Among the most interesting and most popular projects today there are certainly the programs of Brand Extension o Licensing, that bring the notoriety and the distinctive characteristics of major brands in different sectors and often very far from the core business.
th and ’ this is the case of automotive companies that sign interior design objects or boats, as well as – to cite a few examples in no particular order – of publishing realities that dress food or, yet, of fashion brands that move to hotels.
All these initiatives are part of those projects aimed at supporting the image of a brand and allowing it to attract the attention of new consumers, attracting them from another perspective, as well as – in some cases – to further strengthen turnover, both directly (harder, with the real contribution of the sales of licensed products), both indirectly (as a return of image and consolidation of competitiveness).
But if this happens from the side of the best known brands, there is an equally interesting opportunity for quality companies with interesting productions, which may be suppliers (or licensees) suitable to give birth to a new collection.
MITO Luxury deals with Brand Development, Co-Branding and Brand Extension of the time, with experience gained in the field of analysis activities, evaluation and matching between realities to be brought into a program of this type.
These activities concern the definition of an agreement between two corporate entities, or – in some cases – participation in a selection, as was the case a few years ago with Abarth, the sports brand of the FCA group.
In this case, the creation of a collection of travel bags and accessories such as wallets was proposed, belts, tablet port folder, initially proposed in leather and carbon fiber with textile treatment, to think about for the launch of the new Fiat 124 Abarth.
The evaluation phase with the company's purchasing managers was based on the definition of the product line, by sending some sketches and renderings with a customization designed on the stylistic features of the brand and in this case of the car model that was to be accompanied at the launch, then to the materials to be used. After a series of proposals, the materials were worked on, changing the original project and introducing alcantara, linked to the interiors of sports cars and used in competitions for its resistance and characteristics “grip” on the seats.
This entailed a re-elaboration of the product data sheet and consequently of the cost structure, until we arrived at the definition of the proposal that was “loaded” on the FCA procurement platform.
The work was handled jointly between MITO Luxury and the supplier, a small company specialized in the design and manufacture of travel / office bags and accessories, with specific expertise in the processing of carbon fiber. For our part, we interacted with the Abarth / FCA procurement manager to receive input and indications relating to technical and aesthetic needs.
Here you can see one of the cards on which the analysis was conducted, having to respect i “mood” companies and the “inspirations, comes through and are brainstormed” to the materials that the company uses for its cars, thus translating them into recall-effects in the collection of bags and accessories.
Yet, we worked on particular aesthetic results, like the horizontal diamond pattern, as well as on size, which had to respond to the capacity of the luggage compartment of the model, thus defining an ideal composition (large suitcase, small suitcase, beauty travel bag).
All this work is handled in the introduction phase, regardless of whether it is a tender procedure or a direct negotiation. The result to be obtained must be aligned with the expectations of the company and must be able to offer both parties a tangible benefit.
In parallel, however, work is also being done on the commercial aspect, especially if the project is set up as a licensed co-branding. In this case, distribution on the markets is handled by the licensee, which will have to produce a series of forecast data on achievable numbers, so that the brand in question can verify the feasibility of the operation. Even in this case, our role includes an activity upstream of the proposal, having to support the supplier in defining a mini business plan in which to enter information relating to the sales network, direct or indirect, the positioning of products in proprietary commercial contexts (o se in concession), the type of communication and promotional activity, coming to discuss a draft contract between the parties on their respective roles, commitments and investments from both companies, all while guaranteeing the supplier a treatment (and profit margins) valid.
A complex job that pays off with some interesting commercial opportunities, both of image, as well as with an experience that can make a difference in getting out of the market context with which you are used to.
The work we carry out on brand strategies is very stimulating, allows you to combine apparently distant sectors with creativity and methodology, creating commercial stories that are worth a lot in terms of image, market positioning, “brand reputation”.
On the market there is an increasing interest in exclusivity and originality, the same concept as “luxury” has changed and is increasingly moving towards the possibility of wearing a story, rather than wearing something expensive.
At the level of business strategies, MITO Luxury is available to evaluate and discuss with your company, before committing to a contract, because the correct understanding of the business potential allows us to understand what future can be planned.
For information: management@mito.org.uk
