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Wish Mrtxa

on 29 June 2014

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Transcript of PRODUCT

Managing Product Lines and Brands
Presented by:
A product is anything that can be offered to a market to satisfy a want or need.
Products that are marketed include...
Physical Goods...
The marketers need to think through five levels of the product.
Product Levels
Each level adds more customer value
Core Benefit
The fundamental service or benefit that the customer is really buying.
Basic Product
Exp: A hotel room includes a bed, bathroom,
towels, desk, closet etc
Expected Product
A set of attributes and conditions buyers
normal expect when they purchase a product.
Augmented Product
That Exceeds customer
Potential Product
Successful companies add benefits to their offerings that not only satisfy customers but also surprise and delight them.
Delighting is matter of exceeding expectations.
Product Hierarchy
5. product type
A group of items within a product line that share one of several possible forms of the product.
Example: term life.
4. product line
A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels, or fall within given price ranges.
Example: life insurance.

3. product class
A group of products within the product family recognized as having a certain functional coherence. Example: financial instruments.

2. Product Family
All the product classes that can satisfy a core need with reasonable effectiveness.
Example: savings and income.
1. Need Family
The core need that underlies the existence of a product family.
6. Brand
The name, associated with one or more items in the product line, that is used to identify the source or character of the item(s).
Example: Prudential.

Product Hierarchy
Product Classifications
Durability & Tangibility
Consumer Goods Classifications
Industrial Goods Classifications
1. Non-Durable Goods
Tangible goods normally consumed in one or a few uses.
Non-durable goods include food, medicines and other consumables, as well as products that last a limited lifetime
2. Durable Goods
The Tangible goods that normally survive many uses.
Durable goods tend to have a long useful life.
Include items like furniture, jewelry and cars. Large appliances such as stoves and washing machines are durable goods
3. Services
Services are...
Cannot be stored or transported
Are instantly perishable,
Come into existence at the time they are bought and consumed.
Includes Haircuts, Repairs, Education etc
1. Convenience Goods
... are goods that the customer usually purchases frequently, immediately, and with a minimum effort.
Exames includes soaps, newspapers etc.
2. Shopping Goods
... are goods that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style.
Examples include Furniture, used cars, clothing and major appliances.
3. Specialty Goods
.. are goods with unique characteristics or brand identification for which a sufficient number of buyers is willing to make a special purchasing effort.
Examples include cars, photographic equipment etc
4. Unsought Goods
... are goods the consumer doesn't know about or doesn't normally think of buying.
Smoke Detectors are unsought goods until the consumer is made aware of them through advertising.
1. Materials & Parts
... are goods that enter the manufacturer's product completely.
They fall into two classes:
2. Capital Items
Capital Items are long-lasting goods that facilitate developing and/or managing the finished product. They include two groups: installations and equipment.
3. Supplies & Business Services
... are short-lasting goods and services that facilitate developing and/or managing the finished product.
Make them available in many locations.
Charge only a small markup.
Advertise heavily to induce trial and build preference.
Require more personal selling and service,
Command a higher margin
Require more seller guarantees.
Normally Require Quality Control,
Supplier Credibility,
Classified on the basis of shopping habits.
... are goods consumer purchase on a regular basis.
buyer might routinely purchase Heinz Ketchup, Crest Toothpaste etc
Impulse Goods
... are purchased without any planning or search effort.
Candy Bars and Magazines are placed next to checkout counters because shoppers may not have thought of buying them until they spot them.
Emergency Goods
... are purchased when a need is urgent.
... Umbrellas during rainstorm, boots during the first winter snowstorm...
...manufacturers of emergency goods will place them in many outlets to capture the sale when the customer needs them.
Homogeneous Goods
The buyer sees homogeneous shopping goods as similar in quality but different enough in price to justify shopping comparisons.
Heterogeneous Goods
But in shopping for clothing, furniture, and other heterogeneous shopping goods, product features are often more important to the consumer than the price. The seller of heterogeneous shopping goods must therefore carry a wide assortment to satisfy individual tastes and must have well-trained salespeople to provide information and advice to customers.
Dealers don't need convenient locations; however, they must let prospective buyers know their locations.
Classic Examples are life insurance, gravestones, encyclopedias etc
Unsought goods require Advertising and personal-selling support.
... can be classified in terms of how they enter the production process and their relative costliness.
1. Raw Materials
... falls into two major classes:
Farm Products
e.g., Wheat , cotton, livestock, fruits, and vegetables.
Natural Products
e.g., Fish, Lumber, Crude Petroleum, Iron Ore etc.
2. Manufactured Materials
... also falls into two categories.
Component materials
Component materials are usually fabricated further--for example, pig iron is made into steel, and yarn is woven into cloth.
Component Parts
Component parts enter the finished product completely with no further change in form, as when small motors are put into vacuum cleaners, and tires are put on automobiles.
A product Mix (also called the "Product Assortment") is the set of all products and items that a particular seller offers for sale.
Product-Mix Width
Product-Line Length
Product-Mix Width and Product-line Length for Proctor & Gamble Products.
The Width
of a product mix refers to how many different product lines the company carries.
The Length
of a product mix refers to the total number of items in the mix.
The Depth
of a product mix refers to how many variants are offered of each product in the line.
If CREST comes in 3 sizes and 2 formulations (regular & mint), crest has a depth of 6.
The Consistency
of a product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
P&G's product lines are consistent insofar as they are consumer goods that go through the same distribution channels.
The lines are less consistent insofar as they perform different functions for the buyers.
These 4 product mix dimensions permit the company to expand its business in four ways.
1. It can add new product lines, thus widening its product mix.
2. It can lengthen each product line.
3. It can add more product variants to each product and deepen its product mix.
4. Finally, a company can pursue more product-line consistency.
A product mix consists of various product lines.
Each product line is usually managed by a different executive.
Product-line managers need to know the sales and profits of each item in their line in order to determine which items to...
harvest, or
They also need to understand each product's market profile.
Sales & Profits
The product-line manager needs to know the percentage of total sales and profits contributed by each item in the line.
At the other end, the last item constitutes only 5% of the product line's sales and profits. The product-line manager may consider dropping this slow-selling item from the line unless it has strong growth potential.

