MODULE 5:

Branding Strategies

Module Review:
This module will give learners insights on how branding affect and influence
the market. It will also tackles the appropriate strategies on how to properly come
up with a better brand name that will benefit entrepreneur. It will also discuss how
to legalize one’s business.

Lesson 1: Legalizing the Business

Introduction:
Once the entrepreneur has decided to venture into business he must now
conceptualize a business plan to properly execute and implement what has been set
before the start of the business. This must follow both the production and financial
plan to start up the business.

Learning Outcomes:
1.Learn the different steps in legalizing the business.
2. Discuss the suitable site of the business.

Discussion:
In applying for your business there are several government agencies that
needs to be visited in order to get the license or permit to operate.

Steps in Legalizing the Business:

1.To Get Barangay Clearance:

Proceed to Local Barangay Office to secure barangay clearance.
2. To Register a Business Name:
 Department of Trade and Industry (DTI)
 Securities and Exchange Commission (SEC)
3. To Secure a Business Permit
Go to the Local Municipal or City Hall
4. To Get a Tax Identification Number (TIN) and Secure an authority to Print
Invoices, receipts
Bureau of Internal Revenue (BIR)
5. To register as an Employer
 For remittances of workers go to Social Security System (SSS).
 If there are 5 or more employees/ workers you need to go to
Department of Labor and Employment
6. Other Government Agencies involved in Registration of Business:
 Intellectual Property Office (IPO) for patents, trademarks and copyrights
 Food and Drugs Administration (FDA) for food products, drugs and cosmetics
 National Food Authority (NFA) for rice, corn, grain farming and flour dealers
 Philippine Coconut Authority for coconut and by products
 Department of Trade and Industry (DTI) Bureau of Product Standards (BPS)
for testing of product standards of exportable and branded goods

Finding a Suitable Location

After all the plans and documents are put together to start the business , one
must look for the site of the business One of the first step of business is to search for
the prospective location of the business.

Factors to Consider in looking for a suitable location of the Business:

1.How accessible is the site to sources of raw materials?
2. How near are your target buyers to your site?
3. Are these adequate transportation facilities for your buyer and workers?
4. How dependable are the electricity, water, telephone, and internet provider in the
area?
5. Is the community friendly to this type of business?

Lesson 2: Branding Strategies

Introduction:
Branding gives a business an identity. It is not only about the logo, color and
name but also the personality of the business. It has always been a very important
part of the business. It helps the customers recognize the business.

Learning Outcomes:
1.Define what brand name is and product branding.
2. Determine the applicable strategies in branding and the reasons for the existence
of brands.
3. Discuss the structure of products, its prototype and patenting

BRAND NAME:
 According to Dr. Pereda from his book Principles of Marketing, a brand is
name or mark that is use to identify the seller’s product and differentiate it from the
other products of the competitors. Brand name consists of: letters, words or
numbers that can be read or verbalized.
Brand Mark is part of the brand that appears in the form of symbols
designed in distinctive lettering or colors. It is recognized by sight. Trade Mark is a
brand that have been adopted by the seller and given legal protection. It is protected
by operation of law under DTI. It will protect the company from imitations and fake
products.

PRODUCT BRANDING
It is a name or mark that is intended to identify the seller’s product and
differentiate it from the products of the competitors. It appears in the form of
symbols designed in distinctive lettering or colors.

Advantages of Branding:
1.Makes it easy to identify the product or service.
2. It ensures the buyer that they will get the same quality of products.
3. It reduces price comparison.
4. It gives prestige to the product of the seller.
5. It provides legal protection for the seller.
6. It helps in product market segmentation.

Selecting a Good Brand Name:

1.It should be suggestive which is about the product or service.
2. It must be easy to pronounce and remember.
3. It must be simple and short.
4. It must be distinct or different from others.
5. It must be adaptable to new company product that may be added.
6. It must be able of registration and legal protection.

