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04. February 2019

Wikipedia defines Ingredient Branding as “creating a brand for an ingredient or Steve Madden Größe 9 braun Leather Stiefel New Mens schuhe,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 exist5.11 Tactical Taclite 6 Military Combat Stiefel SZ 11W Coyote braun Fast Shipping,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 linePleaser ADORE-701SRS Exotic Dancing Platform Slide,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 supplyAlpina Damen Herren Schuhe Tracker Low braun Veloursleder NEU, chain. The fundamental principle of it is to apply a Bella Vita damen zelda Suede Almond Toe Ankle Fashion Stiefel,

braind, ingredient branding, ingredient brand, ingredient brand model,
 

By starting to communicate the benefits of the Ingredient to at least one level below direct customers, aFashion Stiefel Damen Stiefel Neu Schuhe Hoher Absatz Kneehohe Block Absatz, 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, variousNine West damen Nicolah Leather Pointed Toe Knee High Fashion, Cognac, Größe 5.5, 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 much 499 PARC CITY Stiefel Mens Blau LEATHER CHUKKA CASUAL LACE UP Stiefel schuhe Größe 9.5, increased value can a product, component or service add to the finished product to make that IngredientS3 Sicherheitsschuhe Arbeitsschuhe Bau Stahlkappe Stiefel über Knöchel, 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 Vtg New Georgia Mens 9 M Leather Lace Up Insulated Outdoor Logger Stiefel braun, for the buying decision of the final product differs from product to product, from category to category.  
braind, ingredient branding, ingredient brand, ingredient brand model
 

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, IngredientDamenschuhe Stiefel Schwarz Muster Modern Nubukleder Spitz Warm Stiletto Gold, 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 DAKOTA Mens 8'' 8410 Composite Toe Composite Plate Injected Work Stiefel braun 10M, 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. 

LuckilyJana Damen Stiefeletten Woms Stiefel 8-8-25306-21 001 schwarz 491628,in today’s digital and contentPolo Ralph Lauren Maurice Cognac braun Genuine Leather Winter Stiefel Größe 10 D, driven Marketing world, there are endless opportunities to create the pull-function through schuhe damen COLLO ALTO braun ORIGINALE CHLOE 37 ZEPPA ALTA LEGNO WOOL schuhe,, which are also an integral part of the BRAIND offering. 

Are you ready for Ingredient Branding? Check your Ingredient Brand Fitness Check Damen Clarks Chelsea Stiefel Schneider glanz,.

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