The first item accounts for 50% of total sales and 30% of total profits. The first two items account for 80% of total sales and 60% of total profits. If these two items were suddenly hurt by a competitor, the product line's sales and profitability could collapse. These items must be carefully monitored and protected.

Figure shows a sales/profit report for a five-item product line.

The product-line manager must also review how the product line is positioned against competitors' product lines...
Consider Paper Company X with a product line consisting of paper board.
Two of the major attributes of paper board are...
paper weight and
finish quality.
Paper weight is usually offered at standard levels of
Finish quality is offered at three standard levels:
After performing a product-line analysis, the product-line manager has to consider decisions on...
Product-line Length
Line Modernization
Line Featuring, and
Line Pruning.

An issue facing product-line managers is optimal product-line length.
A product line is too short if the manager can increase profits by adding items;
The line is too long if the manager can increase profits by dropping items.
Company objectives influence product-line length. Companies seeking high market share and market growth will carry longer lines. They are less concerned when some items fail to contribute to profits. Companies that emphasize high profitability will carry shorter lines consisting of carefully chosen items.
Product lines tend to lengthen over time.
Excess manufacturing capacity puts pressure on the product-line manager to develop new items.
The sales force and distributors also pressure the company for a more complete product line to satisfy their customers.
The product-line manager will add items in pursuit of greater sales and profits.
A company can enlarge the length of its product line in two ways:
By line stretching and
Line filling.

Line Stretching
Every company's product line covers a certain part of the total possible range.
For example, BMW automobiles are located in the upper price range of the automobile market.
Line stretching occurs when a company lengthens its product line beyond its current range.
The company can stretch its line in
downmarket Stretch,
upmarket Stretch, or
both ways.

A company positioned in the middle market may want to introduce a lower price line for any of three reasons....
1. The company may notice strong growth opportunities in the downmarket as mass retailers.
2. The company may wish to tie up lower-end competitors who might otherwise try to move upmarket.
3. The company may find that the middle market is stagnating or declining.
Companies may wish to enter the high end of the market for...
more growth
higher margins or
simply to position themselves as full line manufacturers.
The leading Japanese auto companies have each introduced an upscale automobile:

Toyota launched Lexus;
Nissan launched Infinity &
Honda launched Accura.
Note that they invented entirely new names rather than using or including their own names.
Two-Way Stretch

