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INTRODUCTION:-The battle in the market takes place not between companies, but between
brands. Consumers buy brands; and brands generate income for the firm. It means that
developing strong brands is a major responsibility of the firm and it requires support of a good
marketing programme which includes a meaningful product differentiation and an apt
positioning for the brand, accompanied by the right distribution & promotion support. Branding
is the process by which companies distinguish their product offerings from competition.
Marketers develop their products into brands which help to create a unique position in the minds
of consumers. Branding shapes customers perception about the product.

Brand is a broad term encompassing most ways of identifying a product. A brand is a

symbol, a mark, or name that acts as a means of communication to bring about an identity
of a given product. A Brand is essentially a seller’s promise to consistently deliver a specific set
of features , benefits, and services to the buyers. Brand is a product image, a quality, a value,
a personality.

According to AMA, “ A Brand is a name, term, symbol or a design or a combination of them,

intended to identify the goods or services of one seller or a group of sellers and to
differentiate them from those of competitors.”

Branding, on the other hand, is the process of finding and fixing the means of identification, it is
nothing but naming the product like naming a child as products are children of manufacturers.

Terms in branding:-
 Brand Name:- According to AMA “Brand name is part of a brand consisting of a word,
letter, or group of words or letters comprising a name which is intended to identify the
goods or services of a seller or a group of sellers and to differentiate them from those of
 In other words , a brand name consists of words, letters and/or numbers which may be
vocalized or pronounced. Eg:- Usha Fans, Onida TV.

 Brand Mark:- It is that part of the brand which appears in the form of a symbol, design,
or distinctive colouring or lettering. It is recognized only by sight but may ne
pronounceable. Eg-‘Maharaja’ of Air India

 Trade Mark:-When a brand name or brand mark is registered and legalized it becomes
a trade mark. Thus, registered brands are trade marks. In that sense all trademarks are
brands but all brands are not trademarks. According to AMA ‘A brand or part of a brand
that is given legal protection because it is capable of exclusive appropriation.’

 Trade name-This is frequently and erroneously used as a synonym for either brand name
or trademark. A trade mark is the name of the business preferably the name of the
organization itself. A trade name will also be the brand name, but it such a case it serves
two separate purpose. it brings out the identity of such a manufacturer and the
product.TATAS is solely a trade name of the market of various brands of
cosmetics.GODREJ is both a trade name and a brand name for most of their products.

 Patents-Patents are public documents conferring certain rights privileges, titles or

offices. A patent confers the right to the use of technical invention. it is applicable in the
case of new inventions such as a new process , a new product or a new machine.

 Copyright-This is applicable in the case of books and is used in the same meaning as that
of patents. It is Sole right to reproduce literary, dramatic, musical or artistic work.
Copyright is available for the whole the author’s life-time and fifty years after his death..

 Brand extension & Brand Proliferation:-it is the opposite of brand extension.While in

brand extension new new items are added using an existing brand name, in brand
proliferation, more items are are brought in with new brand names.~In other words, firm
has several brands in the same product/product category.For eg:- P&G has more than a
dozen brands of detergents.

 Brand equity:- ‘Brand Equity’ refers to a set of assets & liabilities linked to brand, its
name and symbol that add to or subtract from the value provided by the product or
service to a firm & or that firm’s competitions. Brand assets can be categorized into 5
groups :- 1)Brand loyalty, 2) Brand name, 3)Brands perceived quality, 4) Brand
association in addition to the perceived quality, 5)other assets like patents, trademarks

Brand strategy and policy:-Branding strategy indicates how the firm chooses to use branding
as an integral part of its overall marketing strategy. In a sense, branding is simply another
dimension of marketing strategy. To a consumer, a brand name is a means of identification
of the product as well as means of differentiation of the branded products from its rivals.The
brand name is a centre around which the entire marketing mix is built up. The brand name
can incorporate all marketing efforts together either in consumer mind or in the marketing
programme. It gives necessary promotional and advertising support in order to make product
recognisable and to create consumer patronage.


1) Ensures better quality of goods:- Branding ensures products of better quality to the
buyer. If the firm has one or more lines of branded goods, it can add new items to its
product mix more easily than a firm selling unbranded goods.

