This document discusses ingredient branding as a strategy for building brand equity. It provides examples of successful ingredient branding partnerships like Intel Inside. It also summarizes DuPont's use of ingredient branding by promoting materials like Kevlar and Teflon. The key aspects of a successful ingredient branding strategy are selecting an ingredient with high awareness and strong attributes, ensuring visibility of the ingredient brand, and mutually beneficial financial agreements. Ingredient branding can increase sales, bargaining power, and brand loyalty when executed properly.

1. Build Your Brand Together
The Ingredient Branding Way

2. Understanding role of secondary associations in brand building.
Learning in brief about Co-Branding.
A special case under Co-Branding: Ingredient Branding.
Learning from case : Ingredient Branding The DuPont Way.
Indian Ingredient Branding examples.
Do’s & Don’t of Ingredient Branding in 21st century.
Summary.
Table Of Content – 7 items

3. Leveraging Secondary Brand
Associations to build Brand equity
An effective way to build brand
equity of your brand by linking it
to other entities.These linkages
help brand to borrow some brand
equity from other entities.
Puerto Rico Rum makers leveraging
their geographical roots to establish
dominant market position.

4. Secondary Brand Association Sources
Brand Places
Countries of
Origin
Channels
Things
Events Causes Third-party
endorsements
People
Employees
Ensdorsers
Other
Brands
ExtensionsAlliances
Ingredients Company

5. Important factors in predicting the extent of leverage
Awareness and Knowledge of identity.
Question needs to be answered : What do consumers know about the other entity?
Meaningfulness of the knowledge of the entity.
Question needs to be answered : Does the knowledge about other entity affect
what customers think about the brand when it is linked with the other brand?
Transferability of the knowledge of the entity.
Question needs to be answered : How strongly the knowledge of other brand will be
linked by consumers to the brand?

6. Co-Branding
Cobranding is a marketing partnership between at least two different brands of
goods or services. This strategy typically associates the brands of at least two
companies with a specific good or service.

7. Advantages and Disadvantages of Co-Branding
Advantages
• Borrow Needed Expertise
• Leverage equity brand doesn’t have.
• Reduce cost of Product Introduction.
• Source of Additional Revenue
Disadvantages
• Loss of Control
• Risk of brand equity dilution
• Negative feedback effects
• Lack of brand focus and clarity
• Organizational distraction

8. Successful Cobranding Partnerships
The French
fashion house
Louis Vuitton has
created a range
of carbon fibre
luggage designed
specifically to fit
BMW’s new i8
sports car.
The Bonne Bell a
US based lip balm
company created
a lip balm
containing flavor
of Dr. Pepper’s
brand.

9. Ingredient Branding
A special case of Co-Branding which creates brand equity for materials, components
or parts that are necessarily contained within other branded products.
Producer decides communication policy of
ingredients used in the product.
A symbolic relationship providing tangible
benefits for both host and ingredient.

10. “Intel Inside” : The Ingredient’s Story
Intel owes it’s success to “Intel inside” Integrated Branding campaign.
“Intel Inside” campaign was launched in 1991 with 200 OEM’s.
“Intel Inside” taught consumers to look for Intel Inside logo in computers.
By 2007: 1000 OEM licensees. 80% consumers prefer Intel in PCs.

11. The ingredient brand must bring significant enhancement to the product.
Ideally, the ingredient brand should have high awareness.
Ingredient brand should have a strong performance attribute or feature.
Linking the ingredient brand to product should increase brand awareness.
Financial deal struck between two brands must be mutually beneficial.
The ingredient brand must be visibly featured on the product or it’s packaging.
Keys To successful Ingredient Branding Strategy

12. Ingredient Branding the DuPont Way
Case Analysis
• Founded in July 1802 by “Eluthere Irene
Dupont de Nermours”.
• Headquartered in Delaware,US. Dupont
started as a gun powder making mill.
• Product line of DuPont ranges from
apparel to aerospace.
• Brands created by Dupont have been
used as components in variety of
products.

13. Should I go for
Ingredient Branding
or not?
DuPont Brand Manager
Quantitative Analysis
• Model estimate the return on promoting
the product as an ingredient brand.
• Input provided are brand resource
allocations, in return model predicts
favorability ratings and potential sales.
Qualitative Analysis
• DuPont assess through consumer and
competition analyses that if ingredient
branding will help in product’s
positioning or not.

14. Ingredient Branding - Win-win strategy for
DuPont
Higher Price Premiums (often as
much as 20 percent)
Enhanced Brand loyalty
Increased Bargaining power with
other members of value chain.

15. Marketing The Stainmaster Brand
DuPont integrated Stain-resistant
carpet fiber with tough brand like
Stainmaster
Result: Beyond Expectation
75% sales in stain Resistant carpet segment belong to DuPont

16. P&G and Dupont turning corn leaves to clean washing
Watch this wonderful video on Ingredient
branding

17. “Desi” Ingredient Marketing stories
Pani Puri waala based
out of Mumbai creates
brand awareness using
Bisleri as an ingredient.
https://foursquare.com/v/bisleri-chaatwala/4f0d8d84e4b050cacf526b72

18. Established in 1946 Amul is considered as an epitome of quality when
it comes to dairy products in India.
Local Restaurant and hotels use Amul’s brand to establish credibility
of their food items.

19. Do’s & Dont’s of Ingredient Branding
Ingredient selection for the product is becoming complicated; earlier with limited
competition and innovation ingredients which offered value were chosen but now
the market presence of ingredient is also taken account.
Be careful whom you are dealing with; Ingredient Branding is a risky business
where sometimes ingredient eats away the host brand e.g. DuPont built the Lycra,
Kevlar, Teflon, and rayon ingredient brands and slowly these brands become more
popular than the manufacturer brand which used them.
Not only the choice of ingredient brand but also the fact that how long one stick
with ingredient brand; determines the course of host brand in future.

20. Summary
• If there is a secondary entity that already exists which has good brand image and
brand awareness, we could somehow link our brand to their brand to transfer
equity to our brand.
• If consumers have no awareness of the secondary entity, then they cannot
transfer anything from it. Therefore it is important to carefully evaluate the
secondary entity before linking to the brand.
• A special case of Co-Branding, Ingredient Branding offers a potential for
successful brand awareness and increased profits for companies which mutually
decides to come together, along with added value for the customer.
• One of the greatest successful stories in Ingredient Branding history is of "Intel".
Intel Corporation demonstrated the marketing possibilities of Ingredient
Branding for both component manufacturers, as well as the manufacturers of
finished goods.

21. DISCLAIMER
This work is created By Nishant Hirani, IIM
Lucknow, as a part of term end project for the
Brand Management course under the guidance of
Prof. Sameer Mathur
https://in.linkedin.com/in/sameermathur