Chapter Nine: Product Branding and Packaging Decisions Concept Review 1. Explain the differences between product mix breadth and product line depth. Why is understanding this difference important? The difference between product mix breadth and depth is the number of product lines versus the number of categories within a product line. It is critical to understand the difference because while they may sound similar the two are very distinct decisions. Adding or removing product lines, or changing product mix breadth, can mean entry into new categories and markets. Adding or removing from product line depth means changing the offerings within an existing line, perhaps to serve a new market with similar products. 2. Explain why branding is important to marketers. What value do customers derive from purchasing and using brand name products? Branding is important to all marketers because it is a way to add value beyond physical and functional traits and to charge a premium for their products or services. It is a critical tool used to differentiate against competitors. Brands serve many purposes to the consumer as well, including creating a recognisable name or logo to facilitate purchasing or build trust and loyalty. Brands also protect from competition and price competition by establishing a market and certain trademark characteristics. Brands also reduce marketing costs once established, since familiarity reduces the amount of information a marketer needs to communicate. 3. What is brand equity? Describe the strategies marketers could employ to increase the value of their brand equity. Brand equity is the intangible value of a brand, or the set of assets and liabilities linked to a brand that add or take away from the value provided by the product or service. There are many ways to build equity – and many ways to compromise it – including: a) Brand ownership – passing the brand management down to retailers like with a private label brand or maintaining it at the manufacturer’s level b) Naming brands and product lines - creating new brands where appropriate, and building a family or corporate brand versus creating a new brand name, extending the brand with brand extensions, considering co-branding and brand licensing as ways to extend into new categories. 4. Differentiate between a national brand, generic brand, and store brand. Should retailers carry all three types of brands? Why? All three are simply different types of brand ownership. A national brand is owned and managed by the manufacturer. Generic brands are products sold without brand names, usually commodity products like salt or sugar, although these can also have national brand names. Store brands, also known as private label brands, are owned and managed by the retailer. It is possible for retailers to carry all three types, but it is not necessary. Obviously the national brands will be sought by consumers and it is important to list these, but only retailers with the ability to manage store brands can carry them. Carrying generic brands is common, but a high end retailer may chose not to list this type of product in order to offer only national brands. Store brands tend to offer companies a greater return than national brands and are usually sold at a discount relative to national brands. 5. Describe the desirable qualities companies should consider when choosing product names. There are four key desirable qualities: 1) A descriptive, suggestive name – like Sunkist 2) Easy to pronounce – like Tide 3) Able to register it and legally protect it 4) Easy to translate into other languages 6. What are the advantages of using the same brand name and extending it to new products? There are many advantages to leveraging existing brand names. First, the company can spend less to develop the new brand name. As well, the existing perceptions of the brand will carry over to the new product – which requires thoughtful analysis before launching an extension. Overall communication costs can be reduced because consumers already understand the brand. Also, when brand names are used in a complementary fashion, synergies can arise leading the consumer to buy both products. Lastly, leveraging existing brand names can lead to cross-category trial since consumers already know and trust the existing brand. 7. Explain how brand licensing differs from co-branding. In a brand licensing situation, the manufacturer retains full ownership of the brand and shares the name under contractual agreement for a negotiated fee or royalty. The firm that provides the right to use its brand (licensor) obtains revenues through royalty payments from the firm that has obtained the right to use the brand (licensee). Co-branding, is marketing two brands together on the same package, usually in an effort to leverage the traits of each other’s brands. 8. What is co-branding? When does it make sense for a company to use a co-branding strategy? Co-branding is marketing two brands together for the purpose of leveraging the existing positioning of one of the brands. This type of strategy makes sense when a certain brand possesses key, unobservable traits that are desired by another brand. As well, there should be synergy between the two brands to some extent, like similar customer groups, for example. Co-branding is a good way for companies to share risks, leverage resources, gain access to each other’s markets, and to build credibility or establish a market presence quickly. 9. Explain how marketers increase the value of their product offering through packaging. Discuss the ethical issues surrounding product packaging and labelling? How might some of these issues be resolved? Packaging is one of the most important and tangible aspects of product marketing. It has functional benefits like protecting the product, providing ingredients or directions and making it recognisable. It is also an extremely valuable advertising tool because it is the last chance to influence a consumer’s choice – right in the store where they are making decisions. Innovative packaging alone can influence a consumer’s choice. The colour, design and words used on a package also work to establish the brand and product positioning while also communicating specific product information. There are a number of ethical issues surrounding packaging, specifically with respect to what information must always be declared. Some items are mandated, while others are at the discretion of the manufacturer. Being completely honest and declaring all ingredients may be the right thing to do ethically, but will create a disadvantage competitively if other companies choose not to declare the same information. Some solutions to this problem are increased legislation, voluntary packaging networks that encourage full disclosure on all packaging, and third party organisations like Health Check which help consumers make informed decisions. 10. Explain how labelling could be used as a marketing weapon rather than just providing legally required information. Labelling as a marketing weapon is likely to happen in areas not currently governed by legislation. Some companies may choose to promote certain key aspects or benefits, where others may not. Even though both products are able to make the same claim, the first company to list it on their packaging will win in the minds of consumers. Further, some companies may take advantage of “grey area” like health claims currently under review – knowing that the government will allow them a grace period to remove it from their package – allowing them to make this claim while their competitors can not. Of course, anything on a package can give a competitive edge – the colours and fonts chosen, the wording, the amount of text, the language used for directions. Marketing Applications 1. Prepared foods at Whole Foods Market, the world’s largest retailer of organic foods, are very profitable. To make them even more profitable, suggest two strategies that would alter the product mix breadth and depth. To enhance the profitability of prepared foods at Whole Foods Market, the following strategies can be implemented to adjust the product mix breadth and depth: 1. Introduce Specialized Dietary Options: Expand the product mix breadth by introducing specialized dietary options tailored to specific consumer preferences and needs. This could include: • Gluten-free options: With the increasing demand for gluten-free products, offering a variety of gluten-free prepared foods can attract customers with celiac disease or gluten sensitivities. • Plant-based/vegan options: Capitalize on the growing trend of plant-based diets by offering a wider range of vegan prepared foods, such as plant-based protein bowls, vegan sandwiches, and dairy-free desserts. • Keto-friendly or low-carb options: Tap into the ketogenic diet trend by introducing prepared foods that are low in carbohydrates and high in healthy fats, catering to consumers following low-carb lifestyles. 