BRANDS

MEANING /INTRODUCTION:
i) American Marketing Association defined brand as a term, name,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."
iü) A brand indentifies the product for a buyer and give seller a chance to earn good
will and repeated patronage.
iiü) Branding is an important sales promotion tool of giving a specified name to a
product or group of products of one seller.
iv) The specified name creates individuality, separate identity and status in the
product and hence, it can be easily distinguished / recognized in the market from
the rival products.
v) A wellpromoted brand name which has earned reputation in the market is very
difficult to compete with.
vi) In brief, branding means naming the product for easy identification and
marketing. eg. Godrej, Levis, Sony etc.

TYPES/KIND OF BRANDS :
The different types of brands are :
i) Individual BrandName : Each product has a special and unique brand name
i.e. Surf, Ranipal, Aspro etc. The manufacturer has to promote each individual brand
inthe market separately eg. Lux for bathing and Vim for washing.
ii) FamilyBrand Name : Certain manufacturers prefer to use afamily brand.
Family name is limited to one lineof a product i.e. products which complete the sales
cycle eg. Lakme for cosmetics. The advantage of family brand is that it helps
combined advertising and sales promotion. Manufacturers believe that if public
accepts one of their product the other will be accepted or easily promoted. eg. Bajaj
Chetak, Bajaj Super and Bajaj Electrical. Family brand name enables creation of strong
shelf display. It helps to secure quick popularity. eg. Amul Cheese, Amul Butter,
Amul lce-cream etc.

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 different
ii) Umbrella Brand:There are industries producing several articles with the
or
and several name. Each product will have the name of the company
manufacturer. eg. all products such as soaps, chemicals, textiles, engineering gooas
ctc. manufactured by the Tata concerns will have the Tata's' as one umbrella brand.
Such a device will obtain low promotion cost and minimize narketing effort.
The pulling effect for all products will be considerable when the companies name or
the name of the business house is outstanding and shining in the market. However, a
single bad experience in any one of the lines of products, a solitary failure, may be
house under the
very dangerous to the rest of the products sold by a particular
umbrella brand eg. "Godrej" - Soaps, Mats, Mat Machines, Refrigerators etc.
it also has the
iv) Combination Device ; Each product has an individual name but
umbrella brand to indicate the business house producing the product. Under this meshod.,
organisation also, Many
side by side with the product image we have the image of the
combination device
companies use this device profitably eg. i)Tata House is using a
(Tata's Tej) ii) Nestles (Nescafe, Bar-one)
be done by manufacturers or
v) Private or Middleman's Brands : Branding can
manufacturers who have
distributors such as wholesalers, large retailers. It helps small
marketingIt is also used
limited resources and who have to relyon the midd!lemen for
as per specifications
by big manufacturers.(The manufacturer merely produces goods
about marketing. Middlemen
and requirements of distributors and he need not worry
brands. They have more
enjoy morefreedom in pricing products sold under their own
& Tuf.
controlover distribution. eg. Arvind Mills Newport, Ruff
GOOD BRAND:
ESSENTIAL OF A GOOD BRAND / FEATURES OF A
good brand should have the following features:
A
be simple, brief and easy to
i) Simplicity : A good or ideal brand should bravity is
consumers. In addition,
pronounce. Thisgives convenience to traders and
Bata, Robin are good brands as they
an essentialfeature of agood brand. eg. Dalda,
are simple and brief.
Distinctive : It should be distinctive so also casy to remember. This gives
ii)
distinct identity to the product. Consumers remember it easily.
independent and
brands as they are distinct and easy to
eg. Vicks, Glaxo or Cibaca are good
remember.

41
 ii) Suggestive : It should be simple in design and capable of describing the
characteristics of the product. The nature, use and purpose of the product should be
made clear from the brand itselfr. This means it should be suggestive. eg. Tiger Locks,
Lijat Papad, Bajaj Auto are good brands as they suggest the features of the products
they represent.

iv) Impressive : Agood brand should be unique, impressive and appealing in colour
and design. This creates quick attraction for the products. eg. Gold spot, Sharp 500,
Hawkins are popular brands due to unique and impressive words used.
v) Economical : It should be economical to reproduce and should have long and
stable life.

vi) Protectable : It should be protectable in the court of law. It should also be

acceptable for registration. Normally, is should not resemble any other similar brand.
vii) Unsuitable for Imitation : It should not lead itself to easy imitation by rival
producers as easy imitation willmake the brand ineffective.
vii) Pleasant Association : A good brand should create pleasant association in the
minds of the consumers. This develops loyalty among consumers for the products.
eg. Lux, Nescafe, Raymonds, Garden etc. are popular brands due to this reason.
ix) Adaptability : It should be adaptable to new products introduced or added to the
product ne and should have harmless names. eg. Lakme, Tata, Voltas etc.
x) Stable Life : It should have stable life and should not be affected by time so that
it becomes old fashioned or out of date eg. Dalda.

