are my products underwater?

No, this is not an allegorical question, flooding in the North East means there's a very real chance that there's a warehouse somewhere with some very expensive licensed products bobbing around

my favourite new quote

"Far too many marketing people confuse brand share with brand loyalty. And far too many assume they are managing an enduring classic when actually they are presiding over an accident waiting to happen. This is a mistake that is all too easily exposed when somebody else does the brand innovation your category had been crying out for and leaves you for dust"
John Grant
Brand Innovation Manifesto

These St. Luke's guys are really fascinating!!!

emotionally drained

Suffering from completion-of-protracted-negotiation-syndrome. What am I going to worry about for the next 6 months!

statistic of the day

"Product innovation is perhaps the most obvious way companies try to stay 'ever new'. The importance of product innovation is paramount. In categories where there is a less product innovation, private label penetration is typically 56% higher than those categories where there is more active product innovation. "
Michele Blake
Winning Strategies for Brand Loyalty

website rewrite

Have spent the past 2 days working to upgrade the Golden Goose website - mostly textual changes. Amazing how much has happened since the text was last rewritten. Any comments welcome: www.goldengoose.uk.com

paper on brand loyalty

There's probably an article in 'how brand licensing increases brand loyalty', just haven't had time to write it yet. In the meantime here are some conclusions from an excellent paper on the subject by Michele Blake:

Brand loyalty is increasingly earned by building intensity of desire.

Some industry commentators propose that there is only one measure really worth tracking and that is – how many of a company’s customers would actively recommend their products to others.

True loyalty increasingly requires companies to think about creating desire and involving emotion. But consumers are increasingly uninterested in developing relationships with brands.

Today, in developed markets at least, consumers are quite literally spoilt for choice, leading to “choice paralysis,” and making people less satisfied with the choices they do eventually make. Also consumers feel stressed trying to regain control over their schedules: they just have less time for brands.

In addition, they are generally more resistant to marketing and advertising. This is partly a protective response to the sheer volume of advertising messages to whichthey are exposed and partly due to their increasing cynicism about those messages.They trust less, having had that trust abused in the past.

Income polarization is contributing to polarization in shopping habits, causing brands to lose out to more premium options on the one hand and consumers’ price shopping on the other.

Private label also threatens loyalty as consumers are tempted away from branded products to private label equivalents with their price competitiveness, improved quality, increased innovation, and shelf space advantages.

Consumers are also increasingly substituting takeaway meals and eating out for food and drink bought in supermarkets and prepared at home.

Finally, the retail environment is now a key arena for brand and promotional messages delivered to consumers at the crucial moment at shelf-front when the final brand choice is made, meaning loyalty is in the balance until the very last moment a shopper puts an item in their basket.

Building loyalty is also about innovations in marketing. One trend is streamlined portfolios, where often it is the umbrella brands, rather than the individual products that are promoted – often via a ‘lighthouse’ idea, making the brand stand for something above and beyond product. For example, successful brands are taking positions reflecting current trends for increased corporate responsibility (e.g.Fairtrade, organic production, health and wellness and so on).

Canned, frozen and chilled foods suffer the lowest consumer loyalty.

Private label is the greatest threat to loyalty, followed by unplanned shopping as consumers are tempted away by lower price private label alternatives and/ or are influenced to buy another brand (or private label) at the shelf front. Loyalty towards private label economy and standard ranges will slip in the future.

66.0% and 58.3% of respondents rate innovation and premiumization respectively,as ‘very good for’ or ‘best for’ brand loyalty, whilst improving product experienceand generating positive word-of-mouth are the most effective strategies inpromoting brand loyalty.

It is true today and will continue to be true that customers will only remain loyal to brands – assuming they have more than one available choice – if those brands continue to meet their expectations, their needs and wants. Increasingly aware of their greater range of options and better informed about those options, customers are becoming more demanding and generally less loyal, so companies have to work harder than ever to achieve even the same levels of loyalty.

The most successful companies focus on that brand or those brands where the company has the best chance for success, fully committing the organization – from the most senior levels down – to the chosen brand(s) and their customers.

