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04. February 2019

Wikipedia defines Ingredient Branding as “creating a brand for an ingredient or Stiefelleten Stiefel Damen ALPE 3900 11, Farbe Bräune,component of a product, to project the high quality or performance of the ingredient”. Another popular definition is Intel’s  “a promotion of a brand within a brand to the end user” or as it is defined by Uggla / Filipsson based on Baumgarth (2004) and Rizeboos (2003): “Ingredient Branding is a specific form of brand collaboration, distinct from co-branding that highlights a specific component or brand attribute to enhance a product or service that can potentially become a category point-of-parity, create multi-level visibility, awareness, differentiation and preference in the down-stream value chain” (© The Icfai University Press, 2008).

Other interpretations of Ingredient Branding also existBarbour Blyth damen lila Rubber Wellington Stiefel,for example from P. Kotler, D. Aaker. E. Joachimsthaler, K.Keller, C.Baumgarth and many others. Please refer to their literature for further details.

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The vast majority of companies are not able to adequately convey the entire value they are creating for their respective value chain, asNine West damen Kerianna Closed Toe Over Knee Fashion Stiefel,they are often locked into their role as an anonymous supplier. Their value and their contribution to the finished product is unknown to most market participants beyond their direct customer lineMens 11EE rotwing 2206 Vintage Steel Toe Leather Work Stiefel,and therefore they are exposed to the "Lopez-effect"; named after the once famous Head of Purchasing at Volkswagen, who was known for his merciless negotiations with suppliers. Price & margin pressure, unfavorable payment terms and exchangeability as a supplier are the economic consequences. Not a great position to be in. 

Ingredient Branding provides a valid Brand & Business model escape from this unfavorable position in the supplySperry Top Sider for J.Crew Chukka Stiefel Mahogany Größe 8 Leather b2835 New 125, chain. The fundamental principle of it is to apply a SALE %%% Plateau High Heels Overknee Stiefel Pleaser Übergröße Dragqueen 44,

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By starting to communicate the benefits of the Ingredient to at least one level below direct customers, aSchuhe DGoldTHYD Frau rot Stoff 51991RASO-BO, company can start to build firstly awareness and then create demand for its component in the downstream value. By doing this successfully over a longer period of time they can elevate their position in the value chain and emerge from the role of a supplier to the position of a business partner. 

After the recognition of the Ingredient Brand has been successfully established, variousAerosoles Größe 7.5 M BARRICADE Tan Combo 773 Memory Foam Stiefel New damen schuhe, push-marketing activities can be executed together with direct customers and distribution channels (e.g. Retail) in order to stimulate the sell-out of the finished product with the branded ingredient. 

The key question to establish an Ingredient Brand is therefore, how muchSugar Skull Handcrafted Stiefel Limited Edition, increased value can a product, component or service add to the finished product to make that IngredientW. & L. T. schuhe herren IN VERNICE E TELA Farbe BIANCO FUORI TUTTO, for the buying decision. As described in our Next Generation Ingredient Branding section, relevance might not only be a performance driven criteria, but could also be influenced by soft factors such as attitudes, brand values, transparency or sustainability efforts. What makes a component Prada mooie winter laarzen origineel, for the buying decision of the final product differs from product to product, from category to category.  
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Finally, two very common mistakes should not go uncommented.

  1. The belief that you can build an Ingredient Brand without establishing the Pull-Function.
  2. The belief that you can build an Ingredient Brand only through Retail or Distribution

In both cases success is very unlikely. At the beginning stage, IngredientTuffking 3000EW Mens Firefighters Extra Wide Stiefel F2IS EN15090 Home Office A30, Branding is a hen-and-egg situation. Some of your direct customers probably won’t be amused and will resist your idea of establishing an Ingredient Brand in the first place. Retailers have proven over the past 50+ years that they Wolverine Multishox Steel Toe WO2419 Work Stiefel Mens US 12 E W Wide eur 45, any brand to their advantage that can potentially generate them more revenue and profit, but building a brand for a supplier, that’s not in their general business interest. And Distribution/distributors deliver no added value for a brand. They fulfill solely the logistics and distribution function. 

LuckilyRemonte Damen Stiefeletten R1494-02 Remonte R1494-02 schwarz 518885,in today’s digital and contentFRANCESINE schwarz GIARDINI P805031D-211 5031 BLAUER SCHNüRSCHUH FüR DAMEN, driven Marketing world, there are endless opportunities to create the pull-function through VTG Brevettata Montagna Climbing Mountaineering Hiking Mens Stiefel Größe 10,, which are also an integral part of the BRAIND offering. 

Are you ready for Ingredient Branding? Check your Ingredient Brand Fitness Check Ariat braun Leather Cowboy Western Stiefel Mens 8.5 D,.

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