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BRANDING AND PACKAGING Branding is the process by which companies distinguish their product offerings from competition.

Marketers develop their products into brands which help to create a unique position in the minds of customers. A brand is created by developing a distinctive name, packaging and design, and arousing customer expectations about the offering. Branding permits customers to develop associations like prestige and economy with the brand. In marketing, the brand name is a major selling tool and one of the most important components of the total product personality. We are in fact, living in an age of brands. The intensive brand promotions undertaken by marketers of various products have made consumers extremely brand conscious. These days no consumer asks for just baby soap. They specifically ask for Johnson and Johnson baby soap.

The brand image, developed through advertising and other promotional measures, creates strong brand awareness and loyalty among consumers. Corporations spend long years, lot of money and effort to build brands. A good brand is an invaluable asset for the owner. The most valuable asset for a company is its customers loyalty. Brands can create wealth for the company depending upon how much value they add to the consumers life. The name of the product creates the right image and is a basis for the whole marketing and public relations strategy. In the present age, almost all the products are branded and packaged successfully. At present, brand and package are the two attributes of a product. The study of marketing is incomplete, if we do not take into account the study of branding and packaging. Branding play a more important role than mere name. The basic purpose of branding is to fix identity of the production of a given product.

BASIC DEFINITIONS RELATED TO BRANDING:BRAND: - A name, term, sign, symbol, or design or a combination of them which is intended to identify the product of a certain sellers from those of other competitors BRAND NAME: - Brand name is part of a brand consisting of a word, letter, and group of words or letters comprising a name which is intended to identify the goods or services of a seller. In other words, it is that part of a brand which can be vocalized-utterable. BRANDING: - It is a process by which a product is branded. Brand mark, is that part of a brand which can be recognized but not utterable, such as a symbol, design or distinctive colouring or lettering.

FEATURES OF GOOD BRAND: 1. Brand should suggest something about the product - purpose, quality, benefit, use, action etc. for example, Johnson and Johnson baby shampoo. 2. It should be simple, short and easy to pronounce and remember, for example, savlon etc. 3. It should be unique, attractive and distinctive. 4. It should be easy to advertise and promote. 5. Brand and trademarks must be suitable to markets, buyers and products. 6. It should create a good image.

REASONS FOR BRANDING: 1. It is an instrument for sales promotion in the market, where stiff competition exists. 2. It facilitates easy advertisement and publicity. 3. Sales can be increased through brands. 4. It arrests the immediate attention of buyers. 5. It differentiates the goods of a producer from the goods of competitors.

ADVANTAGES OF BRANDING:TO THE MANUFACTURERS: 1. It identifies the product and distinguishes it from other competing products. Thus it protects the interests of the manufacturer. 2. It saves advertising cost and widens market if the product is popular. TO THE CONSUMERS: 1. It affords an easy way for purchase by easily identifying a product. 2. The brand indirectly assures certain quality by identifying the manufacturer behind the product.

DISADVANTAGES OF BRANDING:1.

It may lead to brand monopoly. Brand monopoly is created by gradually creating a brand loyalty to the products in the minds of the consumers. It is difficult to establish a brand and the expense of advertising in the initial stages is very high which raises the costs.

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3. Brand names always do not assure good quality. Sometimes, inferior goods can be sold under a good brand name.

TYPES OF BRAND: 1. INDIVIDUAL BRAND: a firm may decide upon a policy of adopting distinctive brands for each of its products.

2. FAMILY BRAND: Family name is limited to one line of products. The term family brand refers to one brand name which a firm adopts for variety of its products. E.g. Johnson and Johnson, Tata Etc. 3. COMPANY BRAND: We may have for all products the name of the company or the producer. When a firm manufactures many products, this type of brand name is used, for instance Tatas textiles, steel etc. 4. COMBINATION DEVICE: Products have individual names and company brands to indicate the firm producing them. For instance, Tatas Taj Tea. KINDS OF BRAND NAME: 1. DESCRIPTIVE NAME: It includes all words that describe the products. For instance, Colgate toothpaste.