To engender greater loyalty, companies will want to explore how they could more holistically solve the customer’s ‘problem’ through innovation. The most successful brands go beyond practical benefits to deliver an idea that the customer can buy into.

See the full paper here

valuable quote

The mechanics for a successful launch are simple, but often forgotten, says Dave Woodward, ex-P&G now head of Heinz UK & Ireland - "You need to gain distribution, stimulate trial, stimulate repeat purchasing and finally encourage multi-purchases and long-term loyalty"

Why Brand Licensing is like sex.

Licensing is like sex. With good sex, all the effort leads to deep satisfaction with both sides enjoying the moment. Bad sex leaves one side feeling dominant and the other feeling cheap, dirty and used. Ugly sex, on the other hand, leaves both sides mystified why it happened with noone wanting to talk about it any more.

Whilst there are plenty of guides to sex, there aren’t that many devoted to licensing. In fact in the guides to marketing and branding I’ve come across there’s usually several chapters about brand extension but rarely more than a cursory paragraph or two about licensing as a way of executing a brand extension. Licensing seems to generally be considered by marketing gurus as either a low-key, unimportant activity or a dirty little secret.

To read the rest of this article, you'll have to wait until the September edition of the Brand & Sport Licensing source book...

intriguing signage

Have to admit to being a bit of an addict when it comes to weird public information signage and couldn't resist taking a picture of this one. Whilst travelling recently I came across this one which begs the question: How many people were alarmed by noisy flushing before the need to print this became a priority?

holiday blues

As I predicted to the wife on the return from holiday, Tuesday is the cruellest day after the excitement of being back at the desk is over and the afternoon is the time when the blues are most likely to strike.

So here's the news of the blues most definitely arriving, there's a lovely sunny day outside though - perhaps that's the antidote....

latest brand licensing newsletter

Yes, once again a quarter comes to an end queuing up another flurry of royalty reminders and reports. For the latest exciting brand extensions, see the newsletter

negotiation workshops

Note: If you're about to go on a negotiation workshop, do not read this.


The red black game that all negotiation workshops use involves splitting the group into two teams, and getting both sides to try and achieve the maximum score by having them announce a vote of red or black. If one team votes red and the other one black then the red team wins 5 points and the black team 0, but if both teams vote red, then they both get 10 points. So after 10 rounds the score is announced and one team usually wins. At this point the facilitator will announce that both sides have lost because the aim was to achieve the maximum score which would have meant both teams voting red consistently.

As the dust settles, and the 'yes buts' get aired, it gradually dawns on the group that the purpose of negotiation is to work towards a common goal rather than get one up on an opponent.

been a while

Been a while since the last post. Mainly because i've been flat out whilst also having the entire house virtually knocked down and rebuilt. The cost of the building work is far outweighed by the inconvenience. Having nowhere to live and feeling like a refugee is uncomfortable enough for one person, never mind a family of four.

Delighted by my first legitimate comment after 4 years of blogging - a true reward for all the hard work.

Am about to launch Harry Ramsden's Deep Fat Fryers - with the Oil, Batter Mix and baking tray you may never need a fish and chip shop again.

The other hot topic is Heston Blumenthal who i met for the first time on Friday. Very modest and unassuming, almost bashful actually.

More to come no doubt....

Product is go....

Well, this is it. After 3 years of hard slog and continually raised and dashed hopes it all comes down to about 6 skus in Tesco. Ironic that after all the blood, sweat and tears my first mainstream product is an anti-perspirant.

spring fair news

back from Springfair and finally after several years of doing this job it was gratifying to actually see some products on display that i'd had a hand in over the years. Not only that but a positive response to new client - jean-pierre got.

The only downside of spring fair was the fact that they'd moved all the halls around. While I was running from one side of the show to the other for a meeting - a quick 10 minutes hike - i happened to glance the front page of show daily which read 'new layout a success'.

Considering everyone looked completely lost and most of the exhibitors i spoke to were severely pee'd off, I'd have to say that they were taking a small liberty with the truth.

