BUSINESS TO BUSINESS MARKETING
Hidden Inside: International Flavors & Fragrances, Inc.
Founded in 1909 and based in New York City, International Flavors & Fragrances (IFF) manufactures (46 percent Of sales) (54 percent Of sales) for use in a array of consumer products. The Flavors segment offers components for use in consumer products such as soft drinks, candies, pharmaceuticals, snack foods, and alcoholic beverages. The Fragrances segment provides functional fragrances for personal care and household products, including perfumes and colognes. The firm's customer base consists of large consumer product companies such as Peps, Procter & Gamble, Estee Lauder, and Unilever. IFF generates over 40 percent of its sales from rapidly developing economies. Large consumer product firms are quite reluctant to put their brands at risk, so these customers favor trusted global suppliers, like IFF, that can meet their supply needs around the world, as well as ensure the safety and quality of their products. However, IFF With three Other large market participants- Givaudan, Danisco and Firmenich. When consumer company wants to launch new flavor or fragrance, IFF, along with each of these rivals, has been offered the opportunity to develop a scent, making it difficult to lock in customer relationships. Since the value IFF contributes to consumer product is "hidden inside" the IFF name unfamiliar to end customers, some challenging questions emerge for managing the firm's brand:
Discussion Questions
What strategies could IFF follow to differentiate its offering from those competitors and strengthen its position with core base of consumer product companies?
Should IFF invest in a marketing communications strategy that seeks to establish its identity end Customers (i.e., its customers' customers)?