Global players are not a threat to us, due to our USP of giving Indianised food”

Nishant Arora, Head Food Division, Kohinoor Foods Ltd

Do you think the coming of foreign competitors is a threat for you?
I don’t think so because our USP is ‘Indianized’ menu and we provide convenience food which requires Indian expertise and can be provided only by Indian players.

Do we miss out big on positioning?
I can’t comment on other players, but in Kohinoor Foods, our focus or positioning has been very clear. We offer hygienic and convenient Indian food, which no other players offer. Positioning is very important in any industry and this industry is no exception.

You are promoting the Kohinoor Foods brand in USA. Any bottlenecks?
When it comes to attracting Indians in the US, we didn’t have to face any bottlenecks; but when it comes to attracting non-Indian consumers, you need to focus on many things – like the hygiene condition during the preparation of food and details in packaging.

The future of the convenience food industry would be...
There would be more and more brands emerging in the Indian convenience food market and a majority of these would be from the retail companies.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Why Ford loves the ‘licensing‘ game in India

Ford Motor Company is one name that counts amongst the top believers in the power of brand licensing. Mark Bentley on the how, why and what of Ford’s licensing program

Licensing has played an important role in Ford Motor Company’s marketing mix for nearly 20 years now. Established in 1991, the Ford Global Brand Licensing program has grown from two dozen companies to over 350 licensees worldwide in 2009. Annual retail sales of Ford licensed products were recently projected at over $1.5 billion. Our key partners include Mattel, Fisher-Price, Aramis, Electronic Arts, Microsoft, Sony and Franklin Mint. The “3 Ps” form the foundation stone of Ford’s licensing program. In order of importance, the team focuses on the following basic rules: 1) Protect the brand; 2) Promote the brand; and 3) Produce revenues.

It is no small task to protect an iconic, 106-year-old company’s trademarks. Ford and its agency partner, The Beanstalk Group, work hard to ensure that the company’s intellectual assets are being used properly. Key trademarks such as the Ford Blue Oval, Ford Mustang, Model-T, Ford Thunderbird, Ford Racing and “Built Ford Tough” trucks are constantly monitored in the marketplace. If necessary, Ford takes additional steps through its brand protection and legal teams to settle trademark infringement matters.

Ford leverages licensing as a platform to create additional brand exposure. Licensees indirectly promote Ford brands by creating millions of additional brand impressions and consumer touch points. For example, over 150 licensed toy and videogame companies annually produce Ford products allowing consumers of all ages to experience the brand in ways that reach far beyond traditional advertising.

Consumers also indirectly advertise corporate trademarks by wearing Ford brands on their apparel. Ultimately, positive brand exposure may lead to the purchase of actual Ford cars and trucks.

Finally, licensing unlocks brand equity by allowing the company to receive a steady stream of royalty revenue. Ford creates brand value and consumer goodwill by annually spending billions in marketing and advertising. Inspirational designs and high quality products also contribute greatly to the company’s success. The licensing team is responsible for leveraging these marketing and design efforts by extending the brand into many categories including die-cast vehicles, videogames, apparel, technical publications, gifts and vehicle accessories.

Ford Global Brand Licensing plans to replicate its licensing successes far beyond its core North American market. In 2009, foundations were laid in India, China and Latin America. Although licensing is still in its infancy in many emerging markets, Ford is poised to capitalise on future global growth in the sector.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Smartphones at smart prices...

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Sony ericsson has recently launched three new slick phones namely Satio, Aino and Yari that the company is touting as “smarter phones.” It’s noteworthy that Sony Ericsson, which was at the fourth spot in the Indian handset market in 2008, had come under extreme pressure all through 2009 as it lost a considerable market share in the mid- and high-end category to Korean rivals like Samsung and LG. The growing popularity of their affordable touch screen phones were the major cause of worry for Sony Ericsson. However, now with the launch of these phones, the company plans to come back in action. Anil Sethi, President, Sony Ericsson says, “In today’s market place, the definition of a smartphone is getting increasingly fuzzy as people want their phones to enable them to do it all at the same time. And with the help of these three phones, we expect that the consumer would be able to do all and help us in writing a new chapter for Sony Ericsson in India and strengthen its position as an aspirational and an irresistible brand.” Indeed Satio, Aino and Yari come loaded with all possible features. However, the key to succeed in the Indian market lies not just in loading in features but also in getting the pricing right. Unfortunately, it seems that Sony Ericsson has not learnt the art of pricing its products as was evident in the case of its earlier flop show Xperia X1. On the other hand, Samsung (Star, Corby) and LG (Cookie, Arena) have launched pocket-friendly smart phones, which reflects in the huge sales of their offerings. If Sony Ericsson does not want to repeat history, it will have to re-look at its pricing strategy and price its smartphones smartly.

Surbhi Chawla

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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You wanna test my confidence?!

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Indo-US Civilian Nuclear Agreement
The Nuke Deal, on one hand, overturned decades of India’s nuclear apartheid, significantly enhancing India’s global brand image, and on the other, made heroes of PM Manmohan Singh & UPA Chairperson Sonia Gandhi within India, adding oodles to their political charisma and clout. Uncle Sam’s one-time exception for India to keep its nuclear weapons (without signing the Non-Proliferation Treaty), overnight gave credence to India’s positioning from a slumbering elephant to the hungry tiger. In one fell swoop, years of mutual suspicion & distrust between the world’s largest and oldest democracies were swept away. On the flip side, the deal encouraged India’s blinkered Left Front to withdraw support from the incumbent UPA government, but the UPA’s unquestionable win in the subsequent Election went a long way in underlining the positive brand aura of the Civilian Nuclear Agreement. As for our economist turned politician PM, he’s still getting used to the Yankee ‘you’re with us or against us’ ideology!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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