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

Oops there goes another food manufacturer

Don't blink or you might miss Premier Foods acquiring another company. To think that the year started with Quorn, Hovis, and OXO all under separate management is to recognise that Premier are hoovering up underexploited brands. The city certainly approves of the strategy and, as someone who positively encourages brand extension, i'm hardly likely to criticise. The only gripe from my point of view is fewer potential clients.

How long before there's an outsourced brand management department in every VC fund's portfolio?

yet more observations about marketing

I have subscribed to marketing magazine for the past 2 years and also subscribe to the on-line version. Other sources of research include the FT and The Grocer as well as some less well known places.

In today's marketing magazine there are two apparently unrelated pieces on pages 2 and 3. One is about the website 'second life' which is a virtual world with about 1.2M members. Apparently advertisers are buying space and investing in appearing within this virtual community. On the other page there's a picture of the recent Vauxhall Astra campaign of cars in incredibly daring stunts.

What these two pieces have in common is a divergence of opinion about marketing. In the on-line world, advertising is measurable, monitorable and can be easily marked against ROI. If I advertise on second life and 300,000 of its members see my campaign and 30,000 look for more information and 3,000 click onto my landing page and 300 make an enquiry and 30 buy something, well that's good isn't it? My £30,000 bought me 30 customers. Provided i make more than £1,000 per client i should keep spending money.

The Vauxhall Astra campaign is the opposite. How many times have i seen these flying cars? What do i think about the advertisment? Am i more likely to buy an Astra at some point in the near future? Has my opinion changed about Vauxhall and Astra since seeing the ad repetitively? These are the great unknowns of mass marketing.

What's interesting about the increasing trend towards spending marketing budgets online is the failure to appreciate the need to reach beyond the core market. This non-buying, non-receptive mass receives a far more complex message than the 299,970 people who didn't click on the banner advertisement on second life. Maybe they receive messages that reach into the future, that one day, when Vauxhall actually produce a product that goes beyond the astra and truely hits the customer sweet spot, there will be an understanding that this brand cares about them and their needs even if they only just got round to meeting them.

In other, fewer, words - mass marketing is branding, on-line advertising isn't. In this context, branding is selling to people who don't want your product on the basis that at some point in the future, they will want your brand.

When i used to sell advertising and my customers complained it didn't work i'd say, "yes, but think about the branding." I guess this is what i meant...

an odd day

A day of offering free general purpose advice to a wide range of people including: relationship difficulties website, pornographic magazine looking to extend, children's educational brand, and finishing with something rather curious... an unsolicited enquiry.. a very varied menu

the worst sensation in the world

Possibly the worst sensation in the world is when, after months of elaborate work and great endeavour you realise you've actually built your own booby trap.

dancing round the maypole

If your company is like mine calling it an organisation is probably an abuse of the word. Most companies are like a maypole.

Speaking as someone who works in licensing, I start working for the marketing department. Someone recognises that there's a thing called licensing and they'd like to know more. Once the marketing department gets excited, legal get involved and then accounts, production and anyone else who wants a say.

The various departments all spin round the brand and the more involved i get with them, the less power they have, until eventually if things progress far enough the whole thing ends up logjammed around the all-powerful, immovable centre.

the show must go on..

Well, yes we exhibited at brand licensing and yes it was, I think, a success. But on what level can success be judged? Answer:

did you actually manage to get a nice looking stand up?

yes
did you actually have people come to the stand who expressed an interest in it?

yes

so that's that then really isn't it. except of course the conclusion is 'once you've done it one year, you probably have to be there next year' and thereafter.....

word 1.0 was probably a lot of fun to create, not sure about word 6.0... feeling very tired suddenly, most probably just need a lie down....

New website

Have just launched a new website called brandlicensing.co.uk intended as a forum for all things brand and licensing related. There are so many articles by licensing consultancies calling for licensing to be treated as part of a marketing programme, why not set up a website devoted to introducing wannabe brands to agencies.... that's the theory anyway.

My ulterior motive is that it gives me somewhere to advertise inexpensively but then i've always said businesses need to be an elipse with two foci that are complimentary. Actually I haven't always said that but it seems to make sense now

Latest extensions

Here come da’ mouse
Mickey Mouse is a reformed character. In a dramatically inspired turnaround he’s gone from fast food to fast fruit and you can now find Mickey and friends on products aligned with the cause of healthy eating.
In US store Kroger’s Mickey Mouse himself will appear in the role of chef and farmer in store signs, and will give the thumbs up on nutritional labels. This strategy is being rolled out throughout Europe with Mickey endorsed fruit and vegetables in with Tesco, Carrefour and Metro.
Not to miss out, Nickelodeon channel announced it would extend the licensing of Dora the Explorer, SpongeBob SquarePants and other characters to packaged apples, pears, cherries and organic edamame beans, following a deal last year to use the characters on spinach, baby carrots and clementines.


Oi Paul, on yer bike
Fashion designer Paul Smith is delighted to be working with legendary Derby based bicycle makers Mercian. Paul has chosen two styles of bike, a Mercian Track and a Tour bike, which he has personalised.

