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Ingredient Branding
We have conducted a quantitative study investigating whether an Ingredient Branding collaboration between private label and national brands could be executed with success in the Swedish market. The objective was to measure the consumers? response to two products from different product categories, representing hedonic and utilitarian products. We have been able to establish that by adding a branded ingredient to a private label product, one obtains a more positive product attitude as well as a higher perceived product quality and taste. The study also shows that attitudes towards the ingredient brands were improved by the collaboration whereas the brand attitude towards the private label did not change significantly. Furthermore, the effect was fairly similar for the utilitarian and hedonic products. The results indicate promising potential for a private label product with a branded ingredient and have enabled us to identify numerous interesting implications for the manufacturers as well as the suppliers.