Branding not only plays a role in the marketing of the complete product, but in the marketing of its ingredients and components as well. As the market exploded, more and more companies found out that Pull marketing was the way to get their product accepted in the market and to realize higher turnover and to create automatic demand.
However, it is not easy to create demand for a product which is very technical in nature or which is mundane and to which customers do not pay attention. Today, everyone knows what Intel is, and what Dolby surround sound is, or why Teflon material is important while cooking. But imagine the hardship a brand like Intel faced when it started out. It had to make a boring thing like Microprocessors, sound exciting and it had to ensure that customers wanted Intel microprocessors over others.
And what a job Intel did!!
What Intel did is known as Ingredient branding. Intel is a component or an ingredient in a computer. It is not the computer itself. Intel started by directly marketing to manufacturers and OEMs and by showing the power of their processors. Once the manufacturers were impressed, Intel did not keep silent. Instead, it started Ingredient branding and began marketing to the mass market and created a demand for itself.
Customers specifically began entering computer shops and asking for Intel processors. The same laptop and desktop computers could have provided a similar specification at a cheaper rate. But because Intel had invested in brand building, it is still the world’s leading authority in Processors and is famous for its “Intel Inside” campaign. Intel still stands as the best example of Ingredient branding. You buy a computer, because of the ingredient inside.
As the markets expanded, ingredient branding became more and more important. Automakers realized they were losing a lot of business during the servicing of their cars due to spare parts. If their customers were getting poor spare parts, the car and the brand both suffered. Thus, decades long Ingredient branding campaigns started wherein car manufacturers educated customers the importance of using spares and parts from the manufacturers themselves and not to buy from the grey or open market.
Similarly there were other brands who showed panache of Ingredient branding. Dolby surround sound came in the picture when movies started advertising that they were being showed in Dolby surround sound. Teflon coating become a prominent ingredient branding figure for cookware across the globe. Honda is famous for its engines. A recent example of Ingredient branding is the Operating system which is within the smartphone or laptop – Whether it is Android / Apple / Windos / IOS. The Operating system is specifically advertised.
How to plan an excellent Ingredient branding campaign?
- Focus on Differentiation – A key factor for any ingredient brand is to focus on differentiation. As it is an ingredient, it needs to be better then all the others in the market.
- Communicate with the market – An ingredient brand needs to keep its market communications open. Not only with manufacturers, but the end consumers as well, who need to understand WHY the ingredient brand is better.
- Associate yourself with strong brands – The stronger brands you associate yourself with, the more your build your brand identity.
- Create a unique brand identity – By using logos, the right packaging and the right marketing, an Ingredient brand can create a unique brand identity for itself.
- Increase desirability – Desirability can be increased for an ingredient brand as it advertises about itself and as people realize more and more about its importance in their products and the role the ingredient plays in making the product more better for the customer.
- Penetrate the market to create awareness – The ingredient brand has to make the market aware as wide and as fast as possible and create relationships with their customers. This awareness will create demand and therefore more penetration in the market.
- Keep upgrading – The ingredient has to keep itself upgraded in terms of technology and market standards because it needs to be differentiated at all times. As it is a focused products, it cannot afford being outdated.
Overall, If a manufacturer makes a complete product and brands itself, then it has to ensure that the ingredients are branded too so that the manufacturer receives a boost to the main brand via the ingredients as well. Otherwise too, any brand which wants to target an Ingredient as a product, can use the above tips to market itself and use Ingredient branding methods to penetrate in the market.