Consumers can be very confused when many products on the market from different producers are very similar to each other. But some smart organisations can convert a commodity product into a brand.
Branding is the process of adding value to the product by using different tools (i.e packaging, name, promotion) to make the product distinct and unique. Some researches even believe that when a firm is brand-oriented they are more successful than their competitors.
A successful brand is an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Furthermore, its success results from being able to sustain those added values in the face of competition. (DeChernatony and McDonald, 1998)
The added value may be in the area of reassurance in the brands quality and reliability, of the area of status or simply convenience. Generally, branded products score higher on price and product characteristics. This is likely to contribute to increased profits and developing even stronger brand.
Many brand names are used strategically. The name would be part of the marketing strategy and focus on the perception the markets want the consumers to have about the product. Brand names are generally protected by the registration.
Marketing specialists suggests that a brand name should have the following:
* Catchy and attract
* Memorable and alliterative
* Linked to a visual image
* Communicate something about the product
* Consist a sign which creates a meaning
* Have mythical connection
* Associated with a relevant values
Advantages of branding and branding issues
Branding, however, involves more than just giving a product attractive name. It involves different activities around the marketing mix which leads to a branding where the whole message can be communicated to the customer. This involve looking at the product quality, price and customer expectations.
The consumer benefits from the brand in the form of knowing what the product quality will be, as well as gaining some self-image value, prestige as well as finding a good value for money.
It must be said, that in may examples the actual product does not differentiate itself from other products, but only the brand. However, despite the artificial different characteristics of the product, customer can still benefit from the brand. This is due to the psychotic power of the brand.
Branding clearly have advantages for the producers since it helps to differentiate the product from the competitors product. A brand of a high scale is proven to produce more economies. Brand also can play a role of a barrier to competitors to enter the market.
Additionally, not all branded products are sold of a premium price. Many have the competitive pricing structure and still gain the advantage of a brand with increased sales. Brand also allows to strengthen the same during different ups and downs of the market.
For the consumers, as we have already mentioned above provide easy information about the quality and performance of the product. Branding helps to reduce the decision-making process for the consumers. Consumers who do not have a knowledge about the product or do not want to spend time on the research using brand have instantly available information about the product.
Branding is indeed one of the most creative activities of a marketing teams. It requires a close team work to ensure that the main "personality" of the product is consistent within all the marketing efforts.
The process of branding can be, however, time consuming. Generally, brand manager would be given the task. A clear idea about the product image is important. Seeing brand as a part of advertising and design is inadequate, and successful brands get to the core of the product personality and essence.
Sometimes, products need to be rebranded. This can happened due to a negative association of a product with the particular brand. Often however, the rebranding happens due to company merging or one acquire another. Such branding can be very expensive and take time and efforts to be successful.
Branding extension
The process of branding extension means to use similar brand name for another product range. Essentially, we are borrowing from the established brand to create and establish reputation of a new product line for example. The most important driver for brand expansion success is the fit between the present brand and the extension product. Sometimes those expansions may involve products not even coming from the same producer and may not even be of the same product category.
Nowadays, firms also have the opportunities to extend their brand internationally.
An interesting move with brand concepts have also been noticed around 1980s with increase in retail sale and retailers brands. Often, manufactures will focus on the retailer brand as opposed to their own. The reasons for these is often that the manufactures are experts in the product itself and able to purchase the raw materials cheaper. Additionally, the manufacturers are aware that supplying retailer with one product may provide opportunities for supplying other products in the future. Additionally the retailer will absorb all the costs of promotion of the product as well as the manufacturer is aware, that if they do not produce for this retailer, other competitors may do, therefore it can be a good strategy from many angles.
However, if the manufacturers brand it strong, the manufacturer can afford to refine to produce under the retailer brand.
Product packaging
Packaging is part of the product and it can itself present benefits. The main function of packaging is to protect the content from the environmental conditions, but it can also have other benefits. These include informing the customers, meeting legal informatory requirements and sometimes even aids the use of the product.
The environmental protection has become very important, so much packaging is either recyclable or biodegradable today. Packaging should be convenient for the customer and hygienic. In some countries there is also a shift into development of the copyright and patent law concerning packaging, so copying packaging of a well known brand can become very expensive.
In recent years packaging is also used as a tool for legal trade compliance. These can differ from one country to the next.
Packaging is also often use in the promotion of other products within the range with a joint promotion.
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