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Brand Licensing News

Ellen Tracy Eyes

Ellen Tracy, the 56-year-old brand that is a division of Liz Claiborne Inc.,
has signed a new license for eyewear.

The licensee will design and manufacture eyeglass and sunglass silhouettes
for the Ellen Tracy Eyewear collection. The collection will comprise 20
ophthalmic styles and five prescription sunglasses in metals or plastics.

The looks will be unveiled in March at the Vision Expo East trade show
in New York, and will ship to independent optical professionals and
select optical retail chains nationwide in April.

Thursday, December 15, 2005

P &G Signs Dolce & Gabbana

WWD reports:

The fashion duo has signed a new fragrance license with Procter & Gamble
Prestige Products, ending drawn-out negotiations and nearly two years of
speculation.

According to industry sources, P&G beat other top-flight competitors,
which reportedly included L`Oréal and Estée Lauder.
While the terms of the deal were not disclosed, market sources said
the price tag was at least 100 million euros up front, or $120 million,
and a 10 % royalty agreement.

"We want the Dolce & Gabbana fragrance house to become the
[number] -three or -four player in the world. That`s the objective.
It`s ambitious, but the platform is clearly there also because the
strength of the fashion house is unprecedented," said Hartwig Langer,
president of P&G prestige products.

The production and distribution of Dolce & Gabbana`s fragrances
will pass to P&G on July 1, ending the Italian brand`s historic 15-year
license with Euroitalia. Riding the wave of Dolce & Gabbana`s
fashion success, Euroitalia built a robust fragrance business for the
fashion house with annual wholesale sales in excess of 200 million euros,
or $240.8 million at current exchange, according to Dolce & Gabbana`s
general affairs director, Cristiana Ruella.

While Langer shied from giving a time frame for sales growth,
Markus Strobel, general manager at P&G prestige products,
is confident they will double the brand`s wholesale volume
in the next five years.
Plans include launching three new fragrances in the first two years
and eventually developing a makeup line.

On the retail front, the plan is to secure more exposure within
strategic doors rather than increase the number of sales points.

For the fiscal year ended March 31, Dolce & Gabbana`s consolidated
revenue, which excludes that of licensees, totaled 686.4 million euros,
or $826.5 million.

Thursday, December 15, 2005

Smith & Wesson Safes

Thursday, December 15, 2005

Nicole Miller`s Ensemble Act

WWD reports about Nicole Miller increasing the number of her licenses.
Considering that every license, no matter how small or big, requires a
minimum of attention, to us this rather sounds like handling a bag of fleas,
then a profitable licensing portfolio.

"Now when Nicole Miller dresses her customers, she will do it from head to toe.
The designer and president of the 23-year-old eponymous brand is rolling out
footwear, handbags, belts and jewelry for spring in a renewed accessories push
that she and chief executive officer Bud Konheim anticipate will boost the
$800 million the brand generates at retail by more than 25 percent.

The expansion into accessories will all be under license, increasing the brand`s
partnerships with outside firms for accessories to seven from two.
Nicole Miller has a deal for an assortment of sunglasses and a second for hosiery,
both of which have been active for more than a decade.

Recent agreements include a license for luggage, one for women`s shoes,
another for handbags and umbrellas and one for belts.

Last month, Nicole Miller rounded out the mix by entering into an agreement
for a collection of necklaces, bracelets, rings and earrings.

Nicole Miller counts 24 licenses for its brand, including 11 for its home collection
distributed exclusively at Bed, Bath & Beyond, and the brand has had licenses
for accessories in the past.

"We`ve learned a lot," said Konheim. "When you hear about us in the past
in terms of licensing, we made some mistakes and we had to switch.
We had to learn every lesson in a painful way."

Thursday, December 15, 2005

Byblos open Hotels

WWD Reports, two more fashion brands have jumped
into the hotel business: Missoni and Byblos.

Missoni, which has a successful home furnishings collection,
has signed a worldwide licensing agreement with a Belgian
hotel chain. The plan is to develop and operate 30 small-
to medium-sized venues called Hotel Missoni by 2010.

The first three Hotel Missonis are slated to open in 2007
and are expected to include units on Palm Island in Dubai,
United Arab Emirates, and in Edinburgh.
Other target destinations include London, Paris, Amsterdam,
St. Petersburg, Milan and Istanbul.

By 2010, Vittorio Missoni, the fashion house`s marketing manager,
forecasts sales for the project to be more than $350 million.

"We were approached some time ago and jumped at the
opportunity because the home collection, whose sales will
exceed $23 million this year, is an important segment for the brand,"
said Missoni. "We are protective of what our parents built and
will never sacrifice the values of that business at the expense
of short-term growth, but we found the right partners in Rezidor SAS."

He added that hotels are a natural extension of Missoni`s core business
and a perfect complement to its fashion, home collections and fragrances.

The interiors, naturally, will be decorated in colorful patterns
similar to those that catapulted Missoni to fame. Rosita Missoni,
co-founder of the colorful knits, with her husband, Tai Missoni,
designs Missoni Casa. Besides Rosita Missoni and Rezidor SAS,
the design of the hotels will be developed with Studio Thun,
the Milan-based design studio headed by Matteo Thun.

"Rosita is ecstatic about this project. She can`t wait
to start designing more sheets and tabletops,"
said Vittorio Missoni.

Meanwhile, Byblos owner Dino Facchini is going for the art
of surprise with his new five-star Byblos Art Hotel Villa Amistà
and Chenot spa, located on the hills surrounding Verona, Italy.

Missoni and Byblos enter the hotel industry following Armani,
Versace, Ferragamo and Bulgari, all of whom have put their stamps
on luxury hotels.

Thursday, December 01, 2005

Heinz named UK`s `most desired` brand by shoppers

Heinz Baked Beanz has been named `the most desired brand` in the UK,
according to a new survey, as big brands score well.

Carried out by academics at the University of Bath and integrated agency Geronimo,
those surveyed were ask to name their preferred brands and rank their level of
disappointment, if they were not available when shopping.

According to Geronimo, the aim was not to chart the products that sell the most,
but those that consumers feel most passionately about.

Other Heinz products also did well in the survey, with its tinned soup range
being named the second most desirable product and its tomato ketchup
coming in at eighth place.

The third place brand was Fairy washing-up liquid, followed by Kellogg`s
cereal range in fourth, Nescafe coffee in fifth and Colgate toothpaste in sixth.

The rest of the top 10 is made up of seventh-placed Walker`s Crisps,
Robinson`s squash in ninth and Andrex toilet paper in 10th place.

Bigger name brand such as Coca-Cola missed out on a top 10 placing,
with the drinks brand ranked at 11th. Cadbury chocolate bars
were ranked 20th and Hovis reached number 29.

Geronimo managing partner Andy Snuggs said: "From various data
already available any marketer will know which FMCG brands sell the most.
With this research, we have found out which grocery brands
consumers feel closest to and feel most passionately about."

Out of the 100 brands charted around half are owned by just five firms
Unilever, P&G, Heinz, PepsiCo and Tesco, which had eight of its
own-label brands such as its cheese included in the survey.

Heinz Baked Beans (49.5%) Heinz tinned soup (42.2%) Fairy washing up liquid (40.5%) Kellogg`s Cereal (34.2%) Nescafe coffee (33.3%) Colgate toothpaste (32.6%) Walker`s crisps and snacks (30.9%) Heinz tomato ketchup (29.4%) Robinson`s squash (25.0%) Andrex Toilet paper (23.4%)

Thursday, December 01, 2005

Smith & Wessons Cleaning Products

Smith & Wesson Holding Corp., parent company of Smith & Wesson Corp.,
the legendary 153-year old global provider of products and services for
safety, security, protection and sport, today announced that it has
entered into an agreement, to license use of the Smith & Wesson brand
and logo on a new line of gun cleaning products and related accessories.

