Fast Moving Consumer Goods Industry

Description

nbsp;Brands – the backbone of Fast Moving Consumer Goods (FMCG) valuationWilliam Shakespeare once said “What's in a name?” For FMCG companies, it’s all about the product names that consumers identify from the TV advertisements or trips to the supermarket. It is critical to your business because: It’s a marketing tool; brand recall leads to greater sales and profitability It strengthens your licensing opportunities and therefore revenue from distributors/partners It increases your company’s valuation, leading to greater investments and dividends Global Brand Valuation 2013 – Fast Moving Consumer Goods (FMCG) LeadersWhat would a consumer pay for an Rs.35/- Coke bottle if it didn’t bear the Coke logo, brand name, font and brand colours? Trademarks – the foundation to Brand BuildingCommon mistakes FMCG companies make about trademarks: Not giving due importance to your brand name / trademarks / logos. Choosing descriptive & generic terms (ex. a laundry detergent named “Strong Washing Soap”) which fails to create a distinctive image of your product in the market, rather than selecting fanciful, arbitrary, and suggestive trademarks (example – Colgate & Gillette for consumer goods) which over time can work as a unique differentiator of your product from your competitors. Filing trademark applications after usage of the mark in commerce, rather than before. Not keeping a watch on your competitors’ use of same or similar trademarks or logos.FMCG sector is losing about 1.7 Billion INR of revenue annually as a result of trademark counterfeiting. What should Fast Moving Consumer Goods (FMCG) companies do to protect their brands? Conduct trademark searches to assess conflict with competitors before selecting a brand name / trademark / logo. File trademark applications prior to use of the mark in commerce. Monitor the use, misuse and infringement of your trademarks. Pursue those infringing through dialogue, and legal means if necessary. Periodically review, audit and assess your trademark portfolio to set priorities for band building.In the year 2013, ITC’s trademark strategy helped it increase its intangible valuation by 30%. Authored by Mr. Sanjeeth Hegde