Chapter 09 Product, Branding, and Packaging Decisions

Chapter 09 - Product, Branding, and Packaging Decisions Chapter 09 Product, Branding, and Packaging Decisions Multiple Choice Questions The basic problem-solving benefits that consumers are seeking are defined by the: A augmented product B product mix C customer lifetime value D brand strategy E core customer value There is more to a product than its physical characteristics or its basic service function Marketers involved with the development, design, and sale of products think of them in an interrelated fashion At the centre is the core customer value, which defines the basic problem-solving benefits that consumers are seeking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-01 Complexity of Products and Types of Products 9-1 Chapter 09 - Product, Branding, and Packaging Decisions The nonphysical attributes of a product, including product warranties, financing, product support, and after-sale service are called the: A augmented product B product mix C customer lifetime value D brand service E core customer value The associated services, also referred to as the augmented product, include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-01 Complexity of Products and Types of Products An automobile firm launched a new car into the market, and it was a great success Customers primarily looking for speed and excitement were the target market Positioned as a sports car with supercar performance, it shattered the lap times of the fastest cars in the world In this scenario, speed and excitement constitute the: A augmented product B product mix C customer lifetime value D brand E core customer value In this case, speed and excitement constitute the core customer value There is more to a product than its physical characteristics or its basic service function Marketers involved with the development, design, and sale of products think of them in an interrelated fashion At the centre is the core customer value, which defines the basic problem-solving benefits that consumers are seeking 9-2 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-01 Complexity of Products and Types of Products Joss bought a refrigerator The refrigerator came with a warranty, free delivery, and free after-sales service In this scenario, the warranty, free delivery, and after-sales service constitute the: A augmented product B product mix C customer lifetime value D brand quality E core customer value In this scenario, the warranty, free delivery, and after-sales service constitute the augmented product The associated services, also referred to as the augmented product, include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-01 Complexity of Products and Types of Products Products and services used by people for their personal use are called: A personal products B consumer products C private products D personalized products E consumable products Consumer products are products and services for people's personal use 9-3 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products When shopping for diamonds, buyers typically perform a great deal of research on what they should be looking for as well as viewing different diamonds to choose the ones they want to buy Diamonds are an example of: A shopping products B unsought products C extended products D specialty products E convenience products Diamonds are an example of speciality products Specialty products/services are products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products Refrigerators and washing machines are examples of: A shopping products B unsought products C extended products D specialty products E convenience products Shopping products/services are products or services, such as furniture, apparel, fragrances, appliances, and travel alternatives, for which consumers will spend a fair amount of time comparing alternatives 9-4 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products Milk and eggs are inexpensive items that are frequently purchased They are examples of: A shopping products B unsought products C extended products D specialty products E convenience products Convenience products/services are those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase They are frequently purchased commodity items, such as common beverages, bread, or soap, and are usually purchased with very little thought Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products Fire extinguishers are examples of: A premium products B unsought products C extended products D specialty products E convenience products Unsought products/services are products consumers either not normally think of buying (e.g funeral services, fire extinguishers) or not know about 9-5 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products 10 Products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers are called: A shopping products/services B unsought products/services C generic products/services D specialty products/services E convenience products/services Specialty goods/services are products or services toward which customers show a strong preference and for which they will expend considerable effort to search for the best suppliers Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products 11 Products or services, such as furniture, apparel, fragrances, appliances, and travel alternatives, for which consumers will spend a fair amount of time comparing alternatives are called: A shopping products/services B unsought products/services C generic products/services D specialty products/services E convenience products/services Shopping goods/services are products or services, such as apparel, fragrances, and appliances, for which consumers will spend a fair amount of time comparing alternatives 9-6 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products 12 The products or services for which a consumer is not willing to spend any effort to evaluate prior to purchase are called: A shopping products/services B unsought products/services C luxury products/services D specialty products/services E convenience products/services Convenience goods/services are those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase They are commodity items that are frequently purchased, usually