Itc In Plan To Milk Trademarks

ITC Ltd has drawn up a fresh strategy to maximise the benefits from its several popular trademarks. The aim is to extract the most from them with or without the tobacco business.

The plan is on the lines of the one adopted in the case of the global brand Dunhill, which has been extended into realms beyond tobacco.

Top ITC executives said the company had begun an internal study to assess sectors where its trade marks, if introduced, would yield good returns.

That would see ITC getting into a whole gamut of new areas, where the trademark can be used, the sources said. Five out of the top six trademarks in the cigarette industry are owned by ITC.

 

Business Standard had earlier reported that ITC would be moving a resolution at its forthcoming annual general meeting, seeking to get into a slew of new areas starting from sports and fashion accessories to furniture, crystals and a host of other items.

ITC, the executives said, had realised that the strength of its trademarks is a critical factor contributing to its success, and the aim therefore was to add these to a host of products which would be well identified.

We want to make the trademarks pay for the company with or without tobacco, ITC executives said.

They emphasised that it was not merely with the intention of launching cover products for the tobacco brands that the company was getting into these diversified areas.

Research is going on to understand all the sectors where this strategy can be extended.

As and when these areas are identified, we would get into them. Therefore, rather than convene extraordinary general meetings for the clearances from shareholders, we are moving this enabling resolution, the sources explained.

ITCs name itself, along with its brands like Classic, Wills, Gold Flake and India Kings are pretty popular.

But the company feels the strengths of these trademarks can be further utilised in several other sectors.

Look at the success Dunhill or Pierre Cardin trademarks have achieved by getting into all kinds of products, the executives said.

ITCs best known trademarks are already associated with a number of sports. For instance, Wills is associated with cricket, Gold Flake with snooker and tennis and Classic with golf and equestrian events.

These three trademarks are also being used by its travel and tourism business through holiday schemes named after them.

``The idea is, however, to go much beyond this on the strength of the trademarks, executives said.

The Wills Gold Flake family is the largest single trademark in the consumer goods sector in India.

Similarly, Wills Navy Cut is the largest free standing brand amongst

consumer goods.

In the cigarettes business, for instance, ITC has continuously invested in the strength of these trademarks and invests regularly to upgrade their value. It has also launched new trademarks like Classic Ultra Milds and Wills Natural Lights.