The licensee has been an innovator in the development, manufacture
and distribution of automotive chemicals, hardware, plumbing and
traffic safety specialties since 1924.
The company manufactures over 4,000 products.

The new Smith & Wesson line will include a variety of gun cleaning agents
as well as accessories ranging from brushes to polishing cloths.
All products have been created using the highest quality standards
in the gun industry, and have been developed by scientists,
in consultation with gunsmiths, engineers and metallurgists at Smith & Wesson.

Licensed gun cleaning products featuring the Smith & Wesson name and logo
will be formally introduced at the SHOT Show in Las Vegas, Nevada,
February 9-12, 2006, and will then be available on the Smith & Wesson
website and wherever fine guns and accessories are sold.

Wednesday, November 30, 2005

Juicy inks watch deal

Juicy Couture has signed a licensing agreement to design, produce
and market a collection of watches under the Juicy Couture and
Couture Couture brand names.

The companies announced the exclusive, long-term agreement,
which takes effect immediately, in a joint press release issued Tuesday.
The statement did not disclose the financial terms of the agreement.

The companies hope to launch the Juicy Couture watch collection
in Fall 2006 with sales beginning at select, high-end retail outlets
in the United States.

The watches will include rich color, exotic skins, jewel elements and
clever shapes, according to the release.

Based in Southern California, Juicy Couture is a designer,
marketer and wholesaler of casual apparel and loungewear
for men, women and children.

The company targets fashion-conscious women in the 18-45 age range,
aspirational teens and baby boomers.

Liz Claiborne purchased the company in 2003.

The licensee designs, manufactures and distributes Movado, Ebel,
Concord, ESQ, Coach, Tommy Hilfiger and Hugo Boss watches worldwide,
and operates Movado boutiques and company stores in the United States.

Wednesday, November 23, 2005

Ferrari brand brings in $700m

Ferrari`s head of brand development and partnerships has revealed
at the F1 Sponsorship Forum that Ferrari`s income from merchandising
and licensing deals, including the new Ferrari shops around the world
is now worth $700m a year to the Italian car company in terms of
revenues.

He said that racing is "absolutely mandatory for the brand and
the product" but says that the company is planning a chain of
50 stores around the world, despite the dangers that exist
in diluting the company brand.

He would not go into further detail but estimates of Ferrari`s income
from merchandising are around $70m, which is about five times
that of any of the other F1 teams.

Thursday, November 17, 2005

Piracy, Counterfeiting Costs $600B Globally

WWD reports:

The problem of product piracy and counterfeiting is growing
at a more dangerous rate than and is draining the world economy
of an estimated $600 billion a year in lost sales, said a report by
the International Chamber of Commerce.

The report, released Monday by the Paris-based global business group
with affiliates in 140 countries, urges governments to take firm steps
to end the costly abuse.

The report said many small and medium enterprises rely heavily
on intellectual property rights.

Design rights, copyrights, patents and trademarks are essential
for numerous industries…such as textiles, toy, publishing,
biotechnology and retail, the ICC report said.

The study, Intellectual Property: Source of Innovation, Creativity,
Growth and Progress produced by Business Action to Stop
Counterfeiting and Piracy - which is backed by 800 companies
and trade groups worldwide — said better protection can add value
to consumers and can provide a guarantee of source and quality.

In India, said the report, fast-moving consumer goods lose about
15 percent of market share to counterfeits. It also noted
that the California economy loses about $34.5 billion to
counterfeiting and piracy.

The report said a recent study estimated that counterfeiting
and piracy cost the European Union lost tax revenues of about
$9.1 billion in the apparel and footwear sector, $3.6 billion in
perfumes and cosmetics, and $4.5 billion in toy and sports articles.

When buying counterfeit and pirated goods, consumers are often
deliberately misled into thinking they are obtaining
the quality expected of branded products, the report said.

A study earlier this year by the U.S. Chamber of Commerce said that,
based on estimates by the Federal Bureau of Investigation,
Interpol and the World Customs Council, counterfeit goods cost
U.S. companies between $200 billion and $250 billion annually.

Brad Huther, director, counterfeiting and piracy initiative at the
U.S. Chamber of Commerce, said in an interview here last week
that the organization would also like to see "much stronger statements…
in the Doha global trade talks on enforcement of intellectual property rights."
Counterfeit merchandise is responsible for the loss of more than
750,000 American jobs, according to U.S. Customs & Border Protection.

Wednesday, October 26, 2005

Mandarina Duck Spreads Wings

WWD reports, that bags and accessories brand Mandarina Duck
continues the European rollout of its first scent, a signature fragrance
for women, industry sources estimate it will generate $8.5 million
in its first year on counter worldwide.

The Mandarina Duck fragrance, which targets 20- to 30-year-olds,
has been introduced in Russia and the Mideast, and in Spain, Italy
and - last month - in France.

"France is the most difficult market," said the president of the licensee.

The scent is due to be rolled out to Germany, Japan and India this year,
a strategy that will make it available in some 5,000 points of sale.

Next year, China, the U.K., Eastern Europe and the U.S. are to be additional launch markets for
the Mandarina Duck fragrance.

Advertising for Mandarina Duck will be unveiled at the duty-free trade show in Cannes this month.

A Mandarina Duck men`s scent is due for a spring 2006 launch.

Thursday, October 20, 2005

Seth`s Blog: The new rules of naming

If you are about to launch a new product or brand, and you are working
on the name and the internet is of importance to it, (isn`t it always today?)
please read Seth Godin`s great piece on naming:

"For a long time, I didn`t like my name.
I spent more than 30 years spelling both my first and last name in school
and on the phone. It didn`t help that I had a little trouble with my S`s
when I was a kid.

Of course, now I think it`s fantastic that my grandfather overruled
my mom when she wanted to name me Scott.
(I think he had an issue with the branding of a type of toilet paper,
but that`s a different story).

Scott`s a tough name in the Google world. Mark is even tougher.
Michael is probably toughest of all.

We went through a lot of hoops in naming Squidoo.
I realized as I was explaining the process to a friend the other day
that the same logic applies to any product or service or company
in our bottom-up world, so here goes:

A long time ago, the goal of a name was to capture the essence
of your positioning. To deliver a USP, so you could establish supremacy
in your space just with your name. International Business Machines
and Shredded Wheat were good efforts at this approach.

It quickly became clear, though, that descriptive names were too generic,
so the goal was to coin a defensible word that could acquire
secondary meaning and that you could own for the ages.
That`s why "Jet Blue" is a much better name than "Southwest"
and why "Starbucks" is so much better than "Dunkin Donuts".

"Naming companies" flourished, charging clients hundreds of
thousands of dollars to coin made up words like Altria.

Then domains came along. Suddenly, people were charging
(I`m not making this up), $300,000 for goggles.com.
The idea was that if you could grab a domain name
(there`s only one goggles.com in the entire world),
then people could easily find you.

I think many of these rules have changed, largely because
of the way people use Google.

If you want Jet Blue or ikea or some other brand, you`re just as likely
to type the brand into google as you are to guess the domain name.
In essence, we`ve actually added a step in the process of finding
someone online. (How else would anyone find Del.ico.us?)

