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4. Mixed Branding Strategy.
a. Is a branding strategy:
• Where a firm markets products under its own name(s) and that of a
reseller…
• Because the segment attracted to the reseller is different from its own
market.
b. Example: Dial (soap), with its own and private label brands.
IV. PACKAGING AND LABELING PRODUCTS [LO4]
• Packaging is a component of a product that refers to any container in which it is
offered for sale and on which label information is conveyed.
• A label is an integral part of the package that typically identifies:
a. The product or brand.
b. Who made it.
• The customer’s first exposure to a product is the package and label.
• The package and label are an expensive and important part of marketing strategy.
MARKETING MATTERS
Customer Value: Creating Customer Value through Packaging—
Pez Heads Dispense More Than Candy
Chapter 11 - Managing Successful Products, Services, and Brands
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A. Creating Customer Value and Competitive Advantage through Packaging and
Labeling
Packaging and labeling:
• Account for about 15 cents of every dollar spent by consumers for products.
• Provide important benefits for the manufacturer, retailer, and ultimate consumer.
• Can provide a competitive advantage.
1. Communication Benefits.
a. A major benefit of packaging:
• Is the information on the label conveyed to the consumer, such as:
– Directions on how to use the product.
b. Labeling provides a uniform format for nutritional and dietary information.
c. Other information consists of seals and symbols, either government required
or commercial seals of approval (e.g., the Good Housekeeping seal).
2. Functional Benefits.
a. Packaging often plays an important functional role, such as:
• Storage. • Protection.
• Convenience. • Product quality.
b. The convenience dimension of packaging is becoming increasingly important.
• Squeeze bottles. • Single-serve portions.
c. Consumer protection has become an important function of packaging:
• Tamper-resistant containers—Safety seals or pop-tops.
• “Open dating.” States the expected shelf life of the product.
d. Functional features of packaging also can affect product quality.
3. Perceptual Benefits.
a. Packaging and labeling also create perception in consumers’ minds.
Chapter 11 - Managing Successful Products, Services, and Brands
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• A package’s color, shape, and graphics distinguishes it from other brands.
• A package can connote:
– Status. – Product quality.
– Economy.
• A package can:
– Convey a brand’s positioning.
• A package and labeling can:
– Enhance brand recognition.
– Facilitate the formation of strong, favorable, and unique brand
associations.
b. Successful marketers recognize that changes in packages and labels can
update and uphold a brand’s image in consumers’ minds.
c. Because labels list a product’s source:
B. Packaging and Labeling Challenges and Responses
Package and label designers face four challenges.
1. Connecting with Customers.
a. Packages and labels must be continually updated to connect with customers.
b. The challenge lies in:
• Creating aesthetic and functional design features that…
c. If done right, the rewards can be huge.
2. Environmental Concerns.
a. The amount, composition, and disposal of packaging material receives much
attention due to the:
Chapter 11 - Managing Successful Products, Services, and Brands
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• Growth of solid waste.
• Shortage of viable landfill sites.
b. Recyclable packaging material is a major thrust for many companies.
c. Other firms use less packaging material in their products.
3. Health, Safety, and Security Issues.
a. A majority of U.S. and European consumers believe companies should make
sure products and their packages are safe, regardless of the cost.
b. New packaging technology and materials can:
4. Cost Reduction.
a. About 80 percent of packaging material used in the world consists of paper,
plastics, and glass.
b. As the cost of these materials rise, firms try to find innovative ways to cut
packaging costs while delivering value to their customers.
c. Many food and personal care marketers have replaced bottles and cans with
sealed plastic or foil pouches to cut packaging costs.
V. PRODUCT WARRANTY
• A final component for product consideration is the warranty, which is a statement
indicating the liability of the manufacturer for product deficiencies.
• There are various types of product warranties with different implications for
manufacturers and customers:
a. Express warranties are written statements of liabilities.
• The FTC has required greater disclosure on express warranties to indicate
whether the warranty is:
b. The Magnuson-Moss Warranty/FTC Improvement Act (1975):
Chapter 11 - Managing Successful Products, Services, and Brands
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• Regulates the content of consumer warranties.
• Strengthened consumer rights with regard to warranties.
c. Implied warranties assign responsibility for product deficiencies to the
manufacturer.
d. Brands with limited warranties tend to receive less positive evaluations compared
with full-warranty items.
e. The trend now is toward “strict liability” rulings, where a manufacturer is liable
for any product defect, whether it followed reasonable research standards or not.
f. Warranties represent much more to the buyer than just protection from negative
consequences—they can hold a significant marketing advantage for the producer.
