Tuesday, January 4, 2011

Ingredient Branding

An ingredient brand is exactly what the name implies: an ingredient or component of a product that has its own brand identity.
Well-known examples include PC computers with Intel Inside, diet soft drinks with NutraSweet, stereos with Dolby noise reduction, and Chevron gasoline with Techron.Some big-name ingredient brands, such as Intel and Teflon in cookware,have become the point-of-entry to their categories. Other high profile ingredient brands, such as Gore-Tex in outerwear and ski apparel, are not category requirements but greatly influence consumer preference and choice.

Ingredient branding is a sensible approach when the ingredient enjoys more perceived value than its host product. In general, if the host product is new or has low awareness, if its technology is complicated,or if the ingredient brand can provide the product with a legitimate quality advantage over its competition, then the ingredient branding strategy can be highly effective.
Conversely, for a product that already enjoys a premium image and highcustomer expectations, it's best to avoid ingredient branding and focuson growing the product brand.

for more info on this topic  http://www.landor.com/index.cfm?do=thinking.article&storyid=134&bhcp=1

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