PRODUCT IDENTIFICATION

METHODS

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 9. PRODUCT IDENTIFICATION METHODS
In today's cx)mpetitive economy with homogeneity of products, every

producer wants to capture a large share of market through product

differentiation created by several means of packaging, branding and

grading. By branding, labelling and grading, a distinct image about the

product is created into the minds of buyers who are induced to buy that

particular brand of goods. This technique of making a commodity popular

in the market is also known as 'product identification' which in quantitative

terminology, means a certain standard with a definite quality or degree of

excellence over the other. Packaging and labelling, branding and grading

are the vital marketing tools which are used to secure the desired market

share in a competitive market. These elements are equally important in

the field of marketing of milk products in dairy industry and the big

entrepreneurs like M/s. Chitale Bandhu and co-operative dairy

organisations like M/s. Warana and M/s. Gokul make sufficient use of

them in order to make their products more popular. A brief description of

these activities is given below.

BRANDING

A brand is a name, temi, symbol or design or a combination of them

which is intended to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors. Branding

strategy indicates as to how the firm chooses to use branding as an

Integral part of its overall marketing strategy. Branding is useful to both

the producer and the consumer. It is a means of identification of the

product as well as a means for differentiating the branded product from its

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rivals. It gives necessary advertising and promotional support in order to

make the product recognisable and to create consumer patronage.

Branding, labelling and packaging are complementary to each other. The

sole purpose of branding is to distinguish the branded product from those

of the competitors. When the brand is registered, it become legal and

assumes the form of the trade mark which reserves the exclusive right of

the firm and prohibits others from making the use of that particular brand.

Brands are most powerful instruments of sales promotion due to the

following reasons.

1. They create growing competitiveness among the producers and the

sellers.

2. They make the advertisement policy effective and successful and

3. The manufacturers, the middlemen and retailers are assisted in the

process of creating stimulating, strengthing or maintaining demand for

the products.

Branding is used in co-operative dairies, for example, Wama Dudh Sangh

, Wamanagar (Kolhapur), is a well known symbol branded, in the word

'WARANA', on the bags of milk, ghee, shrikhand and other products and

is easily distinguishable from other types of same products. Similarly

'Gokul' of Kolhapur Zilla Sahakari Dudh Utpadak Sangh Branding bridges

the gap between the manufacturer's promotional programme and

consummation of sales to final buyers. Through brand identifications, a

concern prepares itself to compete on the non-price basis.

The following is the classification of branding generally found in various

fields of marketing:

1) Brand based on ownership - It may be:

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 a) Manufacturer's brand

b) Middlemen's brand

2) Based on market are - It may be:

a) Local Brand, e.g. Chitale is very famous brand in Pune.

b) Regional brand,

c) Provincial Brand, or

d) National Brand.

3) Based on the number of products - It may be :

a) Individual brand, or

b) Family brand.

4) Based on the number of products - It may be:

a) Fighting brand, or

b) Competitive brand.

In dairy industry and mainly in the co-operative sector, the first and third

type of brands i.e. the manufacturer's brands and the middlemen's

brands, the individual brands and the family brands are largely used.

Many situations spring up when greater returns can be realised through

making one choice rather then the other. Such decisions require

evaluation of three factors: nature of the product line, promotional policy

and desired market penetration. Middleman's decision for his brand

depends more on profits and control of market. Example of the

manufacturer's brand is the WARANA, GOUL, M/S. CHITALE BANDHU,

KATRAJ, AMUL, AARAY etc.

Broadly speaking, the brand policies are generally adopted either by the

manufacturers themselves or by the middlemen. The manufacturers sell

their products in their own name and in this way they are able to control

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the market conditions. Manufacturer's policy of branding helps in

stabilizing the prices of their products.

In a brand policy adopted by the middlemen, the producer does not affix

any brand of his own and instead leaves the branding policy to be

formulated and executed by the middlemen, who affix the symbols of their

own brands on the products. The middlemen sometimes sell both the

commodities - the branded commodity of the producers and the self

branded commodities.

GRADING

Grading is another important stage for making a product more popular in

the field of marketing. Grading means giving a rank, class or value to

products of the same type but with varying degrees in quality and purity.

When the milk and milk products are sold with varying degrees of purity,

they are given different classes of grades to be distinguished for affixing

the prices by the manufacturer and for valuing by the buyers. For

example, 'grade A' 'grade B' and 'grade C etc. are nothing but one major

step taken by the manufacturers for identifying their products on the basis

of the quality of their goods. This is essential, in the modem marketing

techniques to make one's product more popular and competitive. Grading

is widely dependent on the local requirements or demands of the trade.

Categorically speaking, the grading of milk and milk products in dairy

industry owes its significance to the time immemorial, when the use of the

milk and its product was known to the man and to the community. With

the passage of time and advancement of civilisation, grading of milk and

milk products assumed growing significance, so much so that the grading

is now being undertaken by the manufacturers with varying names and

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several standards. In a general way, there are two classes of milk market,

raw and pasteurized. The raw milk is in its natural state without any

treatment by the manufacturer. It may be graded as certified milk or

ordinary milk. The latter may again be designated as 'Grade A Raw' or

'Grade B Raw' or sometimes even 'Inspected Milk'. On the other hand,

pasteurized milk is that milk which has been subjected to temperature

sufficient to destroy all bacteria found in the milk. The pasteurized milk is

also sub-divided into various categories, such as, 'Grade A pasteurized',

or 'Pasteurized Certified'.

