The Inside on Ingredient Branding - Waldemar Pfoertsch

The Inside on Ingredient Branding - Waldemar Pfoertsch The Inside on Ingredient Branding - Waldemar Pfoertsch

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06.02.2015 Views

Risks and Opportunities for Suppliers and OEM Supplier OEM Opportunities Increased demand Better prices Chances for growth Lesser risk for substitution Creation of entry barriers Positive Image creation Differentiation Less marketing cost Increased product value Possible win-win strategy . Risks Potential conflicts with OEM Higher financial burden on enduser communication Higher risk of image damages through product failure Image risks Weakening of own products Increase of branding around or in the core product Increased risk and conflict potential

Application Conditions of InBranding Complexity of components in relation to final product High Example: Micro processors (Intel) ABS, ESP (Bosch) Textile coding (Teflon) Laminate (GoreTex) Bicycle gears (Shimano) Low Schiesser & Ariel Deutsche Bahn AG & Citibank Important for functionality of final product High Unsuitable for Ingredient Branding Low Suitable for Ingredient Branding Pfoertsch/Mueller (2005)

Risks and Opportunities for<br />

Suppliers and OEM<br />

Supplier<br />

OEM<br />

Opportunities<br />

Increased demand<br />

Better prices<br />

Chances for growth<br />

Lesser risk for substituti<strong>on</strong><br />

Creati<strong>on</strong> of entry barriers<br />

Positive Image creati<strong>on</strong><br />

Differentiati<strong>on</strong><br />

Less marketing cost<br />

Increased product value<br />

Possible<br />

win-win<br />

strategy<br />

.<br />

Risks<br />

Potential c<strong>on</strong>flicts with OEM<br />

Higher financial burden <strong>on</strong><br />

enduser communicati<strong>on</strong><br />

Higher risk of image damages<br />

through product failure<br />

Image risks<br />

Weakening of own products<br />

Increase of branding around<br />

or in the core product<br />

Increased<br />

risk and<br />

c<strong>on</strong>flict<br />

potential

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