D.A.

V Boys Senior Secondary

School,Gopalapuram
2017-18
BONAFIDE CERTIFICATE

Roll no._______________
Internal Assessment: ________________________

Certified to be Bonafide project in Marketing done by

__________________
Class ________ Section ________
D.A.V. Boys Senior Secondary School, Gopalapuram, Chennai 600
086
During the year (20___-___).

Signature of the Principal: Signature of Subject

Teacher:

_____________________ ________________________

Submitted for the practical exam held on:

_______________________
At:
__________________________________________________
______
School Seal
 Acknowledgment

I R. Aravindha Madhavan of XII D would like to thank

and glad to show my indebtedness to my teacher, the
school management and my parents who have
contributed to finish my project successfully without any
difficulties.

I would like to specially thank my marketing teacher

Mr.N. Kumar for giving an opportunity to prove myself
practically by giving this project. And for making me to do
an extensive analysis about the given topic.

I would finally thank the school authority for giving me an

opportunity to study about the subject Marketing in-depth
and making me more involved and interested to do this
project.
 Objective of study

To study about brand and packaging activities done by the

firm: -

To study the various strategies adopted by Nestl to

establish their brand among consumers to sell their
products.

To identify the different types of packaging done by the

company to their products

To study about different marketing strategies adopted by

the company to make their product visually appealing and
making them ready to use.

To study the effect of their branding on sales promotion or

other promotional activities done by the company.
To study the different kinds of techniques used by the
company for packaging and showcasing their
merchandise.
 Introduction
Theory: Product Mix
What is a product?
In a most simple way a product could be defined as everything
the purchaser gets in exchange for his money. From a strictly
technical or manufacturing point of view, a product consists of
raw materials put together that the end result (i.e., the product)
serves a useful purpose of consumption. From the economic
point of view, a product consists of bundle of utilities involving
various product features and accompanying services. These
utilities are created by a set of tangibles, physical and chemical
attributes assembled in an easily identifiable form.
Product concept:
Tangible product:
tangible product is the basic physical entity which has precise
specifications and is offered under a given description or model
number. Maruti car or even a shaving blade is a tangible
product.
Extended product:
the extended product includes not only the tangible elements of
a product but also the accompanying cluster of image and
service features. Thus it is a synthesis of what the seller
intends and the buyer perceives. According to Theodore Levitt,
People dont buy products: they buy the expectation of
benefits, the marketing view demands the active recognition of
a new kind of competition that is in galloping ascendancy in the
world today. This is the competition of product augmentation
not competition between what companies produce in their
factories but between what they add to their factory output in
the form of packaging, services, advertising, delivery
arrangement and other things, people value.
Generic product:
A generic product focuses on what a product means to the
customer, not the seller. The core product is the basic good or
service purchased, aside from its packaging or accompanying
services. For instance, if you buy a packet of detergent powder
you buy it to satisfy the need that product fulfills or the problem
it solves, say washing needs or washing problem. Whenever
new products appear in the markets, the first buyers preferably
buy them as core products.
Product objectives and strategies
Product objectives should be derived from marketing
objectives, which in turn originate from corporate objectives.
The corporate objectives invariably aim at growth and is usually
measured by sales income. There could be two alternatives to
achieve this: acquisition or amalgamation of firms or to increase
sales of the firms. The first is the concern of legal and financial
departments. The latter is the direct responsibility of the
marketing department. Thus, increased sales become the
marketing departments objective. Product mix is the list of all
products offered for sale by a company. It has three
dimensions breadth, depth and consistency.
Breadth:
It is measured by the number of variety of products
manufactured by a single manufacturer
Depth:
It refers to the assortment of sizes, colors and models offered
within each product line
Consistency:
It refers to the close relationship of various product lines either
to their end use or to production requirements or to distribution
channels or to other variables.
Factors influencing product mix
The fundamental reason for changing product mix is due to the
change in the market demand.
Population increase
Change in the level of income of the buyer
Change in consumer behaviour
In India, there is an ever-increasing rate in the growth of
population. This is naturally adding to the number of buyers
leading to a quantitative change in the volume of production.
The development programs of the government ensure increase
in income enabling the consumers to spend more. This also
adds to the stream of demand both qualitatively and
quantitatively. In India rural markets are evolved mainly
because of this reason. The change in consumer behaviour is a
continuous source of a reason that invite changes in product
planning. The other reasons could be stated as follows:
Marketing influences
Production influences
Demand influences
All these arise out of the internal economies of a firm. As
long as the profit motive is the criterion for the existence of
a firm changes in production mix is inevitable.
Product item and product line
Product item:
It means a specific version of a product that has a separate
designation in that sellers list. It refers to specific model, brand
or size of a product that a company sells.
Product line:
Product line refers to a group of products that are closely
related because they satisfy a class of needs, are used
together, are sold to the same customer groups, are marketed
through the same type of outlets, or fall within given price
changes. Any change in product line of product item naturally
changes the product mix and vice versa. The following are
instances where the product mix is altered.
Product modification:
It is the process by which the existing products are modified to
suit the changing demand on account of fashion changes. Such
a decision is required at a time when the product is in the
maturity stage of the product life cycle. Product modification
may be defined as a deliberate alteration in the physical
attributes of product or its packaging.
Product elimination:
There are some products which cannot be improved or
modified to suit the market needs. Here, the profitable
alternative would be to withdraw the product. The process of
withdrawal is technically known as product elimination.
Product line contraction:
This is also known as contraction of product mix. It is a method
by which a fat and long product line is thinned out. It is also
termed as simplification. The decision to reduce the product
items might be due to the purposeful act of the management to
suspend the production of unprofitable products. Marketing
problems also compel the manufacturers to withdraw certain
items. Needless to say, on such occasions the product mix will
be altered.
Diversification:
Diversification by definition, means that something new will be
added. It may be new products, new markets, new technologies
or even a new company. Generally, it means adding a new
product to the existing product line or mix. For example, if a fan
manufacturing company starts producing sewing machines, it is
a case of diversification. It does not mean that the new product
should be complementary or an allied product to the existing
one.
Some reasons for diversification:
There is a technological development in the process of
production
New markets are to be created
The advantage of the reputation of the companys name
and its existing products are to be spread to other
products
There is a constant threat for the existing product due to
abrupt changes in fashion
The spare capacity of the factory is to be fully utilized
Diversification is profitable only in the case of large
companies which are multimarket and multiproduct.
Further, such companies must have financial resources
supported by a well organized management.
Diversification of products, to a very large extent, is
capable of preventing recessionary trends entering the
industry. The usual way in which diversification is brought
about is by means of mergers like one company acquiring
another.

