When the Customer's Customer Starts Mattering


Issue #36

When the Customer's Customer Starts Mattering

In 2007, Corning had a product that most of the people who would eventually use it could never buy from Corning.

Gorilla Glass was made for device manufacturers. Corning supplied the glass, manufacturers built it into phones and other devices, and consumers bought the finished product. The commercial relationship was B2B.

But Gorilla Glass did not remain an invisible component buried inside someone else's product.

It became a name people could recognize.

That creates an interesting marketing question. Why would a B2B supplier spend time building recognition among people who were not its direct customers?

The answer sits inside a part of B2B marketing that is easy to overlook. Sometimes the company buying from you is not the last audience capable of making your product more valuable.

A Component Started Becoming a Brand

Gorilla Glass entered the market in 2007 as smartphones were creating new demands for thin, durable cover glass. Corning had decades of experience in glass and materials science, and the new market gave that expertise a rapidly expanding commercial application.

The growth was significant.

Corning reported that Gorilla Glass sales increased from approximately $19 million in 2007 to more than $240 million in 2010. By 2011, the glass was being used by more than 30 major brands and had been designed into more than 400 electronic devices.

Those numbers show how quickly the product moved through the device market. They do not prove that branding caused the growth. Product performance, smartphone adoption, technological differentiation and manufacturer demand were all part of the story.

But something else was happening alongside that growth.

The component had its own name.

Corning® Gorilla® Glass.

And that name could travel with the finished product.

Corning maintains lists of devices that it and manufacturers have verified as containing Gorilla Glass. It also states that the manufacturers and devices on those lists are authorized to use the Gorilla Glass trademark in their device promotions.

That means a phone manufacturer does not necessarily have to describe the screen only in generic terms such as durable glass.

It can say the device uses Gorilla Glass.

The supplier's identity becomes part of the manufacturer's product story.

The Buyer Was the Manufacturer. The Audience Could Be Larger.

Corning is clear about who actually buys Gorilla Glass.

“Corning sells to device manufacturers.”

That distinction is important because otherwise this can start looking like a consumer-branding story.

It isn't.

The manufacturer remains Corning's customer.

The interesting part is that Corning's marketing does not have to stop at the boundary of that customer relationship.

Corning itself has described Gorilla Glass as an ingredient brand. In one account from the Gorilla Glass business, its digital marketing manager discussed working with Garmin and other electronics companies and specifically referred to understanding what matters to “our customers' customers.”

That phrase captures the structure unusually well.

There is the supplier.

There is the supplier's customer.

And then there is the customer's customer.

Traditional B2B marketing can concentrate heavily on the middle relationship. Understand the account. Reach the decision-makers. Demonstrate technical and commercial value. Win the business.

Ingredient branding adds another possibility.

If the component contributes something meaningful to the finished product, the supplier may also have a reason to make its name recognizable further down the value chain.

The people at the end still do not buy the component from the supplier.

But their recognition of the component can potentially become useful to the company that does.

This Is What Ingredient Branding Changes

Ingredient branding is an established marketing idea, not a framework invented around the Corning case.

The basic logic is simple.

A component inside another company's product develops its own brand identity. Instead of disappearing completely behind the finished-product brand, the ingredient remains identifiable.

In B2B markets, researchers have examined this more specifically as component supplier branding.

The conventional relationship looks like this:

Supplier → Manufacturer → Customer

The supplier concentrates on convincing the manufacturer that its component deserves to be selected.

Component branding adds another direction of influence.

The supplier still has to convince the manufacturer. But it can also try to build recognition among the people or businesses buying the manufacturer's finished product.

Researchers Stefan Worm and Rajendra Srivastava describe this as an attempt to create “pull” by building the component supplier's brand among its customers' customers.

That changes what the supplier can potentially bring to the commercial relationship.

It is no longer offering only the physical component, technology or technical performance.

A recognizable ingredient can potentially contribute something to how the manufacturer's own product is understood.

For Corning, that means Gorilla Glass can exist in two places at once.

It is a material purchased by an OEM.

And it is a branded feature that the OEM may identify when communicating its own device.

THE EVIDENCE

2007: approximately $19 million in Gorilla Glass sales.

2010: more than $240 million.

2011: more than 30 major brands and 400 devices.

2018: more than 6 billion devices across more than 45 major OEMs.

Corning now says Gorilla Glass has been designed into more than 8 billion devices and is used by more than 45 major global OEMs.

Again, scale does not prove that ingredient branding created the scale.

What it does show is the unusual reach achieved by a component that most people never purchase independently.