Branding Strategies:
The producers and middlemen are both important in the distribution of the
products to the target consumers thus they have to choose strategies associated
with branding of their product mixes and product saturation.

1.Producer’s Strategy:
 The manufacturers have establish a wide distribution system and depend on
the capability to penetrate the market with the amount of resources in promoting
the brand to its target market.
This strategy is use by product manufacturers’ that dominate the majority of
the market because of the superiority of their product. They have the capacity to
penetrate the wide distribution of their products with the resources that they have.
It is advantageous to those producers who has greatly dominated the market and
has the resources to advertise and promote their brand.

2. Middleman’s Strategy
It is also called as Co- branding. It is where the producer and sole distributor
carry the brand name of the manufacturer and that of the middleman. They can
usually sell their brands at a lower cost because they can get other products using
their own brand name.
Brand equity can reveal the value of the brand in the market. Brand loyalty is
developed as customers become aware on the quality of the product compared with
the other brand in the market. Powerful brand names command strong consumer
preferences.

Advantages of Co- branding

1.It creates wider customer appeal.
2. It develops greater brand equity.
3. It expands the middlemen brand in the market.

Disadvantages of Co- branding:

1.Most of the time coordination is difficult with the producer and the middlemen.
2. It entails legal contract which can be complex and difficult.
3. It is necessary to have licensing agreement.
4. It requires mutual trust between two parties.

The Different Strategies used to sell more products

1.Branding Within a Product Mix

a.Separate Name for Each Product:

It is also named as family branding. It is the simplest and less expensive way
to introduce new and related products. The status of the brand can be spread more
easily as it appears on several products.

b. The Company Name Combined with the Product Name:

 The name of the company that is best identified related to quality and its use.
Customers look at quality products and mind setting for the brand quality is the
objective of the marketing organization.

c. The Company Name Alone

Branding with the company name alone can have a great burden on the
producers’ reputation for quality. Other products carrying the same brand name
may not be make the grade and this will affect the other products in the market.

2.Branding for Market Saturation

a.Introduction of Line Extension:

Brand names are extended into new forms and sizes of an existing product
category. A company creates a new product in one of its existing categories
targeting the existing market. It is being done to make markets more excited and
interested that they will keep buying the product.

Example: Coca cola brand where they created different flavors of Coke, a
flavored version of the original one.

b. Introduction of Brand Extension:

It is the extension of brand name to new or modified product categories. This
usually introduce new products that relate to the original one or brand personality
of the brand. They might use this strategy to reach different demographics or
increase the revenue of their existing one.

Example: San Miguel Beer introducing different kinds of beer in the market

c. Introduction of New Brand Name:

It is where new brand is attached to the new product category. Corporate
brand acquisition happens to protect the existing brand that had reached its
maturity and decline stage. This is being done to refocus the attention of the
customer to new innovative product with new brand name with different features
and added benefits to the customers.

Reasons for the Existence of Brands

1.Identification: Brands help the consumers to distinguish easily one product from
the other.
Example:
a. Magnolia brand is known for product- dressed chicken which is now the
leading brand after its launch years ago.
b. Alaska created sub- brands to distinguish two of their evaporated milk.
The premium one is the evaporated milk and the other one is the
evaporada. From its label which shows the Alaska boy as their premium
line to convey the message that they are keeping up with long tradition of
quality milk.

iMart Grocer

For the low price sub brand which can give appeal to the budget conscious
consumers Alaska evaporada was introduced. It shows the tempting picture of halo
halo.

2. Protection: It enables the owner of the brand to enjoy the good benefits or
feedbacks associated with the name so that no other companies can take advantage
of this.
Examples:
a. Brands that are being copied by others through fake items. Imitation.
3. Positioning: It helps the owner to communicate the benefits of his product to
other competition.
Examples:
a. Tesla Car: electric car, solar and green technology

The brand becomes the consumer’s simple choice. Never choose soft name for
product or service that needs to have power or strong connotation.