IMPORTANCE OF BRANDING / REASONS OF BRANDINGI NEED FOR

BRANDING /FUNCTIONS OF BRANDING:
i) Facing Market Competition : Competition is inevitable in modern marketing.
Jdentical products are brought in the market by rival producers and consumers are
simply confused. They find it diflicult to select and purchase the same product again
and again. Branding solves this dificulty as it gives separate identity to the product.
This enables consumers to purchase the required product early and quickly.
 in modern
i) Facilitates Advertising and Publicity : Advertising is necessary
Branded
marketing. Branding is needed as it facilitates such advertising and publicity. brand
the
products / goods are advertised easily, economically and effectively as per
used.

effectively ntilize the

iii) Facilitates Packaging : Branding is necessary in order to
a catchy slogan
limited space available on a package. A small name or symbol with
branding is needed to make
can be effectively displayed on apackage. Thus,
packaging more attractive and agreeable to consumers.
needed as the psychology
iv) Taking care of consumerspsychology : Branding is
Consumers prefer branded goods and
of consumers is favourable to branding.
goods suggests its need and
support them. This preference of consumers to branded
importance.

Enjoying Market Advantages : Branding is needed as it serves different

v)
in marketing. It creates attraction and desire for specific product. It makes
purposes
market for the product.
product differentiation in the market and creates
Branding helps the consumers in shopping by
vi) Helps consumners in shopping :
that of others.
easy identification of the product from
Facilitates introduction of new products,: A good brand facilitates the
vii)
in introducing new products easily. It also helps him to withstand the
manufacturer
effect of severe price competition.

ADVANTAGES OF BRANDING:
Advantage of branding to Manufacturers :
Status toProduct: The manufacturerscan give independent name,
i) Independent facilitates easy andquick
product through branding. This
status and identity to his
sale in the competitive marketing.
The manufacturers finds it casy to conduct
Effective and Economic Publicity :
ii)
campaigneffectively by using brands as a base. This
advertising and publicity
publicity and sell his product throughout the counuy.
enables him to give wide
economical manner.
Publicity is also possible in an

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 ifi) Protection from misuse and imitation : The manufacturer can get his brand
duly registered with the government. This gives exclusive right to use a specific brand
and naturally misuse or imitation of the brand is not possible.

iv) Wide Market : Branding acts as a sales promotion technique for manufacturer.
Consumers develop affinity and loyality to a specific brand. This creates regular and
continuous demand for the manufacturer. Thus branding widens market and gives
more profit to the manufacturer.

v) Control of RetailPrices : The manufacturer is able to fix and maintain uniform

price for his product throughout the country. Branded goods have fixed prices which
fetches goodwill for the manufacturer.
vi) Support fromn distributors : Wholesalers and Retailers prefer to sell branded
goods due to fixed prices, quick sale and standard quality. The manufacturer get the
benefits of large scale marketing due to branding.
vii) Introduction of new products : The manufacturers can introduce easily and
economically his supplementary products once his brands become popular. It
introduces product loyalty and facilitates experimentation.
vii) Control on Marketing : Due to branding the manufacturer can establish direct
contact to consumers which help him in controlling prices of his produçts so as
control over marketing links.
ix) Protection from market competition : Branding protects manufacturers from
severe market competition from rival producers.
x) Low cost of distribution : The cost of distribution is less in the case of
branded
goods. The wholesalers and retailers are willing to accept low commission on branded
goodsdue to regular demands. This gives more profit to the manufacturer.
xi) Limited dependence on middlemen : Branded goods are popular with
consumers. They themselves demand such goods. Naturally, they need limited
salesmanship. The retailers have no alternative but to supply goods of popular brands
to their consumers. Thus, the manufacturer is not at the mercy of the
middlemen for
marketing his branded goods. It eliminates malpractices at the middleman lvel.
eg. artifical scarcity, adulteration and price rise.