This means that having the perfect domain name is nice,
but it`s WAY more important to have a name that works in
technorati and yahoo and google when someone is seeking you out.
Sort of a built-in SEO strategy.

Flickr is a good name. So is 37signals. The design firm Number 17,
however, is not. Answers, About, Hotels and Business are all fine URLs,
but they don`t work very well if someone forgets to put the part in.
Do a Yahoo search on radar and you won`t find the magazine or
the website in the making, and do a search on simple and
you won`t end up at the very expensive simple.com domain.
If you`re trying to make your way as a blogger,
calling yourself Doc or Scoble or Seth is a much simpler way
to establish a platform than calling your blog "Mike`s Blog".

Sound obvious? Of course it does.
But books still get titles like "Chip Kidd, Work: 1986-2006, Book One".

So, that was the first task. Find a name that came up with close to zero
Google matches. The only English language matches I found for
Squidoo were for a style of fishing lure (we bought 6 gross,
more on that later).

If I had a choice between a killer domain with a generic word in it
or a great word that led to a less than perfect domain,
I`d take the first, second every time.

The second thing that`s happening with the explosion of made-up
unique names is that the very structure of the word
now communicates meaning. Web 2.0 names often have missing
(or extra) vowels. The "oo" double o is a great way to communicate
a certain something about a net company.

"HRKom" doesn`t sound like the same kind of company as, say,
"Jeteye". This is all very irrational, artsy fartsy stuff, and it`s also important.
Altria and Achieva and Factiva and Kalera all sound like companies
invented by naming firms. Which is a fine signal to send to Wall Street,
but nothing you`d want to name your kid or your web 2.0 company.

The shift, then, is from what the words mean to what the words remind
you of. The structure of the words, the way they sound, the memes
they recall... all go into making a great name.
Starbucks is made of two words that have nothing at all to do with
coffee (except for their profits!) and the reference to Moby Dick
is tenuous for most of us. But over time, the shape of the letters,
the way they sound and the unique quality of the word
makes it close to perfect.

So, using the fantastic NameBoy service (also a great name),
I found thousands of available domains that managed
to sound right and were unique. It took more than a month.
Along the way, I almost bought FishEye.com but the owner
(who has a charter boat in the Cayman Islands) wasn`t budging.

The last thing to tell you is this: you need to sell a name internally.

There are two things you should keep in mind:

1.
don`t use a placeholder name.

People will fall in love with it. Find your name, use that name and that`s it.

2.
don`t listen to what your friends and neighbors and colleagues tell you
about a name.

We had a placeholder name (yikes), I had to change it and
everyone hated the new name.
For weeks! Now, it feels like it couldn`t be anything else.

The entire point of "secondary meaning" is that the first meaning
doesn`t matter at all (especially since you picked a name
with no meaning to begin with).

Over time, a surprisingly short time, your unique word,
especially if it sounds right, will soon be the one and only word."

Tuesday, October 18, 2005

Extracting gold from patents can bolster the bottom line

The International Herald Tribune writes on Sunday:
"The Dutch brand Philips is found on millions of televisions, stereos
and other electronic products in living rooms around the world.
Almost as ubiquitous are the products of the French manufacturer
Thomson, which is known for its televisions, professional video equipment
and TV set-top boxes.

Yet last year, these consumer electronics makers did not profit
from making consumer electronics. Instead, Thomson got 75 %
of its operating earnings - 325 million of the total of 434 million,
or $390 million of $522 million - by licensing its technology
to other companies.
Philips would have lost money on its consumer electronics business
last year if not for 478 million in licensing income.

Squeezed by low-cost Asian manufacturers, niche competitors
like Apple Computer and ambitious interlopers like Samsung Electronics,
the industry`s historic leaders are increasingly dependent on
selling ideas rather than products, and at profit margins
that are far wider than in the cutthroat world of consumer gadgetry.

"Intellectual property is playing an increasingly important role
for our group," Rudy Provoost, head of Philips Consumer Electronics,
said in an interview. "It`s just a fact of life in our business now
that you have to cultivate and protect IP."

The question is whether the traditional approach of developing,
owning and mining patents for revenue has a future
in a world where copies and knockoffs are increasingly simple
to make, license fees easy to avoid and a certain part
of the next generation more comfortable with "sharing"
than with owning.

To be sure, the technology industry is still dominated by
proprietary manufacturers like Sony, Philips and
International Business Machines, which are more aggressive
than ever in pursuing patents and patent infringement.
This year, IBM is expected to file around 3,250 patents
- the most of any company in the United States."

How satisfied are you with the development of your IP portfolio?

Monday, October 03, 2005

Brand Value for Balance Sheets

Three approaches exist to calculate the value of intangible assets:

market approach

cost approach

income approach

Market approach deprives "Fair Value" from market prices of same or comparable goods.
It is applicable e.g. for real estate properties.

For brands this approach is unsuitable.
On one hand, only few comprehensible brand sales are published. On the other hand few
"comparable goods" exist.

Cost approach deprives "Fair Value" from the costs for reproduction.

For brands this approach - unfortunately often used for rankings - is paradoxical.
A bad brand manager, who inefficiently spent large sums, is rewarded with high brand value.

Income approach calculates "Fair Value" as present value of future economic advantages,
for example royalties.

For brands, this approach is the only suitable one.

Friday, September 23, 2005

Liz Claiborne home decorative gifts

Liz Claiborne Inc. today announced that it has reached an agreement
in principle to design and manufacture decorative gift products under
the Liz Claiborne Home and Villager brand names.

The lines will include home care and cleaning products, scented candles
and home fragrance, bath and spa items and a baby bath line.

Launching to the trade in Fall 2006 and at retail in Spring 2007,
the Liz Claiborne Home decorative gift collection will be available
at select specialty retailers and gift stores, with the Villager gift line
available at select national chains.

Friday, September 16, 2005

Brown-Forman, Virgin cut wine-licensing deal

Brown-Forman Corp. has licensed billionaire entrepreneur Richard Branson`s
famous Virgin brand for a screw-topped wine aimed at luring young consumers
away from beer and flavored vodkas.

With the slogan "Unscrew it, let`s do it" the new Virgin Vines shiraz and chardonnay
from Brown-Forman`s California vineyards poke fun at the swish-sniff-slurp-and-spit
wine culture.

Script on the painted shiraz bottle urges consumers to "enjoy this wine without dashes
of pretentiousness or hints of snootiness." The chardonnay bottle suggests
that buyers "simply drink this cool, crisp white with something or someone
you find delicious."

"We really believe there is a great opportunity to target the 21- to 29-year-old
age group who really are confused and intimidated about wine,"
said Andrew Varga, managing director of wine marketing for Brown-Forman.
"Virgin is a brand name that already has a built-in equity with that young-adult
population."

The Virgin brand is widespread -- on an airline, mobile phones,
a music company and more. In May Branson closed a deal with
Humana to sell health insurance with the Virgin brand in U.S. health clubs.

Brown-Forman has a straight licensing agreement with Virgin, Varga said,
and will produce, bottle and promote the brand.

Virgin Vines has started reaching distributors and will show up in stores soon,
Varga said. "This has really been targeted to get out in front of the
holiday selling season."

The company hopes the drink-sized plastic bottles will open up
new sales opportunities at concerts and stadiums.

More twenty-somethings are graduating from college - the No. 1
demographic attribute associated with wine drinking.

Virgin Vines is part of a broader Brown-Forman strategy to introduce
new labels into niche markets rather than fight price wars with its
established brands.