2. Seasonal and Local Menu Offerings: Adjust the product mix depth by incorporating seasonal and locally sourced ingredients into the prepared foods menu. This strategy can enhance customer interest and satisfaction by: • Highlighting seasonal produce: Utilize fresh, seasonal ingredients to create limited-time menu items that align with current food trends and appeal to customers seeking variety and freshness. • Partnering with local suppliers: Strengthen connections with local farmers and suppliers to source high-quality, sustainable ingredients for prepared foods. This not only supports the community but also promotes transparency and traceability, which resonates with Whole Foods Market's commitment to quality and ethical sourcing. By implementing these strategies, Whole Foods Market can effectively broaden its product mix to cater to diverse dietary preferences and lifestyles while deepening its offerings with fresh, seasonal ingredients sourced locally, ultimately driving profitability and enhancing customer satisfaction. Instructor’s Notes: This exercise prompts students to explore the difference between product line breadth and product line depth in the guise of giving Whole Foods strategic product recommendations. • Example answers: o Two possible strategies that would make Whole Foods even more profitable—and still remain in the prepared foods market—would be prepared naturopathic general health aids, called “monthly-health-in-a-box,” which would increase its product mix breadth, and prepared appetizers, dinner items, drinks, and desserts put together for a party, which would improve its product line depth. 2. Visit a grocery store and look for Colgate Total toothpaste on the shelves. How many different SKUs (include all sizes and flavour variations) are sold at the store? What are the advantages and disadvantages of having so many different variations? To provide an accurate count of the different SKUs of Colgate Total toothpaste available at a specific grocery store, I'd need access to real-time data from that store's inventory. However, I can discuss the advantages and disadvantages of offering multiple variations of a product like Colgate Total toothpaste: Advantages: 1. Catering to Diverse Preferences: Offering multiple variations allows the brand to cater to the diverse preferences of consumers. Some customers may prefer specific flavors (e.g., mint, herbal, citrus), while others may have preferences for certain sizes (e.g., travel-size, family-size). 2. Market Segmentation: Different variations enable the brand to segment the market effectively. For example, they can target different demographics or address specific dental concerns (e.g., sensitivity, whitening) with specialized formulations. 3. Increased Market Share: By providing a wide range of options, the brand can capture a larger share of the market. Customers who might have opted for a competitor's product due to a lack of variety may choose Colgate Total instead. Disadvantages: 1. Complexity in Inventory Management: Managing a large number of variations can be challenging for inventory management. It requires careful monitoring of stock levels for each SKU to prevent overstocking or stockouts, which can lead to inefficiencies and increased costs. 2. Potential for Cannibalization: Offering too many variations of a product may lead to cannibalization, where sales of one variation come at the expense of another. This can dilute overall sales and profitability if not managed properly. 3. Consumer Confusion: A wide array of options may overwhelm consumers and make it difficult for them to make a decision. This can result in decision fatigue and ultimately lead to decreased satisfaction with the brand. 4. Increased Production Costs: Producing multiple variations requires additional resources and may incur higher production costs. This includes expenses related to formulation, packaging, and marketing for each SKU. In conclusion, while offering multiple variations of Colgate Total toothpaste can provide advantages such as catering to diverse preferences and increasing market share, it also presents challenges such as complexity in inventory management, potential cannibalization, consumer confusion, and increased production costs. Balancing these factors is essential for the brand to effectively meet consumer needs while maintaining profitability. Instructor’s Notes: SKUs represent the smallest units available for inventory control. This exercise shows students how many different variations of one product may be available for sale. • Example answer: o The answer to this question will vary considerably depending on the city students live in and the size/type of store they visit. Colgate Total* is available in a variety of flavours and forms: 50 ml to 150 ml in size, including Colgate Total Advanced Health, Clean Mint Paste, Whitening Gel, Advanced Fresh Gel, and Fresh Stripe Gel. 3. Suppose you have just been hired by a jewellery manufacturer as a marketing consultant. The manufacturer has been making private-label jewellery for 75 years but is thinking about developing its own brand of jewellery. Discuss the advantages and disadvantages of such a strategy. Developing its own brand of jewelry can offer several advantages and disadvantages for the manufacturer: Advantages: 1. Brand Recognition and Loyalty: Creating a proprietary brand allows the manufacturer to establish its own identity and build brand recognition among consumers. Over time, this can lead to increased customer loyalty and repeat purchases. 2. Higher Profit Margins: Selling jewelry under its own brand gives the manufacturer the opportunity to capture a larger share of the value chain, leading to potentially higher profit margins compared to producing private-label products for other retailers. 3. Creative Control and Innovation: Developing its own brand grants the manufacturer greater control over the design, materials, and marketing of the jewelry. This freedom enables them to innovate, differentiate their products, and better meet the evolving tastes and preferences of consumers. 4. Market Differentiation: A proprietary brand allows the manufacturer to differentiate itself from competitors, particularly if it focuses on unique design aesthetics, quality craftsmanship, or sustainable sourcing practices. This differentiation can help attract customers seeking distinctive jewelry offerings. 5. Direct Customer Relationships: Selling directly to consumers under its own brand provides the manufacturer with valuable insights into customer preferences, feedback, and purchasing behavior. This data can inform product development, marketing strategies, and customer service initiatives. Disadvantages: 1. Initial Investment and Risk: Launching a new brand requires significant upfront investment in branding, marketing, inventory, and distribution channels. There's also inherent risk involved, as success is not guaranteed, and failure could result in financial losses for the manufacturer. 2. Brand Building Challenges: Building brand awareness and reputation can be a lengthy and resource-intensive process. It may take time for the new brand to gain traction in the market, especially if competing with established jewelry brands with strong brand equity. 3. Channel Conflict: Developing its own brand may create conflicts with existing retail partners who previously relied on the manufacturer for private-label products. This could strain relationships with retailers or lead to decreased demand for the manufacturer's private-label offerings. 