An avid cycling fan, Paul Smith fell into fashion aged 17 after a cycling accident and now he’s gone full circle. Bikes will be available from Paul Smith shops from November 2006.

Ze smell of orange
In a fantastically inspired piece of innovation, marmalade manufacturer Duerrs present ‘l’eau de marmalade’ a £24.99 bottle of marmalade inspired perfume. More of a newsmaking promotion to celebrate 125 years of production this great example of limited edition brand extension is a PR coup.
What’s next, Marmite deodorant?

Dairylea Cheese
In a great example of ingredient extension Dairylea are moving into slices of cheddar rather than the not-quite-identifiable product known as Dairylea.


Another dynamic move from Sainsburys
In a move long awaited by bored vegetarians, Sainsbury's is launching a range of ready meals catchily entitled ‘Designed not just for Vegetarians’ featuring 21 meals using pulses, meat substitutes and vegetables.
The products contain essential amino acids, which a vegetarian diet can lack. Products include Sweet Potato and Goats Cheese Burgers, Yorkshire Pudding with Cumberland Sausage, Vegetable Malaysian Curry with Noodles, and Bean Casserole with Herb Dumplings, and no animals were harmed in the process.

From books to blenders
Boots is introducing a range of baby-food equipment and ingredients aimed at first-time mums who want to cook for their babies but lack the time. The ‘Make Your Own’ line is backed by Annabel Karmel the author of 14 books on nutrition and cooking for babies
The range will initially comprise of nine equipment and ingredient products from covered food-cube trays for freezing baby food to an electric hand blender. Mother’s no longer have to choose between health and convenience apparently.

Magazine style interiors
Livingetc has become the latest magazine to extend its brand into consumer goods, with the launch of a branded interior accessories and furniture range. The products have been produced in partnership with Bliss, which holds the licence for the Nigella Lawson range of homewares. What next, Loaded interiors with The Jo Guest designer dining table?

More playboy to play with….
Playboy, the company synonymous with 'bunny girls' and top-shelf magazines, is to launch a range of make-up in the UK positioned as a high-end colour-cosmetics line and targeting 16- to 30-year-olds, it will comprise more than 90 products. The range, which will be manufactured and distributed by US company High Maintenance, will be priced between £10 and £22. Products include Hollywood Nights Eye Shadow, Hef's Favorite Lip Gloss, Calendar Girl Lipstick and First Blush. But strangely not Sticky Centrefold.

Call me Bubbles darling
From the Hertfordshire countryside to the high st, health resort Champney’s is planning some bizarre extensions following on from their success in toiletries in Sainsburys. A champney’s ready meal anyone? The taste of Patchouli oil coupled with something???? In another example of new luxury marketing, Champney’s are also planning some high st. spas. We wish them much luck and hope they don’t end up massaging the numbers to make the investment worthwhile

If you want even stranger product ideas, check out: http://www.strangenewproducts.com/

From here to Luxuria

Somehow managed to get myself invited to Luxuria. Will make a change from recent trade shows which have included Autumn Fair and Plasa. Somewhat random searching for licensees up and down the aisles of huge trade shows somewhat surprisingly yields success.

I have perfected the art of zoning in on opportunities using my intuition - or at least that's what it feels like until I get back to the office. It's always exciting to meet potential contacts rather than make random phone calls.

2good2btrue

Yes, obviously things were going too well. Talk about riding for a fall. So the retailer puts us back three months and the big brand we're working on decides they should probably have a US agency. Some things are just meant to be I guess.

Looks like I'm going nowhere this bank holiday weekend.. hopefully that's not an allegory

Hong Kong Phooey

By the way, forgot to say how mind expanding it was to go to Hong Kong. A place more English than England, like a humid covent garden full of Chinese tourists who just happen to own the place.

Licensing show is tiny by the way and only worth visiting if you're exhibiting... hoping to get out to Tokyo so will let you know if it compares

Hallelullejah

Finally, after at least 3 years of continual patience and persistence it looks like one of our products has achieved nirvana and will make its debut on the shelves of the blue and white retailer!!.

Yes, Tesco here we come. Not sure how it happened, a route of astonishingly gradual increments in competency....maybe the cadillac is back in the drive

useful pithy phrases

Phrases to remember:

- better a short pencil than a long memory
- don't eat a burger in a bait shop
- trust, but verify
- budget for failure, legistlate for success

New York New York

Just back from New York licensing show. A great time was had by all. My 4th time of going and it gets better each year. As a way of assessing progress there's not much that can beat an annual immersion in the world of licensing. Couldn't help feeling more confident than previous years, what with actual clients and all. Great interest in Blue Note with much learning to be done by visiting stands of agencies representing Hendrix, Concorde, and other Retro images.

What impressed me more than anything was the friendliness of New York. A city where everyone is a New Yorker first. If the 9/11 bombers thought they were attacking everything that was wrong with capitalism they couldn't have been more mistaken. New York is everything that's right, the harmonious blending of cultures into a common bond. Perhaps it took 9/11 to realise this blend but hopefully the same thing will emerge in London (but I doubt it given the deeply engrained class system).

thoughts after PLMA

In the beginning the world was divided into people who made things and people who bought them, and the people who made the things that other people bought put their names on them so that the people who bought the things that the other people made could see who made them. In this new era of brand stretch, the people who buy things get the people who make things to put the names of the people who buy things on the things that get made so that the people who buy things can benefit from any loyalty from customers and any profit from intellectual property that might accrue if the things that are made are any good.