Wednesday, September 14, 2005

GM drives Hummer-branded laptop

General Motors is expected to announce a new laptop next week
that`s styled after its popular Hummer multi-terrain vehicles.

The carmaker has signed an exclusive three-year licensing agreement
to make a portable computer designed for people who work outdoors:
policemen, firemen, claims adjusters and construction workers,
for example, as well as people who own a Hummer and are
fascinated by anything related to the oversize vehicles.

The licensee, which makes laptops and tablet PCs for the U.S. military,
said it wanted to style a new category of "semi-ruggedized" laptop.
Priced at $2,988, the laptops come with enough padding to survive
six separate drops from a height of 30 inches onto two 3/4-inch sheets
of plywood placed on top of concrete.

Industrial-strength laptops, which are water-resistant and can withstand
extreme temperatures, are finding their way onto the battlefield and
the oil field. Models like the Panasonic Toughbook, and Twinhead,
with its Durabook line, also come with external body armor and
internal shock absorbers.

Wednesday, August 31, 2005

Liz Claiborne Adds Stationery And Gift

Liz Claiborne Inc. today announced that it has reached an agreement
in principle for a license to design and manufacture stationery and
select gift items for the Liz Claiborne Home collection.

The line will include social stationery, note cards, journals, memo boards,
scrapbooks, picture frames, photo albums, paper tableware, kitchen
recipe boxes and binders, gift cards and bags.

The collection will be launched to the trade in January 2006 at the
Atlanta Spring Gift and Home Accessories Market and will be available
at select specialty, stationery and gift retailers in Spring 2006.

The Liz Claiborne Home Collection was launched in 2002 with the
introduction of flooring under the Liz Claiborne brand name.
The line currently includes furniture, flooring, decorative fabric,
home storage, table linens, bed and bath products and window
treatments.

Thursday, August 25, 2005

Michelin Wheels into Shoes

Brandweek reports, that tire maker Michelin and tennis equipment
and apparel maker Babolat are set to launch the latter brand`s first
tennis shoe, called All Court.

The shoe will be co-branded, though Michelin`s name and
branding will be on the sole only.

The move is part of a licensing program Michelin launched in 2000,
Michelin Lifestyle Limited, to extend the brand into automotive and
cycling, high performance work, sports and leisure products, and
heritage-themed apparel and personal accessories.

The managing director of Michelin Lifestyle Limited said
the company launched the program as a brand builder.
"The strategy has three goals," he said. "It`s first and
foremost for brand impact, and second, we want to have
the right products in the right places to support our efforts
to build that impact for the Michelin brand.
Lastly, it`s to progressively contribute financial support
through product sales," he said.

We consider this plain co-branding.
Or maybe a license for rubber soles?
The "brand impact" seems questionable.

Wednesday, August 24, 2005

DIN plans standard for brand evaluation

According to DIN German Institute for Standards, the equivalent of ANA,
a meta-standard for monetary brand evaluation will be set by Summer of
2006.

We hope this will put an end to all the dubious methods with a black box.

Thursday, August 18, 2005

MAXIM Magazine goes into bar business

In the latest indication that Maxim magazine`s brand will keep seeping
beyond the printed page, owner Dennis Publishing has struck a deal
with nightclub developers to build a chain of Maxim lounges across
the country.

According to the company, the agreement envisions Maxim-branded
venues that can host Maxim promotional events but will more often
accommodate after-work and late-night crowds of drinkers.

Dennis` partners in the deal have created nightspots like Stone Rose,
in New York City``s Time Warner Center, and the Whiskey bars
that are often located in chic W hotels.

Maxim has previously extended its brand into radio programming
and consumer products.

Wednesday, August 17, 2005

Ralph Lauren - licensing success

First quarter results at Ralph Lauren show the power of licensing.

Net revenues: $ 752.0 million
Net income: $ 50.7 million
Licensing revenues: $ 57.0 million

Where would RL be without licensing?

Wednesday, August 10, 2005

A Cadillac on just two wheels

You can now buy a new Cadillac for as little as $500. The catch?
It has only two wheels, one seat and you have to provide the power.

General Motors Corp. has started licensing its luxury car brand
and logo for a line of mid- to high-end bikes.
The bikes cost $500 to $1,900, according to the company.

Officials with Cadillac said the licensing agreement is part
of a strategy to attract younger buyers to its luxury cars.
"The more unexpected brand contacts we can have,
the more surprising it is for the consumer and the more
chances we have to break through preconceptions of
what they think they know about Cadillac now",
Cadillac`s accessories manager, told the Detroit News.

General Motors already licenses the Hummer name.
The "HUMMER Tactical Mountain Bike" folds for easy carrying
in a backpack, according to an announcement released
by GM in March, 2003.

Wednesday, July 27, 2005

Surf City brand, here it comes

Surf City USA is going on the road.

And it`s taking beach cruisers, a new logo and the story of legendary duo
Jan and Dean with it to the cornfields of Iowa and the fjords of Norway.
Tourism officials believe they have the makings for a groundbreaking
marketing strategy that will draw thousands of visitors and
- more importantly - dollars.

They put that plan into action Tuesday by adopting an official logo,
signing a licensing agreement for a Surf City USA beach cruiser,
and finalizing an agreement to use the story of Jan and Dean,
who sang the popular song `Surf City.`

`We have a very authentic and very historic brand to put out there.
... And we`re looking at the best way to get this product out and sell it,`
said Doug Traub, president of the Huntington Beach Conference
and Visitors Bureau.

And this is just the start. Future plans include licensing agreements
for flip-flops, T-shirts, sneakers, shorts, sunscreen and even a
furniture line.

Dean Torrence is on board to make five appearances
throughout the year as the official spokesman for the
`Surf City USA` brand - which the visitors bureau trademarked
last year much to the ire of Santa Cruz officials, who had
always laid claim to the title. Torrence and Jan Berry`s
estate will receive royalties from the marketing deals.

Traub hopes that money from these agreements will
provide a healthy boost to the organization`s budget.
It currently receives a yearly $250,000 grant from the
city and about $500,000 from a hotel bed tax.

A tourism increase also would mean more money for
local merchants and increased tax dollars flowing into
city coffers.

While it`s common for cities to create a brand to market
themselves, the idea of licensing agreements is fairly new.

Last year, the City of New York through NYC Marketing
started a similar operation.

Thursday, July 14, 2005

Trussardi Signs Perfume Deal

WWD reports:

Italian luxury goods house Trussardi has inked a long-term
worldwide fragrance licensing agreement.

Procter & Gamble announced the end of its licensing
agreement with Trussardi, which it had inherited through
the acquisition of Wella`s Cosmopolitan Cosmetics
fine fragrance division.

P&G`s deals with the Tony & Tina, Charles Jourdan and
Yohji Yamamoto brands have also ended.

The deal gives us the scope to develop the Italian market
and to decide with the brand what other markets to develop,`
said the founder, chief operating officer and managing director
of the Paris-based licensee. The five-year-old firm rang up sales
of 71 million Euros, or $92.8 million at average exchange, last year.

The Trussardi Group, which last year generated volume of
122 million Euros, or $159 million, has 100 boutiques and
120 corners worldwide.

Its beauty portfolio includes Trussardi Jeans for men and women,
Python for men and women, plus Skin, a women`s scent.

Thursday, July 14, 2005

adidas Salomon & Porsche Design

adidas Salomon and Porsche Design agreed upon a long-term partnership.
The goal of the co-operation is to establish a technologically oriented
premium sports brand said adidas on Monday in Herzogenaurach.
The partnership extends to licensing also.

