What is Branding and Positioning

BRANDING AND POSITIONING

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

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)

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

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

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

TRANSPORATION (5 METHODS)

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