2. SUGGESTIVE NAME: The name suggests something about the function of the product. For instance, quick fix etc. 3. ARBITRARY NAME: It is a name which neither relates to the product nor to the producer. 4. COINED NAME: Importance is given to the producers identity. For example, Vimal alone is meaningless, unless attached to suitings. TRADE MARK: Registered and legalized brand name and brand mark are trade marks. Thus the trade mark is essentially a legal term protecting the manufacturers right to use the brand. LABELLING Label is a part of the product, which carries verbal information about the product or the

seller. It may be a part of a package, or it may be a tag attached directly to the product. Label may be a small slip or a printed statement. The producer gives necessary information to the consumers through the label. The act of attaching or tagging the labels is known as labeling. Different types of labels are: 1. a brand label 2. a grade label 3. a descriptive label Through labeling a good manufacturer buyer relation is established. PACKAGING T ERMS ASSOCIATED WITH PACKAGING:PACKING: It is the process of covering, wrapping or crating goods into a package. This is done for the purpose of delivering the

articles to the consumers or for the purpose of transport. PACKAGING: It may be defined as the general group of activities in product planning which involve designing and producing the container or wrapper for a product. Packaging is a broad activity that requires careful consideration by the management. FUNCTIONS OF PACKAGING:1. To assemble and arrange the contents in the desired form. 2. To identify the contents, the brand and the maker. 3. To protect the contents from production to consumption. 4. To provide a suitable product mix including sizes, weights, prices, grades and packages. 5. To facilitate retailers function. 6. To facilitate transporting, storing, and warehouse handling.

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To enable the display of contents. To encourage repurchase. To help in complying with legal requirements. To provide opportunity and space for advertising.

According to Philip Kotler, Protection, Convenience and Economy were the three traditional purposes attached to package. KINDS OF PACKAGING:
1.

CONSUMER PACKAGE: Is a kind of package which holds the required volume of product for the household consumption. For example, toothpaste.

2. FAMILY PACKAGE: When products are related in use and are of similar quality, the firm makes the packages identical for all products by using common feature on all the packages. In this type of package system a producer uses similarity in

packages, i.e., material appearance, method etc. 3. RE-USE PACKAGE: It is also known as dual package. A producer sells the contents in such a package, which can be re-used for other purposes after the product is consumed; the package has a secondary use, after the contents are consumed. For instance, the glass jar of Nescafe instant coffee, and many other products are packed in such a way that the package can be put into many uses. 4. MUTIPLE PACKAGE: The practice of placing several units in one container is known as multiple packaging. For instance, make-up set, baby care set etc.

PRODUCT DEFINITION: In a most simple way a product could be defined as everything the purchaser gets in exchange for his money. Technically, a product consists of bundle of utilities involving various product features

and accompanying services. These utilities are created by a set of tangible, physical and chemical attributes assembled in an easily identifiable form. PRODUCT POLICIES COMPONENTS OF PRODUCT POLICIES: 1. Product planning and development. 2. Deciding product line and product mix. 3. Product branding. 4. Product style. 5. Product positioning. 6. Product packaging. Product life cycle:

The product passes through various stages from its introduction to its decline, collectively these stages are known as product life cycle. The features of different stages of PLC are: A. INTRODUCTION STAGE: 1. Make proper advertising before the products are released in the market. 2. Undertake large scale promotional work. B. GROWTH STAGE: 1. Add new product features and improved styling. 2. Reduce the prices to attract buyers. C. MATURITY STAGE: 1. Give proper attention to increase the usage among current customers.

2. Try to discover new uses for the product. D. SATURATION STAGE: 1. Introduce new package and repricing. 2. Introduce new models. E. DECLINE STAGE: 1. Make sure that the marketing and production programmes are as efficient as possible. 2. Abandon the product. Marketing project A SURVEY ON CONSUMERS PREFERENCES TOWARDS A COMMODITY BASED ON BRANDING AND PACKAGING OF THE COMMODITY

JOHNSON & JOHNSON BABY PRODUCTS PROJECT BY:NAME: CLASS: R. VENKATESH XII d
BONAFIDE CERTIFICATE Certified to be the bonafide record work in marketing done by R.VENKATESH of class 12th section D of D.A.V SENIOR SECONDARY

SCHOOL, Mogappair, Chennai- 600 050 during year 2012-2013. Reg. no: Signature of Principal Signature of Subject teacher School Seal Designation: PGT Economics Submitted for the practical examination held on , at D.A.V SENIOR SECONDARY SCHOOL, Mogappair, Chennai- 600 050.

