PRODUCT

MEANING & DEFINITION

A product is the item offered for sale. A product can be a service or an item. It can be physical or in
virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can
be charged depends on the market, the quality, the marketing and the segment that is targeted.
Each product has a useful life after which it needs replacement, and a life cycle after which it has to
be re-invented. In FMCG parlance, a brand can be revamped, re-launched or extended to make it
more relevant to the segment and times, often keeping the product almost the same.
According to Business Dictionary, A Product is, “A good or service that most closely meets the
requirements of a particular market and yields enough profit to justify its continued
existence.”

Characteristics of a Product

A product needs to be relevant: the users must have an immediate use for it. A product needs
to be functionally able to do what it is supposed to, and do it with a good quality.
A product needs to be communicated: Users and potential users must know why they need to
use it, what benefits they can derive from it, and what it does difference it does to their lives.
Advertising and 'brand building' best do this.
A product needs a name: a name that people remember and relate to. A product with a name
becomes a brand. It helps it stand out from the clutter of products and names.
A product should be adaptable: with trends, time and change in segments, the product should
lend itself to adaptation to make it more relevant and maintain its revenue stream.

IMPORTANCE OF A PRODUCT IN THE MARKET

 BRANDING

Branding is a concept that extends far beyond the marketing of “brand name” products. A
company’s brand represents their market identity—who they are, what they do, what kind of
quality they provide, their reputation for trustworthiness, and more. Consequently, brand
marketing is important to nearly every business, from those selling breakfast cereals, to those
developing new technologies, to those providing logistic support to other businesses.

HISTORY OF BRANDING

The concept of Branding has been around for hundreds of years and likely much longer. What it
means to brand something has broadened quite a bit since the word first came in to use. Despite the
changes, each of the older kinds of branding are still in wide use today.

The modern word Brand is derived from the word “Brandr”, a word from Ancient Norse meaning
“to burn”. Around 950 A.D. a “brand” referred to a burning piece of wood. By the 1300s it was used
primarily to describe a torch, essentially a burning piece of wood that is used as a tool. By the 1500s
the meaning had changed to refer to a mark burned on cattle to show ownership. Individual
ranches would each have their own unique mark so ownership could be determined if their animals
were lost, stolen, or mixed in with animals from another ranch. Each brand had to be simple,
unique, and easy to identify quickly – essential traits that are still common to modern logos.

The 1820’s saw the rise of the mass production and shipment of trade goods. As products like ale
and wine began to see larger batches and wider distribution, producers began burning their mark
into crates and cases of goods to distinguish themselves from their competition. Over time, the
brand evolved into a symbol of quality rather than ownership. Products that were perceived as high
and consistent quality could command a higher price than their undistinguished alternatives. In
1870, is become possible to register a trademark to prevent competitors from creating confusingly
similar products. Brands promised functional benefits such as Coca Cola’s 1905 slogan, “Coca Cola
Revives and Sustains”. Brands themselves had become valuable.

The introduction of radio and television gave manufacturers new ways to create demand for their
products. In 1928, Edward Bernays, the nephew of Sigmund Freud, published a book called
Propaganda. Bernays argued that by associating products with ideas large numbers of people could
be persuaded to change their behavior. The book was enormously popular, and Madison Avenue
took notice. By the 1960’s, marketers were using mass media to associate brands with emotional
benefits rather than functional ones. Advertisements showed how using a particular brand would
make you more desirable, part of an exclusive club, or — as Coca Cola promised in 1979 with “Have
a Coke and a Smile!” — Just happier.

By the 1980’s, distribution channels reached around the globe, and consumers had more choices
than ever. Companies began to focus on building brand recognition for themselves rather than
focusing exclusively on their products and services. This allowed them to build loyalty that
extended across product lines and gave their consumers a sense of belonging and personal
meaning. In 1984, Apple Computer released their iconic “1984” television ad that showed users
breaking free of rigid conformity by using Apple computers. The computer itself was almost an
afterthought. The concept took off and businesses began to focus on establishing long term
corporate identity rather than creating short ad campaigns. Advertising agencies grew into brand
consultancies. Corporate branding extended to non-profits, political groups, and even personal
brands for celebrities.

IMPORTANCE OF BRANDING

A strong brand is invaluable as the battle for customers intensifies day by day. It's important for the
company to invest time into researching, defining, and building their brand as the brand is the
source of a promise to their consumer.