with very little thought Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products 13 Products consumers either not normally think of buying or not know about are called: A shopping products B unsought products C luxury products D specialty products E convenience products Unsought products/services are products consumers either not normally think of buying (e.g funeral services, fire extinguishers) or not know about 9-7 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-01 Describe the components of a product Topic: 09-03 Types of Products 14 Impulse buying happens to which category of products? A Unsought products B Shopping products C Specialty products D Convenience products E Services Convenience products are those that consumers are not willing to spend any effort to evaluate prior to purchase; whereas, for shopping and specialty products, customers spend time and effort comparing alternatives For convenience products, customers make purchasing decision in the store; therefore, impulse buying occur more for convenient product Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: Difficult Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-04 Product Mix and Product Line Decisions 15 An assortment of items that a customer sees as reasonable substitutes for one another is called a(n): A shopping product B unsought product C product category D specialty product E convenience product Within each product line, there are often multiple product categories A product category is an assortment of items that a customer sees as reasonable substitutes for one another 9-8 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-04 Product Mix and Product Line Decisions 16 A product line refers to: A the products in the shopping basket of a customer B the benefits offered with a single product C a group of associated items, such as those that consumers use together D the additional free items that a customer receives with a product E the number of features offered with a product The product mix typically consists of various product lines, which are groups of associated items, such as items that consumers use together or think of as part of a group of similar products Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-04 Product Mix and Product Line Decisions 17 Identify the term that refers to the names, terms, designs, symbols, or any other features that identify one seller's good or service as distinct from those of other sellers A Augmented product B Extension C Customer lifetime value D Brand E Core customer value Each category within a product line may use the same or different brands, which are the names, terms, designs, symbols, or any other features that identify one seller's good or service as distinct from those of other sellers 9-9 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-04 Product Mix and Product Line Decisions 18 Neon Corp., an electronic goods manufacturing company, uses the picture of an animated kangaroo on its product This picture helps in creating distinction from its other competitors in the market This picture is an example of a: A brand logo B brand slogan C brand jingle D brand tag line E brand catch phrase In this scenario, the picture used by the electronic goods manufacturing company is an example of the brand logo Logos are visual branding elements that stand for corporate names or trademarks Symbols are logos without words Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-07 Value of Branding 19 The complete set of all products offered by a firm is called the: A augmented product B product mix C customer lifetime value D brand equity E core customer value The complete set of all products offered by a firm is called its product mix 9-10 Chapter 09 - Product, Branding, and Packaging Decisions Short Answer Questions 114 Explain the division of consumer products based on the ways they are used and purchased Provide one example for each product type to support your answer Marketers classify consumer products according to the ways they are used and purchased • Specialty products/services: Specialty products/services are products or services toward which customers show such a strong preference that they will expend considerable effort and time to search for the best suppliers For example, road bike enthusiasts will devote lots of time and effort to selecting just the right bike • Shopping products/services: Shopping products/services are products or services, such as furniture, apparel, fragrances, appliances, and travel alternatives, for which consumers will spend a fair amount of time comparing alternatives When people need new sneakers, for instance, they will go from store to store shopping—trying on shoes, comparing alternatives, and chatting with salespeople • Convenience products/services: Convenience products/services are those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase They are frequently purchased commodity items, usually purchased with very little thought, such as common beverages, bread, or soap • Unsought products/services: Unsought products/services are products consumers either not normally think of buying or not know about Because of their very nature, these products require lots of marketing effort and various forms of promotion When new-to-theworld products, such as GPS systems, are first introduced, they often represent unsought products 9-57 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-02 Identify the types of consumer products Topic: 09-03 Types of Products 115 Explain how firms can increase or decrease product mix breadth Support your answer with examples Firms may change their product mix breadth by either adding to or deleting entire product lines Firms often add new product lines to capture new or evolving markets, increase sales, and compete in new venues For example, with the introduction of VIA Ready Brew, Starbucks changed the way people thought about instant coffee The line is expected to produce more than a billion dollars in sales And when the company learned that more than 60 percent of its consumers enjoyed flavoured coffee, it introduced Natural Fusions, a line of premium coffee available for sale in grocery stores in vanilla, cinnamon, and caramel flavours As part of