If wishes were horses, then beggars would ride

So now, does that imply that dreams of ‘common’ aficionados to bear a souvenir of their dream (without going bankrupt, of course) remains a dream? Ah, no! Comes licensed merchandising, a strategy which allows car-makers to cash in on their brand value without the risk of diversification. Merchandising – a strategy that, despite having no connection with the primary auto product, encashes solely on the basis of the weight of the brand in question. Some great examples of the whole exercise are Ferrari watches, caps and jackets; Bentley umbrellas; and Porsche jackets – all of which provide a decent overview of what we are saying here. Such items are somewhat expensive when compared to their competing equals, but mind you, they cost a miniscule proportion of the real car brand they represent. According to Siddhraj Singh of Autocar India, “Consumers are willing to pay extra for the car brands they love, this is true even in the economy segment.” All bigwig car brands, which command a devoted fan following to even remotest degree, have reaped maximum returns from licensed merchandising. Legendry Italian car-maker Lamborghini, for instance, allows mini car-makers, Hotwheels and Maisto, to manufacture and market miniature Lambos.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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