What is your take about brand licensing as the sustainable business strategy to catapult the growth of food companies? Do you think licensed/ co-branded products generates better traction?
Brand licensing is a strategy spawning several decades and exists across product categories and countries. At its core, it enables consumers to experience brands that they love in categories beyond those manufactured by the brand owner.
The core of its success rests on a strong synergistic fit between (1) the licensed brand, (2) the product category in question and (3) the needs of the end consumer. When all of these come together in a strong and cohesive manner, they build on each other and can lead to powerful growth for the overall offer.
Have you introduced (or plan to) any co-branded/ licensed product ranges in past? If yes, then please provide the details?
We have worked with multiple licensed properties in the past (Universal Studios, Dream-works, Warner Bros) and also licensed our brands in key food categories. This year, launched our Game of Thrones association with limited edition Oreo cookies in the USA. We have a large licensing business in Food in Europe with Oreo and Cadbury Cakes, Desserts, ice creams and yogurts.
Can you share any estimated data of market size pertaining to licensed products in FMCG segment in India? How do you see this market with grow in the time to come?
There is limited data pertaining to licensing in India. LIMA is one of the few sources of existing data for licensing. The market has huge potential with the growth of local manufacturing which can benefit from associating with globally loved strong brands
What kind of licensors/ character IPs are best suited with your product lines? Why do you think Indian IPs (such as chota bheem) does not fetch similar interest?
Characters well loved by consumers, falling within key brand guidelines (Generosity, Authenticity, Joyful) have a better fit with many of our brands. We are also conscious that the characters must appeal largely to kids above 12 years of age (Or in the case of nutritionally compliant products, 6+ years of age) in order to comply with our marketing to kids’ policy. Characters that fit all of these criteria’s are usually taken forward.
What are the plans to expand licensed/ co-branded product ranges in the time to come?
We have a two-pronged approach around licensing in India. ‘Licensing in’ through associations with well-loved characters has been an integral part of many of our ‘Parent to child’ portfolio. ‘Licensing Out’ is something we have recently initiated in India with a successful launch of Oreo and Gems ice creams.