BRANDING...CO-BRANDING...INGREDIENT BRANDING
Do we know the Difference...Is it Important to Make Distinctions?
There are
several hundred
companies whose
only specialty is to
assist their clients
in developing
successful
branding
techniques in
an attempt to
differentiate
and ultimately
disrupt the target
segments their
clients covet.
40 | Coatings World
by Phil Phillips, PhD
Contributing Editor
phillips@chemarkconsulting.net
From the time we are able to set up and take nourishment, we are exposed to “branding.” Cereals (Kellogg Brands);
Computers (IBM, Apple); Beverages (Pepsi,
Coke, Dr. Pepper); Copiers (Xerox, HP);
Pharmaceuticals (Wyeth, Merck); Education
(Edison Learning); Transportation (Ford,
GM, Chrysler) to name a few, immediately
come to mind. These name brands are burned
into our brain through branding strategies by
major companies.
There are several hundred companies whose
only specialty is to assist their clients in developing successful branding techniques in an attempt to certainly differentiate and ultimately
disrupt the target segments their clients covet.
Brand is the “name, term, design, symbol,
or any other feature that identifies one seller’s
product distinct from those of other sellers.”
Initially, branding was adopted to differentiate
one person’s cattle from another’s by means of a
distinctive symbol burned into the animal’s skin
with a hot iron stamp, and was subsequently
used in business, marketing and advertising.
A brand is often the most valuable asset
of a corporation. Brand owners manage their
brands carefully to create shareholder value,
and brand valuation is an important management technique that ascribes a money value to
a brand, and allows marketing investment to
be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value.
Although only acquired brands appear on a
company’s balance sheet, the notion of putting
a value on a brand forces marketing leaders
to be focused on long term stewardship of the
brand and managing for value.
The word “brand” is often used as a metonym, referring to the company that is strongly
identified with a brand. (SOURCE: Wikipedia)
Ingredient Branding
The PC (Personal Computer) and Intel together
revolutionized the electronic industry. “Intel
www.coatingsworld.com
Inside” logo was the first Ingredient Brand to
become successful globally. However, in 2006
Intel announced a radical shift of company
focus and change to master branding. They
would provide not only the silicon for the telecom switchboards, but supply . . . . single board
computers, platforms, including all the accessories. Intel would provide all the necessary
products and tools that a telecommunications
company needs in order to make the job easier.
Intel is no longer just an Ingredient Brand
but it is now a “top shelf” brand.
Other prominent examples of Ingredient
Branding or InBranding are: Bayer’s Makrolon
polycarbonate used in auto and appliance applications while Dolby (in sound systems);
Lycra and Gore-Tex (in textiles); and Splenda
and NutraSweet prevail in sugar substitutes.
Co-Branding
Co-Branding is defined as the combination of
two brands to create a single, unique product.
The purpose of Co-Branding is to capitalize on
the equity of each brand and enhance the success of the total product. A perfect example of
the successful use of Co-Branding would be a
luxury car . . . Bentley and a fine time piece . . . . .
Breitling. They help each other strengthen their
respective brands while concurrently remaining
distinct from each other. They co-magnify each
other’s high-end luxury image.
Inverse Ingredient Branding
Inverse Ingredient Branding is driven by the
manufacturer of the finished products. The auto
industry is replete with examples of this type
of branding. Antilock brake systems (ABS);
electronic stability program (ESP) offered by
Bosch, Continental, TRW AUTOMOTIVE and
Delphi. End-user buyers are aware of the brand
strengths of the company’s offerings and buy
accordingly.
Paints and Coatings Branding
Strategies
It’s often mentioned in the past that coatings are
one of the final products’ most valued elements
in a consumers decision to purchase, but the
last thing producers think of when developing
