Ingredient Branding: A Differentiation Strategy for the Commoditized World

Ingredient branding, as one of the potent branding strategies, relies upon the added equity based on a strategic alliance of two brands. This article aims to discuss the fundamentals of ingredient branding and consolidate the extant knowledge with the help of an extensive literature review. A set of implementation guidelines for ingredient branding strategy, as well as the risks associated with the strategy, have been discussed. Finally, it has been argued that ingredient branding, due to its nuances and advantages can be useful for a firm to differentiate against its competitors in a highly commoditized market. This article will help managers and marketers decide about adopting an ingredient branding strategy, and choosing the right ingredient for the host brand to achieve a sustainable differentiation against competition.

Leveraging Reputation for Product Innovation Through Strategic Co-Branding

In this chapter, we describe how the cooperation between an original equipment manufacturer and the supplier possibly influences consumers' product perception. In particular, this chapter focuses on joint brand appearance of the product and explains under which conditions the reputation of an innovative supplier affects the decision-making of consumers. Building on ingredient branding literature, we develop a model explaining the effect of the appearance of the manufacturer and the supplier on the final product as cue, influencing the consumers' quality judgment. The chapter contributes to a new and ongoing discussion on the management and strategic potential of ingredient branding offerings, their potential application fields with regard to practical examples, as well as the associated limits and risks.

Leveraging Reputation for Product Innovation Through Strategic Co-Branding

In this chapter, we describe how the cooperation between an original equipment manufacturer and the supplier possibly influences consumers' product perception. In particular, this chapter focuses on joint brand appearance of the product and explains under which conditions the reputation of an innovative supplier affects the decision-making of consumers. Building on ingredient branding literature, we develop a model explaining the effect of the appearance of the manufacturer and the supplier on the final product as cue, influencing the consumers' quality judgment. The chapter contributes to a new and ongoing discussion on the management and strategic potential of ingredient branding offerings, their potential application fields with regard to practical examples, as well as the associated limits and risks.