A brand is a foundational piece in the marketing communication. Branding is strategic and

marketing is tactical and what a company uses to get the brand in front of consumers. Brand serves
as a guide to understanding the purpose of business objectives. It enables the company to align a
marketing plan with those objectives and fulfill the overarching strategy.

The effectiveness of brand doesn't just happen before the purchase, but it's also about the life of the
brand of the experience it gives a consumer. Did the product or service perform as expected? Was
the quality as good as promised or better? How was the service experience? If a brand can get
positive answers to these questions, they have created a loyal customer. Brands must not only
create loyal customers, but also create loyal employees. Brands should give them something to
believe in, something to stand behind. It helps them understand the purpose of the organization or
the business.

TERMS RELATED TO BRANDING

1. Brand Architecture:

The structure and names of brands within a portfolio. “Brand architecture is the
logical, strategic and relational structure for your brands or put another way, it is the
entity’s “family tree” of brands, sub-brands and named products.” (BSI) “All brand
architecture strategies fall into one of two approaches, a branded house or a house of
brands.” (Ervin & Smith)

2. Brand Equity:

“A brand’s power derived from the goodwill and name recognition that it has earned
over time, which translates into higher sales volume and higher profit margins against
competing brands.” (Business Dictionary) “Companies can create brand equity for their
products by making them memorable, easily recognizable and superior in quality and
reliability.” (Investopedia)

3. Brand Experience:

“A brand experience is a brand’s action perceived by a person. Every interaction

between an individual and a tangible or intangible brand artifact can be seen as a brand
experience.” (bxp) “Specifically, brand experience is conceptualized as sensations, feelings,
cognitions, and behavioral responses evoked by brand-related stimuli. Such stimuli appear
 as part of a brand’s design and identity, packaging, communications, and environments.”
(AMA)

4. Brand Extension:

“A common method of launching a new product by using an existing brand name on

a new product in a different category. A company using brand extension hopes to leverage
its existing customer base and brand loyalty to increase its profits with a new product
offering.” (Investopedia)

5. Brand Identity:

“How a business wants a brand’s name, communication style, logo and other visual
elements to be perceived by consumers… Brand identity is different than brand image,
which is what consumers actually think. It is constructed by the business itself. ”
(Investopedia)

6. Brand Image:

“A unique bundle of associations within the minds of target customers. It signifies

what the brand presently stands for. It is a set of beliefs held about a specific brand. In short,
it is nothing but the consumers’ perception about the product.” (MSG)

7. Brand Licensing:

“A licensing agreement grants a manufacturer the right to develop, market and sell
approved products (typically leveraging a company’s brand name, logo(s), mark(s) and/or
licensable assets) to approved retailers in return for payment — typically a royalty and
guarantee based on wholesale sales as specified in the license agreement.” (Perpetual
Licensing)

8. Brand Personality:

The attribution of human personality traits to a brand as a means to achieve

differentiation.”Brand personality characteristics often suggest a brand’s latent appeal.
When identified and cultivated they can effectively guide the creative tone of
communications. For example, Mercedes is relatively “assertive” and “in control,” while
BMW is more “sexy” and “desirable.” The brands have different and differentiating
personalities.” (Millward Brown)

9. Brand Strategy:

A plan for the systematic development of a brand to meet agreed objectives. “Brand
strategy is the how, what, when, and to whom you plan on communicating your product or
service. Having a clear and concise brand strategy leads to stronger overall brand equity —
how people feel about or perceive your product, and how much they are willing to pay for
it.” (HubSpot)

10. Co-branding:
 “A marketing partnership between at least two different brands of goods or
services.” (Investopedia) Essentially to co-brand you “take the strongest elements of your
products and combine them with the best complementary brands to offer new goods and
services.” (Forbes)

11. Rebranding:

“Rebranding occurs when a business or organization decides to change a significant

element of the brand. Such a change could be glaringly obvious like a new brand name or
logo, or it might be more subtle such as a slight shift in messaging to better communicate a
more relevant brand promise.” (aytm) Here’s a look at 19 questions to ask before you
rebrand.