Starbucks' business strategy, it was a natural way to grow its consumer products business Sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities A few years ago, SC Johnson sold off many products in its skin care line, including its successful Aveeno brand, to Johnson & Johnson The firm no longer competes in the skin care business but it remains a strong competitor in its original product lines, such as home cleaning (Pledge, Windex), air care (Glade), and home storage (Saran, Ziploc) 9-58 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-05 Change Product Mix Breadth and Depth 116 Explain how firms can change product line depth with one example Firms occasionally either add to or delete products from a product line to change their product line depth Firms may add new products within a line to address changing consumer preferences or preempt competitors while boosting sales For example, firms may add a product with a different price point to a product line to reach new target markets by selling through additional retailers This can help a firm to get a much-needed sales boost in the face of tough competition A firm may also add new products to its product line to serve new target segments From time to time, it is necessary to delete product categories to realign resources The decision to delete products is never taken lightly Generally, substantial investments have been made to develop the brand and manufacture the products Consumer goods firms, such as P&G and Unilever, make pruning decisions regularly to eliminate unprofitable items and refocus their marketing efforts on more profitable items This move helps firms be more competitive with rivals and frees up resources for future acquisitions 9-59 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-05 Change Product Mix Breadth and Depth 117 Explain how brands add value for both customers and a firm Brands are often easily recognized by consumers and, because they signify a certain quality level and contain familiar attributes, brands help consumers make quick decisions When consumers see a brand such as Honda, they immediately know what it is, its level of quality and engineering, its relative status, how much it generally costs, and, most important, whether they like it and want to buy it Over time and with continued use, consumers learn to trust certain brands As a result of such loyalty, these companies can maintain great depth in their product lines since their customers will buy other brands within their product mix Firms with well-known brands can spend relatively less on marketing costs than firms with little-known brands because the brand sells itself Brands are also assets that can be legally protected through trademarks and copyrights and thus constitute a unique ownership for the firm Firms sometimes have to fight to keep their brands "pure." Having well-known brands can have a direct impact on the company's bottom line The value of a brand can be calculated by assessing the earning potential of the brand over the next 12 months 9-60 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-04 Identify the advantages that brands provide firms and consumers Topic: 09-07 Value of Branding 118 Explain how brand-loyal customers are an important source of value for firms Brand loyalty occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category Brand-loyal customers are an important source of value for firms First, such consumers are often less sensitive to price In return, firms sometimes reward loyal consumers with loyalty or customer relationship management (CRM) programs, such as points that customers can redeem for extra discounts or free services, advance notice of sale items, and invitations to special events sponsored by the company Second, the marketing costs of reaching loyal consumers are much lower because the firm does not have to spend money on advertising and promotion campaigns to attract these customers Loyal consumers simply not need persuasion or an extra push to buy the firm's brands Third, loyal customers tend to praise the virtues of their favourite products, retailers, or services This positive word-of-mouth reaches potential customers and reinforces the perceived value at no cost to the firm Fourth, a high level of brand loyalty insulates the firm from competition because brand-loyal customers not switch to competitors' brands, even when provided with a variety of incentives Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-05 Summarize the components of brand equity Topic: 09-08 Brand Equity 119 Explain the concept of generic brands Generic products are those sold without brand names, typically in commodities markets For instance, shoppers can purchase unbranded salt, grains, produce, meat, or nuts in grocery stores Hardware stores often sell unbranded screws, nuts, and lumber However, even in these markets, the popularity and acceptance of generic products has declined Consumers question the quality and origin of the products, and retailers have found better profit potential and the ability to build brand equity with manufacturer and store brands For example, many fruits and vegetables sold through supermarket chains now carry either the manufacturer's brand name (e.g., Dole bananas) or the store's 9-61 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-10 Brand Ownership Samsung is one of the largest multinational companies in the world The company offers a very diverse products such as computers (PC and Laptops), TVs, Monitors, Printers, Projectors, Smart Phones, Tablets, Refrigerators, Washers, Dryers, Dish washers, Microwaves, Ovens, Digital Cameras, Camcorders, Blue-Rays, Home Theatres, and DVD players All products are sold under Samsung brand 120 Draw Samsung product mix and discuss product mix breadth and product line depth Student answers will vary Here is one way example: Home Appliance Computing Camera Media Smart phone & Tablet Refrigerators PC Digital Cameras TVs Smart phones Dish washers Laptops Camcorders Tablets Home theatres Washers Dryers Monitors Blue-Rays Ovens Printers DVD players Microwaves Projectors Students may categorize the products differently In the above example, the produce line breadth is and produce line depth is between to 9-62 