Contractual arrangement between firms one firm allows another to use its brand

Contractual arrangement between firms one firm allows

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Contractual arrangement between firms – one firm allows another to use its brand name, logo, symbols and/or characters in exchange for a negotiated fee-Common for toys, apparel, video games, entertainment products (toys)-Major risk – dilution of brand equity through overexposure – if brand name and characters are used inappropriatelyBrand repositioning -(or rebranding) refers to a strategy in which marketers change a brand’s focus to target new markets or realign brand’s core emphasis with changing market preferences -Can improve brand’s fit with target segment or boost vitality of old brands -Risk: lots of money to make tangible changes to product and packages + intangible changes to brand’s image through promotion. Costs may not be recovered if repositioned brand and messages are not credible, or if mistaken for fad -May find necessary to reposition even if challenging years of tradition – conservative perceptions, intense competition Packaging-Important brand element – more tangible/physical benefits than other brand elements -Primary package – one the consumer uses - consumers usually seek convenience in terms of storage, use and consumption -Secondary package – wrapper of exterior carton that contains primary package, provides UPC (universal product code) label used by retail scanners- consumers can use to find additional product information - add value by facilitating convenience of carrying, using and storing product -Attracts attention, stand out from competitors-Promotional tool -Same product to appeal to different markets with different sizes -Change or update as subtle repositioning – attract new target market, appear more up to date with current market -Priorities for secondary packaging differ- retailers, manufacturers –protection during transit. Aid in loading and storage. Cost efficiencies in larger order and shipment sizes - customers - convenience in displaying and selling product.Product labelling -Provide information on consumer needs for purchase decision and consumption of product -Identify product and brand, labels for promotion -Information comply to general and industry specific laws – ingredients, where made, directions and safety precautions-Trade practices act 1974 – commonwealth law to ensure competition and consumersin market are treated fairly. Not misleading with product labelling
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-Product label is a communication tool – benefits Group activity -Not always – big risks, likelihood -Normality, day to day, worth it, other benefits
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