12. Repositioning:

“Communications activities to give an existing product a new position in customers’

minds and so expanding or otherwise altering its potential market.” (Brand Channel)

13. Visual Identity:

“What a brand looks like – including, among other things, its logo, typography,
packaging, etc.”(Brand Channel)

KINDS OF BRANDS

(DO FROM TEXTBOOK. I’M GETTING DIFFERENT THINGS ONLINE)

PACKAGING

The package is a vital part of the total product. Packaging is a part of product decision and consists
with activities concerned with design and production of the container and wrapping of the product.
Packaging is so effective that the returns on the investment on them are very high in the form of
increase in sales turnover and better price realization. Successful localization of packaging involves
cultural research as some graphics, such as pictures, icons, and other non verbal elements, may look
different in different cultures. What looks familiar to one person may be unrecognizable to
someone else. Product packaging can come in many forms, from bags and boxes to tins and bottles.
The most suitable packaging for a product will depend on what is being sold and how it is
transported and stored. Ideally packaging should reinforce the brand image of the company or
product. This can be done through the use of color, shape, logos, illustrations or slogans.

Packaging is defined as "all products made of any materials of any nature to be used for the
containment, protection, handling, delivery and preservation of goods from the producer to the
user or consumer.”
If a company produces food or drink products, another important consideration is food safety. It is
possible for harmful chemicals to migrate from labels and packaging into food products so the
company must choose it’s packaging carefully.

Once it is decided which type of packaging is most suitable for a product, the company can
concentrate on its design. The design should communicate the main benefits of the product and
encourage people to buy it rather than that of its competitors. Innovative packaging decisions
themselves help create new customer classes.

For example, 10 gm or 25 gm butter packs rue widely used by Airlines and other institutional
clients.

HISTORY OF PACKAGING

The packaging industry is an ancient industry that has been around since the early days of man.
Packaging in some form or another has always been around to assist man in transporting, storing,
and protecting a variety of items. Early man would use crude packaging materials and designs to
meet the needs of hunting and gathering to survive. As technology advanced, packaging materials
and processes advanced.

Early Packaging

1. Hunters and Gatherers

It is not certain or specifically recorded when the first packaging was invented and
put into use. Most historians agree that it was when early humans were nomadic hunters
and gathers. The constant movement and relocation of these people forced them to
construct devices for carrying and containing food, tools, and other valuables. There is a lot
of speculation to what the fist packaging product was made from. Even though the materials
were basic there are several possibilities to what was used such as leaves, Animal skin,
wood, etc.

2. Domesticated Village Packaging Advancements

The increase of villages helped to bring about many advancements to advance the
way of life. Many of these advancements spilled over into packaging technology. A variety of
different materials were used to produce, transport, and store goods and products. The
types of materials used varied depending on the geographical landscape each village was
located in. Some items used were wooven sacks, clay pots & containers & wooden crates.

3. The Establishment of Cities

The rise of cities and trading brought about the exchange of goods and innovation.
Supplies were made available to regions that had never been available before. The exchange
of goods helped increase the quality of life, it also increased the sophistication of packaging
materials and products.

Blown glass was one specific product that helped advance quality of life as well as the
packaging industry. Blown glass enabled craftsmen to make glass into a large variety of
shapes. Many of the products produced were containers for transportation and storage. The
 blown glass containers are often made of thick durable glass that was heavy yet preferred
because of the many benefits offered.

During the same time period, the invention of the wooden barrel came about. Many believe
the techniques used to shape and bend the wooden barrel were derived from ship making.
Craftsmen would use steam to heat the wood and bend it. With the wood in the proper
mnew, it can be slowly heated and bent to shape the barrel into the proper form.

Once the barrel is cured, it was found to be one of the most effective forms of bulk
packaging known at that time. The barrel enabled people the ability to store and transport
liquids and dry goods in large quantities.

Modern Packaging

1. Industrial Revolution

The industrial revolution brought changes to everyone's way of life. It consisted of

an age where products began to be produced by machines instead of by hand. Many rural
residents moved into towns and cities to obtain steady jobs and increased wages. The
change in the level of production and the increased disposable income encouraged
producers to develop durable, dependable, and efficient packaging methods. The increased
product production resulted in a large rise in demand for:

i. Storage and transportation bins

ii. Bags
iii. Food packaging methods
iv. Primary packaging materials
v. In-store packaging options

The migration of citizens into the city reduced the need for large bulk consumer packaging options
and increased the need for individual and smaller packaging quantities. Manufacturers and
producers needed the large storage containers and bins more then ever, but consumers needed
other packaging options. These demands offered a new chapter in the packaging industry.