Companies serving the middle market might decide to stretch their line in both directions.
...introduced its first calculators in the
medium-price/medium-quality end
of the market.
Gradually, it added calculators at the lower end, taking market shares away from Bowmar; and
it introduced high-quality calculators selling at lower prices than Hewlett-Packard calculators,
which had dominated the high end.
This two-way stretch won TI early market leadership in the hand-calculator market.
Texas Instruments (TI)
A product line can also be lengthened by adding more items within the line's present range.
There are several motives for line filling:
reaching for incremental profits,
trying to satisfy dealers who complain about lost sales because of missing items in the line,
trying to utilize excess capacity,
trying to be the leading full-line company, and
trying to plug holes to keep out competitors.
Line filling is overdone if it results in cannibalization and customer confusion.
The company needs to differentiate each item in the consumer's mind. Each item should possess a just-noticeable difference.
According to Weber's law, customers are more attuned to relative than to absolute difference.
They will perceive the difference between boards 2 and 3 feet long and boards 20 and 30 feet long but not between boards 29 and 30 feet long.
The company should make sure that new-product items have a noticeable difference.

The company should also check that the proposed item meets a market need and is not being added simply to satisfy an internal need.
The famous Edsel automobile, on which Ford lost $350 million, met Ford's internal positioning needs for a car between its Ford and Lincoln lines but not the market's needs.


Even when product-line length is adequate, the line might need to be modernized.

For example, a company's machine tools might have a 1950s look and lose out to newer-styled competitors' lines.
Microprocessor companies such as Intel and Motorola, and software companies such as Microsoft and Lotus, continually introduce more advanced versions of their products.
A major issue is timing the product improvements so they do not come out too early (thus damaging sales of the current product line) or too late (after competition has established a strong reputation for more advanced equipment).
In rapidly changing product markets, product modernization is carried on continuously.

Companies plan product improvements to encourage customer migration to higher-valued, higher-priced items.
The product-line manager typically selects one or a few items in the line to feature.
Stetson promotes a man's hat selling for $150, which few men buy but which acts as a "flagship" or "crown jewel" to enhance the line's image.
Sometimes a company finds one end of its line selling well and the other end selling poorly. The company may try to boost demand for the slower sellers, especially if they are produced in a factory that is idled by the lack of demand. This situation faced Honeywell when its medium-size computers were not selling as well as its large computers. But things are not always this simple. It could be argued that the company should promote the items that sell well rather than trying to prop up weak demand.
Product-line managers must periodically review items for pruning.
There are two occasions for pruning.
One is when the product line includes deadwood that is depressing profits. The weak items can be identified through sales and cost analysis. RCA cut down its color television sets from 69 to 44 models. A chemical company cut down its products from 217 to the 93 with the largest volume, the largest contribution to profits, and the greatest long-term potential.

The other occasion for product pruning is when the company is short of production capacity.
The manager should concentrate on producing the higher-margin items.
Companies typically shorten their lines in periods of tight demand and lengthen their lines in periods of slow demand.

Branding is a major issue in product strategy.
On the one hand, developing a branded product requires a great deal of long-term investment spending, especially for advertising, promotion, and packaging.
Many brand-oriented companies subcontract manufacturing to other companies.
For example, Taiwanese manufacturers make a great amount of the world's clothing, consumer electronics, and computers, but not under Taiwanese brand names.
On the other hand, manufacturers eventually learn that market power lies with building their own brands.
Even when these companies can no longer afford to manufacture their products in their homeland, the brand names continue to command customer loyalty.

Perhaps the most distinctive skill of professional marketers is their ability to....
protect, and
enhance brands.
Marketers say that
" Branding is the art and cornerstone of Marketing. "
A Brand is a
symbol, or
design, or
a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
In essence, a brand identifies the seller or maker.
It can be a
logo, or
other symbol.
Under trademark law, the seller is granted exclusive rights to the use of the brand name in perpetuity.
Thus brands differ from other assets such as patents and copyrights, which have expiration dates.

A brand is essentially a seller's promise to consistently deliver a specific set of features, benefits, and services to the buyers.
The best brands convey a warranty of quality.
But a brand is even a more complex

