Some Notes on Branding

1663 Words Apr 15th, 2008 7 Pages
I. INTRODUCTION
• Branding is a plan for earning product reputation and for making sure that the world knows about it and believes in it too.
• “Branding is the process by which companies distinguish their product offerings from the competition. Brands are created by creating a distinctive name, packaging and design.” (Egan & Thomas, 1998)
• 1st Brand name= Bass [beer], because British were the 1st with trademark registration.
• Customers (particularly consumers) view a brand as an important part of a product and branding can add value to a product. A brand can provide a guarantee of reliability and quality, in fact.
Ex. Chanel perfume bottle.

II. BRAND EQUITY
• Brands vary in the amount of power and value they have in the market place.
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 A manufacturer has four sponsorship options. It can launch the product as a:
A. Manufacturer’s brand: A brand is created and owned by the producer of a product or service.
B. Private brand: A brand created and owned by a reseller of a product or service. e.g. Tesco Value, Tesco Finest
 Increasing trend amongst supermarkets, department and discount stores.
 Hard to establish, costly to stock and promote.
 However, they can find manufacturers with excess capacity that will produce the private label at low cost; hence higher profit margins, retailers can decide to stock them more and decide which shelves they go on.
 As store brands improve in quality and as consumers gain confidence in their store chains, store brands will continue to pose a challenge to manufacturer’s brands.
C. Licensing: A product or service using a brand name offered by the brand owner to the licensee for an agreed fee or royalty.
e.g. a lunchbox manufacturer pays Sesame Workshop to put Sesame Street characters on their lunchboxes.

 Corporate brand licensing: The fastest growing form of licensing. A firm rents a corporate trademark or logo made famous in one product or service category and uses in a related category.
e.g. Porsche sunglasses and accessories.
D. The practice of using the established brand names of two different companies on the same product.
Kellogg & ConAgra co-branded Kellogg’s
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