| President’s Note:
I hope this note finds you well. As promised, we will continue to highlight some of the interesting work we are doing in India, and also demonstrate how global brands are extending their brand successfully across all sectors as a bit of inspiration for Indian brands. As we continue to build this industry in India, we are learning ways of localizing and adapting traditional business models to fit within the constraints of the territory.
The name of the game from a brand licensing point of view in India is brand recall:
Last time we commented the dearth of licensees in India that are actually organized to design, manufacture, sell, retail, distribute, and give retail credit. The flip side to this equation is the first thing these licensees look for before they undertake any type of licensing relationship – brand recall. Whether or not they believe in or know of the brand is of little consequence. It is important that their distributors and retailers are aware of the property. If the answer is no, then you have your answer to whether this property can be licensed. That is why brand recall is crucial, especially in India. The brand has to be mainstream, and it has to be in the press, or on tv, or in the news — if your brand can achieve that, then you have surpassed the first major roadblock to licensing in India.
As you decide whether you want to license your property or enter into India, it is important to think about what you can do to ensure that brand recall stays high. Licensees typically will not invest in that on your behalf, as is done in most Western countries, because they feel they are investing in everything else.
GrapevineStar Brands recommends The Wild East Group as a must see at the International Licensing Expo and Conference being held in Las Vegas June 12-14, 2012.
Client Spotlight:
Client: Yash Raj Films
Strategic Objective: Re-Invigorate Iconic IP
Overview: Yash Raj Films (YRF) is India’s leading film production house, and has defined the industry for over 40 years. YRF has produced most of Bollywood’s most iconic films, characters, content, and music and continues to pave the way in the industry. The Hollywood reporter listed YRF as one of the biggest film distribution houses in the world. The Wild East Group was engaged to analyze the iconic IP and develop business opportunities that extended the brand in logical categories that captured the essence of the content and delighted the fans. Playing upon YRF’s emotional magnetism, a partnership was developed with a global leader in social expressions to develop and launch a range of Bollywood inspired social expressions which include products such as greeting cards, sound greeting cards, gift wraps, electronic calendars, and many more products.
Analysis: This type of partnership and opportunity was another first of its nature. It is the first time a Bollywood production house has extended their brand into consumer products on a global scale. We engaged in a very robust research study targeting Indians in India, global non-resident Indians, and what we call Indo’philes’ (people who are interested and fascinated with the Indian culture), and realized that there was a retail gap in the market on social expressions targeting these segments. With close to 20% of the world population, this was a logical and much wanted extension. The range will encompass all of the popular occasions from comedy, friendship, love, marriage, thank you, forgiveness, and many more that will be relevant not only to an Indian audience, but a mainstream one. As far as Bollywood is concerned, YRF is Bollywood, and Bollywood is YRF – that’s it, and we cannot be more excited about working with such an esteemed brand and developing this game-changing business with them.
Notable Industry Brand Extensions:
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Brand: Manchester United
Strategic Objective: The Fan as the “Brand Ambassador”
Overview: Manchester United F.C. (MU) is the most successful English football club, based in Old Trafford, Greater Manchester. It tops the Forbes Magazine Charts as world’s most valuable soccer club with an estimated value of $2.24 billion. The football club has transformed into a full-time business entity with the extensive brand extension program is a major contributor to boosting its brand value.
Analysis: MU allows its loyal fans to follow their sacred team and engage with the brand in as many ways as possible through variety of licensing programs and partnership deals. Some of the brand extensions that fans participate in include: an official MU merchandising program, MUTV a subscription based television channel, MU Finance which sells financial products, MU Catering, magazines, cellphones, travel services, apparel, sports equipment, diets, training equipment, and the list goes on and on. Sports brands encapsulate the phenomenon of the brand ‘religion’, where the value of the brand becomes so high in the mind of the consumer that he/she will always stay loyal to it. MU is a burning example to this phenomenon. Last year MU earned over $300 million in licensing and retail revenue.
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 Brand: Westin
Strategic Objective: Extending the “Heavenly Experiences”
Overview: Westin Hotels & Resorts, with 170 hotels and resorts in more than 31 countries and territories, is owned by Starwood Hotels & Resorts Worldwide, Inc. In 1999, Westin received a wake-up call from travelers, who said in a consumer survey that, “the most important service a hotel can offer is a good night’s sleep”. As a result, Westin turned the hospitality industry on its head and sparked a hotel bedding revolution with the 1999 launch of the “Heavenly Bed”. Following an overwhelming guest response and unmatched media attention, “Heavenly” soon became synonymous with “Westin.”
Analysis: Today Westin has expanded Heavenly into a full-lifestyle brand, with luxurious offerings for the Beds, bath, the baby, and even the dog with an objective to bring the famous “Heavenly Experience” into customers day to day lives. This has stimulated Westin to go one step further, to extend the experience into air, through a unique partnership deal with United Airlines. United’s first and business class service features blankets and pillows based on the style of the Heavenly Bed. Further it will provide White Tea-scented towelettes and mints and custom video and music from Westin’s lobby music playlist. The idea is to bring the luxury experience to the customer’s lifestyle wherever possible and thus, generating buzz among them.
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