Trading up and Trading down

Trading up:
The process of introducing higher quality products by a
manufacturer, whose low-quality products are famous is
termed as trading up. The higher quality invariably
demands a higher price too. This is practicable only when
the manufacturer has already earned a reputation for his
lower quality products. A number of manufacturers are
nowadays practicing this method. They have started
selling higher quality products designated as export
models. Household equipment such as fans, sewing
machines, refrigerators, etc. offer such examples. The
strategy of trading up is used when a manufacturer,
attracts and induces the prospective buyers to go in for a
superior quality high priced model.

Trading down:
It is just the opposite of trading up. It happens when a
manufacturer of high quality starts selling a low-quality
product. High quality followed by high prices may fit only in
certain markets. For a manufacturer who purposely wishes
to widen the market for his products, this policy is an apt
one. The policy will be most effective where the
manufacturer has already established a name for high
quality products.

Standardization and simplification

Simplification:
Simplification refers to lines of production and
manufacturing procedure, whereas standardization is
concerned principally with a particular product or process.

Standardization:
Standardization on the other hand, concentrates upon the
optimum number of types, sizes and grades of products.

Brand

Brand
A brand is a name, term, symbol or design, or a
combination of them which is intended to identify the
goods or services of on seller or a group of sellers and
had to differentiate from those of competitors. For
example, Lux soap, Hamam soap.

Brand name:
Brand name is a part of a brand consisting of a word,
letter, group of words or letters comprising a name which
is intended to identify the goods or services of a seller or a
group of sellers and to differentiate them from those of
competitors. In other words, a brand name consists of
words, letter and/or numbers which may be vocalized or
pronounced, example, Usha fans, Allwyn refrigerators.
They are a combination of words used to identify a
product and to differentiate it from other products.

Brand mark:
A mark is a part of the brand which appears in the form of
a symbol, design, or distinctive colouring or lettering. It
could be recognized only by sight but may not be
pronounceable, example, the symbol of Maharaja of Air
India, the picture of Gopuram of Tamil Nadu Tourist
Development Corporation.

