INGREDIENT BRANDING: MAKING THE INVISIBLE VISIBLE

“Making the invisible visible”: is it possible?

In marketing it is possible, thanks to Ingredient Branding. One of the most famous Italian company that adopted this marketing strategy is Brembo, the global leader in design, development and production of braking systems. For the automotive passionate people this brand represents a reference: Brembo was able to transform a usually invisible component of vehicles, into a product enhancing value and awareness.

This win-win strategy leads Brembo to be well-known to consumers because it represents a quality and security guarantee; but at the same time the strategy gives advantages to those partner companies in the automotive industry whose products are chosen by consumers even because their vehicles are equipped with Brembo braking systems.

It is an example of how a too much engineering and not nice looked product as braking systems is becoming a design and increasingly sought-after product. (http://www.brembo.com/en/)

Ingredient branding and its advantages

 

Ingredient branding is a special form of brand alliance, based on cooperative design and delivery of a product with particular emphasis on the possibility to identify the components in the final product. Companies can adopt this new brand strategy to provide customers with a multi-sensory brand experience: it guarantees additional information about ingredients and more quality, and it satisfies the customer’s need to have certain components in a product.

 

Ingredient Branding is based on four steps:

1)    Creation of a co-operative agreement between the ingredient manufacturer and the end product manufacturer that is translated in the labelling of supplier’s components on the end product. This agreement leads to a win-win relationship;

2)    Recognition of the Ingredient Brand from its dependency on the host product;

3)    Benefit for each brand from the alliance and cooperation;

4)    Greatness of the Ingredient Brand compared to the brand value of end product manufacturer.

Ingredient branding is a successful strategy for the companies to create a closer and trust relationship with suppliers of the ingredient products. Moreover, it allows to improve the quality of host product increasing its attractiveness and establishing, at the same time, a point of differentiation from other competitors. The product development can increase the customer loyalty through a better experience and, at the same time, it can create more market segments and distribution channels for the host manufacturer. This marketing tool leads company to create higher perceived value of the product and increase its brand awareness becoming a quality guarantee, taking advantages to each part of the strategic agreement.

 

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