Under the brands ` Porsche Design ` and adidas and TaylorMade
sport shoes, apparel and golf -, tennis and running equipment
will be developed.

Product will be available in the 2007 in specialty retail stors
and exclusive Porsche Design shops.

Since the beginning of this year adidas competitor Puma already
co-operates with Ferrari. Puma equips Formel-1 racing team of Ferrari.
The sports article manufacturer supplies the team clothing and
team shoes as well as accessories beside fireproof running products.

Puma had at the same time acquired the world-wide license
for the official Ferrari collection.

Tuesday, July 12, 2005

New Liz License

Liz Claiborne swim wear now will be made under license
by a swim firm that also makes Juicy Couture, DKNY and
Gabar swimwear lines.

The Liz Claiborne line had been made by
Manhattan Beachwear.

The new looks, which include swim wear and cover-ups,
will be shown at the SwimShow 2006 in Miami later this month
and will hit stores in November.

Thursday, July 07, 2005

Perry Ellis grows kidswear

Following the success of its launch into kids wear,
Perry Ellis has entered into a licensing agreement
to extend its Original Penguin brand to newborn,
infant and toddler sizes.

The licensee will produce sportswear and outerwear,
including denim pants, sweaters, skirts, dresses, blouses
and jackets for domestic distribution through
better department and specialty stores beginning
next spring.

Wednesday, July 06, 2005

Apple tops list of fastest growing brands

Apple, creator of the iPod, is the fastest growing brand in the world,
with internet brands Google, Amazon, Yahoo! and eBay following
close behind, pushing notoriously powerful brands like Coca-Cola
off the list.

According to marketing consultants Vivaldi Partners and Forbes,
Apple has managed to increase its brand value by 38% in the last
four years - largely thanks to the ubiquity of its portable music device
iPod.

Handheld email and phone device Blackberry and internet search
engine Google tied in second place with 36% growth, putting
websites Amazon and Yahoo! in fourth and fifth place respectively
with 35% and 33%.

Power brands like Coca-Cola and McDonald`s, which typically
spend the most on advertising, did not even make it into the top 20.

Sports giant Nike came in 16th place while Japanese car maker
Toyota, with the highest brand value of $25.8bn, came in 17th place.

The report describes the growth brands as having "outperformed
their peers in their respective markets during the past four years
and are likely to continue to do so into the future".

The Next Generation of Growth Brands is based on compound
annual growth rate in brand value between 2001 and 2005.

Brand Value Increase

Apple 38%

Blackberry 36%

Google 36%

Amazon 35%

Yahoo! 33%

eBay 31%

Red Bull 31%

Starbucks 24%

Pixar 23%

Coach 22%

Tuesday, June 14, 2005

House Passes Counterfeiting Bill

The House passed a bill Monday that would increase criminal counterfeit
penalties at a time when bogus apparel, handbags and accessories are
costing U.S. companies billions of dollars in lost sales a year.

The bill would expand penalties to those who traffic in bogus labels
and packaging, and would require the forfeiture of the equipment
used to make the items.

The Stop Counterfeiting in Manufactured Goods Act, sponsored by
Rep. Joe Knollenberg (R., Mich.), which was approved on a voice
vote, would also require that restitution be paid to the trademark
owners whose brands were counterfeited.

Under current law, trafficking in counterfeit labels or packaging
is not illegal if they are not affixed to the finished counterfeit product,
and if a counterfeiter is convicted, the fake products are destroyed
but not the equipment used to make them, according to lawmakers.

The bill now moves to the Senate, where passage is expected.

According to a November 2004 report issued by William C. Thompson Jr.,
New York City comptroller, about $456 billion was spent on
counterfeit goods worldwide in 2003.

Tuesday, May 24, 2005

Calvin Klein, Cerruti, Chloe and Lagerfeld to Coty

Unilever sells world famous perfume brands

The Dutch-British Unilever consumer product group sells its division
of luxurious perfumes for US$ 800 Million or 637 Million Euros to the
American Coty.

According to Unilever, the price can increase by 100 Million US Dollars,
if perfume sales will go up.

The agreement with Coty includes brand licenses like Calvin Klein,
Cerruti, Vera Wang, Chloe and Lagerfeld.

Coty also takes over production- and distributions facilities in
Mount Olive, New Jersey, a distribution center in Lille (France)
and all employees.

Last year, global sales of luxurious perfumes at Unilever reached
more than US$600 Million (490 Million Euro). The division was not
considered to be inline with the core activities of Unilever.

Friday, May 20, 2005

Missoni Signs Fragrance License

After a year of speculation that a licensing deal was in the works,
Missoni unveiled a new fragrance partnership in Milan last week.

The license calls for the launch of a Missoni women`s fragrance
in spring 2006.

Terms of the long-awaited deal were not divulged.

Renown for its trademark zigzag prints and vibrant use of color,
the Milan-based Missoni fashion brand is seen by some in the
industry as the perfect launching pad for a color line.

Missoni made a foray into the fragrance business in the early Eighties.
After three fragrances were produced and launched under license
by Max Factor, Orlane bought out Max Factor and the scents and
license were discontinued in 2000.

For the licensee, whose fragrance portfolio is American-centric,
the new license promises to diversify it`s offering.
"It`s an important step we are taking with Missoni," he said.
"In Europe, Missoni has a powerful base with an Italian name
and we are seeing a tremendous resurgence with Italian
designer fragrances in Europe."

The Missoni deal will give the company a stronger strategic
presence in Europe. "From a beauty standpoint, we don`t
have penetration in Europe, our objective is to get market share
in Europe," said the licensee. "There is room to enhance our brands
and, of course, room to enhance our fragrance business here.
We must do that and, to achieve it, we must have great brands
like Missoni."

He didn`t elaborate, however, about whether the firm was
considering signing other licensing deals away from home.

"Missoni is the first European brand for us and we hope it sends out
a strong message that we want to be a global fragrance player,"
adding, "I`m not certain whether it will be the start of more
European-based licenses, but it`s the first step, and we will see
how many other steps we are willing to take."

Thursday, May 19, 2005

How to reach the youth?

According to MRI`s Teenmark research, in 2004 of all teens
and young adults (ages 10 to 27)

26 % were attending concerts;

27 % were going to sports events;

38 % were busy surfing the Internet;

40 % were playing video games;

53 % were buying books, and

53 % were going to movies.

Meanwhile, nearly one-fifth of teens, 18.7 %, said they didn`t read magazines.

The message is clear. If you want to reach the young, your brand
has to be part of entertainment.

Wednesday, May 18, 2005

Licensing agreement for UNITED FRAGRANCES OF BENETTON

The Benetton Group has signed an exclusive agreement for the development
and worldwide distribution, until 2011 with the option of renewal for an
additional four years, of United Colors of Benetton perfumes.

The exclusive agreement provides for royalties and marketing investments
of approximately 28 million euro. These marketing investments are
to be focused on key markets such as France, the US, Italy, Spain, Germany
and Great Britain which will have a positive run-on effect in other countries.

The licensee distributes brands including Bulgari, Ferragamo, Fendi, Burberry,
Lanvin and Elizabeth Arden.

Saturday, May 14, 2005

Brand Leverage Study

Recently, McKinsey & Co and the Association of brand manufacturers
conducted a brand leverage study.

80% of the surveyed are satisfied with the results of their brand transfers,

90% wanted to increase brand profitability,

65% wanted to enhance brand image.
Every fifth company accounts 40% of its sales to brand transfer products.

