Brand Extension Can Be a Key to Growing and Evolving a Consumer Product Line or Service

Switzerland is the couture watch capital of the world. A visit to Geneva and its surrounding cantons exposes the traveler to the hundreds of exotic watch brands made in this famous horology center. Eponymous watch stores, displays, advertisements and billboards and jewelry stores are ubiquitous. Each brand prides itself on the customization, detail, amazing complications and old world craftsmanship that is present in each artisanal timepiece produced.

Rolex, Frank Muller, Constantine Vacheron, Piaget, Chopard, and scores of other producers offer pieces that retail for thousands, to hundreds of thousands of dollars. Exclusivity of distribution is practiced with military-like diligence. Into this clubby world, in the late 20^th century an outlier sprang forth. The amazing Swatch watch line was born.

Swatch is everything that Audemars Piguet and Breitling are not. Mass produced, simple mechanical movements, plastic bands, unlimited and gaudy color combinations and very low retail price points mark Swatch as a watch for everyone. No exclusivity here.

Swatch became an international hit almost immediately. Consumers loved the quirky, whimsical look of the time pieces. And then Swatch did something that seemed counter-intuitive: the Company teamed up with Mercedes Benz to create the Swatch automobile lineup.

Mercedes Benz and Swatch seem like strange business bed partners. And yet, this has become an international example of a successful Brand Extension that is ripe with benefits for both Companies.

Mercedes Benz has been able to keep production flourishing, develop small car manufacturing technologies that could never be perfected on their high end, exclusive luxury models, profit handsomely and still keep their Mercedes Benz Brand name and heritage pristine. The car they produce is known by consumers as a Swatch car, not a Mercedes Benz Swatch.

Swatch, having no capability to produce such complex machines as automobiles, gained the luster and panache of having a Mercedes Benz produced vehicle to sell. The Branding of the cars, the fun, hip color combinations of the interiors and exteriors of Swatch cars stand out in a sea of look alike, dull, even ugly mini-car offerings. It is fun to own and drive a Swatch,
practical too as a miserly fuel sipper and an easy vehicle to maneuver in crowded cities.

The Swatch car has further extended the fame and Branding of the Swatch watch business. The very word Swatch creates instantaneous thoughts of bright, cool and fun products with great design cues. Swatch is by far the largest selling watch Brand in the world.

Rossignol is a famous producer of skis. Many Olympic champions, professional and serious skiers prefer Rossignol skis to any other Brand. This is one of the most famous sporting good brand names in the world.

Some years ago Rossignol, having conquered the ski slopes, decided to enter another arena. They began to produce Tennis rackets. Rossignol tennis rackets are now ubiquitous on the men’s and women’s international professional tennis tours. This is another obvious example of utilizing the concept of Brand Extensions to grow a mature firms business in another space.

Branding Extension can be hurtful to a business franchise. A famous example of this is demonstrated in the history of the venerable Pierre Cardin fashion business. Cardin was one of the earliest proponents of licensing his name. In the 1970’s, at its zenith, Pierre Cardin was generating over $400 million dollars annually in sales turnover of his couture men’s and ladies Clothing and Fragrance lines. Then the pursuit of licensing began.

Over a period of about 20 years, the fashion franchise that Pierre Cardin had arduously built began to crumble. The extension of his brand became an industry joke. The formerly famous Pierre Cardin logo began to appear on a slew of wholly unrelated, unfashionable, cheaply made products. Sport bags, running shoes, cheap Asian ties, mass market plastic tableware, bath towels and hundreds of other products began to flood discount stores with low end goods carrying the iconic PC logo. Department stores and luxury boutiques took notice and discontinued the Pierre Cardin lines they had carried proudly for years.

Mercedes Benz has enhanced their business by extending to partner with the Swatch. Pierre Cardin did not police his brand and his extension into rubber flip flop-type products meant death to his fashion house.

Brand Extension is a technique that we have practiced on our products and for client Consumer Product brands for many years. It is a wonderful way to grow a mature business. But remember, the Brand Extension must make sense to your most important asset, your customers and clients. Do no harm!