At the Private Label Manufacturing Associations shingdig, called horrifically 'the world of private label' manufacturers sit on pale anonymous booths surrounded by products with a display stand announcing 'your brand here', like some fairground attraction. In this dystopian view of the future, all products are the same - only the labels change....

jazzzzzzzzzzz ....... nice!

Have now developed a serious jazz addiction fuelled by my friends at Blue Note. An honour and a privilege to working on this iconic jazz brand. Launched in 1939 by two german immigrees in New York it was one of the few labels that recognised Jazz's label as America's classical music. As a brand there was a clear ethos of delivering quality regardless of commercialism, and the investment was always in the product. As with so many success stories luck played a part, but destiny works for those who have passion and so it was with Alfred Lion and Francis Wolf, who's collaboration with designer Reid Miles is remarkable for its vivid visual style.

Think of another jazz label that is also a brand? Universal? HMV? Columbia. What have any of these labels ever done to endear themselves to the artist? Blue Note, or in France, la note bleu - cherished drug-addled geniuses long before they were treated as anything other than the dregs of society and, as long as it is cared for, will always be "the musician's label"

May update

Sorry I haven't updated in a while .... I guess it's a good sign - things have been slightly busy. The business is now getting off the ground and, if you've been paying close attention, we're recruiting. So far the candidates have been excellent and the competition is going to be fierce!

when in doubt, sue!

P&G steps up copycats fight
By Jeremy Grant in Washington
Published: March 15 2006 02:00 | Last updated: March 15 2006 02:00

Procter & Gamble yesterday stepped up its fight against private label copycats, issuing its third lawsuit in as many months. The US consumer products group said it had filed a trademark infringement suit against First Quality Hygienic, alleging the private label manufacturer infringed on the registered trademarks and packaging "trade dress" of P&G's Tampax Pearl tampons.

Lynn Dornblaser, director of the custom solutions group at Mintel International, said: "We're seeing more private label options being offered to consumers and more products that seem to be - on the face of it - exactly the same as the major manufacturers'."

P&G last month sued Vi-Jon Industries, alleging that the group's mouthwash packaging and advertising claims infringed on P&G's Crest Pro-Health oral rinse. P&G also settled a suit filed in December against McLane, owned by Berkshire Hathaway. The suit related to P&G's Charmin and NyQuil paper products.

P&G claimed First Quality, whose tampons are sold in Canada under the name Life Brand, was manufacturing products that copied Tampax Pearl packaging, "including the distinctive string of pearls design".


At least someone is brave enought to have a go. Why isn't weightwatcher suing Tesco for running their points on all products without authorisation - distributor power is out of control, somebody has to fight for the cause!

and away we go...

Head spinningly fast, the company takes off like a portuguese stallion leaving me in mid-air and holding on to the reins for dear life.

Suddenly, the last three year's work actually looks set to become a reality and I'm faced with actually having to DO some of the things that i've been pontificating about for so long.....

A mushy morning

Spent this morning tasting mushy peas and now feel slightly pea-ky! However, will definitely celebrate signing of new brand who Golden Goose now proudly represent globally.

'Traction' is the term i use to describe successful business relationships and you can only have traction when people keep their word and trust each other. It's hard to find partners in business who recognise these qualities and stick by them but once you do, there's no limit to what can be achieved.

Museum of Brand Licensing

Visited the Museum of Brands last weekend. A delightful little museum tucked away in a mews off Notting Hill. The wonder of seeing ex-brands that have faded away as market forces apply is a branding ecologists nightmare. All those once loved names etched into the collective consciousness now just a fragment of packaging. Extinction is the only result for company's ignoring change. Brands that once owned massive shares of the ink or boot-blacking market are now just part of the fabric of history.


http://www.museumofbrands.com

here we go ahead

Here we are again. Playing the waiting game. Licensing is to speed what treacle is to pouring. In the time it takes for a contract to be prepared and signed one could easily learn to be a concert pianist, or build a small outhouse. Typically for a relatively small business, we risk being stuck somewhere between fast and famine.

Spring Fair

I don't recommend going to Spring Fair with a bad cold because it's not exactly the best place to recuperate. Spent the next day in bed processing the highs and lows of the day.

High was seeing some of the products on display that were previously only a fantasy in my little head.

Low was the 5.5 journey back. Not to mention the 1.5 hours doing 7 miles in the car park.

What I learnt: some licensors are working overtime to deliver value for royalty. One I spoke to conducts direct meetings with retailers designing products to their specification and then passing these approved designs to their licensees. These then appear as new product.

The same licensor also prepares a range pack incorporating all the licensees in small quantities, and manages the sell-in rather than counting on licensees with 50 brands who are desperate to sell in bulk.

I also learnt never to drive back from Birmingham but that's another story.