What is Branding, Packaging & Trademarks? Marketing Management
Branding, Trademarks, and Packaging
In the modern market, competition is rarely about the product itself; it is about the “augmented” product. As Prof. Theodore Levitt noted nearly 45 years ago, the new competition is about what companies add to their factory output in the form of packaging, services, advertising, and things people value.
A Brand is defined as a name, term, sign, symbol, or design (or a combination of them) intended to identify the goods and services of one seller and differentiate them from the competition.
However, a brand is much more than a tag. It is a contract with the consumer regarding performance. It builds a bond of faith and trust, eliminating search costs and risks for the buyer.
1. Brand Identity vs. Brand Image
It is crucial for students to distinguish between how a brand is seen internally versus externally.
A. Brand Identity (The Insider’s Concept)
Brand identity refers to the brand strategist’s vision. It is a unique set of brand associations that the company aspires to create or maintain. It represents what the brand stands for and implies a promise to customers.
Jean-Noel Kapferer identified six dimensions of Brand Identity (The Brand Identity Prism):
Physique: The tangible, physical aspects (features, logo, packaging). Example: IBM’s physique includes desktops and servers.
Personality: The brand character (using adjectives like “rugged,” “youthful,” or “sophisticated”). Example: Boost is energetic; Bajaj Pulsar is “Definitely Male.”
Culture: The values and principles the brand reflects. Example: Apple symbolizes simplicity and innovation; Mercedes symbolizes German engineering efficiency.
Relationship: The transaction and exchange between the brand and customer. Example: Nike’s “Just Do It” encourages the user to win; Apple conveys friendliness.
Reflection: The image of the target consumer that the brand projects. Example: Pepsi reflects young, carefree, fun-loving people.
Self-Image: How the customer perceives themselves when using the brand. Example: A Nike user sees their inner athlete.
B. Brand Image (The Outsider’s Concept)
Brand Image is the sum total of impressions created by the brand in the consumer’s mind. It encompasses physical characteristics, functional benefits, and symbolic meanings.
Types of Brand Associations:
Hard Associations: Perceptions of tangible attributes like speed, fuel economy, or sturdiness.
Soft Associations: Emotional perceptions. Example: Indian Airlines may be associated with dullness or inefficiency, while Bajaj Pulsar is associated with excitement.
The Three Elements of Brand Image (Alexander L. Biel):
Image of Provider: The reputation of the manufacturer. An inappropriate corporate image can hurt a good product. Example: Apple is seen as creative/cool; DCM is seen as old/dull.
Image of Product: The functional characteristics and technology. Example: Laundry detergents are driven by rationality, while perfumes are driven by emotion.
Image of User: Who uses the product? Example: The image of Raymond Suitings is “The Complete Man.”
2. Brand Equity (The Value of the Brand)
Brand Equity is the value a brand adds to a product. It explains why a product with a brand name can command a higher price and loyalty than an identical unbranded product.
Definitions:
David Aaker: “Brands have equity because they have high awareness, many loyal consumers, a high reputation for perceived quality, and proprietary assets.”
Kevin Lane Keller: “Brand equity is the marketing effects uniquely attributed to the brand. It is when certain outcomes result because of the brand name that would not occur otherwise.”
The 5 Dimensions of Customer-Based Brand Equity: (By Lasser, Mittal, and Sharma)
Performance: Is the product fault-free and durable?
Social Image: Does the brand hold esteem within the customer’s social group?
Value: The ratio between the cost and the perceived delivered value.
Trustworthiness: Does the customer have faith in the brand’s quality and the people behind it?
Identification: Does the customer feel emotionally attached to the brand? (Does it match their self-concept?)
3. Types of Brands
Marketers have several options when deciding the ownership of a brand.
Manufacturer Brands (National Brands):
Initiated by producers.
The initiator controls distribution, pricing, and promotion.
Focus: Building brand loyalty and corporate image.
Private Brands (Store/House Brands):
Initiated by resellers (wholesalers or retailers).
