Inbranding
Think Big in Small Things
Challenges and Opportunities of Ingredient Branding
Waldemar Pfoertsch 2006
The brand in the brand “Ingredient Branding“
Jackson, Tim (1997)
Ingredient Branding examples
• Microban • Made of Makrolon • GoreTex • Dolby Stereo • Nirosta
Pfoertsch/Mueller (2005)
1
Brand extension examples of ingredient branding
• Beechnut baby foods with Chiquita banana, • Ben and Jeny's Heath Bar Crunch ice cream, and Fat Free Cranberry Newtons with Ocean Spray cranberries • Kellogg’s Pop-Tarts with Smucker’s
(Rao, Qu, and Ruekert 1999; Shocker, Srivastava, and Ruekert 1994)
Company owned Ingredient brands
David Aaker, 2003
The basic motivation for using ingredient branding
• Enhances the differentiation of the host brand from competition • Improve the competitiveness • Enhance the equity of host brand
David Aaker, 2003 Desai/Keller (2002) McCarthy/Norris (1999)
2
Effects of branded ingredients
McCarthy/Norris (1999)
Change of competitiveness through branded ingredients
McCarthy/Norris (1999)
B2B Brands are reaching out to via OEM and distribution to the end user
Active Passive support Whole
/Re-
User
Ingredient supplier
OEM tail Pfoertsch/Mueller (2005)
3
Ingredient Branding executes a multilevel marketing policy
IngredientSupplier
Selling Sourcing
Multi Level Marketing
First Level Marketing
Original Equipment Mfg sourcing Selling
Second Level Marketing Third Level Marketing
Kleinaltenkamp (2001)
Distribution
Souring Selling
End user
Destinction between InBranding and Co-Branding
Branding Approach
singular
„branded“ product „co-branded“ product
Classic branded finished product
Intel
Not possible
Microban Makrolon
„self-branded“ ingredient
Tide & Downy VISA & Citibank
in cooperation
Intel & Dell NutraSweet & Coca Cola
Lycra & Woolmark
„co-branded“ ingredient
Ingredient Branding Ingredients Co-Branding
Final products
Challenges and Opportunities of Ingredient Branding
Waldemar Pfoertsch 2006
The brand in the brand “Ingredient Branding“
Jackson, Tim (1997)
Ingredient Branding examples
• Microban • Made of Makrolon • GoreTex • Dolby Stereo • Nirosta
Pfoertsch/Mueller (2005)
1
Brand extension examples of ingredient branding
• Beechnut baby foods with Chiquita banana, • Ben and Jeny's Heath Bar Crunch ice cream, and Fat Free Cranberry Newtons with Ocean Spray cranberries • Kellogg’s Pop-Tarts with Smucker’s
(Rao, Qu, and Ruekert 1999; Shocker, Srivastava, and Ruekert 1994)
Company owned Ingredient brands
David Aaker, 2003
The basic motivation for using ingredient branding
• Enhances the differentiation of the host brand from competition • Improve the competitiveness • Enhance the equity of host brand
David Aaker, 2003 Desai/Keller (2002) McCarthy/Norris (1999)
2
Effects of branded ingredients
McCarthy/Norris (1999)
Change of competitiveness through branded ingredients
McCarthy/Norris (1999)
B2B Brands are reaching out to via OEM and distribution to the end user
Active Passive support Whole
/Re-
User
Ingredient supplier
OEM tail Pfoertsch/Mueller (2005)
3
Ingredient Branding executes a multilevel marketing policy
IngredientSupplier
Selling Sourcing
Multi Level Marketing
First Level Marketing
Original Equipment Mfg sourcing Selling
Second Level Marketing Third Level Marketing
Kleinaltenkamp (2001)
Distribution
Souring Selling
End user
Destinction between InBranding and Co-Branding
Branding Approach
singular
„branded“ product „co-branded“ product
Classic branded finished product
Intel
Not possible
Microban Makrolon
„self-branded“ ingredient
Tide & Downy VISA & Citibank
in cooperation
Intel & Dell NutraSweet & Coca Cola
Lycra & Woolmark
„co-branded“ ingredient
Ingredient Branding Ingredients Co-Branding
Final products