Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home he stoped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and gas for ₹20,000. He purchased vegetables, bread, oil, spices etc for ₹10,000, cups, plats and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹50 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."

In the disposable item, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.

Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat's friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.

Naming the food stall "Paras food stall" is a component of product marketing. Identify the component of product in the above statement.

Branding

The correct answer is option (1) - Branding

The component of product marketing identified in the statement "Naming the food stall 'Paras food stall'" is "Branding." The name "Paras food stall" serves as a brand for Rajat's food business. Branding is a crucial element of product marketing that involves creating a unique and recognizable identity for a product or service. In this case, the name "Paras food stall" not only distinguishes Rajat's food stall from others but also contributes to building a brand image and attracting customers.

Branding as a Concept: "BRANDR", Norwegian word meaning "to burn" led to the origin of the word "Brand". In olden days, the farmers used to put some kind of an identification mark (using burning hot iron) on the body of the livestock to distinguish their possession from that of others. Similarly, marketers started resorting to branding in order to distinguish their offerings from that of their competitors. Thus, a brand is "a name, term, sign, symbol, or design or a combination of them which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors."