IT142 Laboratory : CASE STUDY 3

Using Trademarks and

Brand Names as a
Dialogue for Success
• Name: Ingelec
• Country / Territory: Morocco
• IP right(s): Industrial Designs, Trademarks
• Date of publication: October 14, 2010
• Last update: August 25, 2021

*The Ingelec logo, internationally protected under the Madrid system (Registration No. 875374)

Background
As early as 1986, foreign trade in Morocco started to liberalize with efforts culminating in several
association agreements with the European Union (EU), a free trade agreement with the United States and
a new industrial port constructed in Tangier in 2005. As a result of these advancements, the electrical and
electronics industry in Morocco has increasingly attracted new investments, encouraged by a highly
qualified workforce, a resolutely export-oriented approach and diversified upstream industries. Founded in
1975, Ingelec™ is one of the major international players in this industry. It designs, manufactures and sells
electrical equipment such as electrical switches, intercoms, circuit breakers, power strips and fuses for
residences, businesses and construction sites.

Formed by the Sekkat family at the dawn of the Moroccan electrical industry, Ingelec’s small size prohibited
it from directly competing with large and established French corporations. With the Sekkat family’s previous
experience in the plastics industry, Ingelec decided to focus on the niche market of plastic switches for
electrical components. The company utilized an Italian consultant for the design and began manufacturing
the switches – including all associated metal parts – for the domestic market.

Ingelec’s early focus was to offer consumers quality products that were domestically produced and sold at
lower prices than those of its competitors. This strategy paid off, and the company started to grow rapidly.
Even with increased competition from Asia and rising costs of raw materials, the company used productivity
and economies of scale to achieve a strong foothold in the market. This allowed Ingelec to diversify and
expand abroad, and today it is one of the largest electrical equipment companies in the Middle East and
North Africa region (MENA).

Research and Development

Central to Ingelec’s early success is its focus on delivering quality products at reasonable prices, and fine
tuning the quality to price ratio remains the primary goal of the company’s research and development
(R&D) department. Ingelec invests $20 to $30 million annually in R&D, and its engineers work to create
new products that are simple and quick to install, attractive, and consistent with international standards. It
also focuses on developing new designs for safer and more ergonomic products. Keeping abreast of fast
moving technological changes, Ingelec develops products that will keep up with an evolving and
competitive industry. Because product diversification is essential for Ingelec’s continued expansion abroad,
its R&D department focuses on meeting consumer needs in each specific market that the company
operates.

Ingelec also canvasses architects, contractors and others in the industry to see what kind of products they
are looking for, and to further refine the company’s existing products to meet their needs. The company
capitalizes on its commitment to quality and ensures that all new innovations meet quality standards of
each market in which they will be sold. The efforts of the R&D department in this regard are evident through
the company’s products receiving quality certification in the European Economic Area through conformance
(CE) marking, ensuring that Ingelec’s products meet EU safety, health and environmental standards.

An important part of Ingelec’s R&D is its testing laboratory, which is equipped with the latest technology to
test the company’s new innovations in extreme conditions. Before a newly developed product is brought to
the market, it endures testing environments such as long term exposure to corrosive materials, mechanical
shocks, and sealant testing. Methods such as these have led to products such as Ingelec’s electrical
switches having a lifetime exceeding 40,000 switches. Extreme testing ensures that consumers are getting
the high quality products they have come to expect from Ingelec.

Branding

Ingelec describe their use of trademarks and the Madrid system

Video

For Ingelec, the value of its intellectual property (IP) is much more important than physical assets like
buildings, factories and materials. The company strongly believes that through IP it can communicate the
quality of its products with consumers, which then increases product value and fosters consumer loyalty.
Ingelec’s strategy is therefore to build up a strong brand through trademarks and logos. The company’s
strategy has been extremely successful, as its logo and brand name are very well known throughout
Morocco and West African countries. Ingelec strives to associate its brand with safety and quality, which it
believes is very important for the consumer because electricity is a dangerous resource and must be used
safely. Not only do trademarks help the company create a strong brand and differentiate itself from its
competitors, but they also protect the company from illegal use of its names and logos, which are vital to
maintaining customer confidence and loyalty.

Building strong brands at home and abroad is a cornerstone of Ingelec’s strategy and success. An early
successful brand was the Atlas range of electrical switches, and over time high end brand names such as
Ourika and Tichka (electrical switches and sockets) became even more popular. While customer loyalty
due to the company’s quality products has built up a brand base, the company also spends up to two
percent of its earnings on brand promotion. It does so through marketing efforts such as television
commercials, sponsoring sports teams and event organization.