4. Competition and Saturation: The jewelry market is highly competitive, with numerous established brands and new entrants vying for consumer attention. The manufacturer must navigate this competitive landscape and find ways to differentiate its brand to stand out. 5. Supply Chain and Quality Control: Ensuring consistent quality and supply chain management can be challenging when transitioning from private-label manufacturing to developing its own brand. Maintaining quality standards is crucial for building trust and credibility with consumers. In conclusion, while developing its own brand of jewelry offers opportunities for increased profitability, creative control, and market differentiation, it also presents challenges such as initial investment, brand building, channel conflicts, competition, and maintaining quality standards. Careful planning, strategic decision-making, and a thorough understanding of the market are essential for success in this endeavor. Instructor’s Notes: Private-label, or store, brands are owned and managed by retailers. Students must consider the positives and negatives of such brands and therefore address such factors as market risk, promotional costs, cannibalization, and the competitive landscape (e.g., how will private-label clients react when they find out their manufacturer is now their competitor?). • Example answers: o The jewellery manufacturer could reap significant profits from making a product for itself rather than another company and possibly build a strong, lucrative brand that would command status and premium prices. However, it will face higher promotional costs for its new brand, and it runs the risk that the brand will not do well compared with the existing private-label business. 4. Identify a specific brand that has developed a high level of brand equity. What specific aspects of that brand establish its brand equity? One specific brand that has developed a high level of brand equity is Nike. Several aspects contribute to Nike's strong brand equity: 1. Iconic Logo and Slogan: The Nike swoosh logo is one of the most recognizable symbols globally, representing performance, innovation, and athleticism. Coupled with the memorable "Just Do It" slogan, Nike's branding has become deeply ingrained in popular culture, contributing to its brand equity. 2. Product Innovation and Quality: Nike is renowned for its commitment to innovation in athletic footwear, apparel, and equipment. The brand consistently introduces groundbreaking technologies and designs that enhance performance and comfort, such as Nike Air cushioning and Flyknit technology. This reputation for innovation and quality has earned Nike the trust and loyalty of athletes and consumers worldwide. 3. Strong Brand Associations: Nike has successfully cultivated strong associations with top athletes, sports teams, and cultural influencers. Sponsorship deals with athletes like Michael Jordan, LeBron James, and Serena Williams, as well as partnerships with major sports leagues and events, reinforce Nike's image as a leader in sports performance and style. 4. Emotional Branding: Nike excels in connecting with consumers on an emotional level, tapping into aspirational themes of determination, perseverance, and empowerment. Through its marketing campaigns and storytelling, Nike inspires individuals to push their limits and pursue their dreams, resonating with a wide audience across demographics and cultures. 5. Brand Consistency: Nike maintains consistency in its brand messaging, visual identity, and product offerings across various channels and markets. This consistency builds trust and familiarity with consumers, reinforcing the brand's image and strengthening its brand equity over time. 6. Community Engagement: Nike actively engages with its community through initiatives like Nike Run Club, Nike Training Club, and grassroots sports programs. By fostering a sense of belonging and inclusivity, Nike strengthens its connection with consumers and builds brand loyalty beyond product purchases. Overall, Nike's brand equity is built on a foundation of iconic branding, innovative products, strong brand associations, emotional resonance, consistency, and community engagement. These factors combine to create a powerful brand that resonates with consumers worldwide and drives long-term success for the company. Instructor’s Notes: In picking a brand that they think has high equity value; students should explore why they believe it has high value and what determines that value. • Example answers: o IBM has developed a high level of brand equity through its longevity, its global reach, its reputation for innovation and Nobel Prize–winning work, the quality of its products, its sponsorship of sporting and cultural events, and the high level of customer service it provides to its customers. 5. Are you loyal to any brands? If so, pick one and explain why you believe you are loyal, rather than that you simply like the brand. If not, pick a brand that you like and explain how you would feel and act differently toward the brand if you were loyal to it. Yes, I'm loyal to Apple. My loyalty to Apple goes beyond simply liking the brand; it's rooted in several factors: 1. Consistent Quality and Innovation: Apple consistently delivers high-quality products that are innovative, intuitive to use, and aesthetically pleasing. From iPhones to MacBooks to AirPods, I appreciate the attention to detail and craftsmanship that goes into each Apple product. 2. Ecosystem Integration: The seamless integration across Apple devices and services enhances my user experience and productivity. The ecosystem allows for effortless synchronization of data, seamless transitions between devices, and access to a wide range of apps and services that complement each other. 3. Customer Service and Support: Apple's customer service and support are exceptional. Whether it's troubleshooting technical issues, replacing a faulty device, or providing guidance on product usage, I've always had positive experiences with Apple support representatives who are knowledgeable and responsive. 4. Brand Trust and Reputation: Over the years, Apple has earned my trust and confidence as a brand that prioritizes privacy, security, and user empowerment. Their commitment to protecting customer data and privacy resonates with me and reinforces my loyalty to the brand. 5. Emotional Connection: Apple's marketing and branding evoke emotions of creativity, innovation, and aspiration. The brand's storytelling and product launches inspire a sense of excitement and anticipation, fostering an emotional connection that goes beyond the functional aspects of their products. If I were to feel even more loyal to Apple, I might actively advocate for the brand by recommending Apple products to friends and family, participating in Apple communities and forums, and perhaps even becoming an early adopter of new products and features. My loyalty would also translate into a willingness to invest more in the Apple ecosystem, such as purchasing additional Apple services or accessories, as well as demonstrating brand loyalty even in the face of competitive offerings from other tech companies. Instructor’s Notes: This question challenges students to consider exactly why they may be brand loyal toward one product but not another, which may be because of product characteristics, the students’ experience, or their opinion of the company that provides the product. Therefore, they might mention that they only purchase that brand to the exclusion of all others, they purchase the product frequently, and they often visit the store that sells it. • Example answers: o I am loyal to Starbucks, in that I generally do not get coffee from any other retailer unless there is absolutely no Starbucks within reasonable walking or driving distance. However, though I prefer Pepsi, I sometimes drink Coke; if I were truly brand loyal, I would only patronize restaurants that served Pepsi. 6. Ford Motor Company owns several brands: Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover, and Aston Martin. Within each brand are many models, each of which has a unique identifying name. Wouldn’t it be easier to just identify them all as Fords? Justify your answer. While it might seem simpler to identify all vehicles under Ford Motor Company as "Fords," doing so would overlook the distinctiveness and individual identity of each brand and model within the company's portfolio. Here are several reasons why it's important to differentiate between the various brands: 1. Brand Identity and Positioning: Each brand under Ford Motor Company has its own unique identity, target market, and positioning in the automotive market. For example, Lincoln is positioned as a luxury brand, while Ford focuses on mainstream consumer vehicles. Consolidating all vehicles under the "Ford" brand would dilute the brand equity and confuse consumers who have specific preferences for luxury, performance, or economy vehicles. 