
- Price
- Distribution
- Service
- Benefit Positioning
- A product that is positioned to greatly benefit the user – what benefit will the consumer get from having this product?
- This is done by offering features that other products do not
- Target Positioning
- Positioning a product in the minds of certain consumers (i.e. the target market for video games or the target market for athletic running shoes)
- Price Positioning
- Products or services are positioned as either the most expensive…
- High quality, luxury items such as cars, high-end department stores, diamond watches
- Least expensive…discount items, cost-efficient items (IKEA furniture, Wal-Mart products)
- Businesses should not use the price positioning approach if they can’t sell their product as high end or discount – no middle ground
- Distribution Positioning
- Creating an image in the consumer’s mind based on how and where a company distributes its products
- Examples: Grocery Gateway, Avon, Gucci
- Service Positioning
- Creating an image in the consumer’s mind based on the type of service provided
- Examples: convenience stores, offering food and drinks in a store, a welcoming atmosphere.
- Think of banks, car dealerships, hair salons, doctors/dentists offices
- Services must be maintained if the business is going to use this form of positioning
- Distribution
- Channels of Distribution is the path of ownership that goods follow as they pass from producer to consumer.
TYPES OF CHANNELS
- Direct: direct to customer with no intermediaries
- Indirect: product passes through intermediaries
- Importers: exclusive distribution from foreign source i.e. specialty shops
- Wholesalers: buy from domestic source, sell to other business i.e. Costco
- 9 functions
- Retailers: sells to final consumer i.e. Guess
- 4 Rights of Retailer: merchandise, price, time, place, quantities
- Specialty Channels: doesn’t involve retail store (no contact with consumer)
- Vending machines, internet, catalogues, telemarketing, television sales
MODES OF TRANSPORTATION
- Supply Chain: all actives involved in getting goods/services from original source to the consumer
- Logistics: process of designing & managing supply chain
- Which method should be used?
- 4 FACTORS help determine which method is best:
- Destination: near or far?
- Weight: heavy/bulky vs. light/compact?
- Volume: containerization?
- Type of goods: food, flowers, chemicals
TRANSPORATION (5 METHODS)
- 1. Trucks 2. Trains 3. Planes 4. Ships 5. Pipelines
DISTRIBUTION POLICIES
- Determines whether the product or service will be available in a few or many locations.
- Exclusive Distribution
- Manufacturer makes deal with 1 or 2 retailers in a particular area to sell the product exclusively
- Integrated Distribution
- Manufacturer/distributor/retailer owns both distribution outlets and manufacturing facilities for a product or a line of products
- Intensive Distribution
- Used when a company wants its products sold everywhere (low price, many channels)
- Selective Distribution
- Use when a company doesn’t want its product sold everywhere – control distribution
