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Ingredient Branding: A Differentiation Strategy for the Commoditized World

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  • Tapish Panwar
  • Kalim Khan

Abstract

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.

Suggested Citation

  • Tapish Panwar & Kalim Khan, 2020. "Ingredient Branding: A Differentiation Strategy for the Commoditized World," Paradigm, , vol. 24(2), pages 149-163, December.
    • Handle: RePEc:sae:padigm:v:24:y:2020:i:2:p:149-163
    DOI: 10.1177/0971890720959539
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    References listed on IDEAS

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    1. Philip Kotler & Waldemar Pfoertsch, 2010. "Basics of Ingredient Branding," Springer Books, in: Ingredient Branding, chapter 0, pages 15-53, Springer.
    2. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    3. Philip Kotler & Waldemar Pfoertsch, 2010. "Branding Ingredients," Springer Books, in: Ingredient Branding, chapter 0, pages 1-13, Springer.
    4. Keller, Kevin Lane, 2003. "Brand Synthesis: The Multidimensionality of Brand Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 595-600, March.
    5. Jeffrey Radighieri & Babu John Mariadoss & Yany Grégoire & Jean Johnson, 2014. "Ingredient branding and feedback effects: The impact of product outcomes, initial parent brand strength asymmetry, and parent brand role," Marketing Letters, Springer, vol. 25(2), pages 123-138, June.
    6. Anca BUTNARIU, 2017. "Ingredient Branding - A Growth Opportunity?," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 13, pages 101-107, May.
    7. Philip Kotler & Waldemar Pfoertsch, 2010. "Ingredient Branding," Springer Books, Springer, number 978-3-642-04214-0, December.
    8. R. Venkatesh & Vijay Mahajan, 1997. "Products with Branded Components: An Approach for Premium Pricing and Partner Selection," Marketing Science, INFORMS, vol. 16(2), pages 146-165.
    9. Philip Kotler & Waldemar Pfoertsch, 2010. "Success Stories of Ingredient Branding," Springer Books, in: Ingredient Branding, chapter 0, pages 93-153, Springer.
    10. Philip Kotler & Waldemar Pfoertsch, 2010. "Intel Inside – The Ingredient Branding Success Story," Springer Books, in: Ingredient Branding, chapter 0, pages 55-70, Springer.
    11. Bernd Helmig & Jan-Alexander Huber & Peter S. H. Leeflang, 2008. "Co-branding: The Stae of the Art," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 60(4), pages 359-377, October.
    12. Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
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    Cited by:

    1. Paydas Turan, Ceyda, 2021. "What's inside matters: The impact of ingredient branding on consumers' purchasing behaviours in services," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).

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