Consumer Product Market Penetration is Much Easier If Exclusivity Is Key to the Lines Branding Strategy

Recently I had the opportunity to visit and work several Trade Shows while on an extended business trip through Europe. One was a huge Beauty Product expo in Italy, another a jewelry fair in Switzerland, and a Gourmet Food Show in England completed the itinerary. Each of the venues would be considered apex convocations within their industry space. Each offered a range of products touching many price points.

As any consumer of economic news knows, today Europe is struggling and in a severe commercial downturn. Consumers are caught in a severe pinch between sky high government taxes and budget deficits, slowing growth, job losses and a real decline in personal incomes. The fear is palpable in many obvious ways, even to a foreign traveler.

And yet, the Trade Shows I attended were each doing their most brisk commerce in the categories that offered the more expensive, exclusive product offerings. I queried any number of vendors from across a broad range of retail price positions. Inevitably the higher end products on offer reported that they were doing well. The mid-market brands seemed to be suffering most. The mass market lines were of course also doing well as many middle class shoppers were trading down in these uncertain times, although many mentioned that they were cutting margins to maintain market share.

It is a fact that in many product categories, exclusivity as a marketing strategy can be an easier route to store shelves than almost any other model. In higher-end markets there is less pricing resistance, and thus greater opportunities to enjoy fatter profit margins. Competition can be much less severe. Obstacles to gaining distribution are much less in specialty
stores and boutiques than exist in chains and mass market discounters.

Pet products that cater to passionate owners often seem eccentric. Jewelry, cashmere sweaters for dogs, Halloween outfits for cats and luxury pet beds seem extreme. But, they sell. A visit to any Pet industry Trade Show will confirm this fact.

Cosmetics, Jewelry, Couture Fashion, Footwear, Automobiles, Gourmet Foods and Drinks, Electronics, Luggage, and many other product categories that provide exclusive brands are booming. Brands in the mid-market range are being squeezed. Private label offerings are picking up market share, though margins are squeezed in order to lower and hit needed price points.

The market for Skin Care products priced over $100 per ounce is sizzling. Gourmet Food brands are enjoying a golden age thanks to the popularity of celebrity chefs and food networks. Jimmy Choo and Manolo Blahnik, among other show designers, have elevated more than the heels on their products. An order for a new Ferrari or McLaren sport car, paid up-front with cash, will earn the buyer a spot on a waiting list with a 2-year wait for delivery of their vehicle. Every Hermes Birkin bag is pre-sold each season before the purses ever hit store shelves. The valet parking concession at Harrods and Harvey Nichols in London is constantly backed up with a constant cue of chauffeur driven Rolls Royce and Bentley automobiles.

Launching Consumer Products with an Exclusivity distribution Marketing Strategy and Sales Model is a course we often we choose for client projects. Once a market has been  penetrated, and consumer demand is stimulated for a product it is always an option to replicate the item in a lower price point presentation. You can always come down in price.

5 Questions That Must Be Answered Before Attempting to Fund or Launch Your Consumer Product

I am constantly amazed at the naivety of first time entrepreneurs and inventors when it comes to the due diligence they must conduct in order to get their idea, concept or prototype to market. Even with the amazing information tools at hand in the 21^st century, so many still try to fake out the marketplace by taking shortcuts. This is the equivalent of death by neglect. 

There are 5 questions that must be organized and perfected before a new product can be considered ready for preparation of a fully documented, well-crafted, customized Business Plan.

Question 1: Do you have a production quality prototype built, a unit that can demonstrate the full functionality, features and benefits of your product? 

This provides the base template of everything that must follow in pursuing accurate assumptions on which to base your strategy for investment, marketing strategies, sales model and financial projections.

Question 2: Have you assembled and distributed Release Packets to multiple manufacturing/production sources? 

The Release Packet is the blue print and content map that producers will utilize to conduct proper time, assembly protocols, manufacturing standards required, and estimate production costs for your products build out.

