Ingredient brand strategies can play an important role in product differentiation—especially if the ingredient is patented or offers a significant performance improvement to the host brand.
The most powerful ingredient brands create trust and credibility for the host. Take the CORDURA® brand. CORDURA brings the functional benefit of added durability and instills confidence in the user. Hardcore mountain climbers look for the CORDURA brand hang-tag as a dependability guarantee for their apparel and gear.
Identifying the right ingredient partner begins with understanding the specific functional benefit sought by the consumer—such as durability. The right partnership also can open up great co-marketing opportunities to build brand equity for both the host and ingredient brands. For example, Swedish shoe brand Salming recently partnered with Vibram® to create a new trail shoe. Vibram is known for its quality, and the Vibram logo is clearly visible on the shoe, supporting Salming’s position as a top outdoor brand. In addition, the two companies have created an outstanding co-branded video romancing trail running and how their brands combine to maximize the experience.
Sometimes standalone product brands also can be used as ingredients to improve the customer experience. Georgia-Pacific’s enMotion® touchless dispensers and hand sanitizers improve the mental and physical well-being of patients and guests in healthcare settings by protecting them from the spread of germs. Another example is the inclusion of SiriusXM® radio in most Ford autos. which helps improve the overall ride experience.
Consumers trust established brands. However, in a sea of established brands, the point of differentiation is key. Radii Latin America brand strategists are experienced in successfully identifying and uniting ingredient and host brands. In addition, we have helped product brands enter new markets through ingredient positioning. Let us help you achieve new levels of differentiation and value through an ingredient branding strategy. Consult the Services section of our website for more details and contact us today!
Credit to Jim Cobb (The Bloodhound Group)
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