Healthy Brands Start With Smart Licensing Decisions
| It's every brander's dream to be on the shelf at a major retailer. However, there is a time in the lifecycle of a brand, where that dream can become a nightmare. A while back, I was walking through a well-known department store, when I spotted a bunch of Trumps standing on a CLEARANCE table. No, it wasn't the wild-haired millionaire and his fellow "Apprentices" personally showcasing the latest TRUMP fashions, it was just a few dozen Asian imported vinyl Donald Trump Dolls in window boxes adorned with both TRUMP and "Apprentice" branding. I'm sure Mr. Trump and Apprentice Producer, Mark Burnett would agree that the CLEARANCE table is not a great place for their premium brands as it's usually the final resting place of an underperforming product line. Of course, if these few dozen dolls were simply remnants of a retail program that sold thousands of units, the retailer will likely be indifferent about the fact that the last few didn't sell out at regular price. However, if these few remaining mini millionaire's represented a large percentage of the original order, then it's likely that this particular licensee will not get another chance with their next TRUMP offering. More importantly, because of this licensees' underperforming item, other TRUMP licensees may face similar trepidation from buyers especially if they do not have an established track record with their own product lines. When negotiating a license with a licensee, make sure you hire a skilled consultant to ensure that your licensing contracts contain very specific guidelines regarding the liquidation of excess inventory. While it may be hard for your licensees to control some of their retail customers, having specific language in contracts can help keep your brand from suffering from ACUTE CLEARANCE-ITUS. And yes, Mr. Trump, I did buy a doll on clearance that day, partly because I admire your skills and tenacity as a business person and partly because the lesson I'm reminded of seeing your usually "larger than life" image and "luxury" brand on the clearance rack for a mere $2.99, reminds me to always be humble and to always do my best to control my licensees. While I may have paid very little for my "Donald" statuette, to me it's truly priceless. 3 EASY STEPS TO BUILDING A HEALTHY BRAND 1. Give Your Brand a Voice: The first question any marketer needs to ask themselves is: "what does my brand stand for?" Is it quality, luxury, status, efficiency, ruggedness, style, etc.? Until you know what it is your brand stands for, you can't build a compelling story to tell the consumer. | 
2. Build Loyalty: Being in branding for over 25 years, I can tell you that once you've developed your brand's story (its voice) it's fairly easy to get people to try your stuff (we call this "trial" or "engagement"). Of course, I'm assuming here that all your packaging, advertising and other marketing efforts clearly communicate and remain true to your brand's voice and they are properly targeted demographically. However, while these tactics will dramatically increase the likelihood of a successful launch, longevity and consumer loyalty can only be achieved by ensuring a brand delivers on its marketing promises. This can be accomplished by meeting or exceeding consumer expectations established by your brand's voice. A failure to do so can be a fatal blow to your brand and your business. Remember, bad news spreads much faster than good news. Just ask Lindsey Lohan. 3. Protect Your Brand: Brands are like gardens. They must be cared for, even nurtured, to ensure their perennial bloom is more vibrant and colorful than the year before. Where many marketers fall short is that they are paying so much attention to the garden, they forget to lookup at the trees that have matured over time and have now formed a sun-blocking canopy that can threaten years and years of hard work. These trees are symbolic of the consumer. A fickle group that decides what brands are passed onto the next generation and which are better left behind to wither sadly into obscurity. The goal of any marketer is to become a "classic brand." One that has woven itself so tightly into the fiber of pop culture that it's nearly impossible to destroy (although we've seen that happen too, anyone remember Oldsmobile and Pontiac?). So, tend intently to your garden, plant some different species from year to year (new styles, new line extensions, new licensees) but make sure you always paying attention to the trees that let in the sunlight, because these rays not only illuminate your brand, but nourish it. Remember, in gardens or on retail shelves, no one wants a wilting flower. You can contact Cory at: |
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