Question 3: After choosing the factory that provides best service, lead times and quality control, have you been given a dead-net Cost of Goods to produce your item in mass production volume? 

Dead-net Cost of Goods means cost to produce, package, handle, ship (by ship and container if off-shore production), freight-customs-duties, local freight from port of landing to your destination for product fulfillment, all inclusive. This is the real Cost of Goods that is the first and most crucial element necessary to create an exciting, well-documented Business Plan.

Question 4: Have you created a Sales Model that works for your enterprise, and for all up-channel re-sellers of your product? 

Different Consumer Product categories must utilize Sales Models that factor many variables into the pricing equation. Some product categories require heavier Sales promotion budgets (Cosmetics, Skin Care, Toys, Games, etc.). Others require strong levels of store support for display, co-op advertising and point of purchase signage (food, drinks, oral care). Limited distribution, exclusivity models are built on a low volume, high retail model. 

Question 5: Why is the Sales Model so important, and why do so few Entrepreneurs devote enough time, energy and research to perfecting this crucial building block of their Business Plan?

The second half of this question is easily answered: Some do not know how to detail their Sales Model, some do not want to put in the effort, and others do not understand the process required to achieve investment, licensing opportunities, partnerships or sales traction in a brutal marketplace.

The Sales Model (based on Question 3: Cost of Goods) is so very important because it is the “alpha” assumption that supports every declaration built into a Business Plan. If the cost to produce, and thus the selling basis for a product cannot be torturously defended every other element and assumption included in the plan will fall of its own weight. Investors will see this immediately and bail.

 I write this after a particularly busy month of reading and hearing elevator pitches for projects that have been almost uniformly under-vetted. Some of the concepts might have even been commercially viable. However, when I ask these 5 questions and hear crickets on the other end of the phone line, I know I am not dealing with a serious, committed, driven entrepreneur, and I am not alone. Every other investor, venture capitalist, licensee and buyer I know experiences the same disappointment when exposed to plans built on quicksand.

Customizing Products and Services Presents Entrepreneurs a Great Way to Bootstrap a Business 

We live in a world where mass production and scalability have enabled consumers around the world the opportunity to enjoy a wider range of Consumer Products and Services than ever before. Large scale production drives down prices. Items that were once luxuries are now within reach of masses of consumers on every continent.

Overwhelmingly the benefits of scale and industrialization are beneficial to society. Jobs, distribution opportunities, global trade and finance have all thrived in large part because of the benefits of a consumer driven world. The Benetton sweater or MAC cosmetic that is purchased in Denver is the same as a unit of either sold in Sydney. 

There is a downside to mass production, a downside that presents opportunities for those seeking to position their enterprise successfully within the whirl of this hyper–competitive consumer marketplace. Most mass produced products are impersonal. They offer value, utility and uniform performance features. They do not, however, differentiate themselves significantly from competitors. This is where the creative and craft minded producers can maximize their offerings. 

Hermes purses and scarves are famous, but simple examples of a Brand that has been built from scratch, painstakingly over time and by being extremely protective of distribution channels for their limited production, hand crafted products. Hermes controls the price and design of each unit produced with a discipline that borders on fanaticism. When a design becomes popular and demand soars, the family owned Company caps production far short of maximum sales potential. This is a classic example of a limited distribution strategy that serves to increase Hermes’ product desirability among discerning consumers. 

Ferrari automobiles, Zegna menswear, Piaget watches, Tory Burch fashions and La Prairie Skin Care and Cosmetics are other examples of Brands that have created world-wide franchises by avoiding any taint of a mass production model. They sell service, customization and personalized product that elite customers demand. The strategy does not need to be limited to exclusive couture brands, however!

The Branding and Marketing Consulting firm that we manage utilizes many different forms of personalized service or customized product assembly to differentiate our clients. In order to be able to compete with behemoth, multi-national brands a new company must be able to identify their Unique Selling Proposition (USP). A better ingredient story or a better mousetrap design will not suffice. 