2) It leads to consumer protection:- the prices of branded products are fixed by the
manufacturers. This protects the interest of consumers because the retailers can not
charge more than fixed price.

3) It is an advertisement:- If brand name attains goodwill, it will serve as a useful medium

of advertisement. A registered brand name & mark is a protection from imitation of the
product by other manufacturers. Brand name is highly used for advertising a product &
maintaining its individuality.

4) It serves as a bridge between seller & buyer:- Brand/Trademark ia an effective bridge

between seller & buyer in thye market place, it has become n indispensable tool of any
business / corporate strategy.

5) Leads to product differentiation:-branding helps in distinguishing a product from other

similar products in the market.thus it makes ‘recall’ and shopping easy.the stronger a
brand is, the stronger it is to recall it.

6) Protection of goods:-the branded products are packed in suitable containers or wrappers

which offers protection to goods against heat & moisture and facilitate convenient
handling. They are assured of quality of branded products.

 Reasons for branding

In the olden days when the demand was greater than the supply branding was not necessary.
When supply is more than the demand companies not only need to create customers, but also
keep them; and to keep them one needs to create customer loyalty.
To create customer loyalty one needs to project a personality of a brand to which the customer
will be loyal. This personality is called as a brand.

Branding is the most powerful instrument of sales promotion due to the following reasons:
 Ever increasing competition
 Importance of packaging as a distinct marketing function.
 Need for advertising and publicity
 Development of consumer brand-consciousness.
 Not only branding gives separate identity and easy recognition to the product it also
creates special consumer preference and the consumer enters the shop to demand and
insist upon specific brand of products.

 Characteristics/Requisites/Qualities of a good brand name:-

1) It should reflect Product Dimensions:-It should suggest something about the

product’s qualities, benefits or functions. Example-‘Sunsilk Shampoos’ implies silky
hair, EZEE of Godrej is really easy to use, GOOD-NIGHT mosquito repellant implies
that the user will have a good night free of mosquitos.
2) It should be easy to pronounce and remember: The name suggested should not
give tongue-twister consonants. Eg-‘HOECHST’ is difficult to pronounce whereas
‘Click’ is easy to remember.
3) It should be short and sweet: The name must be short and sweet appealing to eyes,
ears and brain.Eg:-Bata, Tata, Tide, Crest
4) It should point out the producer: The name or the mark or the symbol should
suggest the name of the producer. It is so because most of the consumers believe in
producers than products.Eg:-Amul,
5) It should be original: The original name is one which is quite distinctive which is
not imitation of others. It must be such that others cannot copy. Eg:- ‘Philips’,
‘Maggi’, ‘Mustang’, ‘Kodak’
6) It should not carry poor meanings in other countries and languages:-Eg:-‘Nova’
is a poor name for a car to be sold in Spanish speaking countries as it means “doesn’t
7) It should be legally protectable: The name, selected to be used over a long time and
to avoid imitation, is to be legalized.

To consumers:-
1) It assures quality and value: A branded product is a quality product with right value
for the money spent on it.
2) Branded Products reflect status and lifestyle: The brand is a prestige builder or
status evaluator. Branded products speak of the personality of a product and therefore
the personality and lifestyle of consumers.
3) It saves time and effort: Good deal of time and energy can be saved in shopping for
goods, if they are branded. A branded product renders product identification much
easier and convincing.
4) Consumer protection against cheating-It gives trade and legal protection to
Consumers against the unscrupulous and unfair trade practices. Manufactures print on
each pack the date of manufacture & expiry, MRP etc.
5) The brand name assures fixed prices. Branded products have prices printed as to
what the consumer is to pay as MRP. Even the distributors cannot unjustifiably vary