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-04 Product Mix and Product Line Decisions 121 Provide one example on how Samsung can increase breadth, decrease breadth, increase depth, and decrease depth of its product mix Student answers will vary Increase breadth: add a new product lines For example, Samsung can add a new product line "insurance" and sell life/home/product insurance policies Decrease breadth: Samsung may delete the entire Camera product line and focus more on smart phone and tablet line Increase depth: Samsung may add gaming console to computing product line Decrease depth: Samsung may delete DVD Players from Media product line 9-63 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-05 Change Product Mix Breadth and Depth 122 How you categorize Samsung brand in terms of brand ownership? What is Samsung brand name strategy? Samsung is a manufacturer, therefore, it is a national brand It uses the same brand for all the products, therefore, it is using family brand strategy Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-10 Brand Ownership 123 If Samsung observes a growth in the healthy frozen food industry and plans to enter that market, what branding strategy should Samsung implement to be successful? Explain your answer Frozen food industry is very different than industries that Samsung is currently in Extending Samsung brand to frozen food industry could create brand dilution The brand extension to frozen food industry will distance Samsung from its brand-specific associations If Samsung wants to enter that industry, it is better to use different brand (Individual branding) for that product line 9-64 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-12 Brand Extension 124 Explain the advantages of using the same brand name for new products There are several advantages to using the same brand name for new products • First, because the brand name is already well established, a firm can spend less in developing consumer brand awareness and brand associations for the new product • Second, if the brand is known for its high quality, that perception will carry over to the new product For example, consumers who had not used the Neutrogena brand before trying the brand extension, Neutrogena Wave power cleanser, might be encouraged to try Neutrogena's core product line of cleansers and moisturizing lotions, especially if their experience with the Wave has been positive • Third, when brand extensions are used for complementary products, a synergy exists between the two products that can increase overall sales For example, Frito Lay markets both chips and dips under its Frito-Lay and Doritos brand names When people buy the chips, they tend to buy the dips as well Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-12 Brand Extension 125 Explain the risks associated with cobranding Provide examples to support your answer There are some risks associated with cobranding, especially when customers for each of the brands are vastly different For example, the Burger King and Häagen-Dazs cobranding strategy failed because the customer profiles for each brand were too different Cobranding may also fail if the brands' owners cannot resolve financial disputes about revenue or royalty sharing 9-65 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-13 Cobranding 126 Explain why packaging is important for retailers Provide examples to support your answer Packaging is an important brand element with more tangible or physical benefits than the other brand elements because packages come in different types and offer a variety of benefits to retailers Packaging provides the unique product code (UPC) label used by retail scanners as well as contents, directions, and other additional product information Packaging is considered by many marketers to be the last frontier in advertising because of its role in promoting products to consumers on the floor of the store at the point of purchase Packaging may also affect consumers' emotions and drive impulse buying Many children also pressure their parents to buy products, like breakfast cereal, more because of the packaging than for the product In these instances, packaging acts as a point of differentiation and makes consumers feel proud to own the brand Retailers' priorities for packaging are as follows They want convenience in terms of displaying and selling the product For customers, Coca-Cola's Fridge Pack of 12 cans offers customers a compact shape and convenience when carrying it home and storing it in their refrigerators; for retailers, the packaging offers the means to easily stack the packages on their shelves In addition, items may be packed into larger cartons, pallets, or containers to facilitate shipment and storage from the manufacturer to the retailer These shipping packages benefit the manufacturer and the retailer in that they protect the shipment during transit; aid in loading, unloading, and storage; and allow cost efficiencies because of the larger order and shipment sizes 9-66 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy Topic: 09-15 Packaging 127 Explain the purpose of labels Labels on products and packages provide information consumers need for their purchase decision and consumption of the product In that they identify the product and brand, labels are also an important element of branding and can be used for promotion The information required on them must comply with general and industry-specific laws and regulations, including the constituents or ingredients contained in the product, where the product was made, directions for use, and/or safety precautions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy Topic: 09-16 Labelling 128 Suppose you want to open a consumer electronics store What would be the product mix breadth of your company? What would be the product line depth? Student answers will vary Students will need to indicate the following in their answers: • Product mix breadth: The number of product lines, or variety, offered by a firm • Product line depth: The number of products within a product line 9-67 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 09-03 Explain the difference between a product mix's breadth and a product line's depth Topic: 09-04 