Blank Inside - Branding Ingredient
Transcript of Blank Inside - Branding Ingredient
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 1/20
"Blank" Inside: Branding Ingredients
Reviewed By,
Mayur Jain–
1021906Ex- MBA Sem IV Marketing
Christ University
Published: October 10, 2007
Author: John Quelch
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 2/20
Building a distinctive product offering
can be challenging in many industries
• Proliferation, commoditization and other factorscontribute to diminishing margins, and otherthreats exist to the development of a lasting and
valuable brand.• One opportunity to counter this is through
Ingredient Branding, where in, emphasis is givenon a recognizable ingredient in products or
services, or the promotion of products or servicesas a component of a third party’s products orservices.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 3/20
John Quelch Proposed
Four conditions for Ingredient Branding
1. The ingredient is highly differentiated, usuallysupported by patent protection, and so adds an auraof quality to the overall product.
2. The ingredient is central to the functional
performance of the final product.3. The final products are not well branded themselves,
either because the category is relatively new, becausecustomers buy infrequently or because there is lowperceived differentiation among the options.
4. The final products are complex, assembled fromcomponents supplied by multiple firms who may sellthe “ingredients” separately in an aftermarket.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 4/20
This conditions can lead to establish credibility
to an otherwise unknown brand. Although
Ingredient Branding has become increasingly
popular, it is important that suppliers thoroughly
examine InBranding and co-Branding options to
ensure it is the right strategy before moving
ahead. More and more industries are taking upthis concept, such as textile producers, food and
cosmetics companies like 3M, DuPont and Bayer.
John Quelch Proposed
Four conditions for Ingredient Branding
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 5/20
Ingredient Branding by DuPont
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 6/20
Ingredient Branding conception
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 7/20
– 787 the Dreamliner
• On July 8, 2007, Boeing unveiled the 787 to the public. Over
650 orders were been placed by more than 40 airlines
without even the first test flight scheduled
• On May 2008, Boeing branded a new product named 787
the Dreamliner. And All Nippon Airways, the archrival of
Japan Airlines, placed the first 50 orders which Nippon
Airways used it as differentiating Ingredient for Advertising.
– BOEING guaranteed that passengers will seek out (and pay
more for) tickets on airlines that offer Dreamliner service,
especially when they are taking long-haul flights where
cabin comforts are especially important.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 8/20
Other Popular success stories with the
concept of Ingredient Branding are
Intel Inside
Leading provider of the ‘brains’ for the personal computers (PC)
“Promote Intel-based PCs by sharing advertising costs for PC print ads that
included Intel logo.”
TetraPakA machine builder becomes household name
“With partnership profit for everyone.”
Dolby Leading an industry with innovation“How to successfully maintain customer relevance.”
TeflonBasics of Ingredient Branding
“How DuPont differentiates and progresses in chemical commodity business.”
BitrexImplementing the Network Approach
“Doing good things for the child safety and strengthening the brand.”
Shimano
Implicit Ingredient Branding
“Never ever compete with a customer.”
DLPPampering the customer
“Big screen HDTVs without the big price.”
MicrobanConvincing and Measuring
“Ensuring customer attention and price p Microban remiums in the value chain.”
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 9/20
Logos of Ingredient Brands
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 10/20
Ingredient Branding: Advantages
Ingredient Brand Host Brand
• Penetration route sorted. • Improved brand image in case its
lesser known.
• Ingredient can become point of
entry, eg. quality standard, and
exploit its CA.
• Quick recognition and acceptance
by consumers.
• Direct contact with consumers
possible.
• IB leverages quality perception of
end product among consumers.
• Shared R&D costs. • Shared marketing costs.
• Adds the ‘exclusivity’ factor to final
product.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 11/20
Smell
Sound
Taste Touch
Sight
Only about 9% of all companies make use of sound to make their
brands more distinct, recognizable and memorable…
- Brand Sense by Martin Lindstorm
…and Intel with its unique trademark sound has
been doing just that for years now.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 12/20
Focus of branding strategy: INTEL
• The Intel Inside campaign aimed to "educate both
the retail sales associates and the consumers about
the value of Intel microprocessors, and to explain to
them the differences between the microprocessors"- without the technical jargon.
• Many consumers were uncertain about the quality
and reliability of microprocessors, and Intel found a
way of taking away the mystery of the product,
gaining the confidence of the end consumer that
"Intel Inside" represented quality and reliability.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 13/20
INTEL Inside: The case
• Identifying the problem:
• Developing strategic course of action
• Implementing strategic decision
• Assessing effectiveness of decision
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 14/20
Identifying the problem
• Due to a number of clone products in the market,
Intel was unable to differentiate its products from
the herd.
• Consumers were left baffled for choice and oftenguessing as to the content and performance of MP.
• Consumers knew Intel through its product offerings
which were often being cloned. Intel wanted
consumers to recognize its product through the
brand Intel itself that connoted reliability and
superior performance.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 15/20
Developing Strategic Solution
• Intel Coop Program marked the birth of brand Intel.
• The program intended to levitate Intel as a brand
through 3 strategic steps:
1. Developing and using a brand logo in advertisements of OEMs.
2. Engaging tier 2 and 3 OEMs in the program via profitable
propositions.
3. Prolific advertisement to create awareness aboutimportance and superiority of Intel chips.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 16/20
Implementing the Coop Program
• Designing a unique logo.
• Convincing tier 2 and 3 OEMs initially of the short
term and long term benefits of alliance and engaging
them.• Direct advertisement aimed at organizational rather
product communication thus enabling a ‘brand
consumer connect.’
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 17/20
Assessing the program
• Awareness of Intel logos prior to IB strategy was a
meagre 24% in European PC market.
That, within 2 years of its launch soared wildly to
94%• Worldwide sales within a year of launch of IB
strategy rose by 63%.
• By 2002 Intel broke into the list of top 10 most
valuable brands.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 18/20
Power of Intel brand equity
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 19/20
Ingredient Branding in Indian Market• Flat glass suppliers in India were engaged in an aggressive brand war for the past
two years. The main companies operating in this industry are Modiguard, Saint
Gobain and Asahi.• Another company named Trevira, established its brand and presented its
ingredients to the end consumer as quality features ever since the company was
founded in 1956. Initially a division of Hoechst AG, Trevira spun off in 1998, and
now belongs to Reliance Industries, India. Trevira is one of Europe’s most
important manufacturers of polyester fibers, with production sites in Germany,
Belgium and Denmark and customers from the textile industry all over the world.
This includes high-quality clothing, sportswear, windproof and weatherproof
clothing, flame-resistant household textiles, curtains, fleece materials and
bedding.
• Tetra Pak had announced its new advertising campaign for 2006 in various parts of
the world. It emphasized on “value for money” concept without compromising onhealth benefits. The television commercials were on air from early July across
India. The campaigns ran for 12 weeks and featured two commercials. The
commercials focused on the benefits of UHT Milk set in two different
environments. To support the television campaign Tetra Pak also ran a “retail
activation” program in Mumbai and Bangalore. For this activity, 300 outlets were
chosen in each city.
8/2/2019 Blank Inside - Branding Ingredient
http://slidepdf.com/reader/full/blank-inside-branding-ingredient 20/20
Thank you
Reviewed By,
Mayur Jain – 1021906
Ex- MBA Sem IV Marketing
Christ University