What exactly are Component Brands?This is actually the to begin a number of articles on component branding. Within this first article we introduce the idea of component branding along with a model for that comprehending the utility of the brand equities for building companies. In subsequent articles we’ll discuss how you can manage – and steer clear of pitfalls – in guiding component brands profitably using their early existence cycles completely for their mature stage.
Component Brands are individuals product components that does not only add functional value, their emblem on the primary branded service or product contributes to its very own brand capacity to retain customer loyalty, stimulate customer preference, and support premium cost points. An component brand not just adds value to some host brand’s equity, in mature markets it may also create or enhance differentiation.
Intel® is perhaps the favourite of component brands which has enjoyed a lengthy and ongoing existence. Others include Microban®, Kevlar® and Goretex®.
How Component Brands Are BornWhen an upstream manufacturer develops a brand new breakthrough product, they diligently commercialize and promote the company identity to be able to obtain growing market acceptance from the product. As it is a breakthrough, the branded product becomes recognized by direct customers and frequently legendary for the benefits it gives the downstream market. When promoted correctly additionally, it becomes desirable to consumers due to the publicity it produces as an origin of “new” perceptions for older brands that contain it to their products.