2. Market Segmentation: Ford Motor Company strategically offers different brands to cater to diverse customer segments and preferences. Each brand serves a specific market niche, whether it's luxury (Lincoln), performance (Jaguar), or ruggedness (Land Rover). By maintaining distinct brands, the company can effectively target and serve various segments of the automotive market without cannibalizing sales or brand equity. 3. Product Differentiation: The models within each brand offer unique features, designs, and performance characteristics tailored to their target audiences. For instance, a Ford Mustang is vastly different from a Lincoln Navigator or a Mazda MX-5 Miata. Each model has its own appeal and serves different purposes, and consolidating them all under the "Ford" name would overlook these distinctions. 4. Heritage and Legacy: Many of the brands under Ford Motor Company have rich histories and legacies that contribute to their brand identity and appeal. For example, Jaguar is known for its heritage of luxury and performance, while Land Rover is associated with off-road capability and adventure. Consolidating them all as "Fords" would undermine the heritage and legacy of these brands. 5. Dealer Networks and Marketing: Each brand typically has its own dedicated dealer network and marketing strategies tailored to its target audience. Consolidating all vehicles as "Fords" would complicate dealer operations and marketing efforts, as they would need to cater to a broader and potentially conflicting customer base. In conclusion, while it might seem easier to identify all vehicles under Ford Motor Company as "Fords," maintaining the distinction between the various brands is essential for preserving brand identity, market segmentation, product differentiation, heritage, and effective marketing strategies. Instructor’s Notes: Why does a company like Ford break its product offerings into different brands? Students might mention such factors as promotional costs, product differentiation, brand image, and target market focus. • Example answers: o Although it might be easier to identify all makes and models as Fords for the sake of promotions and costs, the company would not be able to differentiate its product offerings as it does. Each brand has its own product characteristics, appeals to different market segments, and evokes different feelings and emotions in consumers. It would be much more difficult for Ford to try to do all of this under the single brand umbrella of Ford. 7. Unlike Ford, BMW has only one brand and gives each car it makes a number instead of a name, for example, the BMW Series 3, Series 5 or Series 7. What are the advantages to BMW of this approach? BMW's approach of using numerical series designations for its vehicles offers several advantages: 1. Clarity and Consistency: The numerical series system provides a clear and consistent framework for organizing BMW's vehicle lineup. Customers can easily understand the hierarchy of models based on the number, with higher numbers typically indicating larger or more luxurious vehicles. This simplifies the buying process and helps customers make informed decisions. 2. Scalability and Flexibility: The numerical series approach allows BMW to introduce new models or variations within existing series without needing to create entirely new brand names or identities. This scalability and flexibility enable BMW to adapt to changing market demands and introduce new vehicles more efficiently. 3. Brand Cohesion: Using a single brand name (BMW) across all its vehicles reinforces brand cohesion and unity. It emphasizes BMW's commitment to excellence, performance, and luxury across its entire lineup, regardless of model or series. 4. Global Recognition: The numerical series system is universally understood and recognized by BMW customers worldwide. It transcends language barriers and cultural differences, making it easier for BMW to maintain a consistent brand identity and message in global markets. 5. Heritage and Legacy: BMW's use of numerical series designations has become ingrained in the brand's heritage and legacy. Each series has its own distinct characteristics and history, contributing to BMW's reputation for engineering excellence and driving pleasure. 6. Product Differentiation: Within each series, BMW offers a range of models with varying features, performance levels, and price points. The numerical series designation provides a foundation for differentiating these models while maintaining a cohesive brand identity. 7. Perceived Prestige and Exclusivity: The use of numbers instead of names can convey a sense of precision, engineering prowess, and exclusivity. It aligns with BMW's image as a manufacturer of premium, performance-oriented vehicles favored by driving enthusiasts. Overall, BMW's approach of using numerical series designations for its vehicles enhances clarity, scalability, brand cohesion, global recognition, and perceived prestige, contributing to the brand's success and appeal in the automotive market. Instructor’s Notes: This question highlights a very different approach to branding which is linked directly to the company name. • Example answers: o BMW is a more upscale brand than Ford. The main advantages to BMW’s branding approach include factors such as ease of establishing a brand image, savings on promotional costs, and maintaining target market focus. 8. Identify a specific company that has recently introduced a new brand extension to the marketplace. Discuss whether you believe the brand extension example you provided will benefit or harm the firm. A recent example of a company introducing a new brand extension to the marketplace is Apple's introduction of Apple Fitness+. Apple Fitness+ is a subscription-based fitness service that offers studio-style workouts led by trainers and compatible with Apple Watch metrics. I believe that Apple Fitness+ will benefit Apple in several ways: 1. Enhanced Ecosystem Integration: Apple Fitness+ further integrates with Apple's ecosystem of products and services, particularly the Apple Watch. This integration strengthens customer loyalty and incentivizes users to invest in multiple Apple products to maximize their experience. 2. Diversification of Revenue Streams: By entering the fitness subscription market, Apple diversifies its revenue streams beyond hardware sales. Subscription services tend to have higher margins and provide a recurring revenue stream, potentially boosting Apple's overall profitability. 3. Expanding Customer Base: Apple Fitness+ appeals to a broader audience beyond traditional tech enthusiasts, attracting fitness enthusiasts and individuals seeking convenient at-home workout solutions. This expansion of the customer base increases Apple's market reach and potential for growth. 4. Brand Reinforcement: Apple Fitness+ reinforces Apple's brand image as a provider of innovative, user-centric solutions that enhance various aspects of daily life. It aligns with Apple's focus on health and wellness, positioning the company as a holistic lifestyle brand. 5. Competitive Advantage: Apple Fitness+ competes in the growing digital fitness space, leveraging Apple's brand strength, technological capabilities, and user experience design expertise. It has the potential to differentiate Apple from competitors and strengthen its position in the market. Overall, I believe that Apple Fitness+ will benefit the firm by driving ecosystem integration, diversifying revenue streams, expanding the customer base, reinforcing the brand, and providing a competitive advantage in the digital fitness market. Instructor’s Notes: By having students identify a recent brand extension, this question forces them to consider the degree to which this extension might help or hurt the firm and thus examine how brand extensions add or subtract value from the base brand. • Example answers: o In a recent brand extension, Donald Trump released a new men’s cologne, called simply “Trump–The Fragrance.” Extending the Trump brand—which traditionally has been associated with real estate, golf, and casino gambling—to men’s cologne probably will hurt the overall brand, because cologne is so different from the other products and services within the Trump brand, and it is a bit cheesy. After all, it would be hard to argue that Donald Trump knows much about men’s cologne. By releasing the cologne, the value of the other Trump-branded products and services might decrease due to brand dilution. 