A brand can convey up to six levels of meaning
The company may use one or more of these attributes to advertise the car. For years Mercedes advertised, "Engineered like no other car in the world."
This tag line served as the positioning platform for projecting the car's other attributes.
A brand first brings to mind certain attributes. Thus, Mercedes suggests expensive, well built, well engineered, durable, high prestige, high resale value, fast automobile.
A brand is more than a set of attributes. Customers are not buying attributes; they are buying benefits. Attributes need to be translated into functional and/or emotional benefits.
The attribute "durable" could translate into the functional benefit,
"I won't have to buy a new car every few years."
The attribute "expensive" might translate into the emotional benefit, "The car helps me feel important and admired."
The attribute "well built" might translate into the functional and emotional benefit, "I am safe in case of an accident."
The brand also says something about the producer's values. Thus, Mercedes stands for high performance, safety, prestige, and so on. The brand marketer must figure out the specific groups of car buyers who are seeking these values.
The brand may represent a certain culture.
The Mercedes represents German culture:
High quality.
The brand can also project a certain personality. If the brand were a person, an animal, or an object, what would come to mind?
Mercedes may suggest a no-nonsense boss (person),
a reigning lion (animal), etc
Sometimes it might
take on the personality
of an actual well-known
person or spokesperson.
The brand suggests the kind of consumer who buys or uses the product. We would be surprised to see a 20-year-old secretary driving a Mercedes. We would expect instead to see a 55-year-old top executive behind the wheel.
Brands vary in the amount of power and value they have in the marketplace. At one extreme .....
are brands that are not known by most buyers in the marketplace.
Then there are brands for which buyers have a fairly high degree of brand awareness.
Beyond this are brands with a high degree of brand acceptability.
Then there are brands that enjoy a high degree of brand preference.
Finally there are brands that command a high degree of brand loyalty.
Aaker distinguished five levels of customer attitude toward their brand, from lowest to highest:
1. Customer will change brands, especially for price reasons. No brand loyalty.
2. Customer is satisfied. No reason to change the brand.
3. Customer is satisfied and would incur costs by changing brand.
4. Customer values the brand and sees it as a friend.
5. Customer is devoted to the brand.
Brand equity is highly related to how many of a brand's customers are in classes 3, 4, or 5.
It is also related, according to Aaker, to the degree of brand-name recognition, perceived brand quality, strong mental and emotional associations, and other assets such as patents, trademarks, and channel relationships.
Certain companies are basing their growth on acquiring and building rich brand portfolios.
High brand equity provides a number of competitive advantages:
The company will enjoy reduced marketing costs because of the high level of consumer brand awareness and loyalty.

The company will have more trade leverage in bargaining with distributors and retailers since customers expect them to carry the brand.

The company can charge a higher price than its competitors because the brand has higher perceived quality.

The company can more easily launch brand extensions since the brand name carries high credibility.

The brand offers the company some defense against fierce price competition.

A brand name needs to be carefully managed so that its brand equity doesn't depreciate.

This requires maintaining or improving over time brand awareness, brand perceived quality and functionality, positive brand associations, and so on.
These tasks require continuous R&D investment, skillful advertising, and excellent trade and consumer service.

Some companies, such as Canada Dry and Colgate-Palmolive, have appointed "brand equity managers" to guard the brand's image, associations, and quality--especially when the brand name is extended over other products--and to prevent short-term tactical actions by overzealous brand managers from
hurting the brand.
That's why some companies put their branding in the hands of an entirely different company that can focus only on brand management and nothing else. Henry Silverman of Cendant Corporations has made a business of managing --- not owning---- brands.
Manufacturers who decide to brand their products must choose which brand names to use. Four strategies are available here:

A company has five choices when it comes to brand strategy. The company can introduce...
line extensions
brand extensions ,
new brands
The first decision is whether the company should develop a brand name for its product.
In the past, most products went unbranded. Producers and intermediaries sold their goods out of barrels, bins, and cases, without any supplier identification.
Buyers depended on the seller's integrity.
The earliest signs of branding were the
medieval guilds' efforts to require
craftspeople to put trademarks on their
products to protect themselves and
consumers against inferior quality.
In the fine arts, too, branding began with
artists signing their works.

Today, branding is such a strong force that hardly anything goes unbranded. Salt is packaged in distinctive manufacturers' containers, oranges are stamped with growers' names and Fresh food products--such as chicken, meat etc--are increasingly being sold under strongly advertised brand names
Branding gives the seller several advantages:
The brand name makes it easier for the seller to process orders and track down problems.

The seller's brand name and trademark provide legal protection of unique product features.

Branding gives the seller the opportunity to attract a loyal and profitable set of customers. Brand loyalty gives sellers some protection from competition and greater control in planning their marketing program.

Branding helps the seller segment markets. Instead of P&G's selling a simple detergent, it can offer eight detergent brands, each formulated differently and aimed at specific benefit-seeking segments.