Criteria For Choosing A Brand Name:

1.Distinctive: Is the brand associated with another product?
Example: Jollibee is known for fast food, would a Mang Inasal Hotel in Middle
East be okay?

2. Word Association: Does it have a pleasant meaning?

Example: Gardenia was a local motel in Sta Mesa before a Singapore bread
company decided to have their manufacturing company in the mid 1990’s with a
similar name, Gardenia.

3. Legal Requirements: Can it be registered?

Example: Beer, “Inasal” are generic names thus these cannot be registered as
brand names.

4. Memorability: Can the name be remembered easily?

Example: Johnson& Johnson is one of an institutional brand, would a
competitive brand like Zwitsal be remembered easily also.

5. Pronounceability: Can it be easily pronounced

Examples: 1. Unilab is easy to pronounce than Bauch Philippines
2. Mortimer mouse was the original name by Walt Disney but
since it was hard to pronounce the wife of Disney’s owner
suggested Mickey Mouse
6. Limitations: It is the brand name too limiting to be used for expansion?
Example: Would the name Aqua Vida be as flexible as Imarflex?

Product description in project management is a structured format of

presenting information about a project product.

The Structure of Product Description:

1.Identifier
2. Title or topic
3. Purpose or aims
4. Composition
5. Derivation
6. Format and presentation
7. Development skill required
8. Quality criteria
9. Quality tolerance
10. Quality method
11. Quality skills required
12. Quality responsibilities

Product description should be AUDIENCE- FRIENDLY, It should be conveyed

clearly to the market so that they will easily remember and recognize. Its content
must also match what the audience needs to read to improve the conversions and its
retention to the customers.

Two Types of Convenience Products:

1.Staple products such as; rice, sugar and other commodities
2. Impulse goods like sweets, snack foods or biscuits

Convenience products has no buyer loyalty involved. Customers can either try
to upgrade their products into their desired preferences of the product or try the
lowest cost or the highest volume producer.
Preference goods is where consumers have specific preference of brands or
suppliers but customers are willing to make substitution when necessary.
The distinction between this two is the perceived risk by the customer.
Branding and advertising efforts are used to build brand loyalty and are usually use
for this perception. Acknowledge the risk of consumers when buying the product
and reassuring the buyers that this risk can be minimized by buying the brand:

Examples:
1.Buying brands like Colgate or Close- up are perceived less risky than buying
unknown brands.
2. Serving cheap beer instead of San Miguel beer in the party may result to
dissatisfaction of their guests.

Shopping products are products that consumers feel are worth the time and
effort compare with other competitors.

Example:
1.Consumer products like bathroom tiles or appliances usually involves comparison
with alternatives.
Product Satisfying Features:
Product patronage in the market is conditioned by the strategies and policies
employed by the manufacturer and marketing organization on the product’s
attributes.

1.Design:
Good design such as its design and appearance can improve the marketability
of the product. The distinct design of the product can have significant differentiation
of ones product to the others.
2. Product Color:
It is the customer’s rejection or acceptance of the product. Examples of this
choice are clothes, cars or furniture. Appropriate color combination will have an
appeal to customers. Color can be an important factor for highly technical products.
Dark colors are for richness and value. Colorless is perceived as plaint water and
Transparent is associated to purity and mildness.
3. Product Quality:
It is the set of features and attributes of a product or service that determines
its ability to satisfy human needs. Personal tastes, individual expectations affect the
judgement of quality. Optimal quality is the situation where the product or service
provides the customers with an experience that meets their expectations.
4. Product Warrantees:
Warrantee is one of the most important attribute of the product. It assures the
buyer that the product meets the specifications stated in its labels. It warrants the
quality of the product.
Prototype can help add value to a project as well as credibility. Some
companies will need to innovate to be able to prove that the concept works and that
the theoretical design translates into a working model.

Lesson 3: The Innovation Process:

Introduction
Some of country’s best and brightest innovators work tirelessly to come up
with innovative works to find solutions to society’s pressing problems. Innovation
process is consider as the foundation of many entrepreneurs More often innovations
that resulted to new products or services comes from the labor of research.

