Individual assignment

1. INGREDIENT BRANDING THE DUPONT WAY

2. 1808: “DuPont”
became a
company trade
name
1909: DuPont
super brand was
born, connecting
all brand names
to “DuPont”
1934-1936: Shaping
image around the
oval shape
Generic issues arise
E.g. DUPRENE vs
NEOPRENE
1939: Nylon
introduced at
World’s Fair, not
trademarked
1946-1960: Post-
war boom/burst
of product
innovation
Late 1980’s: Term
“Ingredient
Branding” came
into practise
1994: Brand
licencing starts
1999: Innovations
shifted from
chemicals to
science intensive
programmes
DARE
BIGGER
THE DUPONT BRAND STORY

3. To Do list for the world

4. Discovering global energy solutions
• Car light weighing by using engineered plastics to replace heavy metals
• Invention and utilization of alternative energy solutions
• Effective utilization of the already available energy resources
• Achieving zero carbon footprint by implementing green technologies

5. Ensuring food security through partnership
• Working locally with the farmers of BRICS in collaboration with other agencies
• Transferring knowledge of sustainable food and agriculture to the next generation
• First-of-its-kind standardized tool to identify food security risks and opportunities
• Genetic engineering of seeds to help bring solutions to food security challenges

6. Safeguarding life and environment
• 100% biological diecing technology for air-engines at sub-zero temperature
• Manufacturing flash protective clothing for electricians working with fire arc
• Implementing workplace safety by improving safety culture and educating employees

7. Some of the DuPont products…

8. The Power: Manufactures the core ingredient The challenge: They are invisible

9. Overcoming the challenge..
Nurturing the corporate brand of
Leveraging successful brand throughout the value chain

10. One incident that changed DuPont’s outlook forever..

11. And ingredient branding became its strategy…

14. AND HERE WERE THE OUTCOMES!!

16. The name DuPont adds value across the portfolio by
• Increasing purchase intent for new brands
• Enhancing awareness about less known brands
• Association with strong brands strengthens its corporate image

17. The million dollar question: Why ingredient branding?

19. When to ingredient brand a product?

20. QUANTITATIVE APPROACH: Calculating ROI of promoting
a product as ingredient brand with inputs as advertising,
trade support
QUALITATIVE APPROACH: Assessing the contribution of
ingredient branding in product positioning in terms of
boosting sales.

21. How does ingredient branding take place?

22. Research consumption
behaviour
Direct consumer
promotion
Collaboration with manufacturer in
promotion
Expansion of
manufacturer user base
Collaboration with
manufacturers in non-promo
areas

24. • Firm making and supplying the ingredient brand:
• Generating greater sales at a higher margin by consumer pull
• More stable and broader consumer demand
• Better long-term supplier-buyer relationship
• New source of revenue; royalty rights paid to display the brand
• Manufacturer of host product:
• Enhancing own brand equity by leveraging ingredient brand
• Access to new product categories and sharing production costs
WHY INGREDIENT BRANDING?
• Costs of supporting marketing programmes can be high
• Like co-branding this is associated with loss of control
• Manufacturers can be reluctant to be supplier dependant
• Manufacturers might believe ingredient brand adds no value
• Manufacturers might resent on the context of “Real Brand”!
• Consistency of the competitive advantage might be uncertain
WHY NOT INGREDIENT BRANDING?
THE BRAND LESSON

25. DISCLAIMER
CREATED BY ISHITA BASU, IIM LUCKNOW (PGDM),
DURING THE PGP BRAND MANAGEMENT COURSE
TAUGHT BY PROF. SAMEER MATHUR AT IIM
LUCKNOW