Strong brands help build the corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.
There is evidence that distributors want manufacturers' brand names because brands make the product easier to handle, hold production to certain quality standards, strengthen buyer preferences, and make it easier to identify suppliers.
Consumers want brand names to help them identify quality differences and shop more efficiently.
A manufacturer has several options with respect to brand sponsorship.
The product may be launched as a manufacturer's brand (sometimes called a national brand),
A distributor's brand (also called retailer, store, house, or private brand), or
A licensed brand name
Or the manufacturer may produce some output under its own name and some under distributor labels.
Kellogg's, John Deere & Company, and IBM sell virtually all of their output under their own brand names.
Hart & Marx sells some of its manufactured clothes under licensed names such as Christian Dior, Pierre Cardin, and Johnny Carson.
Whirlpool produces output both under its own name and under distributors' names (for example, Sears Kenmore appliances).
1. Individual brand names
This policy is followed by General Mills (Bisquick, Gold Medal, Betty Crocker, Nature Valley).
If the product fails or appears to have low quality, the company's name or image is not likely to be hurt.
The strategy permits the firm to search for the best name for each new product.
This policy is followed by Heinz and General Electric.
A blanket family name also has advantages. The development cost is less because there is no need for "name" research or heavy advertising expenditures to create brand-name recognition. Furthermore, sales of the new product are likely to be strong if the manufacturer's name is good
This policy is followed by Sears (Kenmore for appliances, Craftsman for tools, and Homart for major home installations).

This policy is followed by Kellogg's (Kellogg's Rice Krispies, Kellogg's Raisin Bran, and Kellogg's Corn Flakes).
some manufacturers tie their company name to an individual brand name for each product. The company name legitimizes, and the individual name individualizes, the new product.
Once a company decides on its brand-name strategy, it faces the task of choosing a specific brand name. The company could choose the name of...
Line extensions occur when a company introduces additional items in the same product category under the same brand name, usually with new features, such as new flavors, forms, colors, added ingredients, package sizes, and so on
A company may decide to use an existing brand name to launch a product in a new category.
Gap stores throughout the United States now feature soap, lotion, shampoo, conditioner, shower gel, bath salts, and perfume spray.
A company will often introduce additional brands in the same product category.
P&G produces nine different brands of detergents. A multibranding strategy also enables the company to lock up more distributor shelf space and to protect its major brand by setting up flanker brands.
When a company launches products in a new category, it may find that none of its current brand names are appropriate.
Thus, if Timex decides to make toothbrushes, it is not likely to call them Timex toothbrushes. When the present brand image is not likely to help the new product, companies are better off creating new brand names.
A rising phenomenon is the appearance of cobranding (also called dual branding), in which two or more well-known brands are combined in an offer. Each brand sponsor expects that the other brand name will strengthen brand preference or purchase intention. In the case of co-packaged products, each brand hopes it might be reaching a new audience by associating with the other brand.
However well a brand is positioned in a market, the company may have to reposition it later. A competitor may launch a brand next to the company's brand and cut into its market share. Or customer preferences may shift, leaving the company's brand with less demand.

