Ingredient branding is a wise and crafty way to go about creating a unique brand. A successful ingredient brand has the power to directly influence direct customers preferences and boost sales. Ingredient branding focuses on a specific product or category of products, but not just any products.
Ingredient branding is used by many manufacturers and sellers of goods to facilitate buying decisions. With ingredient branding, consumers can be led to believe that their particular brand of choice is above the rest, even though that may not always be the case.
What is Ingredient Branding?
Ingredient branding is a marketing strategy where a component of the business is branded as a separate entity. The goal of this business model and stratey is to help increase sales and improve customer loyalty by associating your brand with something that people will want to buy or use.
In addition, it’s also meant to give your company an advantage over its competitors by providing more value than they do through their products or services.
For example, if you sell cookies, you could brand the chocolate chips used in those cookies as an individual ingredient instead of just labeling them “chocolate.”
This allows you to add even more value chain than your competition because not only are you selling delicious cookies but now they’re made using high-quality chocolate chips!
How Does Ingredient Branding Work?
Ingredient branding is the process of building a brand around the ingredients used in your product. It’s an important part of marketing because it helps you build trust with consumers, improve brand awareness, and increase sales.
To understand how ingredient brands works, it’s important to know what ingredients are and how they affect consumers. Ingredients are the raw materials that make up your product. For example, if you sell a facial scrub with sugar as an ingredient, sugar is one of the things that goes into making your product.
Ingredient branding works by telling people about all the good things about your product’s ingredients so they know what to expect when they buy it. This is different from traditional advertising because it doesn’t tell people about the specific benefits of using your product (e.g., how many uses they can get out of it) but instead focuses on telling them about its ingredients in general.
Can Ingredient Branding Help Your Business?
Ingredient Branding is a powerful marketing tool that can help you stand out from the crowd.
The secret is that it works on two levels: first, ingredient branding helps people remember what your brand’s product is and where they saw it—even if they don’t remember your name.
Second, ingredient branding can help you show off your brand’s personality and provide a consistent identity across all of your products and marketing materials.
Ingredient branding is especially useful if you have a small business and need to differentiate yourself from competitors, or if you have multiple products and want to make sure they are easily recognizable as part of your brand.
Difference between Ingredient Branding and Co-Branding?
Ingredient branding is a new and unique way of marketing products. It’s the process of building a brand around an ingredient, rather than the product itself.
Ingredient branding works by creating a distinct name for the ingredient, then using it as the basis for developing a new brand. The name is often derived from a combination of words that describe the benefits of using this ingredient, such as “Fiber-rich” or “Rich in Vitamin C.”
Co-branding is different because it involves two companies coming together to create one product. For example, if you have a cookie company and an ice cream company, they might co-brand their products by making a chocolate chip cookie ice cream with your cookies in it.
Examples of Ingredient Branding
Branding not only plays a role in the marketing of the complete product, but in the marketing of its ingredients and branded components as well.
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 successful Ingredient brands. 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 their own brand building, it is still the world’s leading authority in Processors and is famous for its “Intel Inside” marketing 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 brands 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.
Here is a video by Marketing91 on Ingredient Branding strategy:
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 end user.
- 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, effective supply chain 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 branded ingredient 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.