CAHS 2000March 24, 2009

Global Consumer Culture

Brands

Brands

• A brand is a name, term, symbol, or any other unique element of a product that identifies one firm’s product(s) and sets it apart from competition

• Brands should –be memorable–have a positive connotation–convey a certain image

Creating Product Identity: Brand Names

Each year, 17,000 new products or line extensions are introduced

25% are new brands

127.5 billion per year spent on new brands

80-90% fail

The Functions of Brands• Identification of source of product• Assignment of responsibility to maker• Risk reducer• Search cost reducer• Promise or pact with maker• Symbolic device• Signal of quality

Good Brand Names

• Easy to say• Easy to spell• Easy to read• Easy to remember

• Fit the target market

• Fit the product’s benefits

• Fit the customer’s culture

• Fit legal requirements

Brand Elements

• Slogans and jingles“I'd like to buy the world a Coke…”

“Breakfast of Champions”

“Tastes great, less filling”

“Just do it”

• LogosParticularly important for services due to

abstract nature of product

Brand Logos and Recognition

How many of these logos can you recognize fromjust a single letter?

Brand Elements

• Characters: Brand symbol that takes on human characteristics– Characters are very useful for creating

brand awareness– The more realistic the character, the

greater the need to update it periodically.

Trademarks• Legal term for a brand name, brand

mark or trade character

• Trademarks established by the Lanham Act of 1946 and updated by the Trademark Revision Act of 1989

• ® is used when registered with the USPTO; ™ is used when a name or mark has not been legally registered but the user is claiming ownership

• Only protects in U.S. - if a firm wants multinational recognition, it must register in each country

®

TM

Branding Strategies

• Individual brands versus family brands

• National and store brands

• Generic brands

• Licensing

• Co-branding

Licensing Example: Harry Potter

Packaging and LabelingPackaging functions

– Protects product– Provides information– Functional benefits

Effective packaging designs– Communicates brand’s personality

• Even color matters: consumers assume that beer in a clear bottle is less hearty than beer in a dark bottle.

– Enhances brand image– Provides brand and name recognition

Packaging and Labeling

Labeling regulations

– Federal Fair Packaging and Labeling Act

– FDA requires labels with nutrition information

Management of Existing Products• Brand Manager

responsible for positioning of brands, developing brand equity

• Product Category Managers responsible for coordinating the mix of product lines within the more general product category

• Market Managers focus on customer groups rather than on the products made by the firm

Brands have Staying Power

• In ten major product categories, the #1 U.S. brand in 1925 is still on top today, such as Kodak cameras, Goodyear tires, Ivory soap

• In the U.K., the same is true, such as Stork margarine, Brooke Bond tea, Cadbury’s chocolates...

• P&G spent $1 million to develop, name, and package Coast soap!

Brand Equity• The Brand’s value to its organization

• Provides customer loyalty, perceived quality, brand name awareness, competitive advantage

• Provides competitive advantage

• Used to establish brand extensions

Brand Positioning and Extensions

Quiz 8• Write down your favorite CLOTHING

BRAND.– Target Market– Logo/Slogan/Packaging– Brand Positioning in the Marketplace– Explain any emotional attachments you

have with the brand– Brand Strategies: Generic, Individual or

Family brand, National or Store brand?

• http://www.ted.com/index.php/talks/seth_godin_on_sliced_bread.html

Extra Credit Opportunity

• Survey on causes and brands

• 5 points extra credit

• You will receive an email

• Click the link

• Click next

• Print the thank you page