To the manufacturers:-
(1) Products get individuality-It helps to identify the product and distinguishes it from other
competing products. Thus, it protects the interests of the manufacturer.
(2) Control of Product Prices:- Controlling the retail price is a significant factor because
each consumer is quality & price conscious. Each pack will have MRP printed on it and
the producers need not worry about the consumers being exploited by the retailers or
(3) Increases Bargaining power:- Good Brands give greater bargaining power to the
manufacturers with the dealers as there is already a ‘pull’ in favour of the product. as it is
easier to sell branded products , wholesalers & retailers prefer to stock and deal in
branded products and the manufacturers will be in apposition to dictate the terms in their
(4) It reduces advertising cost:- If the brand name is popular, then it hardly needs extra
advertising expenses each time. It improves the effectiveness of product advertising and
promotion. Product identity can be created easily which would help easy ‘repeat sales’.
(5) Introduction of new product is made easy:-Consumers who are loyal to the brands or
products of a particular company will easily accept any new product launched by that
company due to the past trust.
(6) It is a powerful weapon of product differentiation:-as the markets are getting more
competitive and consumer driven, companies that succeed in differentiating the product
can carve niches for themselves through branding.
(7) Ever increasing demand:-Powerful brands have the capacity to create, maintain and
extend demand for a product. once a brand has built its position , it leads to word of
mouth marketing and leads to increased demand.

To the wholesalers and retailers:-—

(1) Quicker sales:-Widely popular brands ease the selling process and lead to large
sales. As there is already a ‘pull’ in favour of the product it becomes easier for
wholesalers & retailers to sell the products.
(2) Adverting and display of products is made easy:-It helps in advertising and sales
promotion programmes. The distributor can easily find out the quick moving products.
(3) Branded products have more stabilized prices.
(4) Special selling efforts need not be undertaken. This reduces the cost of distribution and
hence the final price.
(5) Introduction of new products is made easy.
(6) Economical way of doing business:- when the wholesalers and retailers decide to trade
on the brands of manufacturers , they need not create any brand which is a time and
money consuming process.

 Demerits to consumers
1. It creates confusion and chaos: When consumers are provided with too many brands of
products in a product line they’ll get confused as to which to select.
2. It makes losing sight of better products: It might save time and effort but it also
deprives the consumer of other new brands of products which might be really better than
the accepted one.
3. It hikes product prices: Popular brands demand high price. It is the premium price that
makes this difference because brand is quality, value, status and price.
4. Brand names do not always assure good quality. Manufacturers sometimes place
inferior goods in the market under a glamorous brand name.
5. Branding is expensive:- It is difficult to establish a brand and the expense of advertising
in the initial stages is very high which raises the costs.
The severe criticism leveled against branding is that it leads to some kind of monopoly known as
‘BRAND MONOPOLY’. The brand monopoly is created by gradually creating a brand
loyalty to the products in the minds of the consumers. This criticism is baseless since such a
situation is not possible in the case of consumer goods unless they are really necessary
items. When a monopolistic tendency is found, consumers will show a response to it by
changing the brand.
 Types of brands:
1)Individual or Single brand name: When all of a company's products are given different brand
names, this is referred to as individual branding. The advantage of individual branding is that
each product has a self image and identity that's unique. This facilitates the positioning process.
The manufacture has to promote each individual brand in the market separately. This creates a
practical difficulty in promotion. For eg:- in laundry detergents, Procter & Gamble has uniquely
positioned brands like Tide, Cheer, Bold etc
2)Family brand name: Family name is limited to one line of products. Several related products
can efficiently be promoted with a single advertisement or campaign. Family branding facilitates
new product introductions . When considering purchasing a new type of product, potential
customers tend to evoke in their minds a product with a familiar brand, this can lead to trial
purchase, product acceptance, or other advantages.

Family branding puts a greater burden on the brand owner to maintain consistent quality and
brand equity. If the quality of one product in the brand family is compromised, it could reduce
sales of all the others. For this reason family branding is generally limited to product lines that
consist of products of similar quality.Eg:- ‘Amul’ for dairy products, ‘Johnson & Johnson’ for
baby care products.

3) Umbrella brand: A brand name that covers diverse kinds of products of a company. We may
have for all products the name of the company or the manufacturer. For example, all products
such as soaps, textiles, chemicals etc manufactured by the Tata concerns will have the “Tata’s”
as one umbrella brand. Similarly for Nivea- Nivea Visage, Nivea Beaute, Nivea for Men, Nivea
Crème etc.Godrej-has several product lines such as almirah’s, office furniture, refrigerators, ACs
etc which all go by the name Godrej.

