BRAND MANAGEMENT

Ingredient Branding
The DUPONT WAY

SHASHWAT SHARMA
SEC- B
PGP31289
IIM LUCKNOW
Introduction
The Power – Dupont makes products that go into other products
The Challenge – We are invisible

They overcome this challenge with a two-pronged attack :

-Nurturing a strong corporate brand – The DuPont name and oval
-Leveraging successful product or “ingredient” brands throughout the
value chain
 Operates in around 200 countries
 Around 2,000 trademarked products in literally every existing SIC code
Branding History (1/2)
200 years of branding experience, demonstrating the interplay between
corporate and product branding
Highlights:
1808 – “DuPont” becomes company trade name
1909 – DuPont super brand born – connects all product brands to the DuPont
name. Oval finds its form
1934 to 1936 – Shaping image around name/oval increasingly important
◦ From “Merchant of Death” to “Better Things for Better Living through
chemistry”
◦ Trademark or generic issues arises. Duprene vs neoprene, cellophane
Branding History (2/2)
1939 – Nylon introduced at World’s Fair, not trademarked
1946 to 1960 – Post war boom/burst of product innovation
◦ Antron nylon, Orlon acrylic(1948), Dacron polyester etc
Late 1980’s/1990’s – Term “ingredient branding” in vogue with DuPont widely
regarded as the pioneer
◦ “DuPont should be credited as the first industrial supplier to promote its
inputs as recognized brands”
1994 – Brand Manager Hired for Teflon
- Brand Licensing starts
1999 – The Miracles of science created to reflect shift from chemicals to science
and knowledge intensive process
Corporate Branding Today
◦ Strong belief that the DuPont name adds value across the brand portfolio
◦ Increases purchase intent for new brands and existing brands with low
awareness
◦ Linking the name to the strong brands strengthens the corporate reputation
without negative impact on the brands

◦ A product – endorsed, ingredient – branding strategy leverages corporate and

product for mutual benefit is key to our success
Ingredient Branding – Introduction
It is one of a growing number of brand partnership options

Co Brands – Complementary products or services add value to one another

(American Express and an airline)

Component Brands – Relates components which have identities of their own,

within larger, more complicated product offering (Bose stereo in luxury cars)

Manufacturer initiated ingredient brands – Manufacturer uses established

brands in an effort to communicate quality or value in its own products. Inputs
are marketed by their producers as separate end products.( MRF being used by
bike manufacturers)
Ingredient Branding – Why? (1/2)
Goal is to build awareness and preference along the value chain for the suppliers
brand of ingredient – everyone benefits.
◦ Supplier
o Better profit margins from large volume, non-price differentiation
o Stability and variety in customer demand (TEFLON’s alternate uses)
o Longer term supplier-buyer relationships
• Manufacturer
o Shared product promotion costs
o Increased access to distribution channels
o Competitive advantage – overall quality enhanced by ingredient
quality
Ingredient Branding – Why? (2/2)
◦ Retailer
o Better operating margins
o Faster turning inventory
o Better consumer acceptance
o Additional promotional support
• Consumer
o Salient value-added in a readily identifiable way
o Simplified purchase decision based on brand familiarity
Ingredient Branding – When?
◦ Ingredient should be a substantia; innovation and/or advantage over existing
alternatives (defensible patents are bonus)
o And the customer should care about the differences

• Versatile in current and future use – leverage investment across product

categories (like LYCRA)

• Sales potential for final products is high – revolutionize a category (like

STAINMASTER)
Ingredient Branding – How?
LYCRA – Getting it Right (1/2)
◦ Based on valid and significant consumer needs – better comfort and fit in
apparel
◦ Decades of effective consumer promotion
LYCRA – Getting it Right (2/2)
◦ Consistent collaborations with
manufacturers and retailers in
promotion
◦ Collaboration in non-promotional
areas like Liz Claiborne cut and sew
guidelines
◦ Expansion of manufacture user base
– LYCRA assured
LYCRA - Results
◦ LYCRA now among the world’s top ten apparel brands alongside heavy
hitters such as Armani, HUGO BOSS and Levis

• Despite expiration of its patent on spandex several years ago, DuPont retains
roughly 2/3rd of the market worldwide
Success Requisites
◦ Understanding the dynamics of the market segment value chain
◦ Identifying where the power is in the value chain
◦ Clearly identifying DuPont as the hero, provider or supporter at every step in
the chain
◦ Clearly defining the product brand attributes, benefits, and position that will
comprise the brand franchise
◦ Pursuing a marketing and communications plan that creates purchase
preference
◦ Maintaining continuity and consistency of face and voice over time
Conclusion
The DuPont approach to branding is an evergreen process –

◦ De-link brands from specific ingredient products

◦ Link to broad market-relevant needs
◦ Means of leveraging knowledge portfolio

The future is today.

Thank You