Bulk packaging had been around for hundreds of year by that time, but individual packaging was
something new. A variety of paper making methods were implemented during this time period to
fulfill the needs of the demands listed above. Initially, most of the food packaging, bags, primary
packaging, and in-store packaging options were developed from a paper based material. There
were some exceptions. Glass jars and jugs were an important part in the demand for individual
packaging methods. Many companies developed printing methods to place their brand upon the
product packaging. This helped users quickly identify the maker of the product.

No major advancements were made in the packaging industry until the early 1900's. This was when
plastics were introduced to the packaging industry. The new cellulose plastic changed the
packaging industry and dominated the flexible packaging sector for years. Polyethylene was
produced in the 60's and quickly became a preferred packaging product.
There have been many changes and new developments since the development of plastics into the
packaging industry. A large variety of different plastics have have been produced since the first
introduction. These plastics have increased the quality of life for people around the globe and
continued to advance the packaging industry. The plastics have enabled manufacturers and
producers to extend the life and better protect products.

IMPORTANCE OF PACKAGING

Important functions of packaging are given below:

1. Product Identification:

Packaging serves as an identification of the product. A product is packed in special

sized, coloured and shaped container for keeping its difference from the products of
competitors. For example, the yellow and black coloured pack of Steadler pencils tells itself
of its producer.

2. Product Protection:

The main function of packaging is to provide protection to the product from dirt,
insects, dampness and breakage. For example, the products like biscuit, jam, chips, etc., need
to be protected from environmental contact. That is why they are tightly packed.

3. Convenience:

Packaging provides convenience in the carriage of the product from one place to
another, in stocking and in consuming. For example, the new pet bottles of COKE makes the
carriage and stocking easier. Similarly, the pack of FROOTI provides convenience in its
consumption.

4. Product Promotion:
Packaging simplifies the work of sales promotion. Packing material in the house
reminds the consumers constantly about the product. In this way, the packaging performs
the role of a passive salesman. Consequently, it increases the sales.

LEVELS OF PACKAGING

There are different levels of packaging that a consumer may be exposed to. Usually, the customer is
handling the product in its primary packaging. This is the packaging that the product is seen in as it
sits on the store shelf for example.

The primary packaging is the packaging that is exposed to the consumer and so will have the
attributes conveying important information to the consumer. However, the overall packaging can
also be subdivided into other levels of packaging.

The primary level of packaging is the package that the product is contained in. This level of
packaging may be the one that the consumer sees, but depending on the product, the first level
package may be as simple as a clear plastic bag. For example, in a cereal box, the box is displayed to
the consumer, however the actual cereal is contained within a sealed plastic bag. The bag is the first
level of packaging.

The next, or secondary level of packaging in this example would be the cereal box itself. In this case,
the first level of packaging provides some protection to the food item and conveys no information
to the consumer. The cereal box however, acting as the second level, provides additional protection,
but it also provides information to the consumer, as well as a way for the cereal to be displayed, i.e.
a box will fit better on a shelf than a plastic bag full of cereal.

Sometimes both levels of packaging will provide information to the consumer. Take for example a
bottle of aspirin. You can often find aspirin packaged within the first level bottle, and a second level
box. A product may even have a transport level package. Products that are sold in bulk items can
often have a third level. The same cereal box sold in a bulk store may be sold in a larger box which
contains two or three smaller boxes, which contains a plastic bag.

SAMPLES OF PACKAGING

1. Environmentally friendly packaging:

It causes less damage to the environment. There are three types:

i. Reusable packaging can be cleaned and re-used. For example, glass milk bottles are
reused.
ii. Recyclable packaging is made of materials that can be used again, usually after
processing. Recyclable materials include glass, metal, card and paper.
iii. Biodegradable packaging will easily break down in the soil or the atmosphere.

Recyclable packaging should carry standard symbols that show what the product is made from and
how it can be recycled

2. Plastics

Plastics are widely used in packaging because they are:

i. Versatile - plastics can be flexible or rigid, and can be molded into shapes.
ii. resistant to acids and other chemicals
iii. easy to print on
iv. lightweight and cheap to produce
3. Modified-Atmosphere Packaging (MAP):
Air in a plastic container can be modified to prolong shelf life and slow down colour
deterioration. MAP is used to package cold meats, smoked fish, cheeses, salads & fresh pasta

4. Other Packaging Materials:

Paper, card, metal and glass can also be used for packaging.
 LABELLING

Labeling is regarded as part of marketing because packaging decision making involves the
consideration of the labeling requirements. In international trade, many countries insist that
labeling should be done in the absence of such a statutory requirement. Statutory obligations are
important aspects of labeling.