Tuesday, May 10, 2005

Pirelli Signs Licensing Deal

According to WWD, Pirelli is banking on a new, five-year license
to rev up its PZero brand.

The Italian tire and cable manufacturer, which has built a following
with its hip, urban sportswear launched in January 2002,
terminated its license with outerwear and sportswear firm Allegri.
A new licensee will start producing and distributing the spring-summer
2006 PZero collection.

Pirelli said it split with Allegri because the company wanted to play
a more "operative role" in the business. Underscoring the importance
of Allegri in building the brand, Antonio Gallo, head of the PZero project,
said he did not rule out future collaborations with the company.

PZero, which makes products for the Italian military,
also distributes Tommy Hilfiger in Italy and manufactures
under private label.

The moves come as PZero adds other categories and looks to open
its first brand store in Milan. It has a growing product stable under license,
including watches and footwear. Handbags are slated to bow in the fall.

PZero last year reported sales of $104 million, or 80 million euros
at current exchange, a 30 % increase compared with the previous year.
The company anticipates 20 percent growth in 2005.

The brand is distributed in 1,280 points of sale around the world.
Eighty are in the U.S., including Bergdorf Goodman.

Tuesday, April 12, 2005

Nicole Miller Creates Furniture Line

Fashion designer Nicole Miller enters her first foray into home furnishings.
The licensee will debut the Nicole Miller Collection of upholstered and
wood furniture at the September 2005 High Point pre-market.

"A great designer like Nicole Miller can express freshness and innovation
that relates to the consumer at retail," said Bud Konheim, CEO of the
exploding brand that began with a "little black dress." He added,
"She is a great American designer by understanding the
aspirations of her customers."

Miller`s design aesthetic - contemporary flair meets classic style -
inspires her 70-plus piece casegoods, leather and fabric upholstery
collection.

The licensee will produce bedroom, dining room, and occasional
furniture in Italy, where the company`s other products are made.

The company will manage all aspects of sales and marketing
for the new line.

"The opportunity to offer our customers a well-known and
highly regarded designer brand is unprecedented,"
said Steven Kayne, president of the icensee.
"There`s no question our dealers will be able to capitalize on
Nicole`s name recognition and her lifestyle connection
to entice consumer interest."

A scalable gallery program is also being developed,
along with a broad assortment of point of purchase displays,
presentation materials and marketing tools to support the
retail launch, planned for the first quarter of 2006.

It is expected that this integrated gallery program will be
of interest to a wide range of retailers including
home furnishings specialists, major independents,
and department stores.

The Nicole Miller brand includes a collection of soft goods
distributed exclusively at Bed, Bath & Beyond, and
a multi-tiered program of women`s apparel and ready-to-wear,
including Miller`s couture collection, sold in exclusive boutiques,
and a new, moderately priced line available through J C Penney.

Tuesday, April 12, 2005

Real Brand Value

Tulip Computers NV of Holland is said to have finalized
the sale of the brand Commodore and all related business.
The purchase price was given at 24 Mill. Euros, payable in
portions until 2010.

This actual price paid for this globally known brand
should bring back to reality some experts and their
inflated estimates of brand value.

The real value of a brand is exactly, what someone is willing
to pay for it.
And not, what some people calculate with mysterious formulas.

Wednesday, March 30, 2005

How to enter the Indian Market?

US apparel brand Guess?, has entered into a licensing agreement
to market the brand in India.

The US company, which notched up $729.3 million in revenue
last calendar year, designs, markets, distributes and licenses
lifestyle collections of casual apparel and accessories for men,
women and children that reflect American lifestyle and
European fashions.

For the licensee, Guess? is not its first overseas brand in the country.
It is the exclusive franchisee for Marks & Spencer and has the
licensing rights to brands including Wilson, Puma, Speedo and
Converse.

Industry sources also say there are other global labels that are
finalising their Indian foray. One company is understood
to have signed an agreement to bring the leading European
apparel brand Esprit.

The company is also in an advanced stage of negotiations
to sign a licensing agreement with Italian clothing brand
Giorgio Armani.

Wednesday, March 30, 2005

Timex Healthcare: It`s About Time

The Timex Accu-Curve Thermometer, the unique mercury-free thermometer
curved for improved accuracy and comfort, is available at major retail stores
nationwide.

Headquartered in Middlebury, Connecticut, Timex Corporation,
the largest selling watch brand in America, signed a multi-year
licensing agreement to design, manufacture, market and sell
medical devices for the home such as digital thermometers
under the Timex brand name.

For more than 50 years, the Timex name has been synonymous with
innovation, reliability, durability and affordability - powerfully relevant
attributes for home healthcare products such as digital thermometers
and many other consumer goods.

The licensee specializes in designing, manufacturing, marketing and
distributing medication management products including medication
reminder devices that provide consumers with solutions for better health.

Thursday, March 24, 2005

New Fragrance and Beauty Products for Nautica

Nautica Apparel Inc., a subsidiary of Nautica Enterprises, Inc.,
a division of VF Corporation today announced it has signed
a new global licensing agreement to develop, produce and
market fragrances and beauty products for the Nautica brand.

Under the terms of the agreement, new prestige fragrances
will be launched in department stores and the existing Nautica
fragrance brands: Nautica Classic for men and women,
Latitude Longitude and Nautica Competition will be distributed.

Wednesday, February 23, 2005

Courts and Torts: Touching on Intangibles

Intellectual property is important, say executives. So why don`t they act as if they mean it?

Like the late Rodney Dangerfield, intellectual property (IP) doesn`t get much respect.
Yet the reason is still a bit of a mystery.

To be sure, executives at both big and small companies acknowledge
that it`s important to handle IP - the intangible assets most often defined as
patents, trademarks, copyrights, and trade secrets - correctly.

Half of 120 global senior executives responding to an Accenture survey
released last year confirmed that managing IP and other intangible assets
(such as brands, research and development, and goodwill) is one of the
top three management issues facing their companies.

Fifty-two percent of the executives surveyed worked for small and mid-sized
companies with annual revenues of under $500,000, while 37 percent
worked for companies generating over $1 billion.

A whopping 96 percent said that managing IP and intangibles is important
to the success of high-performing companies, while 49 percent deemed
those assets to be the main source of long-term shareholder wealth creation.

But there`s a gap between such views and the effort executives expend
to track and protect the assets.

Only 5 percent claimed that their companies have a robust system
to catalog and measure the performance of IP and other intangibles.

Another 66 percent said their inventory-measurement process
is informal or qualitative, while a full one-third admitted
they don`t measure performance at all.

The cost of such inaction, however, can be high.

The Federal Bureau of Investigation estimates that U.S. businesses
lose between $200 billion and $250 billion a year because of IP violations,
and the U.S. Chamber of Commerce claims that those totals
translate into the loss of 750,000 American jobs.

Still, most companies don`t even have a complete inventory
of their IP portfolios, much less procedures to protect or commercialize
their patents, trademarks, and copyrights, asserts valuation specialist
Robert Reilly of Willamette Management Associates.

To be clear, not all companies are IP laggards.

Some, like the Coca-Cola Company, are masters of that universe.
Indeed, Coke needs to be: the value of its flagship brand, for example,
is about $39 billion - twice the company`s annual revenues,
according to brand management firm Lipcott Mercer.

In the 2003 Management Discussion and Analysis section of its 10-K,
Coke talks candidly about the care and feeding of its trademark
and brand, noting that "maintenance of brand image" is one
of the corporation`s three key challenges.