4) Multi-brand or Combine device: Tata house is using a combination device. Each product has
an individual name but it also has the umbrella brand to indicate the business house producing
the products. HLL has several individual brands like Dove, Sunlight etc but it also uses umbrella
brands like ’Kissan’for foods line, Lakme for cosmetics, Brooke Bond for Tea & Coffee.

5) Private/Store/ Middleman’s brand: sometimes manufacturers leave their products for

branding by the distributors or retailers. Small maufacturers who do not have the financial &
management resources to brand & market their products rely on the middlemen for marketing.
Eg:- Spencer’s is a middleman’s brand ,Stop is a store brand of retail chain Shopper’s stop.

6) Generic brand- A brand becomes generic when the buyer refers the type of product he wants
by the producer’s brand name. The brand name becoming generic is dangerous for the marketer.
Eg:- Dettol, Jeep, Xerox etc. The brand name becoming generic is dangerous for the marketer.
The owner of the brand who has spent money & time to popularize & promote the brand has
cautious enough buyers to buy only this brand & not the products of the other brands sold under
his brand name. it is better to have a distinctive brand name to avoid its becoming generic.

Thomas F. Schutte in The Semantics of Branding classifies the brands into two broad categories:
– manufacturer brands and own-label brands.

I) Manufacturer brands:-Manufacturer brands are created by producers and bear their chosen
brand name. The producer is responsible for marketing the brand. The brand is owned by the
By building their brand names, manufacturers can gain widespread distribution (for example by
retailers who want to sell the brand) and build customer loyalty (think about the manufacturer
brands that you feel “loyal” to).

(a) National Brands - the same brand used on a national level.

(b) Regional Brands - brand for particular region.
(c) Advertising Brands - brands stressing symbols.
(d) Blanket/ Single/Family Brands - one brand name for all the products of a manufacturer,
e.g. Godrej Products
(e) Multiple/ Individual - brand name given for each variety of product, e.g. various
brand soaps of Tata.

2) Own label brands/Distributor’s Brand:-

own-label brands are created and owned by businesses that operate in the distribution channel –
often referred to as “distributors”.

Own-label branding – if well carried out – can often offer the consumer excellent value for
money and provide the distributor with additional bargaining power when it comes to negotiating
prices and terms with manufacturer brands.


Packaging is the science, art and technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the process of design, evaluation, and production
of packages. Package labelling or labeling is any written, electronic, or graphic
communications on the packaging or on a separate but associated label.

The definition of "packaging" is a container or wrapper for a consumer product that serves a
number of purposes including protection and description of the contents, theft deterrence, and
product promotion. Innovative packaging may actually add value to the product if it meets a
consumer need such as portion control, recycle-ability, tamper-proofing, child-proofing, easy-
open, easy-store, easy-carry, and non-breakability.

When designing packaging, the cost to manufacture, ship, and display the package must be
considered. Packaging must be small enough to accommodate available shelf space and large
enough to deter theft. It must also contain an adequate amount of product to keep the unit price
competitive. Packaging should be designed to highlight product benefits and can be an integral
part of the product itself, like facial tissue box.

Packaging is another side of product identification. Traditionally the function of packaging was
to protect goods. However, it is a promotional tool and major image builder contributing to the
product success. ‘Packing’ is a process that speaks of company’s ability to contain economically
mean made or natural products for shipment, storage, sale or final use. In simple words packing
the act of housing the product in the packages or containers like tins, cans, bags, jars, bottles,
boxes, kegs, casks, etc. A ‘package’ is a wrapper or a container in a which product is enclosed,
encased, housed and sealed. ‘Packaging’ on the other hand deals with activities of planning and
designing of different means of packing the products.

“Packaging is the general group of activities in designing or the containers or wrappers for the
products”.-Professor William Stanton.
“Package design is the unique combination of colors, graphics, and symbols to distinguishing the
“Packaging is an activity which is concerned with the protection, economy, convenience and
promotional considerations”. - Professor Philip Kotler.