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 Advantage of branding to Consumers:
) Quick Marketing: Branded goods are known to consumer due to their extense
advertising and publicity. They also have adequate knowledge about the price, quality
and other features. Branded goods give shopping convenience to consumers.

i) Confidence in Marketing: Consumers purchase branded goods with confidence

due to standard quality and fixed price. They purchase branded goods without any
hesitation as such goods are reliable and there is assurance of better quality.

iii) Regular Supply :Manufacturers produce branded goods on a massive scale and
supply them regularlyto wholesalers and retailers. As a result, consumerS get regular
supply of brandedgoods. They donot have to face the problems of short suppBy, artifical
scarcity and price rise. Thus easy availability is one advantage of branded goods to
Consumers.

iv) Protection to consumer : Branded goods are available in the market at fixed
prices. The prices are also given wide publicity by the manufacturers throughout
advertising by the traders. Adulteration is also not possible in the case of branded
goods and they are usually supplied in proper sealed packets.
v) Easy Handling :Branded goods are usually availabl in different packages. The
quality is well protected and consumers can purchase small and big packages as per
their covenvience. They can also carry such goods easily and quickly.
vi) Easy Identification :Branded goods are easy to demand and simple to identify.
Thus, consumers get protection from cheap substitution. Even an illierate person can
corectly purchase branded goods due to wide publicity given to them.
Advantages of branding in General :
The following are the typical / important advantages of branding :
i) Independent Status : Due to branding, the individuality of the product is
estabilished. It creates a mark of distinction and branded products enjoy
independent status eg. the brands of soaps ie. Hamam, Lux,Cinthol, Pears, Moti etc.
indicate their own seperate existence in the market. Each brand carries definite
impression which helps the manufacturer to distingusih his product from those of his
competitors.

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 ) intensive advertisement : It enables producers to publicise the product or the
name of the organisation with ease. Once the brand is established
and gets
great
puidton in the market, only moderate advertising becomes sufficient to retain the
memory of the product in the minds of consumers.
) Advertising at lower cost : Brand names can be easily advertised in an
clecave manner. Branding enioys advertising value. Branding not only facilitates
Publicity but also reduces the cost of publicity. The publicity cost is reduced
Decause once the product gains popularity, retailers are forced to keep the product in
Stock. Hence once the name is established. the manufacturers needs not spendlarge
amount on advertisement and publicity.

19) Price Control :The producers directly control the price of branded products. It is
the manufacturer who fix the retail selling prices and print them on the packages.
Hence the consumers are protected as they cannot be charged higher prices by he
retailers.

V) Assurance of Better Quality : Once the branded product becomes popuar

manufacturer has to maintain the quality of the product to retain the goodwill. If the
interior products are offered to consumers the reputation will not last and shortly he
will be thrown out of the market. Hence the manufacturers always try to maintain the
quality of the branded products to retain their goodwill and reputation. This ensures
the supply of better quality goods to consumers.
vi) Easy Identification : Branded articles can be easily identified by
consumers as
they can easily distingush branded products from its rivals. Thus brands provide
protection against substitution, fraud and inferior types of products. Thus easy
identification promotes sales.
vi) Confidence of Consumers:Branded products enjoy
confidence of consumers as
they are generally free from deception. Branded articles represent standard
quality and hence they are preferred by consumers. People develop loyalty toa trade
mark of the product rather than to the manufacturer of the product.
vi) Easy Availability :Branded articles are casily available in the market. Since they
reoresent standard quality, all retailers are forced to stock branded products. Thus,
branded products areeasily available to consumers everywhere and anywhere. This is
not so with the unbranded products.
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ix) Price Stability : Experience showsthat prices of branded products are relatively
stable. Due to relative stability in the prices the confidence of the consumers is
retained.

BRAND & TRADE MARK:

A
trademark is aspecial kindof brand. It is a brandduly registered with the registrar Or
trade marks under the Trade and Merchandise Marks Act, 1958. Thus when a brand is
registered under the special act, it is called aTrade Mark. The Registrar may allow the
use of any numbers, letters, words, symbol, emblem, design, picture set to use as aTrade
Mark. Trade Mark has a legal recognition, legal sanction and legal protection.
Itenjoys protection in he court of law as a registered trade mark cannot be used as a
brand by ohers.Aperson misusing the trade mark can be sued in the court of law.
Normally, a trade mark is shown by the letter (R) on the packets. Popular examples of
trademarks are Godrej,Vimal, Colgate, Bajaj, Cibaca etc. Hence it is interesting to note
that all trade mark are branded whereas all brands are not trade marks. This is because
trade mark enjoys legal protection whereas the use of a brand is devoid of legal
sanction. Many Indian manufacturers prefer to use trade marks for their products due to
the e,istence of large number of identical products and keen competition in the market.
METHODS OF BRANDING /KINDS OF BRANDS:
1) Giving Manufacturer's name :- In this method name of the maufacturer is used
for branding. This type of brand is called manufacturer's brand. eg. Bajaj auto, Godrej
soap, Bata shoes.

