INGREDIENT BRANDING THE DUPONT WAY

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 shapeGeneric 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

DAREBIGGER

THE DUPONT BRAND STORY

To Do list for the world

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

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

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

Some of the DuPont products…

The Power: Manufactures the core ingredient The challenge: They are invisible

Overcoming the challenge..

Nurturing the corporate brand of Leveraging successful brand throughout the value chain

One incident that changed DuPont’s outlook forever..

And ingredient branding became its strategy…

AND HERE WERE THE OUTCOMES!!

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

The million dollar question: Why ingredient branding?

CONSUMERS:- Salient value added in an identifiable way- Purchase decision based on brand familiarity

Stakeholders of value chain

When to ingredient brand a product?

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.

How does ingredient branding take place?

Research consumption behaviour

Direct consumer promotion

Collaboration with manufacturer in promotion

Expansion of manufacturer user base

Collaboration with manufacturers in non-promo

areas

• 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

• 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

THE BRAND LESSON

DISCLAIMERCREATED BY ISHITA BASU, IIM LUCKNOW (PGDM), DURING THE PGP BRAND MANAGEMENT COURSE

TAUGHT BY PROF. SAMEER MATHUR AT IIM LUCKNOW