Types of packaging:
Packaging may be looked at as several different types. For example a transport package or
distribution package is the package form used to ship, store, and handle the product or inner
packages. Some identify a consumer package as one which is directed toward a consumer or
It is convenient to categorize packages by layer or function: "primary", "secondary", etc.
 Primary packaging is the material that first envelops the product and holds it. This
usually is the smallest unit of distribution or use and is the package which is in direct
contact with the contents.
 Secondary packaging is outside the primary packaging – perhaps used to group primary
packages together.
 Tertiary packaging is used for bulk handling, warehouse storage and transport shipping.
The most common form is a palletized unit load that packs tightly into containers.
These broad categories can be somewhat arbitrary. For example, depending on the use, a shrink
wrap can be primary packaging when applied directly to the product, secondary packaging when
combining smaller packages, and tertiary packaging on some distribution packs.

The primary objective of packaging is protection of goods. It is the packages that keeps the
contents fresh, clean and uncoil by using moisture proof, vermin-proof and damage resistant
materials. It also avoids shop lifting, stealing in shops. Product is protected against the possible
theft, spilling, breakage, evaporation etc.

Next to brand names, packaging is another easy and convenient method to identify products of
different producers and marketers. The size, color, graphics used in each package are unique that
can be easily remembered and recalled.

A packaging aims at providing maximum convenience to the producers, purchasers and
distributors. Good packaging facilitates the ease of product use by consumers. The best examples
of these are: cans, pull tubes, flitops etc. a nicely designed product package facilitates product
shipping, storage; shipping etc. it is caused by product density.

Packaging performs many good advertising functions: At least four are emphasized:
A. Self advertising- package design has supreme significance as it attracts consumers.
B. Point of purchase- the 2 possibilities of display are “window” and ‘counter” where the first
does the work of attracting consumers and the second one gives the comparison of competitive
products for consumer choice.
C. Media of advertising- the general appearance and the selling features created by the packaging
techniques decide the product success
D. Product publicity- free advertising is done through package insert or flap advertising.

Role of packaging
The basic function of packaging from the time is to protect the contents of it from damage, dust,
dirt, leakage, watering so on. Thus the contents are kept fresh, clean.unspoilt and unaffected. The
canning and deep freezing of some perishable products like strawberries, orange juice, and
mango pulp enable all the year round consumption on the part of consumers.
It is packaging that increases the product density. Product density implies selecting such a
package materials, design, shape that it helps to use the limited space in the best way. It improves
relations with common carriers, permits better use of space in storage and usage and increases
the grace.
Good packaging can sell more easily and quickly as it works as a promotional tool. It is a “silent
salesman”. As a promotional tool it does it self- advertising, displaying, publishing, and acts as
an adverting medium. It is the package, design, size etc that catch the attention of the consumers.
Convenience in storage, transportation handling and usage the product is another requirement.
Consumers are generally assisted so long as the product is in usage. In fact, neat packaging has
brought home reduction in inventory costs, space and time costs.
The process of product differentiation is furthered by effective product identifiers, one is
branding and other is packaging. Consumer’s confusion over the large variety need not confound
them and mislead them in consumer decision making because, they go by distinctive product
Product mix relates to the product lines and assortment of sizes, colors, measures, grades,
package types etc offered by the selling house. Changes in product mix can be possible as
packaging is to influence weight, size and dimensions of the product. Such a selected sales of
product mix will facilitate product pricing, shipping, storage, stocking, handling, and display in
diversified market segments.
The package of a product may be used in an effort to extend the product life cycle. It is difficult
to come up with totally new products, but any variety of packaging innovations can be
introduced which offers features of consumer wants and willingness to pay for a form of product

Kinds of packages
Kinds or methods of packaging will depend largely on the nature of the contents in terns of their
value, physical composition and durability. The length of the distribution channel, the amount of
handling which the container will receive, and variations inc climatic conditions which may be
encountered between the point of manufacture and sales are also to be taken in account. For
example, products in liquid form require containers made of glass or similar materials. For
fragile articles wooden containers are used.
On the basis of nature, packaging is classified into:
1. Family Packing: The products of a particular manufacturer when packed in an identical
manner are known as family packaging. The shape, color, size etc. will be same in all his
products. “Family brands” are made useful by family packaging. In such cases,
packaging methods, materials used for packaging, the appearance will be one and the
same for all products.
2. Re-use Packaging: Packages that could be used for some other purposes after the packed
goods have been used is known as re-use packaging. This increases the sales value of the
product considerably.
3. Multiple Packaging: it is the practice of placing several units in one container. This helps
to introduce new products and increase sales.


