Ingredient branding the du pont way final version__pgp31029_ishita basu
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DuPont has a long history of ingredient branding dating back to 1808 when DuPont became its company trade name. In 1909, DuPont established its super brand by connecting all of its brand names to "DuPont". Through the 20th century, DuPont shaped its image around ingredient branding and introduced iconic products like nylon. In the late 1980s, the term "ingredient branding" came into practice to describe DuPont's strategy of promoting its corporate brand throughout the value chain. While ingredient branding provides benefits like increased sales and brand equity, there are also challenges such as remaining invisible to consumers and retaining control over brand management.
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Nature and importance of brands
Characteristics of a good brand name
Branding strategies of producers and middlemen
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Marketing implications of product features
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Green marketing involves developing and promoting products and services in an environmentally friendly way. It can help build a company's image and satisfy customer demand for sustainable options. However, there are also challenges to green marketing, such as higher costs and lack of consumer awareness. Authentic green marketing that avoids greenwashing can help drive long-term growth while addressing environmental issues.
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Brand strategies can take several forms including individual branding, blanket family branding, umbrella branding, separate family branding, and corporate name combined branding. Co-branding involves two or more brands appearing together in ingredient, same company, joint venture, or multiple sponsor forms. Multiple branding refers to a company having many brands in a single product category. The key is developing a long-term branding strategy that identifies target audiences and understands their needs in order to effectively position the brand.
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Green Marketing
Green marketing involves developing and promoting products and services that satisfy customer needs for quality, performance, and affordability without harming the environment. Some examples include McDonald's using recycled paper for napkins and bags, and Phillips CFL lamps that save electricity compared to normal bulbs. Green marketing has evolved from ecological to environmental to sustainable marketing. Reasons for green marketing include protecting the environment, utilizing resources efficiently, creating new market opportunities, gaining competitive advantages, reducing government pressure, and minimizing costs and maximizing profits while creating social responsibility for customers. Benefits include accessing new markets, increasing profit sustainability, and enjoying competitive advantages. Challenges include green products being costly to produce using renewable materials, requiring large investments in technology R&D
Green marketing
Green marketing involves promoting environmentally friendly products and reducing a business's environmental impact. Some techniques include eco-labels, green campaigns, and using sustainable materials and processes. Many companies profiled implement initiatives like reducing waste and emissions, increasing recycling and renewable energy use, and developing more eco-friendly products. However, greenwashing, where companies overstate their environmental efforts, is a risk. While green marketing can help the environment and lower costs, high prices and low consumer awareness in India pose challenges to its popularity there.
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Ingredient branding the du pont way final version__pgp31029_ishita basu
- 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