Product

Product design and branding

• A product’s features, function, design and image are key elements of its appeal to customers

  • Features and functions include aspects such as size, dimensions, capacity, colour, aroma, texture and capabilities

  • Design relates to the appearance of a product and its packaging, in relation to its cost and function

  • Image refers to the impression a product makes on customers, e.g. luxury, fashionable

• Branding is the process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product or company from its competitors

  • Brands can include aspects such as logos, slogans, colour schemes and personality

The benefits of branding

Added value

• Strong branding can add value to a product by creating a perception of quality, reliability and reputation

  • E.g. Jaguar Land Rover vehicles have a reputation for reliability, style and performance

• Customers are often willing to pay higher prices for brand they recognise and trust

• It can also create strong emotional connections with their customers by appealing to their values, beliefs, and emotions

  • E.g. Brands like Patagonia and TOMS have built their brand identities around commitments to ethical causes, which resonate with loyal customers who prioritise these values

Ability to charge premium prices

• Customers may be willing to pay more for a product that is associated with a well-established brand

  • They often perceive products with strong branding to be of higher quality and therefore worth the extra cost

  • E.g. Perrier sparkling water sells at a significantly higher price than very similar supermarket own-brand products

Branding establishes recognition and identity

• This helps to build trust and credibility and creates an emotional connection with customers, which generates repeat purchases

  • E.g. Best-selling soft drinks brands Coca Cola and Pepsi are instantly recognisable due to their logos, packaging designs and colour schemes

• Brands can gain exposure and build their reputation by aligning themselves with events, organisations, or individuals that share their positive associations or values

  • E.g. Nike has sponsored many high-profile athletes and sports events, such as the Olympics and the World Cup

  • The business has built a reputation for being a brand that champions excellence and inspires people to be their best

Business differentiation

• Branding differentiates a business from its competitors, helping to develop a strong USP that helps a product stand out from its competitors

  • E.g. Apple is known for its innovative, sleek design and use of quality materials, which sets its products apart from its competitors

  • The company has built its brand around this USP and is recognised worldwide for its premium design

• A brand supports marketing and advertising efforts

  • Key brand elements can be used to build memorable promotional materials and campaigns

    • e.g. Cadburys’ purple brand colour is used throughout its promotional materials

Invention and innovation

• Invention is the creation of something entirely new, such as a new product that has never existed before

  • Inventions typically emerge from research, experimentation and technical knowledge

• Innovation is the process of improving an existing invention, idea or business process

  • Innovation can make a product or process more practical, efficient, user-friendly or cost-effective to produce

• The invention of the internet has led to countless online innovations

Online innovations

E-commerce

• E-commerce exists as a result of wide access to the internet

  • In the UK, e-commerce accounted for more than 30% of total retail sales, worth more than £2,000 billion in 2023

  • Almost 90% of UK consumers shop online, many of them regularly

Online banking

• More than 90 per cent of the UK population uses online banking

• As a consequence, many high street branches have closed

Online gaming

• 70 per cent of UK gamers have used the internet to connect with opponents online

• Gaming has become an increasingly social hobby, with the internet providing a platform for online connections between players

Video on-demand

• The UK has the third-highest number of subscribers to online services such as Netflix and Amazon Prime

• In response, most traditional TV channels, such as the BBC and ITV, now offer most of their content on-demand, affecting the way they are funded