A classic story of successful brand repositioning is the Seven-Up campaign. Seven-Up was one of several soft drinks bought primarily by older people who wanted a bland, lemon-flavored drink. Research indicated that while a majority of soft-drink consumers preferred a cola, they did not prefer it all the time, and many other consumers were noncola drinkers. Seven-Up went for leadership in the noncola market by executing a brilliant campaign, calling itself the Uncola. The campaign featured the Uncola as a youthful and refreshing drink, the one to reach for instead of a cola. Seven-Up created a new way for consumers to view the soft-drink market, as consisting of colas and uncolas, with Seven-Up leading the uncolas. It thus repositioned Seven-Up as an alternative to the traditional soft drink, not just another soft drink.
Many marketers have called packaging a fifth P, along with price,
product, place, and
Most marketers,
however, treat
packaging and
labeling as an
element of
product strategy.
"Packaging includes the activities of designing and producing the container or wrapper for a product."
The container or wrapper is called the package. The package might include up to three levels of material. Thus, Old Spice After-Shave Lotion is in a bottle (primary package) that is in a cardboard box (secondary package) that is in a corrugated box (shipping package) containing six dozen boxes of Old Spice.
In recent times, packaging has become a potent marketing tool. Well-designed packages can create convenience value for the consumer and promotional value for the producer. Various factors have contributed to packaging's growing use as a marketing tool:
An increasing number of products are sold on a self-service basis in supermarkets and discount houses.
The package must perform many of the sales tasks. It must attract attention, describe the product's features, create consumer confidence, and make a favorable overall impression.
Rising consumer affluence means consumers are willing to pay a little more for the convenience, appearance, dependability, and prestige of better packages.
Companies are recognizing the power of well-designed packages to contribute to instant recognition of the company or brand.
Innovative packaging can bring large benefits to consumers and profits to producers.
Chesebrough-Pond's increased its overall nail-polish sales by 22% after introducing its novel Aziza Polishing Pen for fingernails. The first companies to put their soft drinks in pop-top cans and their liquid sprays in aerosol cans attracted many new customers.
Labeling is a subset of packaging. Sellers must label their products. The label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.
The label might carry only the brand name or a great deal of information.
Even if the seller prefers a simple label, the law may require additional information.
Labels perform several functions. First, the label identifies the product or brand.
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 its attractive graphics.
Mehwish Murtaza Bhutto
Agha Najiullah Khan
Zeenat Bano Siddiqui
Abdul Wahab Khan
A hotel guest is buying "rest and sleep."
hotel guests expect a clean bed, fresh towels, working lamps, etc
A hotel can augment its product by including a remote-control television set, fresh flowers, rapid check-in, express checkout, fine dining and room service, and so on.
It is the final product that is available on the market and that the consumers can buy. This includes all the additional values and augmentations that the company finally included in the product to differentiate it from the competitors’ products.
for example: security.
7. Item
(also called stockkeeping unit
or product variant)
A distinct unit within a brand or product line that is distinguishable by size, price, appearance, or some other attribute. Example: Prudential renewable term life insurance.
Installations consist of buildings (e.g., factories and offices) and equipment (e.g., generators, drill presses, mainframe computers, elevators).
Equipment comprises portable factory equipment and tools (e.g., hand tools, lift trucks) and office equipment (e.g., personal computers, desks). These types of equipment do not become part of the finished product. They simply help in the production process. They have a shorter life than installations but a longer life than operating supplies
Supplies are of two kinds:

operating supplies (e.g., lubricants, coal, writing paper, pencils) and

maintenance and repair items (paint, nails, brooms).
Business services include...
maintenance and repair services (e.g., window cleaning, typewriter repair) and
business advisory services (e.g., legal, management consulting, advertising).

Maintenance and repair services are usually supplied under contract. Maintenance services are often provided by small producers, and repair services are often available from the manufacturers of the original equipment.

Rx for Brand Awareness
(Brand Strengtheners)
1. Develop creative advertising.
2. Sponsor well-regarded events.
3. Invite your customers to join a club.
4. Invite the public to visit your factory.
5. Create your own retail units.
6. Provide well appreciated public service.
7. Give visible support to some social causes.
8. Be known as a value leader.
9. Develop a strong spokesperson or symbol to represent the company.
Developing effective packaging may cost several hundred thousand dollars and take from a few months to a year.
Companies must pay attention, however, to the growing environmental and safety concerns about packaging.
Shortages of paper, aluminum, and other materials suggest that marketers should try to reduce their packaging. The growth of nonreturnable glass containers has resulted in using up to 17 times as much glass as with returnable containers. Many packages end up as broken bottles and crumpled cans littering the streets and countryside.
All of this packaging creates a major problem in solid waste disposal, requiring huge amounts of labor and energy.
Fortunately, many companies have gone "green" in their packaging: S. C. Johnson repackaged Agree Plus shampoo in a stand-up pouch using 80% less plastic, and P&G eliminated outer cartons from its Secret and Sure deodorants, saving 3.4 million pounds of paperboard per year. Companies must make decisions that serve society's interests as well as immediate customer and company objectives.27
Labels eventually become outmoded and need freshening up. The label on Ivory soap has been redone 18 times since the 1890s, with gradual changes in the size and design of the letters.
There is a long history of legal concerns surrounding labels, as well as packaging and products in general.
In 1914, the Federal Trade Commission Act held that false, misleading, or deceptive labels or packages constitute unfair competition.
The Fair Packaging and Labeling Act, passed by Congress in 1967, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries.
The Food and Drug Administration has required processed-food producers to include nutritional labeling that clearly states the amounts of protein, fat, carbohydrates, and calories contained in products, as well as their vitamin and mineral content as a percentage of the recommended daily allowance.
Consumerists have lobbied for additional labeling laws to require open dating (to describe product freshness), unit pricing (to state the product cost in standard measurement units), grade labeling (to rate the quality level of certain consumer goods), and percentage labeling (to show the percentage of each important ingredient).
a hotel room with a huge double bed with water mattress, LCD television, a big bathroom with a shower cabin, etc.
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