{"id":216,"date":"2018-08-17T15:43:08","date_gmt":"2018-08-17T10:13:08","guid":{"rendered":"http:\/\/marshmallow.in\/blog\/?p=216"},"modified":"2018-08-17T15:43:44","modified_gmt":"2018-08-17T10:13:44","slug":"that-magic-ingredient","status":"publish","type":"post","link":"https:\/\/www.marshmallow.in\/blog\/that-magic-ingredient\/","title":{"rendered":"That Magic Ingredient!"},"content":{"rendered":"
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Introduction <\/strong><\/p>\n

Ever wondered, why do we pay more for a cooking pan with a Teflon sticker? Or why has McFlurry become so popular? In addition, how did Sunkist make its name?<\/p>\n

Ingredient branding \u2013 creating a different identity <\/strong><\/p>\n

The answer is, we don\u2019t really trust on the quality of the pan and material used. We need the assurance of technology used by the Teflon brand. If it wasn\u2019t Oreo in McFlurry, the product wouldn\u2019t have probably gained this leverage. Or, we wouldn\u2019t wish to buy an orange without a quality claim of the Sunkist brand.<\/p>\n

Take the example of Tetra Pak, a packaging material manufacturer. Why would a consumer want to buy milk in a Tetra Pak packaging when it drives up the price point even for a single transaction? Of course, for the benefits that that packaging offers, provided the customer know its various benefits.<\/p>\n

Brands<\/a> have leveraged on this very strategy and hence have managed to create an identity different from their host brands. A variant of this theme is called ‘ingredient branding’. As part of this strategy, it is positioning the brand of an ingredient on the product that increases its appeal.<\/p>\n

Ingredient brands follow different rules<\/strong><\/p>\n

Ingredient brands follow different rules than consumer-facing brands. \u00a0Such brands are not necessary identifiable visually on an individual basis because they become a part of the common identity along with the other brand. In branding parlance, it is called visually complementing the other brands without any conflict.\u00a0 Therefore, when a brand becomes an ingredient brand, it has the capability to command a higher price and be more profitable.<\/p>\n

A similar and classic example of ingredient branding would be Intel with its \u201cIntel Inside\u201dcampaign launched in the early nineties.During this campaign, they taught consumers to look for the Intel Inside\u00ae logo as an assurance of quality.<\/p>\n

Many consumers seeking quality in computer products eventually came to see \u201cIntel Inside\u201d as a standard inclusion, after which they began asking this question: \u201cWhy doesn\u2019t your product use Intel processors?\u201d Because of this increased awareness, hundreds of computer companies today license the use of the Intel Inside\u00ae logos.<\/p>\n

We\u2019ve also seen automakers jump on the ingredient branding band wagon too. Looking to cash in on the iconic fervour, Bajaj Motorcycles in 2016, launched its new bike Bajaj V, forged from the invincible metal of the 1971 Indo-Pak war hero INS Vikrant. The campaign was a big hit and today, people remember Bajaj\u2019s comeback with rebirth of INS Vikrant.<\/p>\n

When ingredient branding comes into the picture <\/strong><\/p>\n

Now, let us understand when ingredient branding comes into the picture with the help of a few examples:<\/p>\n