Component Brands are driving the growth for E-Bikes. Throughout the White paper authors Tomas Vucurevic and Aljaz Urbanc explain how Ingredient Branding can help components manufacturers to extract more value from their innovations by transforming their technologies into brands. 

This is the fourth part of the White paper. 

Customer Journey is changing

E-bike prospects have a different set of shopping habits. Through the digital self-service in the early phases of the funnel, consumers are already influenced via several channels, making them aware and familiar with certain technologies and respective brands.

At the consideration stage, Ingredient Brands promise a level of quality that is already well-known to consumers. A specific propulsion system adds so much value to the finished product that the Ingredient is the most relevant part of the buying decision. Other factors like the E-bike brand, availability, color, price and the second layer of Ingredient Brands like derailleur, drivetrain, brake and suspension systems only come into play after the customer has already preferred a propulsion system.  

The relatively low cost of entry for a digital communications strategy allows Ingredient Brands to establish their brand positioning and awareness. Bosch has developed a communication strategy helping end users to experience and discover new mobility in a digital format with the interactive E-bike range assistant and rich video content using social media. The brand also provides tutorials on service tips, safety, and inspiring lifestyle videos. 

BEST PRACTICE
TQ-Systems presented at the 2018 Oktoberfest the M1 Spitzing Evolution bike equipped with their most powerful eMTB motor in the famous attraction Pitt’s Todeswand, an 8-meter-high cliff face wall and one of the big spectator magnets. Great guerilla marketing concept for earned & shared media!

INGREDIENT BRANDING: Escape the role of being a supplier

The vast majority of companies today are not able to adequately convey the entire value they are creating for their respective value chain. They are often locked into their role of an anonymous supplier.  

The value and contribution to the finished product is often unknown to most market participants or only to their direct customer line. Therefore they are often exposed to the "Lopez-effect"; named after the once famous Head of Purchasing at Volkswagen, who was known for his merciless negotiations with suppliers. Price & margin pressure, unfavorable payment terms and exchangeability as a supplier are the economic consequences. Not a great position to be in. 



BRAIND’s Ingredient Brand Model

Ingredient Branding provides a valid Brand & Business model to escape from this unfavorable position in the supply chain. The fundamental principle of it is to apply a Multi-Level Marketing Model. Well-orchestrated brand activation through a content-driven communication strategy can increase the strength of the Ingredient Brand to create the necessary pull-effect. 

Please contact us at info@braind.co if you would like to be one of the first to receive a full version of the Whitepaper.