Move over brand ambassadors, the latest mantra for promoting a brand appears to be co-creation. And retail major Future Group seems to be making the most by co-creating its private brands. Instead of an endorsement fee, the celebrity involved in brand co-creation, will get a pie in the revenue of the product, said sources close to the development.
After launching the Dreamline range under the concept of co-creation with Hema Malini, Future group is aiming to boost its sales with the newly launched Sach brand, which will be co-created by cricket giant Sachin Tendulkar. While Dreamline is a range of home making and home improvement products, Sach has a presence in apparel and personal care segment. The group aims to achieve at least 25 per cent of its in-store toothpaste sales from the private brand within six months.
"Co – creation involves a well known person who comes together with an organization in a relationship which is much more than being a brand ambassador. The co-creator is closely involved in the development of the products, which invariably are products that are aligned to the persona of the co-creator. All products which are launched under the Sach brand name must have his approval before going ahead. He is involved in prototype evaluation process; feedback from which is incorporated in the product. He plays a very important role in product development, and is involved in practically all phases of product development as well as the go to market strategy, the pricing etc., said Devendra Chawla, Head—Private Brands, Future Group.
He however declined to comment on the revenue sharing percentage that the celebrity would garner.
The company, which launched the toothbrush range under the Sach label six months ago, plans to launch more products under the same label by the end of 2010.
"We have apparel range and in FMCG we have started with oral care category with a toothbrush launch and more in the FMCG category to come out soon," Chawla added.
While the company does not plan to go into co-creation for all its private brands, it is looking at expanding its apparel range under the Sach brand.
Besides Sach, Future Group has launched a series of private brands ranging in foods with Tasty Treat, Home and personal care range with Cleanmate, & Caremate, staples with Fresh & Pure and Premium Harvest.
The Kishore Biyani-led Future Group has businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India.
The group's speciality retail formats include supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others.