The manufacturer is not identified on the product.
Example: Shoppers’ Stop brands.
Trend: Gaining popularity in India as large retail chains grow (e.g., Reliance Retail).
Licensed Brands:
A company allows approved manufacturers to use its trademark for a royalty fee (2% – 10% of revenue).
Example: P&G licensed the ‘Camay’ soap brand to Godrej in India for a period.
Risk: The licensor loses control over manufacturing, which may hurt the brand reputation.
Generic Brands:
Products that indicate only the product category (e.g., “Aluminium Foil” or “Paracetamol”).
They are usually sold at lower prices than branded versions.
4. Branding Strategies (Detailed)
Companies grow by adding products. They must decide how to name them. Here are the six generic strategies:
1. Product Branding Strategy (One Product, One Brand)
The company assigns a unique name to every product. The brand reflects its own personality and does not take on company associations.
Philosophy: “Singularity.” Create the perception that there is no product quite like this one.
Example: P&G (Tide, Ariel, Pantene, Vicks, Old Spice) and HUL (Lux, Dove, Liril, Lifebuoy). Even though Ariel and Tide are both detergents by P&G, they have separate identities.
Advantage: You can cover different market segments without confusion. If one brand fails, it doesn’t hurt the company’s reputation.
Disadvantage: Extremely expensive to build a new brand from scratch ($5 million – $50 million).
2. Line Branding Strategy
Products share a common concept. The brand starts with one product and extends to complementary products that “surround” the core need.
Example: Lakmé (Core concept: Beauty). The brand extends to lipsticks, winter lotions, and face wash because they all complement the core concept of beauty. Park Avenue (Core concept: The upwardly mobile man).
Advantage: Stronger brand identity; promotion of the main brand helps all items in the line.
3. Range Branding Strategy (Brand Extension)
Different product categories share the same brand name because they fall under the company’s “Area of Expertise.”
Difference from Line Branding: In Line Branding, products complement each other (lipstick + makeup remover). In Range Branding, products might not complement each other, but they share a domain.
Example: Maggi (Noodles, Sauces, Soups, Dosa mixes). The area of expertise is “Fast Food.” Himalaya (Ayurvedic concepts).
Advantage: One brand banner covers many products, lowering promotional costs.
Risk: Overstretching may confuse consumers.
4. Umbrella Branding Strategy (Mega Branding)
The company name is the brand name for all products across diverse, unrelated categories. This is common in Eastern companies (Japan, Korea).
Example: Samsung, Sony, Tata, Amul, Philips, GE.
Advantage: Very economical. Transfers the goodwill of the company to new products instantly.
Disadvantage: Not market-focused. A failure in one category (e.g., a faulty toaster) can tarnish the image of another category (e.g., medical equipment).
5. Double Branding Strategy
Combining the company name AND a product brand name. Both are given equal status.
Example: Bajaj Pulsar, Maruti Suzuki Swift, Tata Indica.
Why? The product gains trust from the company name (Bajaj) and excitement/differentiation from the product name (Pulsar – “Definitely Male”).
Limitation: Works best when the product is consistent with the company’s expertise.
6. Endorsement Branding Strategy
A variation of double branding where the Product Brand dominates, and the Company Name takes a back seat, acting only as a seal of quality (endorsement).
Example: Kit-Kat (endorsed by Nestlé), Cinthol (endorsed by Godrej).
Advantage: The brand gets freedom to have its own distinct image (fun, youthful) while assuring the customer of the manufacturer’s quality.
5. Packaging and Trade Marks
Packaging
Packaging includes all activities focused on the development of a container and a graphic design for a product. It is often called the “Silent Salesman.”
Functions: It protects the product, identifies the brand, offers convenience to the user, and acts as a promotional tool on the shelf.
Trade Marks
A trademark is a brand, brand name, brand mark, or trade character that has been given legal protection. It protects the seller’s exclusive rights to use that brand name or mark, preventing competitors from copying it.