Likewise, IBM., which perennially tops the list of organizations
that receive the most annual patents (3,415 in 2003), is a whiz
at commercializing its IP portfolio. For the last five years,
Big Blue generated over $1 billion in revenues every year
from its IP-licensing agreements.

Nevertheless, many companies reportedly mismanage IP
in one way or another. One reason is that outside of the context
of a merger or acquisition, there`s no accounting standard
to move them to repent and disclose their IP assets.

Under Generally Accepted Accounting Principles,
companies aren`t usually permitted to record the value
of self-generated IP (intangibles not acquired as part of a merger),
says Dimitri Drone, a director of PricewaterhouseCoopers`
auditing and assurance group.

While some companies might mention IP assets in their MD&As,
Drone says, "GAPP generally does not permit IP assets to be
capitalized on the balance sheet, other than if they are purchased,
such as in merger situations."

The current M&A boomlet, however, could spawn wider reporting
and better management of the assets. GAAP requires
that companies involved in business combinations catalog and
recognize the fair value of certain acquired intangibles,
notes Matt Pinson, a PwC director.
Further, acquiring companies continue to test the value of
newly-acquired IP for periodic impairment.

Besides the increase in mergers, another key motivation
for better intangibles management is the current rise in
IP-related lawsuits, which tend to force management
to value intangible assets associated with the legal challenges.

Preliminary calculations from the U.S. Patent and Trademark Office
(PTO) show that 5,533 patent- and trademark-related lawsuits
were filed in federal courts during 2004, a 7 percentage point hike
from 2003.
Further, for the past 10 years, IP-related lawsuits have risen steadily.

There are two reasons for the litigation surge, according to Reilly.
One is that companies that are more tenacious about protecting
their intangible assets have been suing to protect them.
The second is that, with the economy struggling to emerge
from a downturn, businesses are willing to pursue even small claims
(between $3 million and $5 million) to recover lost IP revenues.

A typical patent-infringement case costs plaintiffs between $2 million
and $5 million and can last two to five years, according to Gary Morris,
an IP attorney at Kenyon & Kenyon, who noted that 95 percent
of the cases are settled out of court.

Still, the price of admission can be worthwhile.
For example, Texas Instruments Inc. won a total of $2 billion in two
patent-damage settlements 1996 and 1999. More recently,
Johnson & Johnson was awarded $700 million in two
patent infringement court decisions in 2003.

Further, patent-infringement, trademark counterfeiting, copyright-piracy,
and other, more traditional cases will be joined by newer varieties,
Morris thinks. He and other legal experts predict that two different types
of lawsuits will emerge this year: suits by private-company investors
charging mismanagement of IP assets and shareholder-derivative suits
charging public companies with a lack of compliance with the
Sarbanes-Oxley Act.

In the case of private companies, original investors who no longer
have an interest in a company, for example, may seek to recover
their share of the gains realized by the more lucrative management
of IP assets by a later owner, according to Morris.

The underlying idea of the Sarbox non-compliance issue is the same.
Companies lacking solid process for managing IP assets are most open
to regulatory charges of failing to present a fair and accurate picture
of their financial health, opines Stacey Rabbino, legal-services network
manager at AARP and the former chief IP counsel for VeriSign Inc.

That deficiency may get them into hot water with the Securities and
Exchange Commission. The SEC could argue that since senior executives
failed to develop procedures to identify and value a company`s IP,
they won`t be able to gauge which assets are material and require disclosure,
according to Rabbino, who acknowledges that her theory hasn`t been tested
yet in the courts.

The allegations, she said, could involve possible violations of sections 302
(certification of financials by CFOs and their bosses) and 404
(assessment and certification of internal controls over financial reporting).

By Rabbino`s lights, executives can`t comply with either of those provisions
unless they know what their IP portfolio contains, and then value those assets
to find out if there`s material risk associated with the possible mismanagement
of them.

Regarding 404, she says, companies must set up ways to ensure
that IP information flows up to the Sarbox disclosure committee,
where the question of materiality should be debated.
One procedure, for instance, is to assign a senior executive
to the role of keeper of corporate IP knowledge.

For their part, disclosure committees will likely have to make
some tough choices in balancing business and legal interests.
Members will have to decide how to disclose enough information
to give shareholders an accurate picture of the company
without tipping off competitors to trade secrets.

What`s the best defense against Sarbox-related charges of IP
mismanagement?
While companies that make a good faith effort to inventory
and value IP will retain some leeway with the SEC, they won`t get
a free ride Rabbino thinks. A good-faith effort involves auditing
and valuing IP, and developing an enforcement program
to protect and monetize the intangibles, she adds.
Companies also should document IP transactions (licensing deals,
for example) and assign one point of contact for all IP related issues.

A tall order? Maybe, but companies are already being forced
to take tangible steps to avoid a lawsuit concerning their intangible assets.

Wednesday, February 23, 2005

Brand Communication Trends

The trends on the horizon in 2005 did not develop overnight
or take place in a vacuum.
Rather, the years prior set the stage for these changes.

The trends have been built on a platform that includes
the gradual adaptation of new technologies in television
and radio and increasing acceptance of alternative
marketing techniques.

Traditional commercial advertising through media outlets
such as television and radio is now on the chopping block,
thanks to a wide array of new technologies and services.

In television, the proliferation of Digital Video Recorders (DVR),
including TiVo, and Video on Demand (VOD), means
that viewers are watching their favorite television programs
sans commercials.

That trend is unlikely to abate anytime soon, as DVRs and VODs
are expected to be used in over 30 million households in the
United States within three years.

Similar to DVRs and VODs in that it is commercial free,
satellite radio is drawing an increasing number of listeners
away from traditional terrestrial radio programming.

According to a recent issue of Brandweek, although
satellite radio currently claims only 4.5 million subscribers
compared to 290 million weekly terrestrial radio listeners,
satellite subscribers are expected to grow by approximately
200 percent this year alone.

Companies who rely on traditional media to promote their brands
are not going to leave television and radio advertising altogether,
but they are being forced to rethink their advertising models or else
be faced with a continually shrinking audience.

Leading edge companies will even take advantage of the
changing face of media technology by viewing it as an opportunity
and not as a threat.

In order to respond to the new reality, advertisers are expected
to increase their use of product placement and to integrate
advertising into a wider range of entertainment content,
expanding beyond film product placements.

In some respects, the new technology may even make advertisers` job
easier. TiVo and DVRs are capable of tracking viewer profiles and
preferences, which companies can and will take advantage of
in order to better target their customer demographic.

As traditional advertising channels become less effective,
companies and advertisers are spending more of their
marketing budgets exploring new ways to promote brand awareness.

Perhaps the most successful new advertising channel to come out of this trend
is "stealth marketing."

According to a recent report published by the University of California Berkley
in the California Management Review, stealth marketing is based on the
simple premise that word of mouth from peers is the most effective promotional
technique, and attempts to create a buzz about a brand in an obtuse or
surreptitious manner.

Stealth marketing effectively mitigates the problems associated with
traditional advertising by reaching a target audience through means
that are not necessarily perceived by consumers to be an "advertisement".

Conceptually, stealth marketing has been around for years.
However, new methods have been developed and enhanced by
technology to make this form of marketing much more effective.

Viral marketing is one of those methods, and is defined in a manifesto
on the topic by the CEO of BzzAgent, a marketing firm that specializes
in stealth marketing, titled "The Word on Word of Mouth".

According to this document, viral marketing "delivers a marketing message
that spreads quickly and exponentially among consumers" and it typically
comes in the form of email or video.

