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04. February 2019

Wikipedia defines Ingredient Branding as “creating a brand for an ingredient or Nike Air Max Mid Utility Premium Presto AA0674-003 UK4.5 EU38 US7 Sample 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 existSport Hausschuhe schwarz GIARDINI A806570D, Farbe Blau,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, asINC International Concepts damen Rikkie Closed Toe Knee High 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 lineNew Balance damen 574 Glacial teal navy WL574SLY,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 supplyCrown Vintage Frauen kallee3 Pumps rund Fashion Stiefel Blau Groesse 7.5 US 38., chain. The fundamental principle of it is to apply a THE NORTH FACE damen Stiefel Größe USA 7 EUR 38 Rosa SUEDE WATERPROOF winter warm,

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, aFRYE Riding Stiefel, Größe 9 B, 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, variousCara damen Fern Ankle Stiefel, 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 muchHausschuhe bajas - Gioseppo Taupe damen Sintético 41066 2269710, increased value can a product, component or service add to the finished product to make that IngredientBare Traps damen aero Closed Toe Ankle Cold Weather Stiefel, Mud, Größe 9.0 YSCz, 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 Avec Les Filles Frauen Valerie Fashion Turnschuhe, 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, Ingredientdamen Größe6 Nike Runners Joggers Trainers, 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 Style & Co. Frauen Luciaa Pumps rund Leder Fashion Stiefel Schwarz Groesse 7 US, 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. 

LuckilyThe North Face Damen Back to Berkeley rotux Schuhe Freizeitschuhe NEU,in today’s digital and contentdamen Nike Air Huarache Run iD Volt Hot Lava Deep Royal Blau SZ 6.5 777331-994, driven Marketing world, there are endless opportunities to create the pull-function through damen Puma damenSuede Classic Trainers in Blau - UK 7.5,, which are also an integral part of the BRAIND offering. 

Are you ready for Ingredient Branding? Check your Ingredient Brand Fitness Check Jeffrey Campbell St. Elmo braun Suede Stiefelie Größe 9.5 MSRP 145,.

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