Internal Examiner External Examiner INTRODUCTION THIS PROJECT FOCUSES ON BRANDING AND PACKAGING ASPECTS OF A PRODUCT AND HOW IT HELPS THE COMPANY TO IMPROVE THEIR SALES VOLUME AND PROFIT THROUGH BETTER BRANDING AND PACKAGING. ALONG WITH THEORY CONTENT, A PRACTICAL RESEARCH IS ALSO DONE TO FIND HOW BRANDING AND PACKAGING ACTS AS A SUPPORTING FUNCTION IN INCREASING THE SALES OF A PRODUCT IN REAL MARKET CONDITIONS. THIS PROJECT IS PREPARED IN PARTIAL FULFILLMENT OF AISSCE SYLLABUS FOR MARKETING.

ACKNOWLEDGEMENT

I AM EXTREMELY THANKFUL TO MY PRINCIPAL MRS.LALITHA THIAGARAJAN AND MY MARKETING TEACHER MRS. M. CHANDRA FOR HELPING ME TO DO MY PROJECT. I AM ALSO THANKFUL TO MY PARENTS AND ALSO TO ALL THOSE PEOPLE WHO HELPED ME TO COMPLETE THIS PROJECT.

RESEARCH METHODOLOGY This project is drawn upon primary and secondary data. It is supplemented by pictures where ever necessary. Tabular and diagrammatic representation is used where ever required. CHAPTERISATION SCHEME CHAPTER 1: BRANDING & PACKAGING DEFINITION, FEATURES, MERITS & DEMERITS, KINDS OF BRANDING & PACKAGING. CHAPTER 2: JOHNSON & JOHNSON LTD.INTRODUCTION, HISTORY, TIMELINE, JOHNSONS BABY LINE OF PRODUCTS, SALES VOLUME OF JOHNSON &JOHNSON CHAPTER 3: ANALYSIS AND COMPARISON OF DIFFERENT BRANDS OF BABY PRODUCTS IN TERMS OF SALES VOLUME, MARKET SHARE ETC.

ILLUSTRATED WITH STATISTICAL DIAGRAMS. OBJECTIVES GENERAL OBJECTIVES: To know about what constitutes branding and packaging and understanding them better. To know how branding and packaging helps a company to improve market share and sales volume. To research on branding and packaging of a selected firm, and make a comparative study about the chosen firm and other competitors in terms of sales volume etc. SPECIFIC OBJECTIVES: To know about the history and products [baby care] offered by Johnson & Johnson ltd. To find out branding and packaging activities of Johnson and Johnson ltd. To compare Johnson and Johnson ltd and other select competitors like Himalayas,

Mother care, Wipro etc. in terms of sales volume, market share etc.

Inspired by a speech by antiseptic advocate Joseph Lister, Robert Wood Johnson, joined brothers James Wood Johnson and Edward Mead Johnson to create a line of ready-touse surgical dressings under the name Johnson & Johnson in the year 1885, in New Brunswick, New Jersey, USA. The company produced its first products in 1886 and incorporated in 1887. Johnson & Johnson spread its roots into India in 1947 with the arrival of Mr. Patrick Whaley and in 1948, started marketing Johnsons Baby Powder which was manufactured by a local company, British Drug House, in Mumbai. In

September 1957, a new company - Johnson & Johnson Limited was created and registered with 12 employees on its roll. The company was licensed to manufacture a broad range of consumer and hospital products. Production began in 1959 from the earliest Johnson & Johnson plant in Mulund in Mumbai. Mr. Whaley became the first MD of the company and served for 14 years. The company prospered under his able leadership. In the years that followed, Johnson & Johnson Limited established a reputation for quality with a range of products that represented virtually every sector of the companys business internationally. The latest addition to the family is the manufacturing facilities in Baddi in Himachal Pradesh, which caters to both medical and consumer sectors. Currently, the manufacturing plants are at Baddi (2), Mulund, Aurangabad, Deonar and offices at

Mumbai (4), Chennai, Delhi, Kolkata, a pharma R&D Center in Mulund, a Global Clinical Operations (GCO) office in Powai, Mumbai, and a Business Knowledge Center in Pune & Bengaluru. In over 50 years of operating in India, Johnson & Johnson Limited has gained a reputation for delivering high-quality products. Today, they employ more than 2000 people and the businesses span Consumer, Medical Devices & Diagnostics, Pharmaceuticals and Vision Care. Johnson & Johnson India has won several Best Employer Awards and is clearly recognized as an employer of choice. It is also very active in reaching out to those in need through its Corporate Social Responsibility (CSR) projects.

IMPORTANT YEARS IN THE HISTORY OF JOHNSON & JOHNSON LTD.

1894
Johnson & Johnson launches maternity kits to make childbirth safer for mothers and babies. JOHNSON'S Baby Powder goes on the market. Its success leads to the Company's heritage Baby business.

