Brand equity can be described as the value of a well-established brand name. A product of a popular brand can generate more revenue as compared to an unknown brand. Consumers have a perspective that a product from well know brand will be better in terms of quality than others. This gives an advantage to a branded product over an unknown product.
Brand equity valuation is difficult and doesn’t have any basic criteria. Some of the elements associated to it include −
Awareness of brand
Quality of product
Association with brand
Proprietary assets owned by the brand
Elements of brand equity add a value to the brand; a successful brand has all the elements of brand equity.
A brand has various advantages compared to unknown products. Some of the benefits are as follows −
It increases customer confidence in purchasing decision
It increases efficiency and effectiveness of advertisement and promotion
Brand loyalty is increased
Products can be priced higher for bigger margin and higher Return On Investment (ROI)
Extension of brand
Leverage in trade
Unique position of brand
Packaging is a method used to protect the product from external factors during transportation or storage. Depending of the nature of product, the packaging can differ.
At the same time, packaging creates a first impression on the consumer so it should be designed accordingly.
The characteristics or different features of packaging can be listed as follows −
Identity of product
Sustainability of product
Reveals image of brand
Packaging gives an overview of the product so these characteristics should be considered during the design of packaging.
AIDAS theory is a very popular marketing technique. It states that a consumer goes ssthrough the following five stages before showing satisfaction for a product.
A − Attention
I − Interest
D − Desire
A − Action
S − Satisfaction
These stages are to be evaluated and kept in perspective during the packaging design of the product.
The design of packaging can provide an advantage in the market over similar category product. The following are the different strategies for effective packaging −
Packaging of product line
Changing the package
Proper execution of packaging strategies can increase the attractiveness and durability of the product.
Labeling is the process of marking an identity on the product. The information used for labeling contains the following details −
Name and address of the manufacturer
Name and address of the distributer
Maximum Retail Price (MRP) of the product
Manufacturing date of the product
The method used to manufacture
The information provided in labeling is important because of various reasons like tracing the origin of the product, genuinity of product, etc.
Product mix refers to all the products offered by a particular company. As an example, Reliance Industries has products like cellular service, power, entertainment, etc. Hence, a strategy should be planned such that the uniqueness of the product can be established.
It includes positioning in relation to competition, positioning with attributes, and positioning in relation to price and quality of other products in the segment. The product has to be positioned as per these factors in their respective sectors.
It includes Product depth and product line. These are the dimension of the product mix. It depends on the number of products manufactured by a company.
Planned obsolescence is a strategy to create space for a new product with the help of advertisements showing an existing product to be out of date or fashion. This strategy is therefore considered controversial. However, it creates a void, which can be filled with a new product satisfying the thirst of newness.
Planned obsolescence is of the following two types −
These strategies are used to create a void for a newer product.