Recently a prospective client approached us with a Perfume concept. The Fragrance world is huge and brutally competitive. The perfumer we met with was keen to commercialize a range of scents, mainly by utilizing generic top notes. We spent a good deal of time trying to define a USP that would differentiate her product, while creating a niche she could occupy. The final, agreed suggestion was to sell a value added personalized blending service with each offering customized, value added and unique to each client. There are a number of added special service features which insure that the Brand will be perceived as unique by her “alpha” clientele.

We have utilized one form or another of this strategy for Gourmet Food products, Toys, Cosmetics, Wellness regimens, Service Providers and many other client projects. An important feature of this strategy is the opportunity to bootstrap the product or service when limited resources are at hand. Local sales can be leveraged to regional sales and beyond. The enterprise can be grown at a pace that is more easily handled by thinly resourced entrepreneurs. 

Red Bull, Snapple and Arizona Iced Tea did not start as national and international brands. They were bootstrapped. They found holes in saturated, developed marketplaces and they filled niches. This model is available to creative entrepreneurs who are driven to compete, but understand that they must deal from a different, smaller deck of cards.

www.duquesamarketing.com

Press Release

For Immediate Release

December 1, 2011

Contact:  Geoff Ficke

859-567-1609

gficke@msn.com

Novel New Line to Be Introduced to Retail Beauty Trade in Spring-2012 at Major International Venue

Alexandria, VA –  Dr. Barbara von Mettenheim, creator of Pedi-Flip announced today that her Beauty Product design atelier BvonM LLC has contracted the services of Melbourne, FL based Defined by Design to create essential Branding and Graphic Art visual elements for a Spring-2012 international market introduction.   

“I collaborated with my Managing Consultants at Duquesa Marketing to review a number of candidates for creative design work”, said Dr. von Mettenheim. “Pedi-Flip is a product that performs a specific, necessary task, but it also has a good bit of fun and whimsy attached to the design.  Linda Walding immediately grasped my vision and is a wonderful addition to our team”. 

“When my work product was being reviewed by Geoff Ficke of Duquesa Marketing and Barbara von Mettenheim I became very appreciative of the diligence they exercised in considering all of the submissions,”, said Linda Walding, President of Defined by Design. “I was of course thrilled to be selected to work on this interesting, exciting project”.

“My specialty is creativity and product design”, said Dr. von Mettenheim. “I am fortunate to have Duquesa Marketing acting as my Managing Consultants and Defined by Design handling Graphic Art.  This gives me the freedom to concentrate on areas where I can be most productive”.

www.duquesamarketing.com

Press Release

For Immediate Release

November 5, 2011

Contact:  Geoff Ficke

859-567-1609 

Duquesa Marketing Appointed Managing Consultants For Dr. Nemi Rx Line of Medical Aesthetic Skin Care 

Award Winning International Branding and Consumer Product Development Firm to Launch Products in Spring-2012 

Florence, KY Geoff Ficke, President of Duquesa Marketing announced today that his Firm has been retained to act as Managing Consultants for the creation, testing Branding and market introduction of Dr. Ajit Nemi’s line of targeted skin treatment products.

“Dr. Ajit Nemi MD MBA is a brilliant young doctor and researcher who has built a thriving Eye Care practice in the Atlanta area”, said Mr. Ficke. “His extensive work with patients provides Dr. Nemi with a sound basis to create products that solve the anti-aging, discoloration and puffiness issues that occur after intensive treatment and surgery has been undertaken”. 

“The products that Dr. Nemi’s research group developed and presented to us were amazing, and most importantly, his patients clamor for them after they are treated”, said Alexis Bruning, VP of New Product Development for Duquesa Marketing. “The medical research provenance of a line has become especially valuable in penetrating the skin care marketplace”. 