Labeling means putting identification marks on the package. Label consists of verbal information
that accompanies the product. A label identifies: Who made the product? Date of manufacturing
and expiry, the price to be charged, brand name, net quantity of contents (weight, measure,
numerical count, etc). Some labels consist of tags attached to the product or package, as in the
case of most clothing or hosiery articles. Labels are part of the printed material on the package.
The label is a strong sales tool and an integral part of the point of purchase advertising.
Although some products maybe adequately identified by giving the name of the product and the
producer, most require a some what more extensive description of their nature and use. For
example, processed foods, patent drugs, some cosmetics, textiles and other goods are required by
law, to carry a fairly complete idea about their ingredients. Many products also must furnish
instructions for their use, as in the case of commercial plant food. Safety warnings are also
necessary on labels of all potentially hazardous products or packages. If a substance is
poisonous, the label must tell the user what steps to take if any is ingested and must list the
antidotes. For example, there is often a warning on medicines “to be used under direction of a
medical practitioner”

Label is a small slip placed on or near anything (product) to denote its nature, contents,
ownership, destination, etc. the function of standardization is made perfect and known to the
users through labels. Packages afford a place where the labels could be affixed. It is a medium
through which the manufacturer gives necessary information to the user or consumer. It is
defined as a product which carries verbal information about the product of the seller. A label
plays an important role in making the packaging and branding functions meaningful. Hence,
these 3 functions are closely related. Furthermore, any legal restriction imposed is evidenced
through labeling. The recently passed Packaged Commodities (Regulation) Order 1975, makes it
obligatory on the part of the manufacturers to show details about the identity of the commodity,
its weight, date or manufacturer, etc. The provision of this enactment is carried out with the help
of labeling

Function of labeling
 It gives definiteness to the product and therefore, the identification of a product is easy.
 It stresses the standard and other special features of the product which are advertised.
 It enables the manufacturer to give clear instructions to the consumer about the proper
use of his product.
 By mentioning prices, undue price variations, caused by the intermediaries are avoided.
In other words, price is recorded, registered, and maintained.
 It encourages to produce only standardized and quality products.
 It provides a method for the manufacturer by which a contact with the consumer is

Kinds of labels

William J. Stanton classifies the labels into four:

Brand, Grade, Descriptive, and Information labels.
 Brand Labels: These labels are exclusively meant for popularizing the brand names of the
product. Cosmetics manufacturers prefer to use this kind. They are names for their
products, e.g., cigarettes, sweets.
 Grade Labels: These labels give emphasis to standards or grades. This is used as an
indirect method of product identification, e.g., cloth, leaf, dust tea.
 Descriptive Labels: The labels which are descriptive in nature are typified as descriptive
in nature. In addition to the product feature they explain the various uses of the products.
Most of the milk-food products and other similar household products invariably have
descriptive labels.
 Informative Labels: the main object of these labels is to provide maximum possible
information. These may contain the products characteristics and in addition the method of
using it properly. In the case of medicines detailed labels are attached which even specify
the side effects is using them.

Advantages of labeling
 It is a social service to customers, who very often do not know anything about the
products’ characteristic features. False claims are prevented by using labels.
 It avoids price variations by publishing the price on the label.
 It helps advertising activity of the organization.
 It helps the customers to assess the superiority of a product.
 It is a guarantee for the standard of the product. Hence it raises the prestige of the
product and of the manufacturer.

Disadvantage of labeling
 For an illiterate population this is of no use.
 It increases the cost of the product, since labeling involves expenditure on the part of the
 Labeling is effective only where standardization is compulsory.
 It enables the customer to weigh and compare the advantages of products before they are
used. This ultimately ends discarding of one product in favour of one another.
 In spite of these defects, under legislated atmosphere it could play an effective role and
protection to customers.

What is the information provided by a label?

 Brand name
 Name and address of manufacturer
 Weight, measure, count
 Ingredients by %, where possible
 Directions for the proper use of the product
 Nutritional guidelines
 Date of packing and expiry
 Retail price
 Recipes on food products