Being Known Beyond the Buyer Does Not Always Help

It would be easy to turn Gorilla Glass into a simple B2B lesson: build a brand with your customer's customer and demand will follow.

The research does not support that conclusion.

Worm and Srivastava studied component supplier brands across industries and found that their financial effects depended heavily on the market around them.

Component branding performed better under conditions such as meaningful product differentiation and high technological intensity.

That makes intuitive sense. If buyers further down the chain cannot see any meaningful difference between one component and another, knowing the supplier's name may add very little.

The research also found conditions where the effect could become less favorable. Strong OEM brands and powerful relationships between OEMs and their own customers could reduce the positive impact of the component supplier's brand.

That creates an important limit.

Not every component deserves to become an ingredient brand.

A supplier cannot simply put a name on something hidden inside another company's product and assume that customers will care.

The component has to matter.

Its differentiation has to be meaningful enough that recognition can contribute something to the finished offering.

And the supplier still needs the direct relationship with the manufacturer. Ingredient branding does not remove that relationship or allow the supplier to bypass it.

It adds another layer to it.

Sometimes Demand Exists Beyond the Account

Gorilla Glass is useful because it challenges a very natural assumption in B2B marketing: that the market begins and ends with the organization writing the purchase order.

Often, that is exactly where marketing should concentrate.

But some B2B companies sit inside longer value chains.

A materials company supplies a manufacturer. A technology provider powers another company's product. A component becomes part of a machine. A platform sits underneath a service another company takes to market.

In those situations, the immediate buyer is still critical.

But it may not be the only audience capable of increasing the supplier's value.

Corning's own language around Gorilla Glass makes this unusually visible. It sells to device manufacturers while deliberately operating an ingredient brand and thinking about its customers' customers.

The marketing job therefore becomes more complex.

The supplier needs enough technical and commercial value to be chosen by the manufacturer.

But when the conditions are right, recognition beyond that manufacturer can become another asset the supplier brings to the relationship.

That is a very different idea from simply saying that branding matters in B2B.

It is about understanding where in the value chain brand value can be created.

And it leaves B2B leaders with a useful question:

If your product becomes part of someone else's product, who should your marketing actually be trying to influence?


Sources & Further Reading

Corning Incorporated, 2011 Annual Meeting​
Primary evidence for Gorilla Glass sales growth from approximately $19 million in 2007 to more than $240 million in 2010, and adoption across more than 30 brands and 400 devices.
​https://www.corning.com/in/en/about-us/news-events/news-releases/2011/04/cn_en_news_center_news_releases_2011_2011042801.html​

Corning Gorilla Glass, FAQ​
Primary evidence on Corning's relationship with device manufacturers and the current scale of Gorilla Glass adoption.
​https://www.corning.com/gorillaglass/worldwide/en/faqs.html​

Corning Gorilla Glass, “Riding with Garmin”​
Primary evidence for Corning's description of Gorilla Glass as an ingredient brand and its explicit attention to its customers' customers.
​https://www.corning.com/gorillaglass/worldwide/en/eat-local-run-wild/riding-with-garmin.html​

Corning Gorilla Glass, Verified Product List​
Primary evidence that listed manufacturers and devices are verified as using Gorilla Glass and authorized to use the Gorilla Glass trademark in device promotions.
​https://www.corning.com/gorillaglass/in/en/full-product-list.html​

Corning Incorporated, Gorilla Glass 6 Announcement, 2018​
Primary evidence that Gorilla Glass had been designed into more than 6 billion devices by more than 45 major OEMs.
​https://investor.corning.com/news-and-events/news/news-details/2018/Corning-Introduces-Corning-Gorilla-Glass-6-Delivering--Improved-Durability-for-Next-Generation-Mobile-Devices/default.aspx​

Stefan Worm and Rajendra K. Srivastava, “Impact of Component Supplier Branding on Profitability,” International Journal of Research in Marketing, 2014​
Research on component supplier branding, downstream brand pull and the market conditions affecting its financial impact.
​https://www.sciencedirect.com/science/article/pii/S0167811614000494​

Shantanu Ghosh and George John, “When Should Original Equipment Manufacturers Use Branded Component Contracts with Suppliers?”, Journal of Marketing Research, 2009​
Research examining the conditions surrounding branded component arrangements between suppliers and OEMs.
​https://journals.sagepub.com/doi/10.1509/jmkr.46.5.597​

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Clarity and Chaos is a B2B marketing newsletter for leaders who already know the playbook but want better judgment. Each issue examines real companies, real decisions, and the moments when positioning stopped being optional.

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