The Effect of Setting a Brand to a Generic Commodity in the Market of Tacloban City

Topics: Brand, Marketing, Brand management Pages: 25 (7560 words) Published: February 12, 2012


 It underlines the fact that brands are not born as brands, they are born as commodities. More than a century ago, John Pemberton set out to create a tonic, not a global brand named Coca-Cola. And in 1962, when Bill Bowerman and Phil Knight each chipped in $550 to set up Nike, their goal was to make running shoes for athletes, not create a global leisure brand empire (Daye and VanAuken, 2008).

Today, branding is such a strong force that hardly anything goes unbranded (Kotler and Keller, 2009). It's a continuum that starts with the most generic of generic forms - the commodity - and ends with that most unique and specific of things - a brand (Daye and VanAuken, 2008).

Kotler and Keller (2006) explicitly defined commodity as “a product presumably so basic that it cannot be physically differentiated in the minds of the consumer.” In addition, Merriam Webster Dictionary defined it as “a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price.”

According to Laura Lauker, “American Marketing Association (AMA) defined brand as a name, term, sign symbol or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” In addition, Tailor also said that, “Brand is a marketing tool that allows consumers to recognize the maker of a product.” Aside from being identified or recognized, there are other roles that brands work most especially for consumers. Kotler and Keller (2009) explicitly said that, “Consumers may evaluate the identical product differently depending on how it is branded. They learn about brands through past experiences with the product and its marketing program, finding out which brands satisfy their needs and which do not.” They also added that, “As consumers’ lives become more complicated, rushed, and time starved, the ability of a brand to simplify decision making and reduce risk invaluable.”

On the other hand, for firms, Kotler and Keller (2009) said that, “Brands represent enormously valuable pieces of legal and property that can influence consumer behavior, be bought and sold, and provide security of sustained future revenues to their owner.” Therefore, brands give benefits to both consumers and firms.

Commodities are often items that you see and buy everyday (Stallman). Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility (Shah, 2010). But what will be the effect of setting brand to generic commodities to its consumers in Tacloban City?

The researchers of this study would like to know if how branding a generic product will affect its consumers and producers or manufacturers in purchasing and producing, respectively, in Tacloban City. Moreover, to make this research possible, the researchers will use eggs as generic products to develop answers to our research questions.

Statement of the Problem
The researchers conducted this study to further explain the effect of branding generic commodities in the market of Tacloban City.
Specifically, this study aims to respond to three research questions: * How will branding give difference from branded to generic commodities? * How will the price affect the branded and vice versa?

* How will branding affect consumer preference?
Such understanding in branding could lead commodity players to eventually satisfy consumer needs, improve sales and profitability.

Significance of the Study
The researchers believe that the results and findings of this study will be a big help to the following:
Producers and/or Sellers of Generic Commodities. Since this study aims to answers the effect of branding generic commodities, the producers and/or seller of generic commodities will be the main beneficiary of this study since they are the ones...
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