Saturday, September 29, 2007

4Ping Fundas : Ingredient Branding

Ingredient branding is a branding strategy wherein company also promotes the key ingredient used to make the product and how it can be benefited to customer. Used ingredient works as an USP of the product. Sometime ingredient transfers its brand identity to the host brand so both the brands get benefited.

Let’s take some cases of Indian brands.

Amul Probiotic Ice Cream and Lassi
Amul, the brand owned by GCMMF Ltd. launched its probiotic range of ice cream in early 2007 -Amul Prolife Icecream-. Probiotic food is relatively new concept in India but it has been very successful in western countries. Amul Probiotic ice cream contains special kinds of bacteria which is good for human body. It helps in digestion, improve the immune system and fight against allergic reaction. This probiotic bacteria works as an ingredient and brand is being promoted with this unique feature. Probiotic Lassi is also one such product and under test marketing phase.

Clinic All Clear with ZPTO
HLL introduced Clinic All Clear ZPTO in 1999. ZPTO short form of Zink Pyrithione, a chemical compound used as anti-fungal and antibacterial agent. Company promoted unique ZPTO in their advertising. Proctor and Gamble also used same strategy to promote Head & Shoulder shampoo with ZPTO. Though most of consumers didn’t know anything about ZPTO and its benefit, it really created wonders for the brands.

Why Ingredient Branding?

  • Ingredient branding gives boost to the host brand when ingredient brand has its own brand identity. Don’t you prefer PC or Laptop with “Intel Inside” tag on it? It is because of brand identity created by Intel for its microprocessors. (Intel is a classic case of ingredient branding. We will discuss in it future post.)
  • Ingredient also helps product if product is creating new category. Remember, Amul is pioneer in pro-biotic foods in India and same strategy has been followed by MNC behemoth like Nestle (NesVita Curd) and HUL (Moo – Calcium Enriched Ice-cream).
  • Many times consumer perceives ingredient as an added advantage so he is not reluctant to pay extra price for it.
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