Branding:
Branding is the management process by which a product
is branded. It is a general term covering various activities
such as giving a brand name to a product, designing a
brand mark, and establishing and popularizing it.

Trade mark:
When a brand name or brand mark is registered and
legalized it becomes a trade mark. Thus, registered
brands are trademarks. In that sense, all trademarks are
brands but not all brands are trademarks. Trade mark is
defined as a brand or part of brand that is given legal
protection because it is capable of exclusive
appropriation. Thus, trade mark is essentially a legal term
protecting the manufacturers right to use the brand name
and/or brand mark.
 Trade name:
This term is frequently and erroneously used as a
synonym for either brand name or trade mark. A trade
name is the name of business, preferably the name of the
organization itself. A trade name may also be a brand
name, but in such a case it serves two separate purposes.
It brings out the identity of the manufacturer and the
product. TATAS is solely a trade name of the market of
various brands of cosmetics. GODREJ is both a trade
name and a brand name for most of their products.

Patents:
Patents are public documents conferring certain rights,
privileges, titles or offices. A patent confers the right to the
use of technical invention. It is applicable in the case of
new inventions such as a new process, a new product or a
new machine. When a new invention is made, it is
registered so that an exclusive right is obtained by the
inventor to use it. Defined more precisely, a patent confers
the right to secure the enforcement power of the state in
excluding unauthorised persons, for a specific number of
years, from making commercial use of a clearly identified,
a new and useful technological invention.

Copyright:
This is applicable in the case of books and is used in the
same meaning as that of patents. It is a sole right to
reproduce literary, dramatic, musical or artistic work.
Copyright is available for the whole of the authors life time
and fifty years after his death.
Functions of branding:
It helps in product identification and gives distinctiveness
to a product
 Indirectly it denotes the quality or standard of a product
It eliminates imitation products
It ensures legal right on the product
It helps in advertising and packaging activities
It helps to create and sustain brand loyalty to particular
products
It helps in price differentiation of products

Thus, brand names serve to create identity to distinguish

one product from another. Identity is essential to
competition, because without a means for identification
there is no way of making choice.

Brand name and Product image

Every brand image is partially derived from a product

image. The product image relates to the fundamental aims
and satisfactions which the consumers find in a particular
product. Therefore, it is not wrong to say that the brand
image relates to the specific versions of the product
image.
Kinds of brands

Manufacturers brands:
National brands - the same brand used on a national
level
Regional brands - brand for a particular region
Advertising brands - brands stressing on symbol
Blanket brands - one brand name for all the
products of a manufacturer example, Godrej products
Multiple brands brand name given for each variety
of product example, various brand soaps of Tatas.
Distributors brands:
 Private brand
Store brand
Dealer brand
House brand
Advantages of brand names
The advantages of using brand names could be easily
recognized for each group of participants in the marketing i.e.,
manufacturers, consumers, distributors, as follows:
To the manufacturers:
It identifies the product and distinguishes it from other
competing products. Thus, it protects the interests of the
manufacturer
It saves advertising cost if the brand name is popular
If properly promoted, brand name creates confidence in
and goodwill for the products
It widens the market for the products
To the consumers:
It affords an easy way for purchase by easily identifying a
product
The brand name indirectly assures certain quality by
identifying the manufacturer behind the product
The brand names assure fixed prices. Even the
distributors cannot unjustifiably vary prices
To the distributors:
Widely popular brands ease the selling process and lead
to large scales
It helps in advertising and sales promotion programs
The distributor can easily find out the quick moving
products
 Branding reduces price flexibility. This, in turn, reduces the
risk in business
Special selling efforts need not be undertaken. This
reduces the cost of distribution and hence the final product
Kinds of brand names

Branding is a process by which products are named. These

names, to become successful, should reflect certain aspects
of the products of the manufacturer. On this basis, the brand
names could be divided into:
Coined name: A purposely created name that
stresses more on the producers identity. For
example, the word Parker alone is meaningless
unless attached to pen or ink

Arbitrary name: A name neither relating to product

nor the producer

Suggestive name: A name which suggests

something about the product or its functions, example,
Brand Aid Sticking Plaster, Kesavardhini Hair Oil

Descriptive name: A name that describes fully the

product, example, Glucose Biscuit, Cocoa Sweets.

