Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE credits
This master thesis is concerned with ingredient branding, more specifically when and under what circumstances ingredient branding is appropriate. The authors conducted a case study about companies in four different industries: Intel, which is producing processors mainly to computers; Gore, which is producing the famous Gore-Tex membrane used in cloths, shoes, and the fashion industry; Autoliv, which is a the leading supplier of airbags in cars; and Bosch, which is producing a variety of car components, like injection systems, braking components like ABS and ESP, but also white goods and power tools. The authors regarded Gore and Intel as examples of matured implementation of ingredient branding, while the automotive industry is fairly immature in terms of ingredient branding. A model has been put forward by the authors to provide a better and more analytical structure, in evaluating the appropriateness of an ingredient branding strategy. In this model, the core prerequisite to ingredient branding is that the company has to have a unique innovation that is critical to the host product and has a decisive value to the customer. The authors have also found that it is very important that customers must be able to experience the added value from the product. Thirdly according to our research results, the ingredient branding strategy is only to recommend if the right timing is given, and a fit between host and partner brand can be assured. The fourth step is sales potential and profit considerations. The authors also provide insight into the question whether successful ingredient branding can be transferred to industries were ingredient branding has not been a common phenomenon. Furthermore, different steps for the implementation of an ingredient brand strategy will be presented. Also here, a model is provided. This implementation model can be divided up into four sections, namely the planning phase, the actual implementation phase, a controlling phase, and a revised strategy phase. According to the authors, these steps are necessary to provide a subsequent implementation, but also to be able to revise the enormous risks, which are involved.