Another new stealth marketing technique involves using brand pushers.
Brand pushers are hired or volunteer to generate buzz about a product by,
for example, promoting a certain beer at a bar and recommending it
to friends without appearing to be affiliated with the company.

Celebrity marketing takes advantage of celebrities` visibility in order
to push a brand by having them, for instance, mention their
pharmaceutical drug "of choice" in an interview.

Bait and tease advertising literally teases the costumer into actively becoming
aware of the product.
For instance, Mercedes created a movie trailer for a non-existent movie
that was played in theaters, featured a new Mercedes car,
and drew viewers to its website in order to find out the movie`s release date,
thereby gaining valuable consumer information.

Finally, product placement has recently moved beyond movies and television,
and companies are now integrating product advertisements into pop songs
and video games.

Given stealth marketing`s surreptitious nature, ethical concerns have been raised
that may ultimately limit certain methods that are deemed too underhanded.

The FDA, for example, has raised the issue of not being able to regulate
celebrity marketing of pharmaceutical drugs because celebrities
are not required to disclose the drugs` side effects.

Additionally, as consumers become more aware of stealth marketing techniques,
advertisers will have to come up with new and innovative techniques in order
to reach their target audience.

Nevertheless, given the general effectiveness of stealth marketing and
its potential upside compared with the diminishing success of traditional advertising,
stealth marketing will be increasingly utilized in the coming years,
and companies will strategically embrace it as a new way to create brand awareness.

Tuesday, February 08, 2005

Spalding signs master licence for Japan

Russell Corporation announced today that it has entered into a master licensing agreement
with for the development of the Spalding brand in Japan.

The five-year agreement includes all facets of brand building, from product development
to distribution, and includes channels of distribution from large scale sporting goods stores
to suburban specialty shops.

According to Scott Creelman, president of Spalding, "As sports become an increasingly
instrumental fixture of contemporary life, we believe that the licensee can certainly
further heighten our stature as a sporting brand. It has a reputation for building brands
and developing business that is second to none in Japan.
They understand that sports now involve not only people engaged in them,
but lifestyles that encompass sports on a variety of levels including spectators."

"With the mounting concern about wellness in recent years, sports have come
to be regarded as an integral part of a health lifestyle. They have also evolved
into a key theme in the fashion field. As such, the world of sports is expanding
its borders even further. For example, this year will see the birth of the `bj League,`
Japan`s first professional basketball league. Spalding is committed to spreading
the new spirit in all of its doings," said the president of the licensee.

Tuesday, February 08, 2005

Pillsbury ice cream

Kemps has enlisted the Pillsbury Doughboy to help peddle a new line
of ice cream across the country.
Kemps partnered with General Mills Inc. to create Pillsbury Ice Cream Classics.
Designed to capitalize on America`s fascination with baked goods mixed into
ice cream, the seven-flavor line taps into the brand equity of the Pillsbury Doughboy.

It is Kemps` first product launch outside of its traditional Midwest markets.
It`s also the first time in its 135-year history that the Pillsbury name is on ice cream.

Executives at both companies - as well as industry insiders - believe it is a
brand marriage made in heaven.

"We are good at making and marketing ice cream, but to move beyond
your traditional geographies requires a familiar brand for consumers,"
said Tom Piper, Kemps` senior brand manager for Pillsbury Ice Cream.
"For those who don`t know Kemps, we think this product will be
wildly more popular than if we were to enter new markets just as Kemps.
It takes time to build a reputation, and Pillsbury already has it."

"It`s an example of brands realizing there are no rules anymore
and that there are all sorts of new ways to get a brand out and
achieve distribution and gain luster," he said.

For General Mills, the partnership makes for an easy entry
into a new category for the Pillsbury brand.

"We are tapping into the knowledge and expertise of one the
top ice cream manufacturers in the country," said a manager
of General Mills. "Kemps` reputation for quality and innovation
is unparalleled in its industry."

More than 75 licensees have rights to use the Pillsbury brand
and the Doughboy character.
Such products range from housewares and collectibles
to apparel and fund-raising items.

The national rollout is a big step for the company as it is a
cornerstone of Kemps` growth strategy.

Tuesday, February 01, 2005

Brand Ranking

Brandchannel.com, run by Interbrand, asked its readers
to name the most influential brands.
Some 2000 readers answered.

Then Brandchannel possesses the boldness to publish a
ranking from this non-representative, arbitrary sample.

Hopefully your research agency is more professional.

We find it even more embarrassing, that classical media spread
this "news".
There, the Brandchannel readers are even called "experts".

Tuesday, February 01, 2005

Ebay, shooting star among brands

ebay is at present the strongest brand in Germany.
This is the result of the study "Best of brands".

ebay replaces previous year winner Siemens,
which behind the discounter Aldi came in 3rd place
in the category company brands.

The study - second of this kind - was initiated by
Seven One Media, Serviceplan, "Wirtschaftswoche"
and the German Association of trademark owners.

The goal is to measure the strength of brands both
according to psychological and according to
economic criteria.
Thus, the results of a representative survey
are combined with indices of the present
economic success of the brands.

ebay did not make past years top 10 list.

Aldi moved from third to second rank.

In the category of the strongest product brand
adidas could maintain ground as winners.
The sports article rand ranks ahead of Sony
(entertainment electronics) and the detergent brand Persil.
Sony jumped ahead from the 10th place, Persil from eight.

At present the most strongly growing brand in Germany
is Samsung.
The success of the mobile phones of the Korean electronics
company contributed substantially to the first place
in this category.

Previous year winner Haribo does not reach the list of the ten
best growing brands, at the places two and three follow Sony,
for photography, and IBM.

Thursday, January 27, 2005

Monitoring todays word of mouth

Are you monitoring classic media like TV, radio, newspapers and
magazines to catch the news about your brand and your competition?
If so, what you see is paid content.

And what does guide potential buyers mostly?
Recommendations or "word of mouth".

It has been proven in countless studies, that recommendations
are the number one source for consumers as well as business people
when making important purchases.

Are you monitoring today`s word of mouth?

Someone said in the early 90ies, the internet will become the equivalent
of the village well.
Thanks to email, news groups, blogs and consumer exchange portals it did.

Twenty percent of consumers, who purchased a 2001 or 2002 vehicle,
sought advice of other consumers online before they bought.

Here is a tool to monitor and measure word of mouth,
www.intelliseek.com

It is an internet monitoring tool that helps you measure and track
the pulse of consumer "buzz" about your brand, company,
or emerging issue.

BrandPulse collects and analyzes content from public online
databases and discussion boards.

And measuring is the first step towards control.

Wednesday, January 26, 2005

Grundig enters cell phone market

Grundig, a manufacturer of consumer electronics, will enter the market
for cell phones via licensing.

According to Grundig Intermedia GmbH new cell phones under the
Grundig brand will be available soon.

Grundig Intermedia is the successor of the Grundig AG,
which went into chapter 11.

Managing director, Hubert Roth: "We are convinced that the license
will increase the value of our brand Grundig and will give us access
to the telecommunication market."

Grundig has ambitious plans to expand its brand into new industries.

The licensee markets private label cell phones to service providers,
approximately four million in 2004.
He has the exclusive rights to produce and distribute mobile
telecommunication products and accessories under the Grundig brand.
According to the CEO it will launch four cell phones in March 2005 and
present those at CeBIT in Hannover.

The brand recognition will allow the licensee to establish itself in new markets.

Wednesday, January 26, 2005