LEARNING REVIEW
11-7. What are the six criteria mentioned most often when selecting a good brand
name?
11-8. What are the three major benefits of packaging and labeling?
11-9. What is the difference between an expressed and an implied warranty?
Chapter 11 - Managing Successful Products, Services, and Brands
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APPLYING MARKETING KNOWLEDGE
1. Listed below are three different products in various stages of the product life cycle.
What marketing strategies would you suggest to these companies? (a) Canon digital
cameras—maturity stage, (b) Hewlett-Packard tablet computers—growth stage, and
(c) handheld manual can openers—decline stage.
Answers:
2. It has often been suggested that products are intentionally made to break down or
wear out. Is this strategy a planned product modification approach?
3. The product manager of GE is reviewing the penetration of trash compactors in
American homes. After more than two decades in existence, this product is in
relatively few homes. What problems can account for this poor acceptance?
What is the shape of the trash compactor life cycle?
Answers:
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4. For years, Ferrari has been known as the manufacturer of expensive luxury
automobiles. The company plans to attract the major segment of the car-buying
market who purchase medium-priced automobiles. As Ferrari considers this trading-
down strategy, what branding strategy would you recommend? What are the trade-
offs to consider with your strategy?
Answers:
5. The nature of product warranties has changed as the federal court system reassesses
the meaning of warranties. How does the regulatory trend toward warranties affect
product development?
Answer:
Chapter 11 - Managing Successful Products, Services, and Brands
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BUILDING YOUR MARKETING PLAN
For the product offering in your marketing plan,
1. Identify (a) its stage in the product life cycle and (b) key marketing mix actions that
might be appropriate, as shown in Figure 11-1.
2. Develop (a) branding and (b) packaging strategies, if appropriate for your offering.
Chapter 11 - Managing Successful Products, Services, and Brands
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TEACHING NOTE FOR VIDEO CASE VC-11
P&G’s Secret Deodorant: Finding Inspiration in Perspiration
Synopsis
Secret deodorant was the first deodorant brand marketed exclusively to women in 1956.
For some 50 years, the brand held a prominent market position. However, Secret brand
management believed the brand was losing its relevance with its target market. The challenge
facing the brand’s management team was to modernize the brand by making it relevant to a
new generation of consumers.
This video case describes the thought process and program execution behind the
“purpose-driven marketing” initiative for P&G’s Secret deodorant. As such, the case provides
a contemporary look at how social media can be used in brand building. Moreover, the case
permits a discussion about the link between fundamental consumer behavior and brand
management concepts.
Teaching Suggestions
This case provides a “behind-the-scenes” look at the award-winning social media
campaign for Secret deodorant. Equally important, it encourages students to link such concepts
as the hierarchy of needs and brand equity to the marketing of Secret. In this way, students
should come to appreciate the underlying theory that guided the development of the Secret
campaign even though the terminology does not appear in the written case or video.
Answers to Questions
1. What is “purpose-driven marketing” from a product and brand management
perspective at Procter & Gamble?
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2. How does the purpose-driven marketing for Secret deodorant relate to the hierarchy
of needs concept?
3. What dimensions of the consumer-based brand equity pyramid have the Secret brand
team focused on with its “Let Her Jump” and “Mean Stinks” ignitions?
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TEACHING NOTE FOR APPENDIX D CASE D-11
Pampered Pooches Travel in Style
Synopsis
A significant lifestyle trend is the increasing importance of pets as family members,
which has led to a boom in pet products and services. This case explores one of the fastest
growing parts of the industry—pet hospitality and travel. Traditional hospitality industry
competitors, particularly upscale hotels, have extended their offerings to provide services and
products for pets by following a market development strategy. On the other hand, traditional
pet industry suppliers have utilized a product/service development strategy and offering pet
accommodations.
Teaching Suggestions
Almost everyone has had a pet or knows someone that has one, so it is easy to kick things
off by asking students whether they have traveled overnight with their pets, where they have
stayed where traveling, and what sort of accommodations they have found for pets when
traveling. On the other hand, checking a pet into a kennel, arranging for a pet sitter, or using
more luxurious pet spas, are other alternatives to taking a pet along on a trip.
Answers to Questions
1. What product attributes and benefits could an upscale hotel provide a pet owner?
Are these the same product attributes and benefits provided by an upscale kennel?
Answer:
2. What strategy would a company like Petco be pursuing by entering the pet hotel
market? What strategy would a company like Marriott be pursuing by entering the
pet hotel market?
Answers:
