Corporate Licensing on a high

Mr Mark W. Bentley

Ford, an iconic American brand has to its credit a rich heritage evoking an unmatched emotional connection with the world as the most recognised automobile brand. The brand boasts of more than 350 licensees worldwide and The Ford licensing program has generated over $1.5 billion in retail sales in 2008. The essentially lifestyle focus of the brand and its vehicles continue to expand in India via its licensing program with License India. In conversation with Vrinda Oberai, Mr Mark W. Bentley, Licensing Manager, Global Brand Licensing Office, Ford Motor Company shares an overview about Fords’ licensing ventures.

Vrinda Oberai (VO): What motivated you to venture India?
Mark W. Bentley (MB): Though the licensing market is still in its infancy, India is a country with immense growth prospects. Considering the potential that the country holds we are here to make hay while the sun shines. If you look at the retail and other sectors companies that entered early became the market leaders. We have entered the market with eyes wide open, keeping in mind that the licensing business will catch up. The company is spending tremendously in the Indian market.

VO: What are the various product categories in which your licensed merchandise is available abroad?
MB: There are various categories like toys & collectibles, apparel, interactive games, publishing & social expression, auto accessories, watches, fragrances, home accessories, personal accessories, gifts and novelties items. Toys and collectibles form 50 per cent of our business and remain the biggest category for licensed merchandise. Ford is currently working with 140 toy companies.

VO: Which are the markets you would call ‘large’ when it comes to licensed merchandise sales?
MB: The largest market is North America (U.S.) where Ford has an emotional connection as well, followed by Europe, U.K., Australia and Mexico. We are now launching similar programs in Latin America, China and India. India is a very important potential market for us.

VO: Is this your first venture in India with respect to licensing?
MB: Yes and it will all be in consultation with Ford India.

VO: Who are your target audience? Do you have any special business strategy to target the Indian audience? Is there any customisation of your product offerings to tap the Indian market?
MB: Our target audience can vary from kids to older people. It could be anyone who knows Ford, loves our cars and knows Fords’ history. The strategy is to be formed by License India and everything will be mutually approved and agreed upon. We have chosen License India as the expert in India as they know the Indian audience better. They will consider the Indian sensibilities and formulate the strategy accordingly.

VO: How are you going to position your brands? How are you going to determine pricing?
MB: That is something difficult to comment on. It is not a luxury brand but Ford merchandise is one with high quality and value. Ford is a brand which reflects a positive brand perception. Ford is like a landlord renting out its brands and the experts have to decide upon pricing (keeping in mind the consumer of the territory involved) seeking the final approval from us (Ford).

VO: Which product categories will see the merchandise via this licensing deal in the Indian market?
MB: The broad categories would be toys, apparel, car accessories, gifts and novelties.

VO: How are you planning to promote this licensed merchandise?
MB: That would be responsibility of the manufacturer, even though we are all linked together (Ford, Beanstalk and License India).

VO: Have you finalised any licensing deal with an Indian manufacturer? What will be your criteria for selecting a prospective manufacturer?
MB: Not yet. The prospective manufacturers will be appointed by License India, which will be approved keeping in mind the quality standards, safety levels (especially toys) and ensuring that it is capable enough to reflect the good image of the company. There will also be concerns like fair labour practices, material quality and design, which are important parameters for Ford, while signing on a manufacturer.

Interviewed by Vrinda Oberai