Ingredient branding

● Ingredient Branding is a marketing strategy

where a component or an ingredient of a
product or service is pulled into the
spotlight and given it’s own identity. To
connect with consumers, brands need to
create visible value, and by adding a
branded ingredient, they can clearly show
additional value.
 INTEL Ingredient Branding
      How did INTEL build a brand around a commodity?

● Through their research, Intel came across a market segment called

“Achievers segment”
● People made up of knowledge workers 
●  who spent the majority of time in gaining knowledge, reviewing
information
● they were major decision makers in companies but they were not
programmers.
● PC manufacturers like Apple were already targeting this segment by
designing products that were easy and intuitive to use. 
● Intel felt that the company had to focus their communication, branding
strategies to target this “Achievers” segment.
● In 1991, Intel began Ingredient Branding programme (Intel Inside).
Benefits of Ingredient branding

● The provider of the ingredient seeks to not only push the product to
its target market, but also to create a pull effect from further down the
chain
● The creation of barriers to market entry, which help repel competition,
particularly imitation/low-cost products (Intel lost trademark violation
case against AMD)
● Simple, targeted explanation and communication of the ingredient's
benefits providing a credible reason to believe
● The establishment of genuine product differentiation and perhaps
unique functionality
● Increased influence over end users and the creation of brand loyalty
among them
● Strategy to grow the market rather than just aiming to grow the
company’s market share
 Learnings from Intel Ingredient branding

Factors that played a major role in the success of ‘ingredient branding’ advertisements

• No discounts but contribute

• Differentiate
• Clarity 
• Peak-end rule 

•BRAND PORTFOLIO STRATEGY

• Endorser brand, Brand Extensions (Pentium)

• Sub-brand (Xeon in association with Pentium but advanced)
• Stand-alone brand (Celeron at low cost with no association with Pentium)
• The importance of naming (Intel 586 to Pentium)

CONCLUSION=Intel created an impression that it makes something that worth paying more for. Intel
reached market supremacy, created brand equity comparable to the level of a consumer goods
manufacturing company and still continue to be a leader. Intel showed that Ingredient branding could
be successful if it is well thought out.