Duquesa Marketing is planning to launch Dr. Nemi Rx in Spring-2012. The Brand will be presented in an international venue and will enjoy strong sales promotional support. Pricing, sales channels and trade show schedules will be announced very shortly.

www.duquesamarketing.com

Press Release

For Immediate Release

November 5, 2011

Contact:  Geoff Ficke

859-567-1609

Duquesa Marketing Appoints Defined by Design to Develop Graphic Art for Pedi-Flip Cosmetic Accessory 

Packaging, Display, Branding, Web-Site and Trade Show Visuals To Be Produced to Support International Product Launch in Spring-2012 

Florence, KY     Nancy Ficke, General Manager of International award winning Branding and Consumer Product Design and Development firm Duquesa Marketing announced today that her group has appointed Melbourne, FL based Defined by Design to create Graphic Art elements for the launch of Cosmetic Accessory Pedi-Flip. 

“As Managing Consultants for the Pedi-Flip project we reviewed a number of candidates to assist us in creating the visual Branding elements we will need to take the line to market”, said Mrs. Ficke. “We were most impressed by the vision Linda Walding and her firm Defined by Design brought to the project”. 

“Dr. Barbara von Mettenheim, founder of BvonM LLC and creator of Pedi-Flip has crafted a wonderful, simple, elegant solution to a problem that many women experience”, said Alexis Bruning, VP of New Business Development for Duquesa Marketing. “The Graphic Art element for this project is crucial to ultimate success and Defined by Design is proving to be a wise creative choice”. 

Duquesa Marketing will be announcing shortly an aggressive launch calendar for the Pedi-Flip line of Cosmetic Accessories. The Brand will be introduced in an international venue and will enjoy excellent sales promotional support. The Business Plan is for a Spring-2012 roll-out.

www.duquesamarketing.com

Press Release

For Immediate Release

October 20, 2011

Contact:  Geoff Ficke

859-567-1609

gficke@msn.com

dP Design Engaged by Armenicus Life, Inc. to Create Graphic Art Visuals for Spring-2012 Product Launch

Novel Line of Jewelry Accessory Products to Be Introduced to Retailers in United States and International Markets

White Plains, NY  Armenicus Life, Inc., a Consumer Product consortium, announced today that is has retained the services of Cincinnati, OH based dP Design to create a full package of custom Graphic Art elements for the Spring-2012 retail introduction of its Jewelry Accessory line.   

“Our Managing Consultants for the project, Duquesa Marketing, have used dP Design for a number of upscale fashion projects”, said Dr. Anna Kazanchyan, founder and CEO of Armenicus Life. “We needed a Graphic Arts firm that could provide a full menu of services, have strong creative instincts and be able to maintain the launch timeline that we have set. dP Design is a great fit on all fronts”. 

“I have worked on a number of fashion projects with Nancy and Geoff Ficke and their Duquesa Marketing team”, said Diana Puppin, President of dP Design. “They are very enthusiastic about the Armenicus Life project and Anna has given me  solid direction to take in creating the Branding visuals”. 

“The purpose of every Consumer Product that Armenicus Life introduces is to address simple problems people face in everyday life”, said Dr. Kazanchyan. “We have an aggressive schedule of follow-up launches that will roll-out over the next 18 months”.

Business Should Offer More than Just a Product They Should Try to Offer a Buying Experience 

The hugely successful entrepreneur Debbi Fields was once asked what it felt like to be a winner in the cookie business; she replied, “I never felt like I was in the cookie business. I’ve always been in the good feeling business. My job is to sell joy. My job is to sell happiness. My job is to sell an experience”. This is a mantra that all Entrepreneurs should emulate when creating their Business Model and Brand Marketing Strategies. 

For a great innovator like Debbi Fields, founder of Mrs. Fields Cookies, the cookie product is simply the vehicle she has utilized to provide millions of consumers her desired sensory experience. Mrs. Fields Cookies are so seductively tasty, visually attractive, fun to watch be baked and eaten, and smell so pleasing that virtually all senses are gratified by the simple experience of purchasing and consuming the treats. 

Mass produced cookies can be bought and consumed anywhere. They taste good.  But a small batch, gourmet baked cookie, such as Mrs. Fields provides a different, more intense experience. It is the identification and creation of a product that enhances the consumer enjoyment on so many levels that makes Debbi Fields unique, and her success so compelling.