Characteristics of good brand name:

At the time of choosing a brand name, various aspects
require careful consideration. Very often, manufacturers
invite brand names from the consumers, dealers and
agencies. The following are some of the general
 considerations though no hard and fast rule can be laid
down:
The name should readily come to the minds of the
customers. It should be easy to pronounce
The name should be easy to read and understand
The name should be appropriate for the product
It should be easy to remember
It should, as far as possible, be most descriptive in
nature
Package, Packing and Packaging
Packing is the process of covering, wrapping or crating
goods into a package. This is done for the purpose of
delivering the articles to the consumer or for the purpose
of transport
Packaging 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
The potentialities of packaging essentially in the field of
demand creation have been widely accepted now. It is often
remarked as a silent salesman. This is perfectly so because of
its advertising appeal, identifying power and intrinsic value

Functions of package
To assemble and arrange the contents in the desired
form
To identify the contents, the brand and the maker
 To protect the contents from production line through
final use
To provide a suitable product mix including sizes,
weights, prices, grades and packages
To facilitate retailers functions
To facilitate transporting, storing and warehouse
handling
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 package
Family packaging:
The products of a particular manufacturer when packed in
an identical manner is known as family packaging. The
shape, colour, size, etc., of packaging will be similar for all
his products. Family brands are made meaningful by
using family packaging also. In such cases packaging
methods, materials used for packaging, the appearance,
etc. will be one and the same for all the products of a
manufacturer

Re-use packaging:
Packages that could be used for some other purpose after
the packed goods have been consumed is known as re-
use packaging. This aspect increases the sales value of
the product considerably.
 Multiple packaging:
It is the practice of placing several units in one container.
This helps to introduce new products and increase the
sale.
the problems encountered in packaging
Cost of packaging
Appearance
Kinds of designs
Convenience
Re-use purpose
Even after a package is designed it is put to test to know the
response. Engineering tests are necessary to know whether the
package will withstand handling. Visual tests are done to prove
its attractiveness. Dealer tests and consumer tests are also
conducted to assure favourable response from these two
groups. In spite of its various advantages, packaging has been
subjected to criticisms. One among them is that it adds to cost.
To some extent this complaint holds good. It is true that
packaging expenses definitely increase the price. But the
benefits derived are sufficient to compensate the increase in
cost. For example, the medicine which we buy is not consumed
at once. Its preservation is very important. Only a good
package can render this service. So long as the product is
capable of absorbing the packaging cast proportionately this
criticism cannot be accepted.

Labelling
Label is a small slip placed on or near anything to denote its
nature, contents, ownership, destinations, etc. The function of
standardization is made perfect and known to the users through
labels. Packages afford a place where the labels could be
affixed. It is a medium through which the manufacturer gives
necessary information to the user or consumer.

Funcrions of labelling

It gives definiteness to the product and therefore the

identification of a product is easy
It stresses the standard and other special features of the
product which are advertised
It enables the manufacturer to give clear instructions to
the consumer about the proper use of his product.
Kinds of labels
Brand labels:
These labels are exclusively meant for popularizing the
brand name of the product. Cosmetics manufacturers
prefer to use this kind. They are interested, above all, in
popularizing the brand names for their products, example
sweets.
Grade labels:
These labels give emphasis to standards or grades. This
is used as an indirect method of product identification,
example, cloth, leaf tea, dust tea
Descriptive labels:
The labels which are descriptive in nature are typified as
descriptive in nature. In addition to the product feature
they explain the various uses of the products. Most of the
mil food products and other similar household products
invariably have descriptive labels
Informative labels:
The main object of these labels it to provide maximum
possible information. These may contain the product
characteristics and in addition the method of using it
 properly. In the case of medicines detailed labels are
attached which even specify the side effects is using them
Advantages of labelling
It is a social service to customers, who very often do not
know anything about the producers characteristics
features. False claims are prevented by using labelling
It avoids price variations by publishing the price on the
label
It helps advertising activity of the organization
It helps the customers to assess the superiority of a
product
It is a guarantee for the standard of the product. Hence it
raises the prestige of the product and the manufacturer
Disadvantages of labelling
For an illiterate population, this is of no use
It increases the cost of the product, since labeling
involves expenditure on part of the manufacturer
Labelling is effective only where standardization is
compulsory
It enables the customer to weigh and compare the
advantages of products before they are used. This
ultimately ends in discarding of one product in favor of
other

Product positioning

A process of identifying the needs of market segments, product

strengths and weaknesses, and the extent to which competing
products are perceived to meet customer needs.