Milk is graded upon the conditions under which it has been produced and

handled and also upon the quality of the milk from the stand point of

purity, bacterial counts and cleanliness etc. These grades are set up

usually by local regulations. On survey it was found that some special

classes of milk are also subjected to gradation by the manufacturers in

order to obtain specialization. For instance, skimmed milk, high fat,

vitamin 'D', soft curd, concentrated milk and homogenized milk have all

found a place in the modem milk market. So far as milk products are

concerned, they are also graded on the basis of quality, purity, cleanliness

and contents as found therein. While cheese, khoa, sweets, milk powder

have their own standards and are generally not bifurcated into different

classes except that they are prepared in accordance with the standards

as laid down by the Prevention of Food Adultration Act. The ghee and

butter are sub-divided into different grades.

The prominance of gradation in case of butter is yet to find a room in

dairying. However, some large-scale dairies do adopt grades for their

butter; For example, Amul butter of Anand milk Union Limited, Khairgarh.
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 PACKAGING

Packaging is an art of malting one's goods more attractive among

competitors. It also give security and safety to the commodity while

transporting from one place to another. A good package is the

representation of the artistic combination of the designer's creative skills

and the marketing policies of the company. It is the sum total of the

talents of the designers, the researchers, the technicians, the advertising

man, the marketing expert and the top management. Packaging is,

therefore, a science and an art concerned with the development and use

of materials, methods and equipment for putting a product into a container

to protect the product till it reaches the customer.

Packaging is important not only for protecting the product but also for

promoting the sale of the product. To quote Mason and Rath , 'Packaging

is the use of containers and wrapping materials plus decoration and

labelling to protect the product, to help and promote its sale, and to make

it convenient for the customer to use the product. Packaging, broadly

speaking, does not cover wrapping or containing along, it covers those

industries engaged in the production of packing material.

Packaging of late, has also gained significance in the dairy industry. The

fluid milk in various quantities is sold these days in big cities in packages

of polythene paper known as ply-pack. Sweets of different type wrapped

in colourful papers with flowers and beautiful scenes attract the attention

of the consumers. Modem methods of packaging are available to

manufacturers in order to make their commodities more competitive and

famous. The more effectively a product Is packed, the more effective it is

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to identify individually. Packaging alone makes possible the branding and

advertising of product.

Packaging has become a marketing necessity. It helps the producers, the

middlemen and the customers in handling the goods with more

convenience and comfort. Packaging is all the more important at a place

where differentiation has to be made In its usages by children, males and

females. Some packages bearing a child notion may be easily lifted for

the use of children. Cow's milk is packed in polythene paper with a label

indicating its use by children may easily be recognised by persons from

amongst so many other packages. Incase of self services shop, the

package becomes a silent salesman. The public, now a days, feels

attracted not solely by the product itself but by the explanation, assurance,

encouragement, confidence and praise, all integrated with a pleasant and

eye-catching get-up on the top of the packet. Thus a good package

ensures ultimate success of the product as a commercial venture.

Package, truly speaking, is an invaluable and necessary help to decision

making by the customers. Under competitive conditions of the markets,

one needs an effective means to recognise a difference and establish a

preference to ensure repeated purchases. Although huge sums are spent

on packaging, labelling and advertising these days, packaging completes

and compensates the sales cycle triggered by advertising and secures a

meaningful market share. In brief, in the present era of commerce and

consumer-oriented marketing approach, packaging has gained unique

importance. It is a device of sales promotion.

Packaging may be of several types but broadly it may be classified into

five heads viz.,

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(1) Transit packaging,

(2) Consumer packaging,

(3) Product line packaging or family packaging,

(4) Multiple packaging, and,

(5) Reuse packaging.

In Dairy industry the first and fifth types of packaging are generally used

wherein the milk and milk products are packed and sold by the producers

to the buyers. Ploythene bags containing milk in differing quantities are

used in the transportation of fluid milk from dairies to the consumers with

safety and security. These bags now bear the names of the milk supplying

agencies. Similarly, sweets made from milk are packed in decorated

containers bearing names of the producers, of the sellers and transported

to further places. In packaging the goods, generally speaking the wooden

boxes, card-board containers, paper bags and aluminium containers are

largely used. But in the co-operative dairies of M/s. Warana, M/s. Gokul

and others forms of dairying, the paper bags card-board containers,

plastic and ploythene bags are largely used.

In India, the packaging practice is still in its infancy. Hence the average

packaging expenditure per person is very small as compared to America,

Britain and Japan. In order to popularise packaging and induce the people

into the significance of packaging, the Indian institute of Packaging was

started in 1966 in collaboration with private industrialists and the central

government. It is a registered body under Societies Registration Act. The

main objectives of the Institution are -

1) To arouse packaging consciousness among producers and vendors,

2) To recomend specific standards of goods and equipment.