Ingelec's single switch and socket design, internationally registered under the Hague system
(Registration No. DM/065983)

Ingelec's double switch and socket design, internationally registered under the Hague system
(Registration No. DM/067009)

Industrial Designs and Trademarks

Experience in the plastics industry and a strong focus on R&D have led to the company to develop many
unique industrial designs. Ingelec registers these designs with the Moroccan Industrial and Commercial
Property Office (OMPIC) to ensure that they are not copied, and as of 2010 it had made 84 industrial
design applications with OMPIC. The company has registered its designs since 1976, and in 2010 it made
six new registrations. Ingelec relies on the Hague system for international registrations, and registered its
single and double switch in 2004 and its switch and double socket design in 2005.

In line with Ingelec’s IP strategy, it also applies for trademark registrations with OMPIC. As of 2010 the
company has registered 49 domestic trademarks, which include its name and logo. Beyond national
registrations with OMPIC, Ingelec relies on the Madrid System for international trademark registrations. The
Madrid System’s ease of use, accessibility and ability to file trademark applications abroad from within
Morocco are the primary reasons behind the company’s choice. It is also much more cost effective for the
company to use the Madrid system, and as such Ingelec uses it for approximately sixty percent of its
trademark portfolio. It filed a Madrid system application for its name in 1995, its logo in 1999, and has made
other applications for its more popular brand names such as Oruika and Tichka.

Commercialization
From the beginning, Ingelec has designed, developed and manufactured all of its products in its own
factories. Starting out with a single facility, the company currently has four manufacturing facilities covering
over 70,000 square meters, which are equipped with regularly updated technology to meet market and
manufacturing demands. Throughout the entire development and manufacturing process the only thing that
is outsourced is packaging. Ingelec products are sold at over 10,000 locations worldwide.

Business Results
Successful use of IP and innovative R&D have led Ingelec to become the largest Moroccan company in the
domestic market. On average, Ingelec sells over five million of its products per year. In 2007, the company
enjoyed earnings of $373 million, over $100 million of which came from African markets, and has over 750
employees operating in numerous domestic and international locations.

The company has expanded its manufacturing capability from one facility when it started to four modern
facilities by 2006. Ingelec’s export oriented growth strategy has translated into 32% of its turnover coming
from international markets. Ingelec has continued to expand into European markets, and in 2007 enjoyed
turnover of $6 million. In recognition of the company’s commitment to quality, in 2003 it received ISO
9001-2000 certification.

Communicating for Success with IP

Innovative products in and of themselves do not guarantee success, and Ingelec recognized that a
dialogue must be created with the consumer to build trust and loyalty. Ingelec has used trademarks and
industrial designs to build and protect its brands, which are recognizable at home and abroad as innovative
and quality products that are safely used every day throughout the world. This approach has given the
company the resources it needs to continue R&D into new products, take on big name foreign competitors
and expand in new markets around the world.

Sources, references and related links

This case study is based on information from:

• http://www.ingelec.ma
• https://www.wipo.int/multimedia/en/madrid/madrid-videos/index.html
• http://www.nottingham.ac.uk/economics/credit/research/papers/cp0604.pdf
• http://www.moroccobusinessnews.com/Sectors/Industry.asp
• http://www.facebook.com/group.php?gid=244200001960&v=photos#!/group.php?
gid=244200001960&v=wall
 Case Study 3 Research Activity
ANSWER EACH QUESTION (minimum of 200 words per question)
1. How has Ingelec's dedication to R&D, especially its investments in quality assurance and
innovation, aided in the company's performance in the electrical equipment sector, notably in
terms of product caliber, robustness, and market expansion?

2. What part has Ingelec played in in uencing the development and competitiveness of the
electrical and electronics industry in the context of Morocco's liberalization of foreign trade,
and what tactics has the company used to keep a competitive edge in the global market for
electrical equipment?

3. How has Ingelec's branding strategy, including the creation and promotion of brand names
such as Atlas, Ourika, and Tichka, contributed to the company's success in its domestic
market as well as its international expansion, and what are the key factors driving customer
loyalty and brand recognition in the electrical equipment industry?

4. How does Ingelec's strategy of soliciting product input and re nement from architects,
contractors, and industry experts help to the company's capacity to satisfy distinct customer
needs in di erent regions, and what are the primary insights and modi cations made as a
result of this feedback?

5.Could you perhaps explain on some of the speci c testing methodology and settings used at
Ingelec's testing laboratory, and how these stringent testing procedures have resulted in the
production of high-quality and long-lasting electrical goods, such as switches with lifetimes
surpassing 40,000 switches?
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