2) Giving specialname :In this type of branding some special brand name is given
to product. eg. Dalda, Crocin, Bournvita, Surf, etc.

3; Givingsymbol or trade mark: Here, the purpose is to give a special mark or

symbol to the product. Sometimes, special symbols or picture may be used to
describe a particular product. eg: Camel' brand ink, Glaxo' baby food etc.
4) Giving slogan : Some businessmenuse slogans for the purpose of branding.
Slogans must be effective. eg. Britannia biscuit company uses the slogan "Crisp
delight in every bite"

5) Giving Typical numbers : Some of the manufacturers give typical numbers to

their products for branding purpose. eg: Vicks formula, detergent 555.
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 ix) Price Stability : Experienceshows that prices of branded products are relatively
stabie. Due to relative stability in the prices the confidence of the consumers is
retained.

BRAND &TRADE MARK:

Atrademark is a special kind of brand. It is a brand duly registered with the registrr of
trade marks under the Trade and Merchandise Marks Act, 1958. Thus when a brand is
registered under he special act, it is called aTrade Mark. The Registrar may allow the
use of any numbers, letters, words, symbol, emblem, design, picture set to use as aTrade
Márk. Trade Mark has a legal recognition, legal sanction and legal protection.
It enjoys protection in the court of law as a registered trade mark cannot be used as a
brand by others. A person misusing the trade mark can be sued in the court of law.
Normally, a trade mark is shown by the letter (R) on the packets. Popular examples of
trademarks are Godrej, Vimal, Colgate, Bajaj, Cibaca etc. Hence it is interesting to note
that all trade mark are branded whereas all brands are not trade marks. This is because
trade mark enjoys legal protection whereas the use of a brand is devoid of legal
sanction. Many Indian manufacturers prefer to use trade marks for their products due to
the e istence of large number of identical products and keen competition in the market.
METHODS OF BRANDING/KINDS OF BRANDS:
used
1) Giving Manufacturer's name :- In this method name of the maufacturer is
for branding. This type of brand is called manufacturer's brand. eg. Bajaj auto, Godrej
Soap, Bata shoes.

2) Giving special name : In this type of branding some special brand name is given
toproduct. eg. Dalda, Crocin, Bournvita, Surf, etc.
special mark or
3; Giving symbol or trade mark : Here, the purpose is to give a
used to
symbol to the product. Sometimes, special symbols or picture may be
describe aparticular product. eg:'Camel' brand ink, Glaxo' baby food etc.
4) Giving slogan : Some businessmen use slogans for the
purpose of branding.
the slogan "Chsp
Slogans must be effective. eg. Britannia biscuit company uses
delight in every bite'"
give typical numbers to
5) Giving Typical numbers : Some of the manufacturers
detergent 555.
their products for branding purpose. eg : Vicks formula,
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 6) Collaboration Brands : When two giant companies of world reputation join for
joint manufacturing activiy they usually introduce collaboration brand.
eg: Tata Benz, Indica Suzuki

DISADVANTAGES OF BRANDING :
i) The severe criticism against branding is that it leads to some kind of monopoly
known as Brand Monopoly" This is created by gradually creating abrand loyalty
to the product in the minds of the customers.
ii) It is difficult to establish a brand for it is costly. Hence it raises the cost of the
products.

ii) Brand names donot always assure good quality. Manufacturers sometimes place
inferior goods in the market under a glamorous brand name.

LABELLING

MEANING:
The label originated from the simple practical necessity of identifying the contents of
an opaque container or indicating whom it belonged to. The Oxford Dictionary
defines a label as a slip of paper, card, linen, metal for attaching to an object and
indicating its nature, owner, name destination, etc."

Labelling is the act of attaching or applying such a label to an object. The purpose of
labelling is to give the consumer information about the product he is buying and what
it willand will not do for him. Labelling has a social significance. Consumer criticism
centres round charges of false, misleading and defective packaging and labelling.
Fair Packaging and Labelling Act (1966) ensures truth in packaging and fair trade
practices regarding packaging and labelling inorder to provide consumer protection.
PURPOSE OF LABELS / NEED FOR LABELS / FUNCTIONS OF LABELLING :

i) Identification : Identity of the product is of prime importance as the consumer

must be able to identify the contents. Identification of a manufacturer and the
identity of brandname is also significant as the product is many times associaed with
the brand name eg. Tata Tea, Red Label tea, etc.

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