Ford, Merchandise Manager
Ford Motor Co. has aligned with Ha-Lo Industries on a joint venture that will drive the auto maker into the business of merchandise sales and licensing management.
The as-yet-unnamed venture will first serve as Detroit-based Ford’s merchandising arm, managing its existing licensing programs and branded-product initiatives, and developing new products to be used in retail and promotional efforts. Ford currently has 400 licensees worldwide that produce more than 12,500 products.
“As Harley-Davidson has shown, there’s a brand experience that exists beyond just the enjoyment of the product itself,” says Ford vp-global marketing James Schroer. “We are seeking to spread that same product zeal to all of our brands.”
But the venture, of which Ford will be majority owner, will later offer its services to outside clients looking to build on their brand equity, says Ha-Lo president Brad Keywell. Ha-Lo vice chairman Linden Nelson was named ceo of the company, which will be staffed with Ford and Ha-Lo veterans as well as new hires.
Ford’s strategy here is similar to a tack the company has taken in customer service, where it joined with Denver-based Teletech Holdings, Inc. to launch Percepta. That effort likewise plans to serve outside clients.
Ha-Lo has been developing the idea with Ford – it’s biggest customer – for about a year, says Keywell. “We came to the conclusion together that this was the best way to proceed.”
Minneapolis-based Target Stores entered into a marketing alliance with America Online, Dulles, VA, that will link AOL’s online activities with Target’s in-store promotions. Through the deal, AOL becomes Target’s preferred online service, with Target merchandise to be stocked on various AOL service areas. Additionally, a co-branded AOL Internet service will be developed and marketed to shoppers at Target’s 921 stores.
Anaheim, CA-based agency Frodyma On-Site, which specializes in Hispanic and general event marketing, formed a strategic alliance with BDS Marketing, Irvine, CA, to collaborate on projects. BDS gains better access to Hispanic-focused opportunities, while Frodyma benefits from BDS’s wider resources. The two companies can be expected in certain cases to join forces on projects by integrating their respective field marketing operations. Founder and president Larry Frodyma was a BDS executive in the early 1990s. The partners are already jointly developing projects for Tabasco sauce maker McIlhenny Co. and Feld Entertainment, operators of Ringling Bros. and Barnum & Bailey Circus and Disney on Ice.
Dallas-based promotions underwriter SCA Promotions signed a distribution agreement with Kingsmen International, a multi-disciplinary design and production group headquartered in Singapore with offices throughout Asia. Kingsmen will market various SCA products and services throughout the region.
General Mills, Minneapolis, formed a joint venture with MarketTools, Inc., Sausalito, CA, a Web-based market research firm. The alliance, to be called InsightTool, will allow General Mills to conduct consumer research via the Internet.
Co-marketing specialist J. Brown/LMC Group, Stamford, CT, formed an alliance with retail consulting and design firm King-Casey, Inc., South Norwalk, CT. The two will work together to develop integrated marketing communications strategies that begin with advertising and continue through in-store media.