1954
JOHNSON'S Baby Shampoo with NO MORE TEARS formula enters the market as the first mild and soap-free shampoo designed to be gentle enough to clean babies' hair but not irritate their eyes.

1957
The first Johnson & Johnson operating company opens in India.

BABY CARE PRODUCTS FROM JOHNSON & JOHNSON LTD.

With a legacy of over 100 years, Johnsons Baby is a market leader in its category, driving the trends and developments in the baby space. Johnsons Baby aspires to touch every baby in India with brands operating in the widest consumer spectrum. From premium products like Johnsons Baby Top-To-Toe Washthe first ever liquid bath product for babies, Johnsons Baby Skincare Wipes to low cost outlay packs of soaps and powders that are more accessible to consumers at the bottom of the pyramid, our offerings cover an entire range.

LINE OF PRODUCTS

SALES VOLUME OF JOHNSON & JOHNSON BABY PRODUCTS FROM 2007-12.

ACCOUNTING YEAR 2007 2008 2009 2010 2011 2012*

TOTAL SALES ( IN MILLIONS) 1982 2214 2115 2209 2340 561

* Till 1st quarter of 2012.


TOTAL SALES ( IN MILLIONS)

2007 ANALYSIS OF BABY CARE 2008 2009 PRODUCTS MARKET IN INDIA AND 2010 2008 2011 SUGGESTIONS THEREOF. 19% 2010 19% 2009 19%

2011 21%

2012* 5%

2007 17%

2012*

Rising income levels, fewer children per household and increasing aspiration levels among parents to provide the best for their children are the primary drivers behind the growth of the baby personal care market in India. Fig 1 shows us the

per capita expenditure on baby personal care products.

Even today, most urban Indian parents are apprehensive about using shampoos and other bath products on their babies regularly as they fear that it could cause irritation on the skin, or enter the babys eyes. The main reason for this apprehension is that, apart from Johnson and Johnson, which has positioned its products with the No more tears claim, most other players have not managed to create sufficient consumer

trust in the products to result in regular product usage. Accurate price positioning, product innovation and marketing communication is key to grow in the Indian baby personal care market Backed by a steep surge in personal disposable income and a burgeoning middle-class segment in India, young Indian parents are increasingly pampering their children with high quality products, and often beyond the standard baby products such as soaps, powders and skin creams. This has increased interest among international players, which are planning to Introduce specialized premium product categories novel to Indian consumers, in a bid to grab market share from well established players such as Johnson & Johnson. Promptly spotting the opportunity, international baby products manufacturers and retailers such as Mother care have already entered the Indian market in the recent past. Even

though there are many players entering the market, it is currently dominated by Johnson and Johnson, as can be seen from the analysis in Figure 2.

Manufacturers should identify gaps in the price bands in the baby personal care market in India on the basis of the willingness of Indian consumers to upgrade Currently the baby personal care market is divided into three segments, as shown

in Figure 3. The lower segment includes the local unbranded players. These market players typically cater to the consumers in the Tier 1 and Tier 2 cities that belong to the lower income group and account for almost 11% of the current consumers. Market players catering to such a segment offer only a limited variety of products, primarily in the skincare segment. They usually offer skincare products such as baby soap and powder. The price difference of these brands with medium priced brands can as high as 30% to 50%. The lower segment is a price sensitive segment which will find it very difficult to graduate to the medium segment even if the value to price offering by existing hair care, diapers and toiletries. With the emergence of organized retail in the country, retailers have launched baby products in categories like wipes and diapers. Consumers in the middle segment are willing to upgrade to the next level of

products but there are no players in the existing scenario who offer products in a price band at a premium level i.e. between the medium and ultra premium level. Manufacturers can offer products to this segment of customers since the willingness to shift to a higher price point is Much more than the value conscious customers. Players are better. They are willing to shift to a higher price point but lower than the medium level. Manufacturers of baby personal care products can explore opportunities in this segment by offering more premium products at slightly higher price points for the value conscious customers. The middle segment consists of established domestic and international market players such as Johnson & Johnson (J&J), Wipro, Procter & Gamble and Kimberly Clark. These market players have developed the market and cater to the largest segment of current users. At an overall level, these market

players provide products across all markets such as skincare, Companies targeting the highest segment offer ultra premium products across all categories that are offered in the medium segment. Apart from this, they have launched niche offerings in existing categories, the penetration of which is negligible in India. Players such as Mother care cater to such a segment. The pricing for this segment is as high as four to five times of the medium segment.