Product Mix and Product Line Decisions 129 Your company has taken over a garment manufacturing company that is struggling to manufacture kidswear in the face of increased competition An opportunity in the sports apparel market presents itself What kind of branding strategies would you implement to allow the acquired company to regain its standing in the kidswear market and be an important player in the sportswear segment? Student answers will vary but may include references to the following: • Brand extension: The use of the same brand name for new products being introduced to the same or new markets • Cobranding: The practice of marketing two or more brands together, on the same package or promotion • Brand licensing: A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee 9-68 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-12 Brand Extension Topic: 09-13 Cobranding Topic: 09-14 Brand Licensing 130 Explain what steps firms should take to prevent the potentially negative consequences of brand extensions To prevent the negative consequences of brand extensions, firms must consider the following: • Marketers should carefully evaluate the fit between the product class of the core brand and that of the extension If the fit between the product categories is high, consumers will consider the extension credible, and the brand association will be stronger for the extension When Starbucks introduced VIA, its line of instant coffee, it made sense to consumers • Firms should carefully evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension because brand-specific associations are very important for extensions For example, if HP printers were associated with reliability, performance, and value, consumers would expect the same brand-specific attributes in other products that carried the HP brand name • Firms should refrain from extending the brand name to too many products and product categories to avoid diluting the brand and damaging brand equity For example, while Donald Trump has been quite successful lending his name to real estate properties and TV shows, he was unsuccessful in extending his name to branding steaks • Firms should consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of the existing brand associations Marriott has budget, mid-tier, and luxury hotels Its luxury hotels, including the Ritz-Carlton, Edition, and Renaissance, not use the name Marriott at all 9-69 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-06 Describe the types of branding strategies used by firms Topic: 09-12 Brand Extension 131 Explain how packaging could be used as a marketing tool Provide one example to support your answer Packaging can be used as an important marketing tool for manufacturers if it is used to convey the brand's positioning Cosmetics giant Estée Lauder considers packaging to be primarily about brand image, so its packages portray a modern, sophisticated look that is immediately recognizable Packaging is considered by many marketers to be the last frontier in advertising because of its role in promoting products to consumers on the floor of the store at the point of purchase Some packaging choices can drive users to a company's website Packaging may also affect consumers' emotions and drive impulse buying The shapes of fragrance, perfume, and deodorant bottles and containers are good examples of marketers extending the use of packaging beyond a distribution function to encourage purchase and differentiation Many children also pressure their parents to buy products, such as breakfast cereal, more because of the packaging than for the product In these instances, packaging acts as a point of differentiation and makes consumers feel proud to own the brand 9-70 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy Topic: 09-15 Packaging 132 Describe the innovations in design and materials over the years that have helped packaging to play an increasingly important role in brand positioning and shelf appeal Packaging is critical to a firm's brand positioning and shelf appeal, and therefore, many innovations in design and materials have occurred in the past few decades examples include: • Stand-up, reclosable zipper pouches: Capri Sun's stand-up pouch juice drink took the lead; now a variety of products and pouch types are available, including pouches with reclosable zippers • Aluminum beverage cans: First introduced in 1965, cans dominated the beverage market by 1985 • Aseptic packaging: Tetra Pak and IP provided designs and machinery that increased the shelf life of beverages without refrigeration They are used primarily by juice marketers but also by some soup companies • Child-resistant/senior-friendly packages: Products that are harmful to children under the age of five years, such as drugs and medicines, solvents, chemicals, and pesticides, now are packaged with child-resistant tops Seniors appreciate packages that are light, easy to handle, easy to read, and easy to open • Green and biodegradable packaging: Today's environmentally conscious consumers are demanding less packaging and want to be able to easily recycle it Vancouver-based Earthcycle Packaging launched compostable palm fibre-based packaging for items such as takeout food and produce Palm fibre takes about 90 days to decompose and is being used by Loblaw and Walmart P&G converted all of its liquid laundry brands (e.g., Tide, Gain, Cheer) to a concentrated formula in containers half the previous size Retailers appreciated the storage and shelf-space savings of the smaller packages Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09-07 State how a product's packaging and label contribute to a firm's overall strategy Topic: 09-15 Packaging 9-71 ... of a private-label brand Brands that are owned and managed by retailers are called private-label brands or store brands 9-28 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility:... examples of private-label brands Brands that are owned and managed by retailers are called private-label brands or store brands 9-29 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility:... component of branding is brand name 9-14 Chapter 09 - Product, Branding, and Packaging Decisions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 09- 04 Identify