According to Mason and Rath, “Label is an information tag, wrapper or seal attached to a product or
product’s package.”

According to W.J. Stanton, “Label is the part of a product that carries verbal information about the
producer or seller.”

Many countries have laid down labeling requirements in respect of a number for commodities.
According to the regulations labeling of food items should disclose information about a number of
aspects like date of manufacturing, expiry date or optimum storage period for good which do not
have an indefinite storage period, composition, storage conditions, necessary method of use, if
necessary etc.

The label may be a simple tag attached to the product or an elaborately designed graphic that is
part of the package. It might carry only the brand name, or a great deal of information. Even if the
seller prefers a simple label, the law may require more. Labels perform several functions. First, the
label identifies the product or brand. The label might also grade the product; canned peaches are
grade-labeled A, B, and C. The label might describe the product: who made it, where it was made,
when it was made, what it contains, how it is to be used, and how to use it safely. Finally, the label
might promote the product through attractive graphics.

IMPORTANCE OF LABELLING

There is various function of labelling. Instead of them some of the important function of labeling is
as follow:

1. Describe the Product and Specify its Contents:

A label helps to provide complete information regarding the product. It mainly includes
ingredients of the product, its usage, and caution in use, cares to be taken while using it, date of
manufacturing, batch number, etc.

2. Identification of the Product or Brand:

Labelling helps to identify particular product among many. It makes easier to find out
the product. For example, a consumer wants to select Cinthol soap. The task of finding the
desired soap from a heap of various branded soaps becomes easier with the help of labeling.

3. Grading of Product:

Labelling helps in the grading of the product too. When a product has different qualities,
labeling helps to find out which pack contains what type of quality. For example, Hindustan
 Unilever Ltd. manufactures three types of tea and to differentiate the each type of tea, the
company uses Green, Red, and Yellow coloured labels.

4. Help in Promotion of Products:

Labelling helps in the promotion of the products too. The fourth function of labeling is to
promote sales. Sometimes a consumer gets encouraged to buy a product simply due to an
attractive label. Nowadays, labeling is used as effective sales promoting tool.

5. Providing information required by Law:

Labeling helps to provide statutory warning required by law. To put ‘smoking is

injurious to health’ on the package of cigarettes and ‘Chewing Tobacco is Injurious to Health’ on
the package of Pan Masala are the examples of statutory warning. Similarly, in a case of
hazardous or poisonous products, appropriate statutory warning need to be put on the label. It
provides important information of the product applied in the law.

KINDS OF LABELLING

Labels can be divided in four types. They are brand label, grade label, descriptive label and
informative label.

1. Brand label:
If only brand is used on package of a product, this is called brand label. Brand itself
is expressed in label. Brand label is put on some cloth. It tells the name of the cloth, e.g,
'Sanforised'. Similarly, label is used on soap e.g, Lux, Hamam, Rexona etc.
2. Grade label:

Some products have given grade label. Grade label shows the grade of the product. It
shows the quality of products by words, letters, or figure. A,B,C,D grade can be put on peas
packed into cans. Similarly, grade label can be mentioned as 1,2,3,4 grades for packed
wheat,. Some firms may use labels as good, better, best etc. on their products.

3. Descriptive label:

Descriptive label give information about the feature, using instruction, handling,
security etc. of the products. Descriptive label is used for the products whose grade cannot
be differentiated.

4. Informative label:

Informative label gives information about the product. Using method and security of
the product, name of the producer, manufactured date, expiry date, name of intermediary,
additional instructions regarding the use of the product etc. are mentioned in informative
label. Descriptive label gives general information about the product whereas informative
label gives maximum information about the product including its use, manufacturer etc.
 SAMPLES OF LABELLING

(Didn’t find anything apt online, check your book)

 BIBLIOGRAPHY

Branding

 weareconvoy.com
 Investopedia
 http://yfsmagazine.com

Packaging

 yourarticlelibrary.com
