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04. February 2019

Wikipedia defines Ingredient Branding as “creating a brand for an ingredient or Asics Gel Patriot 9 Running Turnschuhe Mens Gents Nylon Runners Laces Fastened,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 existAsics Gel-Lique Mens schuhe Light Indigo Feather grau h6k0l-400,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, asMens Asics Gel Lyte V NS G TX HY7J1 9595 Light grau Lace Up Casual Trainers,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 lineREEBOK ROYAL CLASSIC JOGGER 2.0 2V Blau-32,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 supplyMens Nike Free Run Motion Flyknit Größe UK 7.5 schwarz Weiß volt off Weiß, chain. The fundamental principle of it is to apply a Authentic Exclusive Nike SB FC ® (Men Größe UK 10 EUR 45) grau Weiß 2018 ,

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By starting to communicate the benefits of the Ingredient to at least one level below direct customers, aSchuhe Asics Gel-Torrance Größe 41.5 T7J3N-9790 grau, 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, variousMens New Balance 575 schuhe Größe 9.5 MRT572BG 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 muchPUMA SUEDE CLASSIC WN'S Rosa, increased value can a product, component or service add to the finished product to make that IngredientPuma Ignite Limitless Knit Olive P18998703, 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 Puma 363722 01 Weiß Low Turnschuhe Man Fall Winter, 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, IngredientNike Air Max 90 Ultra 2.0 Essential Größe 5.5., 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 MAKE AN OFFER RARE PAIR Größe 7 NIKE COURT FORCE SP FRAGMENT - 814913-414, 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. 

LuckilyDIADORA GAME CV schuhe FREE TIME herren 173124 C5302,in today’s digital and contentSupra Turnschuhe Größe 40,5, driven Marketing world, there are endless opportunities to create the pull-function through Dusty Peach Nike Mens Air Max 95 Premium SE. Größe UK 7, EUR 41, CM 26,, which are also an integral part of the BRAIND offering. 

Are you ready for Ingredient Branding? Check your Ingredient Brand Fitness Check BY85 NYON by CORAF schuhe Blau textile suede men Turnschuhe EU 39,.

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