Manufacturers should focus on innovation in product developments and packaging to tap the Indian baby personal care market With the increased acceptance of natural ingredients across the globe, manufacturers around the world are increasingly leveraging on certain key ingredients in formulating personal care products. The price elasticity of demand

for baby personal care products is much lesser than that of the personal care products for the adults. Therefore in general, more-premium variants of personal care products such as natural/organics have a better prospect in the domain of baby products. Therefore, Indian parents are expected to be lesser sensitive on the price front and are more probable to trade up. Although players such as Himalaya and Dabur have already launched natural baby products in India, they have not yet gained the necessary visibility. Their marketing communications have been either too feeble or insufficient. In a number of Western markets, Johnson & Johnson markets baby products with natural/organic positioning, such as those shown In Figure 4. This presents an immense opportunity for manufacturers such as Dabur and Himalaya as they hold an already well-established image of

manufacturing natural/organic personal care products for adults in India.

MARKET SHARE OF MAJOR BABY CARE PRODUCTS MANUFACTURERS. NAME OF THE MANUFACTURER JOHNSON & JOHNSON HIMALAYAS PROCTER & GAMBLE KIMBERLY CLARK MARKET SHARE (in percentages % ) 90 3 5 2

MARKET SHARE

90%

CONCLUSION

JOHNSON & JOHNSON HIMALAYAS PROCTER & GAMBLE KIMBERLY CLARK

THEREBY FROM THE ABOVE ANALYSIS WE CAN 3% 2% THE CONCLUDE THAT 5% INDIAN BABY CARE MARKET IS CONSIDERABLY SMALL IN COMPARISON TO OTHER COUNTRIES, EVEN THOUGH OUR BIRTH RATE IS HIGH.

BUT, IN FUTURE THE BABY CARE PRODUCTS MARKET IS EXPECTED TO EXPAND. IN THE PRESENT MARKET SITUATION, JOHNSON & JOHNSON (I) LTD. IS THE MARKET LEADER WITH ALMOST 90% OF MARKET SHARE. BUT, OTHER COMPETITORS ARE GROWING THEIR PRESENCE IN THE MARKET. GIVEN THE GOODWILL AMONG THE CONSUMERS TOWARDS THE BRAND JOHNSON AND JOHNSON, THE COMPANY CAN MAINTAIN ITS MARKET STANDING THROUGH INNOVATIVE PACKAGING, NEW PRODUCT DEVELOPMENT ETC. BY TAKING A FEW EXTRA STEPS, JOHNSON & JOHNSON WILL REMAIN AN UNDISPUTED LEADER IN THE BABY CARE SEGMENT. THUS, THE IMPORTANCE OF BRANDING AND PACKAGING IS HIGHLIGHTED THROUGH THIS PROJECT.

BIBLIOGRAPHY BOOKS:
1.

MODERN MARKETING BY R.S.N. PILLAI & BAGAVATI ( S.CHAND PUBLICATIONS)

2.

MARKETING BY DR.N.RAJAN NAIR & SANJITH R. NAIR (SULTAN CHAND & SONS) www.google.com www.en.wikipedia.com www.jnj.com www.jnjindia.com www.johnsonsbaby.com

WEBSITES:
3. 4. 5. 6. 7.

CHAPTER 1

BRANDING & PACKAGING -

DEFINITION, FEATURES, MERITS & DEMERITS, KINDS OF BRANDING & PACKAGING.

CHAPTER 2

JOHNSON & JOHNSON LTD.INTRODUCTION, HISTORY,

TIMELINE, JOHNSONS BABY LINE OF PRODUCTS, SALES VOLUME OF JOHNSON & JOHNSON.

CHAPTER 3

ANALYSIS AND COMPARISON OF DIFFERENT BRANDS OF BABY PRODUCTS IN TERMS OF

SALES VOLUME, MARKET SHARE ETC. ILLUSTRATED WITH STATISTICAL DIAGRAMS.


INDEX CONTENTS 1. AIMS & OBJECTIVES 2. RESEARCH METHODOLOGY 3. INTRODUCTION 4. CHAPTER 1: BRANDING & PACKAGING. 5. CHAPTER 2: JOHNSON & JOHNSON LTD. 6. CHAPTER 3: ANALYSIS PAGE NO. 05 06 07 09 27

AND COMPARISON OF DIFFERENT BRANDS OF BABY PRODUCTS. 7. CONCLUSION 8. BIBLIOGRAPHY

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