04. February 2019

Wikipedia defines Ingredient Branding as “creating a brand for an ingredient or Joma Greifer Herren Trail Laufschuhe, Athletic Turnschuhe, Fluor,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 existPuma Basket_classic_357368-01 Turnschuhe Unisex - kleur Grijs NL,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, asGEOX U Snake E Schuhe Herren Turnschuhe Halbschuhe chocolate U8207E02214C6K6Z,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 lineSchuhe ASICS Mann schwarz PU,Stoff T825N-001,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 supplyK-Swiss Baxter SP Turnschuhe Schuhe Rinzler Belmont Arvee schwarz Weiß 05444-002, chain. The fundamental principle of it is to apply a Globe Tobacco braun GS Chukka schuhe,

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By starting to communicate the benefits of the Ingredient to at least one level below direct customers, aCONVERSE All Star Herren Schuhe in schwarz Gr.41,5 Neu mit Karton, 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, variousAdidas Originals Dragon OG Turnschuhe Grautöne NEU Schuhe Turnschuhe, 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 muchFila 94 Low herren Weiß Navy rot Pelle e Tessile schuhe da Ginnastica - 9 UK, increased value can a product, component or service add to the finished product to make that IngredientSchuhe VANS Mann schwarz Stoff,Wildleder VA3MTJT2J, 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 Emerica Skateboard schuhe Figgy Dose Weiß Gum, 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, IngredientNEW BALANCE 574 herren grau Scamosciata  , 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 Schuhe PHOENIX Professional Line schwarz, Gr.36-47, Budo. Taekwondo. Karate, 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. 

LuckilyNeu Puma Astro Sala HERREN SCHUHE Blau Indigo Puma Weiß 362361-11,in today’s digital and contentADIDAS HOOPS 2.0 MID B44661 Turnschuhe Herren Herrenschuhe Turnschuhe, driven Marketing world, there are endless opportunities to create the pull-function through Lacoste Straightset Turnschuhe, Gr. 46.5, Leder, Weiß,, which are also an integral part of the BRAIND offering. 

Are you ready for Ingredient Branding? Check your Ingredient Brand Fitness Check Kenneth Cole New York Herren Design 1120752 Schwarz Leder Turnschuhe,.

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