9. Do you think all food sold in a grocery store should have ingredient and nutrition labels? Consider the perspectives of consumers, the manufacturer, and the store. From the perspectives of consumers, manufacturers, and stores, there are valid arguments both for and against requiring all food sold in a grocery store to have ingredient and nutrition labels: Perspectives of Consumers: 1. Informed Choices: Consumers have the right to make informed choices about the foods they purchase and consume. Having access to ingredient and nutrition labels enables them to understand what ingredients are present in the food, including potential allergens, and to assess the nutritional content such as calories, fat, sugar, and vitamins. 2. Health and Safety: Ingredient and nutrition labels help consumers manage their dietary intake and make healthier choices. For individuals with specific dietary needs or health conditions, such as diabetes or food allergies, these labels are crucial for avoiding harmful ingredients and maintaining their health and well-being. Perspectives of Manufacturers: 1. Compliance Costs: Mandating ingredient and nutrition labels for all foods may impose additional compliance costs on manufacturers, particularly smaller businesses or producers of artisanal products. These costs could potentially be passed on to consumers, leading to higher prices for food products. 2. Trade Secrets: Some manufacturers may be reluctant to disclose proprietary information about their recipes or formulations, especially if they believe it could be easily replicated by competitors. Requiring detailed ingredient labels could undermine their competitive advantage in the market. Perspectives of Stores: 1. Consumer Trust: Stores benefit from consumer trust and confidence in the products they sell. Providing clear and accurate ingredient and nutrition labels helps build trust with customers by demonstrating transparency and commitment to their health and safety. 2. Regulatory Compliance: Stores are subject to regulations and standards governing the sale of food products, including labeling requirements. Ensuring that all foods sold in the store have proper labels helps the store comply with these regulations and avoid potential legal liabilities. Overall, while there are potential challenges and costs associated with requiring all food sold in a grocery store to have ingredient and nutrition labels, the benefits for consumers in terms of making informed choices about their diet and health likely outweigh these concerns. Additionally, providing clear and accurate labels can enhance consumer trust and confidence in both the manufacturer and the store, ultimately benefiting all parties involved. Therefore, it is generally advisable to mandate ingredient and nutrition labels for all food products sold in grocery stores. Instructor’s Notes: To expand students’ understanding of the roles and responsibilities of the different parties, this question challenges them to consider the benefits and costs of labels for each group • Example answers: o Most food in a grocery store should have an ingredient and nutrition label, with the exception of, say, unpackaged produce. Consumers can make more informed purchase decisions, and the store might improve its customer satisfaction, because its shoppers know that all the information they need appears on every product package. From the perspective of the manufacturers, however, broader labelling might seem intrusive and could make sales of cheaper quality, high fat, and high sugar foods more difficult; thus, rather than seeing it as an opportunity to connect positively with consumers, manufacturers might object to comprehensive labelling. 10. You are hired by a small bakery that wants to distribute its products through supermarkets. The market for the bakery’s products has been steadily growing, so the bakery needs to expand its distribution capabilities to match its production capacity. You set an appointment with the manager of a local grocery chain that is familiar with the bakery’s products and excited about the possibility of selling them in the store. The contract he offers includes a $10,000 fee for stocking the product, which he claims is simply the cost of doing business, noting that bigger bakeries object to adding your product line to the chain’s offerings. The bakery cannot afford this fee. What should you do now? Given the bakery's limited financial resources, it's essential to explore alternative options to negotiate a favorable contract with the local grocery chain. Here are some steps the bakery could take: 1. Negotiate the Fee: The bakery should engage in open and transparent negotiations with the grocery chain manager regarding the stocking fee. They can present their financial constraints and express their willingness to collaborate but emphasize the challenges posed by the proposed fee. The bakery may propose a reduced fee or alternative terms that align with their budget constraints. 2. Highlight Unique Selling Points: Emphasize the unique qualities and selling points of the bakery's products that differentiate them from those of larger bakeries. This could include factors such as artisanal craftsmanship, locally sourced ingredients, or unique flavors and recipes. Demonstrating the value that the bakery's products can bring to the grocery chain's offerings may help justify a lower or waived stocking fee. 3. Offer a Trial Period: Propose a trial period during which the grocery chain can test the bakery's products in select stores without committing to a significant stocking fee upfront. This allows the chain to assess the products' performance and popularity among customers before making a long-term commitment. 4. Explore Collaborative Marketing Opportunities: Offer to collaborate with the grocery chain on joint marketing initiatives to promote the bakery's products within the stores. This could include in-store sampling events, promotional discounts, or co-branded marketing materials. By demonstrating a commitment to driving sales and attracting customers, the bakery may be able to negotiate more favorable terms regarding the stocking fee. 5. Consider Alternative Distribution Channels: If negotiations with the grocery chain are unsuccessful or the proposed stocking fee remains unaffordable, the bakery should explore alternative distribution channels. This could include selling products directly to consumers through farmer's markets, online platforms, or establishing partnerships with smaller local retailers who may be more flexible with terms and fees. Ultimately, the key is to maintain open communication, demonstrate the value proposition of the bakery's products, and explore creative solutions to overcome financial barriers to entry into the grocery chain's distribution network. Instructor’s Notes: This scenario asks students to consider the common business practices at play in this particular industry and whether such practices meet their ethical standards. If such stocking fees are common within the retail grocery industry, the ethical factor is fairly low; it is more a matter of contract negotiation than an ethical violation. If students determine that such stocking fees are not common practice and that the grocery chain is attempting to exploit the small bakery, they should address the ethical considerations and decide to what degree they should challenge the grocery manager. • Example answers: o I would first determine whether such stocking fees are common practice in the grocery industry. If they are common, I would try to negotiate the fee down to a more reasonable level that my bakery could afford. If they are not, I would question whether we want to go into business with a firm that allows such unethical business practices. Perhaps we could broker a better deal with another grocery chain; otherwise, I would look for other ways to market and distribute the bakery’s products. Net Savvy 1. Visit the Proctor & Gamble Web site (www.pg.ca). Identify and briefly describe its different product lines. Now identify one of its product categories, and discuss the product line breadth of that particular category. Be sure to justify your answers. As of my last update, Procter & Gamble (P&G) offers a diverse range of product lines across various categories. Some of its prominent product lines include: 1. Beauty and Grooming: This category includes products such as skincare, hair care, and personal grooming items. Brands under this line include Olay, Pantene, Head & Shoulders, Gillette, and Venus. 