Back and in the thick of it now....

had a meeting in town on day of snow and three of us arrived at 9.00 sharp - client never showed up!!!

it's a number game

Licensing can occasionally be like prospecting for gold. If you know where to look, and you're very lucky, you might just find the motherlode.....just don't forget to stake your claim in all the excitement....

strange old start to the year

Well it's definitely 2007 and if i had to guess i'd say this is going to be a really weird and off the wall year. Whilst it seems ominously calm and i'm doing my best not to agonise whilst, once again, waiting for more tectonic plates to roll into gear. Business is firmly established now (four years in and counting) and so the thinking is more mature, and yet at the same time i'm sure the next barrier is the biggest one yet - yes it's time to take on the animal that is the retail buyer.

Up till now my only experience has convinced me that these people were best avoided... but now i'm afraid the time has come to take on this next challenge.... wish me luck...

reflections on 2006, forecast for 2007

So 2006 draws to a close. On a personal note and despite physical evidence to the contrary, i hit 40 this year. With a cultural past very much routed in the previous millenium I can't help feeling slightly outmoded. Phenomena such as Myspace, Second Life, You Tube, and the vast wave of other websites that us over 20s haven't heard of, mean that if you're age 14-16 you spend on average 2 hours less time watching television than us 'experienced' consumers.

What does this mean? Well, age tends to kick the legs away from previously laid cultural foundations. I can't help smiling when I hear Chris Moyles quoting Derek Jamieson with his 'Do they mean us impersonation' and then suddenly remembering that most of his audience won't get the cultural reference.

So as my generation goes slowly past its sell by date, the longed for certainties of life start to fade into a distant memory.

What does this tell us about 2006? Well for me, the next 2-3 years are when the new decade will start defining itself. If the 80s were about powerdressing and greed, the 90s were caring and revolutionary, what will the 00s be about? The dawn of the green age? The audience generated content age? CCTV on demand? Probably the farthest reaching cultural event of our time is 9/11 and the London bombings, I think and hope that we're going to experience a serious backlash against the war in Iraq and the fascistic state in some way shape or form.

In London I'd expect the run up to the Olympics to be the start of a clearly defined generational push back against the voice of authority. If you combine the flashmobbing trend with a political agenda, you might get something interesting....perhaps towards the end of the year.

Of course the transition from Blair to Brown to Cameron will also have a huge impact on the country, so expect this to have a long-lasting impact. (If Blair does in fact go...)

So my reflection and forecast are that our long-lasting cultural foundations will be even more quickly eroded but new foundations will be laid. What's the impact of all of this on the brand licensing front? Well, it's use it or lose it for any brand that has spent millions over the past 5 decades building a brand through mass market advertising. Brand Equity is just one more cultural phenomenon like Humphries, Pick up a Penguin, You only get an OO with Typhoo and all the other dreadful slogans that you'll instantly remember but the new generation never heard, not even once.

Considering that the sort of advertising that we put up with as 9 year olds is no longer legal and that our children now get their media fix from DVD's Mobile, PSPs and other games, and you have a recipe for brand degradation unless you can reach the new audience of consumers. Advertising can't reach them so you better make sure your product does....What would happen if a whole generation stopped eating Heinz tomato ketchup? Surely no amount of advertising could build the current brand loyalty? Distribution is king.... if you're not out there, you're nowhere.... so get your brand going on or see it gone....in 06/07 and beyond

a mobile week

Covered about 1,000 miles driving from London to Leeds, South Yorkshire and Scunthorpe and then back to London on what was probably the foggiest day of the year. Helpfully, every so often there were signs saying Fog, so i didn't think it was part of an ensuing alien invasion.....

Anyway, here's a great link to the latest Tipping Sprung Survey of brand extensions... more amazing things that exist for no obvious reason....http://pdfserver.emediawire.com/pdfdownload/493223/pr.pdf

AAAAAAARGGGGGGGGGH

Only onomatopaeic words can describe the feeling of losing four and a half hours of work because your computer suddenly crashes. Now my work is sullied by the recollection of the pain of losing that initial inspiration.... gutted