Protection:
According to the World Intellectual Property Organization (WIPO), IP is
defined as the creation of the mind, such as inventions, literary and artistic works,
designs and symbols, names and images used in commerce.
 Intellectual property is protected by law. Patents, copyright, trademarks will
enable people to earn recognition or financial benefits from what they have invented
or created.

Types of Protection:
1.Patent: It is an exclusive right granted for an invention, which is a product or a
process that provides a new way of doing something or offers a new technical
solution to a problem. To be able to get a patent for certain product or process,
technical information about the invention must be disclosed to the public in a patent
application.

2. Utility Model: It is a registered right that gives the holder exclusive use of a
technical invention. The right is given in exchange for public disclosure of the
workings of the invention and is granted for limited period.

3.Industrial Design: It is composed of lines or colors or any three- dimensional

form that may or may not be associated with lines or colors. This can be acceptable
provided that such composition or form will give special appearance to and can
serve as pattern for an industrial product or handicraft.

4. Trademark: It is a sign capable of distinguishing the goods or services of one

enterprise from those of other enterprises. Intellectual property rights protect this.
5. Copyright: Also named as author’s right. It is a legal term to describe the rights
that creators have over their literary and artistic work. Examples of work that ae
covered by copyright: books, music, paintings, sculptures and films. It can also cover
computer programs, database, advertisements, maps, and technical drawings. It may
or may not be available to some objects such as; titles, slogans, or logos. All of these
depends on whether they contain sufficient authorship.

PROTOTYPE USEFULNESS FOR LICENSING:

Prototype is not that important, but can add value to the product. It is useful
because it can help the company needs to prove that the concept works. Prototype
should demonstrate the basic fundamentals of the idea. It can be refined to
strengthen their presentation, associated cost of these should be weighed up against
other factors. It can sometimes be negotiated for a higher of royalties.
STEPS IN APPLYING PROTOTYPE FOR LICENSING:
1.Document it:
It is the first step of patenting. It is to secure the ideas and keep it from being
stolen. Write the idea down in an inventor’s journal and have it by a witness.
2. Research it:
The company or owner will need to research the idea from legal and business
stand point. Before filling for patent:
a. Complete an initial patent research. Visit the website to ensure the
requirements for patenting. Before doing this, one should complete a non-
patent or “prior art” search.
b. Research your market. Have some preliminary research of the target market.
To determine its cost, compare this to similar products currently in the
market.
3. Make a prototype:
Prototype is a model of the invention in which what was written in the
inventor’s journal were put into practice. This will demonstrate the design of the
invention that will be presented to the possible lenders and licensees.

RULES WHEN PROTOTYPING INVENTION:

1. Begin with a drawing, sketch out all of the ideas into inventor’s journal.
2. Create a concept of any material that will allow one to crate a 3- D model of
the design.
3. Create a full – working model of the idea.
4.File a patent
2 Main Patents to Choose from:
1. Utility patent : for new processes or machines
2. Design paten: for new manufacturing, non ornamental designs.

Advantages of Prototype
1. It tests and refines the functionality of the design
2. It makes it possible to test the performance of various materials.
3. It will help you describe your product more effectively.
4. It will encourage others to take it more seriously.

Brainstorming Ideas:
1. Try to make list of all the things that are interesting. These could be hobbies,
jobs or products that are used on a regular basis.
2. In every item or interest make possible list of improvements that can be made
in the form of an invention. Variations may be added to the product or activity
or useful add- ons.
3. Make a list. It is better to have many ideas than too few.
4. Keep a journal at all times for added new items for possible invention list.
 5. Do not rush the brainstorming process.

Patenting
Create a thorough record of invention:
1. Record the process of inventing the product
2. Keep records of the research showing that no similar patented products in the
same market.
3. Consider the commercial sales value of the invention.
4. Create an informal drawing of the invention.