2. Health and Wellness: P&G offers a range of health and wellness products, including oral care (Oral-B), feminine care (Always, Tampax), and digestive health (Metamucil). 3. Home Care: This category comprises household cleaning and laundry products. Brands under this line include Tide, Cascade, Dawn, Febreze, and Swiffer. 4. Baby Care: P&G offers baby care products including diapers (Pampers), baby wipes (Pampers), and baby skincare (Pampers). 5. Fabric Care: This product line includes products specifically for fabric care, such as fabric softeners (Downy), and dryer sheets (Bounce). Let's take the example of P&G's Beauty and Grooming product category and discuss the product line breadth within this category: Product Category: Beauty and Grooming Product Line: Skincare Product Line Breadth: P&G's skincare product line encompasses a wide range of products catering to various skincare needs and preferences. Within the skincare product line, P&G offers: 1. Moisturizers: Includes products designed to hydrate and nourish the skin, catering to different skin types (e.g., dry, oily, sensitive). Brands like Olay offer a variety of moisturizers with different formulations and targeted benefits, such as anti-aging, brightening, and SPF protection. 2. Cleansers: Consists of facial cleansers and scrubs formulated to remove dirt, oil, and impurities from the skin while maintaining its natural balance. Brands like Olay and Ivory offer a range of cleansers suitable for various skin concerns and preferences, including foaming cleansers, gel cleansers, and exfoliating scrubs. 3. Serums and Treatments: Encompasses specialized skincare treatments and serums targeting specific concerns such as fine lines, dark spots, and acne. Brands like Olay offer serums infused with potent ingredients like retinol, vitamin C, and niacinamide to address specific skincare needs and deliver visible results. 4. Sun Protection: Includes sunscreen and sun protection products designed to shield the skin from harmful UV rays and prevent sun damage. Brands like Olay and Gillette offer a range of sunscreens with varying SPF levels and formulations, including lotions, creams, and sprays. 5. Eye Care: Consists of eye creams and treatments formulated to address concerns such as dark circles, puffiness, and fine lines around the delicate eye area. Brands like Olay offer targeted eye care products designed to hydrate, brighten, and firm the skin around the eyes. Justification: The skincare product line breadth within P&G's Beauty and Grooming category is extensive, offering a diverse range of products to address various skincare needs and preferences. This breadth allows P&G to cater to a wide range of consumers with different skin types, concerns, and preferences, thereby maximizing market coverage and meeting the diverse needs of its customers. Additionally, the availability of specialized treatments and formulations demonstrates P&G's commitment to innovation and addressing evolving consumer demands in the skincare market. Instructor’s Notes: To help confirm students’ understanding of the difference between product lines, product categories, and product line breadth, this exercise asks them to explore P&G’s product offerings, as represented on its website. • Example answers: o Proctor & Gamble’s product lines include personal and beauty (e.g., hair care, skin products), house and home (e.g., detergents, fabric softeners, air fresheners), health and wellness (e.g., nutrition, oral care), baby and family (e.g., children’s soaps, shampoos, disposable diapers), and pet nutrition and care (e.g., pet food, pet grooming products). The oral care product category contains significant product line breadth; it includes seven different product lines (Crest, Crest Whitestrips, Oral-B, Glide, Scope, Gleem, and Fixodent). 2. Interbrand Corporation is a leading brand consultancy firm headquartered in New York that conducts research on the monetary value of different brands. Visit the company’s Web site (www.interbrand.com) and access the most recent “Best Global Brands” survey. Identify the top five brands, their brand values, and their countries of origin. Describe changes in the rankings of these firms from the previous year. Identify the brands with the greatest increase and the greatest decrease in terms of percentage change in brand value from the previous year. However, as of my last update, I can provide you with the top five brands from the 2021 "Best Global Brands" report along with their brand values and countries of origin. Please note that these rankings may have changed since then, and I can't provide information on changes in rankings or brand values without access to the most recent data. Top five brands from the 2021 "Best Global Brands" report: 1. Apple • Brand Value: $263.4 billion • Country of Origin: United States 2. Amazon • Brand Value: $254.2 billion • Country of Origin: United States 3. Microsoft • Brand Value: $225.8 billion • Country of Origin: United States 4. Google • Brand Value: $191.6 billion • Country of Origin: United States 5. Samsung • Brand Value: $159.9 billion • Country of Origin: South Korea As for changes in rankings and brand values from the previous year, I'm unable to provide specific details without access to the latest report. However, Interbrand typically publishes detailed reports outlining changes in rankings, brand values, and other relevant insights from year to year. If you have access to the most recent "Best Global Brands" report from Interbrand, I recommend referring to it directly for the latest information on changes in rankings, brand values, and other relevant details. Instructor’s Notes: Students should realize that the four of the five strongest brands are from the United States and that the ranking has changed little from previous years, though the values of the brands have. • Example answers: o As of the survey conducted in July 2010, the top five global brands are as follows: Ranking Brand Name Brand Value (millions) Country of Origin 1 Coca-Cola 70,452 United States 2 IBM 64,727 United States 3 Microsoft 60,895 United States 4 Google 43,557 United States 5 GE 42,808 United States End-of-Chapter Case Band-Aid® Brand Products Build on the Value of the Brand Questions: 1. Visit the company’s Web site (www.bandaid.com) and identify and describe the different product lines that it markets. How would you describe its product line breadth? However, based on my last update, Band-Aid® Brand Products offer a variety of adhesive bandages and wound care solutions designed to meet different needs and preferences. Here are some of the product lines typically marketed by Band-Aid®: 1. Standard Adhesive Bandages: These are the traditional adhesive bandages commonly used for minor cuts, scrapes, and wounds. They come in various sizes, shapes, and materials to accommodate different wound sizes and locations. 2. Advanced Healing Adhesive Bandages: These bandages are designed with specialized features to promote faster wound healing. They may include features like hydrocolloid technology or antibiotic ointment to accelerate the healing process and protect against infection. 3. Waterproof Adhesive Bandages: Waterproof bandages are specifically designed to maintain adhesion even when exposed to water, making them ideal for use during activities like swimming, showering, or sports. 4. Flexible Fabric Adhesive Bandages: Fabric bandages are made from flexible materials that conform to the contours of the skin, providing comfortable and secure coverage for minor wounds. They offer flexibility and freedom of movement, making them suitable for use on joints or areas prone to bending. 5. Character and Decorative Adhesive Bandages: These bandages feature fun designs, patterns, or characters to make wound care more appealing, especially for children. They can help ease discomfort and distract from minor injuries with playful visuals. 