Discussion Exercises
Discussion Questions
Chapter 11 Product Strategies: Branding and Packaging Decisions
- What are the requirements that must be met so that a commodity can effectively be transformed into a branded product?
In general, these prerequisites should be met:
- quality and quantity consistency
- the possibility of product differentiation
- the degree of importance consumers place on the product attribute to be differentiated.
- Explain the ‘least dependent person’ hypothesis and its branding implications.
According to the ‘least dependent person’ hypothesis, the stronger party is the one with resources and alternatives, and that party can demand more because it needs the other party less. The least dependent person is thus able to insist on having its name on the product.
- When is it appropriate to use multiple brands in a) the same market and b) several markets/countries?
It is appropriate to use multiple brands in the same market when a company wants to segment a heterogeneous market. The strategy is also suitable when the company wants to trade either up or down without hurting the firm's main business since any negative connotation can be avoided. Furthermore, multiple brands create employees' excitement and competitive spirits while gaining more retail shelf space.
Instead of having one worldwide brand, it is sometimes desirable to have multiple local brands in several countries. The reasons include: legal necessity, pronunciation difficulty, local identification and meaningfulness, acquisition of a local brand, and production and marketing flexibility.
- What are the characteristics of a good international brand name?
An international brand name should reflect the desired product image. It should be unique or distinctive while rendering itself to graphic design possibilities. Special attention must be given to pronunciation, making sure that the languages have the brand's alphabets. Furthermore, the name must be capable of gaining registration and protection.
- Explain these legal requirements related to branding: a) registration, b) registration eligibility, c) use, d) renewal, and e) generic trademark.
Except for the United States, registration is not optional in most countries. To gain protection, a trademark must be registered. Before registration is allowed, the registration eligibility must be examined. To be eligible, the mark must be distinctive or capable of being distinctive. Use of the mark is required for the registration to remain valid. Periodic renewal of the registration is necessary to prevent the loss of rights. In the case of a generic trademark, it is the mark which is identified with the product itself rather than the marketer of the product, and a loss of trademark can result.
- Distinguish colorable imitation from counterfeit trademark.
A colorable imitation is a mark so similar as to be confused with a registered mark, but it can enter the United States as long as the objectionable mark is removed. A counterfeit trademark is basically indistinguishable from a registered trademark, and the Customs Reform and Simplification Act allows the seizure as well as forfeiture to the government of any articles bearing a counterfeit trademark.
- Cite the factors that may force a company to modify its package for overseas markets. Discuss both mandatory and optional modification.
A package change is mandatory in the case of government regulations. These regulations specify sizes, types, labeling, etc. A certain language may be required, and disclosure of product information may be needed.
In the case of optional modification, it may have to be undertaken for marketing impact or for facilitating marketing activities. Local use conditions and cultural factors may create preference for particular symbols, styles, colors, and sizes of package. As in the case of Johnnie Walker Black Label, it used to change its packaging just for Thailand (one of its most profitable markets). The belief at the time was that the color of the cardboard box had to be changed to dark blue because black was the color of mourning in Thailand. Later research revealed that the negative association was no longer significant, and Johnnie Walker Black Label thus used the uniform color worldwide.