Branding is the set of activities designed to create a
brand and position it relative to competing brands in the minds of
consumers. An important decision companies must make is under which
brand a new offering will be marketed. A brand extension involves utilizing
an existing brand name or brand mark for a new product or category (line)
of products. Cannibalization occurs when a company’s new offering eats into
the sales of one of its older offerings. It is something to be avoided in most
cases, but it can also be a sign of progress because it means a company is
developing new and better products. Packaging protects products from
damage, contamination, leakage, and tampering, but it is also used to
communicate the brand and its benefits, product warnings, and proper use.