3) To train persons in the field of packaging.

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4) To promote and develop research and technological advancement

relating to packaging.

5) To extend consultative services about packaging, and,

6) To collect, analyse and interpret information about packaging and also

find impact of packaging on marketing.

The Institution has three divisions for these purposes -

(1) Research and Development Division,

(2) Training and Information Division, and,

(3) Administrative Division.

LABELLING

When the goods are packed, it needs labelling which is equally important.

The label is the part of the product which carries verbal information about

the product or the seller (manufacturer or middleman). A label may be a

part of package, or it may be a tag attached directly to the product. A

label is informative in character and hence attached to a product, after the

product is packed or even before its packaging. The label may be in the

form of a sheet, a wrapper or a seal attached to a product or producer's

package, Label gives information about the product, its quality, quantity,

license number, production batch number, the name of producer together

with his address and other necessary information. The purpose of

labelling is to give the consumer information about the product he is

buying and what it will and will not do for him. There is a very close

relationship between labelling and packaging and labelling and branding

or grading. Labelling of the product has social significance also. In

America, a special act known as Fair Packaging and Labelling Act was

passed in 1967 to ensure truth in packaging and fair trade practices

regarding packaging and labelling in order to provide consumer

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protection. Although legislation brings security and safety to the buyers

interest, it alone can not do the job. Consumerism, consumer pressure

and business ethics followed by businesses will go a long way in

safeguarding innocent and ignorant poor consumers in many countries

particularly in India. However lebelling is being largely used in India in

small, medium and large-scale industries. Since label have different and

several characteristics, they may be classified as brand, grade descriptive

and informative.

The brand labels and grade labels are generally used in dairy industry, in

the production of butter, ghee and shrikhand etc. Sometimes descriptive

and infomiative classes of label is also used in dairying to appraise the

consumers of nutritional values of the dairy products, their date of

packaging and date of expiry, retail prices, fomnula of production and also

unit price for consumption. Accurate reliable and up-to-date lebelling

includes more than label or a package it is sometimes accompanied by

sales literature. The unit cost helps easy comparison, as the consumers

welcome unit pricing on labels. Misleading labels may lead to prosecution

and penalty. The printing cost of labels is very little but the superiatives

given on the label bring high returns. M/s. NDDB had undertaken some

special efforts in Packaging / Labelling when they launched their milk in

Ahmedabad to differentiate themselves from other competitors

For securing the distribution and availability of packaged commodities at

fair prices, the government of India enacted the 'Packaged Commodities

Regulation Order, 1975, which came Into force on January 1. 1976. The

main features of the order are -

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(1) No person shall pack the goods for sale unless the label appearing on

the packet contains the identification of the product, its quantity of

weight, the selling price and the date of packaging;

(2) No person shall sell the goods at a price more than that printed on the

label;

(3) The price mentioned on the label will be exclusive of the local taxes.

Recently, the government has amended the Standards of Weights and

Measures (packed commodities) Rules 1977, and has made it

obligatory on the producers to pack their goods in packets of standard

weights. This mie has come into force from ApriH, 1990.

FUTURE POTENTIALITIES OF PRODUCT IDENTIFICATION IN THE

MARKETING OF DAIRY PRODUCT

Product identification techniques in Dairy Industry have assumed higher

proportions for over two decades or so. With the advancement of the

means of transportation and storage facilities, the dairy units have

increased their field of operation with a large area of coverage. As a

result, these units have multiplied the number of their products with

varying kinds, standards and product identifications. The utility of product

identification of these dairy units may be seen in growing demand of

consumers from farther places for the products of these dairy units. The

advantages of the products identification of dairy products in Maharashtra

are still small as the factors of product identification have not fully

explored. Thus leaving ample scope for their optimum utilization.

Proper product identification schemes are being given due importance by

the State Government by enacting several laws and bye-laws in this

regard to ensure the credibility of dairy products and to establish faith and
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confidence of the buyers in the same. The adoption of modem methods

of branding, grading, labelling and packaging by the producers of dairy

product in Maharashtra and the resultant growing demand from farther

places for their products is the indication of wide and extensive growing

use of these techniques in the industry in the years to come. Product

identification, therefore, has high potential in this field. But this can be

made possible only when proper facilities and assistance for adoption of

modem methods of products identification are extended by the State

Govemment with proper control and regulations. It will require a suitable

environment beneficial to both the manufacturers and consumers. As

many dairy units in Maharashtra are unrecognized and scattered, they

generally do not give proper weightage to product identification and hence

their field of operation are limited. If these units could adopt new and

modem techniques of product identification, it would go a long way in

increasing their sales and providing the consumers standard and uniform

products at reasonable prices. This in fact cost in terms of money for

exmple , A code making machine costs app. 20,000 Rs. But Amul did use

these machine when they launched their milk in Ahmedabad /

Gandhinagar. By educating the customers and by using descriptive

labelling methods, Amul has increased its sales volume by alomost 75%

(Details in the topic - marketing of milk - The Amul way).

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