6. Blister Cushions and Pads: In addition to traditional adhesive bandages, Band-Aid® also offers products specifically designed for blister prevention and treatment. These include cushions and pads with gel or cushioning technology to protect against friction and pressure, preventing blisters or promoting their healing. Overall, Band-Aid® Brand Products demonstrate a relatively broad product line breadth by offering a range of adhesive bandages and wound care solutions tailored to different needs, preferences, and usage scenarios. This breadth allows the brand to cater to a diverse customer base and address various wound care needs effectively. Instructor’s Aid: By having students explore another consumer products company’s Web site, this question reinforces their understanding of product lines and product line depth. • Example answers: o Band-Aid offers cleansing products, antibiotic and anti-itch treatments, protection products, first aid products for larger cuts and scrapes, sports tapes and wraps, foot care products, and first-aid kits as its product lines. Its product line breadth is moderate, because it offers fewer product lines than other consumer product firms might have; there tend to be about three to four product offerings within each of the seven product lines. 2. Review the different product categories in each of the company’s product lines. Which has the greatest breadth? Which has the least? Based on the typical product categories found in Band-Aid® Brand Products, here's an analysis of the breadth of each product line: 1. Standard Adhesive Bandages: • Product Categories: • Assorted Sizes (e.g., small, medium, large) • Shapes (e.g., rectangular, square, circular) • Materials (e.g., plastic, fabric) • Features (e.g., breathable, non-stick) • Breadth: The standard adhesive bandages product line typically offers a wide variety of sizes, shapes, materials, and features to accommodate different wound sizes, locations, and preferences. Therefore, this product line likely has a significant breadth. 2. Advanced Healing Adhesive Bandages: • Product Categories: • Hydrocolloid Technology • Antibacterial Ointment • Waterproof • Breadth: While the advanced healing adhesive bandages focus on specific features like hydrocolloid technology or antibiotic ointment, the range of product categories within this line is narrower compared to standard adhesive bandages. Therefore, this product line likely has a moderate breadth. 3. Waterproof Adhesive Bandages: • Product Categories: • Assorted Sizes • Shapes • Breadth: Waterproof adhesive bandages primarily focus on providing waterproof protection for wounds, which limits the range of product categories within this line. Therefore, this product line likely has a narrower breadth compared to others. 4. Flexible Fabric Adhesive Bandages: • Product Categories: • Assorted Sizes • Shapes • Breadth: Similar to waterproof adhesive bandages, flexible fabric adhesive bandages primarily focus on providing flexible coverage for minor wounds. The range of product categories within this line may be narrower compared to standard adhesive bandages. Therefore, this product line likely has a moderate breadth. 5. Character and Decorative Adhesive Bandages: • Product Categories: • Assorted Designs • Assorted Sizes • Breadth: Character and decorative adhesive bandages primarily focus on providing fun and appealing designs to make wound care more enjoyable, especially for children. While the range of designs may vary, the overall product categories within this line may be narrower compared to standard adhesive bandages. Therefore, this product line likely has a moderate breadth. 6. Blister Cushions and Pads: • Product Categories: • Blister Prevention • Blister Treatment • Breadth: Blister cushions and pads focus on blister prevention and treatment, with specific product categories designed for these purposes. While the range of categories may not be as extensive as standard adhesive bandages, this line still offers options for different blister care needs. Therefore, this product line likely has a moderate breadth. In summary, the Standard Adhesive Bandages product line likely has the greatest breadth, offering a wide variety of sizes, shapes, materials, and features. On the other hand, the Waterproof Adhesive Bandages and Flexible Fabric Adhesive Bandages product lines may have the least breadth, focusing primarily on specific functionalities like waterproof protection or flexibility. Instructor’s Aid: Extending the previous question, this exercise continues to test the student’s understanding of product categories, product lines, and product line breadth. • Example answers: o The product category with the greatest breadth is antibiotic and anti-itch treatments, with six product lines. The product category with the least breadth is cleansing products, with only two product lines represented. 3. Look at the new products that the company offers. Identify which are extensions of the Band-Aid® brand name and which are not. Discuss the extent to which the brand extensions might dilute brand equity. However, I can discuss hypothetical scenarios to illustrate the potential impact of brand extensions on brand equity. Extensions of the Band-Aid® Brand Name: 1. Band-Aid® Advanced Healing Adhesive Bandages: These products leverage the Band-Aid® brand name to introduce advanced features such as hydrocolloid technology or antibiotic ointment for faster wound healing. 2. Band-Aid® Waterproof Adhesive Bandages: Building on the brand's reputation for reliable wound care, these products offer waterproof protection for minor cuts and scrapes. 3. Band-Aid® Character and Decorative Adhesive Bandages: These products retain the Band-Aid® brand name while introducing fun and playful designs to make wound care more enjoyable, especially for children. Not Extensions of the Band-Aid® Brand Name: 1. First Aid Kits: While these products may include Band-Aid® brand adhesive bandages, they typically encompass a broader range of first aid supplies and accessories. The Band-Aid® brand may not be prominently featured in the product name or packaging. 2. Wound Care Solutions: This category may include products such as antiseptic wipes, gauze pads, and medical tape, which complement adhesive bandages but are not branded under the Band-Aid® name. The extent to which brand extensions might dilute brand equity depends on several factors: 1. Consistency with Brand Promise: Brand extensions should align with the core values and promises of the Band-Aid® brand. If new products maintain the brand's focus on reliable, convenient, and effective wound care solutions, they are less likely to dilute brand equity. 2. Perceived Quality and Reliability: Brand extensions should uphold the perceived quality and reliability associated with the Band-Aid® brand. If new products meet or exceed consumer expectations for performance and efficacy, they are more likely to strengthen brand equity rather than dilute it. 3. Brand Stretching: Extending the Band-Aid® brand too far beyond its core competency of adhesive bandages may risk brand dilution. If new products stray too far from the brand's established expertise or credibility, consumers may perceive them as less authentic or trustworthy. 4. Consumer Perception: Ultimately, the impact of brand extensions on brand equity depends on consumer perception. If consumers perceive new products as natural extensions of the Band-Aid® brand that add value and convenience to their lives, brand equity is likely to remain strong. However, if new products deviate too much from consumer expectations or erode trust in the brand, they may dilute brand equity over time. In conclusion, brand extensions can either strengthen or dilute brand equity depending on their alignment with the brand's core values, perceived quality, consistency, and consumer perception. It's essential for Band-Aid® Brand Products to carefully evaluate new product opportunities and ensure that extensions complement rather than detract from the brand's established identity and reputation. Instructor’s Aid: Using the Band-Aid scenario, students can examine which of the company’s new products meets the brand extension criteria and whether they help or hurt the brand, as far as consumer perceptions. • Example answers: o Of the seven new products shown, six of them are extensions of the Band-Aid brand and prominently display the brand name on the packaging. The seventh new product—Skin Crack Ointment—is not a brand extension, because it provides no visible connection to the parent brand; the Band-Aid name does not even appear on the package. All these brand extensions have low probabilities of brand dilution, because they focus on Band-Aid’s core attributes: first-aid protection and faster healing. 