Sep 14

Brand vs. Company

Posted by Packaging Sense in Advertising | Uncategorized

Brand vs. Company in the food and drink world

I’ve had the great advantage and pleasure to work for almost 40 years for Nestlé. During that time, I have regularly been asked to explain the difference between a brand and a company or, in other words, between a product brand and a corporation.

As any marketeer well knows, brands in general can be classified in categories and companies use different terminologies such as

– sub brand
– product brand
– range brand
– corporate brand
– strategic brand
– descriptive brand
– endorsing brand, etc.
They appear on the front as logotypes and can be of various sizes or strength.

Any marketeer also knows the difference between the two brand approaches:

a) Nestlé or Unilever, for instance, often use a corporate and a product brand, ex. Mousline from Maggi (dual branding);
b) Mars never use a corporate brand (single branding).

The reason why I write this article is that I found, the other day, a very interesting example: Tetley tea from TATA GOBAL BEVERAGES with Tetley as a logotype on the front and TATA both as a corporate logotype and the product division “TATA GLOBAL BEVERAGES” on the back. This makes me believe that the management at TATA, as well as (to a certain extent) Nestlé and Unilever have not yet found the best balance between a product brand and the company behind it (see later).

I’d like to explain that a product brand which in the consumer’s eye is a creation to express a certain positioning stands, in this case, for taste, but it can also stand for other product experiences such as crunchy, salty, sweet, i.e. real values and perceived values like young (Coca-Cola) fashionable (Innocent) or extreme (Red Bull).

However, a corporate identity, showing the company behind a brand as for instance Nestlé with their nest symbol and TATA with their “T” symbol stand for values such as trust, quality, local, global, i.e. values which can be both real or perceived and different to the above product values.

In the years to come, I hope we will no doubt see a stronger and explanatory information of the company on the back panel (avoiding complicated dual or triple branding on the front), as consumers want to know who is behind a certain brand and which values this company has. No doubt Nestlé will increase their nest and explain what “nutrition, health and wellness” mean and Unilever their “U” also explaining to the consumers what their company believes in.

LW/20.8.2016

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