Early in my Marketing career I worked with the formerly great Cosmetic giant Revlon. Charles Revson, the founder of Revlon was a true Marketing and Product Development visionary. Mr. Revson was once asked how he could justify selling for $6 a mascara that cost a mere $.30 to produce. His famous reply, “I do not sell mascara. I sell hope”! The experience that Revlon offered their customers was as important in the Brand Positioning and Marketing Strategies employed by the Company as the products themselves. There were less expensive Cosmetic, Skin Care and Perfume products in the 1960’s than Revlon, but Charles Revson created a perceived user experience that only his products offered at the time.

There are many other contemporary examples of Branding that includes a formidable experiential element in addition to a supposed better product.

Starbucks is one of the most obvious. 30 years ago, no one in their right mind would have believed that people would willingly pay $4 or more for a coffee product. Starbucks has created the ultimate coffee experience and that includes much more than just the cup of Joe. 

One of the most daunting hurdles Small Businesses, Entrepreneurs and Inventors face is how to differentiate their Consumer Product or service from the established competition. Creating and implementing a unique user experience is one of the best ways to accomplish this essential task. The possible ways to achieve this goal are endless. Make sure this identifiable experience is addressed in your Business Plan, Sales Model, Marketing Strategy and Branding Campaign.

4 Crucial Elements to Include in Your Consumer Product Branding Strategy 

When I started to Market Consumer Products 40 years ago the term “Branding” was one I never heard. The term was not one that enjoyed the currency it enjoys today. In the years since formal Branding and Branding Strategies have become key foundational elements that Marketers employ to imprint their products in the psyche of consumers. 

There are many pieces involved in creating a successful, enduring Branding Strategy and Campaign. These components have been discussed, studied, analyzed and debated since the term has come into such popular use among the professional Marketing crowd. These elements include everything that is visual and relates to the product being branded: package design, colors, icons, print fonts, shapes, delivery trucks, uniforms, advertising formats, etc. For this article we will look at creating powerful Branding Statements. 

The following are 4 creative rules that our Marketing Consulting and Product Development firm utilizes when creating Branding Statement Strategies for clients: 

1. The Branding Statement should have spatial symmetry.

Unbalanced phrasing leaves an uneven impression in consumer’s minds. This reflects on their acceptance or rejection of the product being branded. The goal is to leave a crisp, clean impression.  The Vidal Sassoon Hair Care Product Branding Statement is a fine example of utilizing excellent spatial symmetry:

                                             “We don’t look good,

                                             if you don’t look good”.

2. The Branding Statement should offer some lyricism. 

 Note the many messages contained in the short, pithy wording of the Vidal Sassoon Branding Statement. There is a nice lyricism, not poetry, but a flow to the verbiage. This Branding Statement was one of the most successful Beauty Product Branding Statements ever utilized. 

3. The Shorter the Branding Statement, the better. 

Several of the most famous contemporary Branding Statements have become ubiquitous and are classics. 

                                              Coke is it!

                                              Ford is Job 1!

                                              Just get out there!

                                              The Ultimate Driving Machine!

                                              Das Bug! 

Virtually every consumer can name the products that are branded by these Branding Statements. Most could also hum the jingle that supplies the musical backdrop to their television commercials. This should be the goal of every Marketing Consultant when creating a campaign and it becomes easier if the copy is as short as possible. 

4. Implant an uplifting message in the Branding Statement. 

The venerable, 250 year old Geneva, Switzerland-based luxury watch manufacturer Vacheron Constantin, is renowned for the incredible “complications” they have engineered into their timepieces. In 1819, Vacheron Constantin presented one of the first Corporate Branding Statements. It is still in use to this day. 

                                               “Do better if possible,

                                                And it is always possible”. 

Note the messaging so subtly implanted in this seemingly simple statement. There is also near perfect lyricism, tone and symmetry. In addition to producing the most desirable watches in the world, this Company has always enjoyed excellent Marketing. In 1819, long before we studied Branding as a component of a successful Marketing Strategy, Vacheron Constantin was unwittingly perfecting the practice.