MAKING INVENTION A REALITY:

1. Create a prototype
2. Create a presentation
3. Present an invention to a manufacturer
4. Produce your invention
5. Advertise your invention

EVALUATION OF PROTOTYPE
Its benefits can help potential usability problems that can be detected at an
early stage which is before the development is completed. It can help to have a
deeper understanding of the user’s expectations and impression of the system.

METHODS OF EVALUATION:
Planning:
1.Select the most important tasks and user group to be tested.
2.Select users who are representative of the user group. 3 to 5 users are sufficient.
3. Consider using user- defined tasks, where users are asked to define their own
goals prior to the evaluation session.
4. Produce task scenarios and input data and write instructions for the user.
5. Plan sessions allowing time for giving instructions, running the test and a post-
test interview.
6. Invite developers to observe the sessions if possible.
7. For a paper prototype a designer is needed.

RUNNING SESSIONS:
1. Welcome the user, and give the task instructions.
2. For a paper prototype, the user selects options on each screen, the designer
explains what happen and presents the next screen.
3. Do not give hints or assistance unless the user is unable to complete the task.
4. Observe the interaction and note any problems encountered.
 5. The user may be prompted to write for their impressions of a page design,
what they think different elements may do and what they expect from the
result. The user may also suggest how individual elements could be improved.
6. Interview the user to gain general opinion and ask about specific problems
encountered.

OUTPUT
1. Produce a list of usability problems, categorize by importance.
2. Arrange a meeting with the designers to discuss whether and how each
problems can be solved.

THREE GENERAL APPROACHES:

1.Simple observation:
The evaluator will just watch the user problem
2.Constructive interaction:
Normal conversation between the two users is monitored
3.Query:
Interviews (structured and retrospective) – surveys and questionnaires
 Variant: co- discovery learning- use semi- knowledgeable and naïve subject
together
 Result in- naïve subject asking questions- semi knowledgeable coach
responding.

Record user Actions during observations

1.Paper and pencil: primitive but cheap, evaluators record events, interpretations
and extraneous observations.
2. Audio- recording: good for recording talk produced by thinking aloud
3. Video recording: can see and hear what a user is doing one camera for screen.

Analysis of the Result:

1.Determine the audience you want to reach.
2. Typical survey; random sample of between 50 to 100 users of the product.
3. Determine how will you deliver and collect the questionnaire
4. Determine target demographic. Example level of experience, age, income, etc.
The Technology Transfer Act of 2009
In the Philippines, Intellectual Property has laws to protect this.

Republic Act 8293: It is an act prescribing the IP code and establishing the IP office
providing its power and functions and other purposes.

Republic Act 165: It gives the jurisdiction to create patent office, regulate the
issuance of patents and providing appropriate funds. RA 166 provides the
registration and protection of trademarks, trade names and service marks.

Philippine Technology Transfer Act of 2009. RA 10055

It is an act acknowledging the science, technology and innovation as essential
part for the national development and progress. It give priority to research and
development , inventions, innovations and their utilization. It shall encourage the
widest and most systematic participation of all stakeholders in policy making
related to science and technology and in the generation, transfer and utilization of IP
especially for the benefit of the general public.

It regulates the transfer of technology and promotes adoption from all sources
for the benefit of our society. It also protects and secure the exclusive rights of the
creators like scientists, inventors and artists to their intellectual property and work.
It incentivized ownership and commercialization of Ips for the state universities and
colleges (SUCs) and research and development institutes.
It is not also limited to the actual act of transfer but also facilitates the
technology’s dissemination, implementation, management and commercialization.
It focus of the ownership of technology, revenue sharing and use of income
and capacitation technology generators. In terms of revenue gained from
commercialization, the law states that it shall add to the RDI by default. It will also
cover revenues between researchers and RDIs. The share shall not be less than 40%
as prescribed by law.
Activity 1 :
How well do you know your brands?
Identify the following brands and name the kind of product/ service it is.

1.

2.

3.

4.
5.

6.