4. Review the company’s products designed for children. To what extent do these use manufacturer (national) branding? Private-label (store) branding? Licensed branding? Justify your answers. What is the added value that these products offer compared with regular Band-Aid® protection products? Reviewing Band-Aid® Brand Products designed for children, we can analyze the extent to which they use different branding strategies: 1. Manufacturer (National) Branding: Band-Aid® Brand Products designed for children primarily use manufacturer (national) branding. The Band-Aid® brand name is prominently featured on the packaging, indicating that these products are manufactured and distributed by Johnson & Johnson, the parent company. The Band-Aid® brand is well-established and trusted, providing assurance of quality and reliability to consumers. 2. Private-label (Store) Branding: Children's adhesive bandages are less likely to use private-label (store) branding, as they are typically sold under the Band-Aid® brand name. Private-label branding involves retailers selling products under their own brand names rather than using the manufacturer's brand. While some retailers may offer their own line of adhesive bandages, these are distinct from Band-Aid® Brand Products. 3. Licensed Branding: Band-Aid® Brand Products designed for children may feature licensed branding in the form of popular characters or franchises. For example, adhesive bandages featuring characters from Disney, Marvel, or Nickelodeon cartoons and movies are commonly available. These licensed products leverage the popularity and appeal of well-known characters to attract children and make wound care more engaging. Justification: • Manufacturer (National) Branding: Band-Aid® Brand Products designed for children prominently feature the manufacturer's (Johnson & Johnson) national branding. The Band-Aid® brand is synonymous with adhesive bandages and enjoys high brand recognition and trust among consumers. Leveraging the Band-Aid® brand name reinforces the product's quality and reliability, which is particularly important for children's healthcare products. • Private-label (Store) Branding: Private-label branding is less common for children's adhesive bandages, as retailers typically recognize the value of partnering with established brands like Band-Aid® to offer trusted healthcare solutions to their customers. While some retailers may offer their own line of adhesive bandages, these products are distinct from Band-Aid® Brand Products. • Licensed Branding: Band-Aid® Brand Products designed for children often feature licensed branding in the form of popular characters or franchises. Licensed characters add an element of fun and familiarity to the products, making them more appealing to children and potentially easing discomfort or anxiety associated with minor injuries. Added Value Compared with Regular Band-Aid® Protection Products: Children's Band-Aid® Brand Products offer several added values compared with regular Band-Aid® protection products: 1. Engaging Designs: Children's Band-Aid® adhesive bandages feature colorful and playful designs featuring popular characters or themes, making wound care more enjoyable for children. 2. Comfortable and Gentle: Children's Band-Aid® adhesive bandages are designed with the needs of young skin in mind, offering gentle adhesion and comfortable wear to minimize irritation and discomfort. 3. Assurance of Quality: By carrying the Band-Aid® brand name, children's adhesive bandages provide assurance of quality and reliability to parents, who trust the brand for their family's healthcare needs. 4. Child-Friendly Packaging: Children's Band-Aid® adhesive bandages often come in child-friendly packaging with easy-to-open wrappers, making them more accessible and convenient for parents and caregivers. Overall, children's Band-Aid® Brand Products offer a combination of engaging designs, gentle materials, trusted quality, and convenient packaging to meet the unique needs of young patients and their caregivers. Instructor’s Aid: This question tests students’ understanding of the differences among the various types of brands. • Example answers: o The products that Band-Aid designs for children combine national branding and brand licensing. They represent the national brand because the manufacturer’s brand name, Band-Aid, appears prominently on all of the packaging. They also involve brand licensing because they often use popular children’s cartoon or movie characters to promote the products. Band-Aid does not own these characters, so it must purchase a license from the owners to include them on the product and/or packaging. Video Activities Video: Frito Lay Branding with Doritos Learning Objective: LO3, LO4 Page Number in Text: 291, 295 Description: Doritos used engagement marketing to allow consumers to help name a new brand of chips. They also invited consumers to submit their own videos in a contest to choose which one would air at the Superbowl. This video also discusses the promotions that accompanied their branding efforts. Key Words: branding, rebranding, flavour, naming brands, corporate brand, family brand, packaging, labelling Activity: Bring in a variety of Frito Lay products. Discuss the products from the perspective of brand name, package appeal, labelling information. Ask students which product they would choose based simply on the package. Then do a taste test and see if the product they like the best matches the one they chose based on only the package. This activity is a great way to engage students in understanding the importance of branding, packaging, and labeling in consumer decision-making. Here's how you can conduct the activity: 1. Gather Frito Lay products: Bring in a variety of Frito Lay products such as Doritos, Lay's potato chips, Cheetos, Fritos, and Tostitos. Ensure that you have enough samples for each student or group to taste. 2. Discuss branding, package appeal, and labeling: Introduce the concepts of branding, package appeal, and labeling to the students. Explain how these elements influence consumer perceptions and choices when selecting products. 3. Product observation: Distribute the Frito Lay products to the students or display them for observation. Encourage students to examine the packaging design, brand name, colors, graphics, and labeling information on each product. 4. Package preference: Ask students to choose one product solely based on the package appeal. They should not taste the products yet, but simply select the one they find most appealing based on its packaging. 5. Taste test: Conduct a taste test by providing samples of each Frito Lay product to the students. Allow them to taste each product and evaluate its flavor, texture, and overall taste experience. 6. Compare choices: After the taste test, ask students to compare their initial package preference with their actual taste experience. Did the product they chose based on packaging match their taste preference? 7. Discussion: Facilitate a discussion with the students about their observations and experiences. Encourage them to reflect on how packaging and branding influenced their perceptions and preferences. Discuss any discrepancies between their initial choices and actual taste preferences. 8. Relevance to branding: Emphasize the importance of branding, packaging, and labeling in influencing consumer behavior and purchasing decisions. Highlight how Frito Lay effectively uses these elements to attract and engage consumers with their products. By conducting this activity, students gain a deeper understanding of the role of branding, packaging, and labeling in consumer decision-making and can apply this knowledge to analyze marketing strategies in real-world contexts. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9780071320382, 9780070984929
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