The Brand Man Speaks

Macys sues Martha Stewart Living for deal with JC Penney

In a move that was highly anticipated (and actually took longer to happen than expected) Macy's is suing home living diva Martha Stewart's company Martha Stewart Living Omnimedia for making a deal with JC Penney to develop and produce exclusive products for the middle of the road retailer. Macy's has had a long standing exclusive product deal with MSLO and when the JC Penney deal was announced most marketing folks raised an eyebrow and assumed a lawsuit was to follow. Now it has.

Specifics of the suit have not been made public, but given how much support Macy's has put behind Martha Stewart especially when things went south with her becoming a felon, it was a bit suprising she made the deal with Penney's. One might speculate that the Macy's/Stewart relationship was probably not as profitable for MSLO as the years went on as they might have liked and thus they looked for another partner who would give them more money and more control.

I do not think Martha will get hurt by all of this. It is not like Martha is only up market these days and the JC Penney link could devalue her brand. Far from the case. Martha's products go from KMART up the ladder to very high end, more successfully than almost any other home brand, so that isn't an issue. JC  Penney can benefit greatly from the association with Stewart as that retail brand has been floundering for years with no identity.

More details to come.

Watching out for you everyday.

Eli

Paula Deen may have swallowed her own poison pill. High Fat Food Chef hides Diabetes

Paul Deen the southern chef who rose to prominence in the past few years with her high fat generally unhealthy but delicious (to many-but not me) cuisine has finally disclosed that she has Diabetes. What is worse and threatens to destroy her brand is the fact that she hid this information from her "fans" and the public in general and then has gone on to become a spokesperson for a Diabetes drug called Victoza.

The problem lies in the fact that her claim to fame are foods that are unhealthy and could directly relate to causing Diabetes in those who indulge in such fat-ladden meals. Ms. Deen has said she "didn't know how to handle" disseminating the news of her Diabetes or her new spokesperson status given the nature of her brand's identity.

Famous recipes have included Deep Fried Mac and Cheese and Fried Butter Balls. Can you say "it might kill you" foods?

Fans of the Food Network have spoken loudly condemning Ms. Deen for making millions and not being honest with her fans and the American public in general.  Other notable chefs have gone as far as to make public statements about Ms. Deen that are not complimentary about this situation.

From a brand point of view, this latest twist (which includes now offering low(er) fat recipes and tweaking her famous Paul Deen Southern Cooking approach dramatically) may create empathy but it undercuts what her brand was all about specifically all her cookbooks and shows that are completely tied to fatty foods.

If she radically changes her shows books and endorsements the Paula Deen brand will be no more and likely to become a footnote in celebrity chef history.

Watching out for you everyday.

Eli

LA Times "brand" story on Kardashian brand has follow up.

Here is the link to the follow up piece by writer Adam Tschorn. He explores my point of view.

Kardashian a Brand?

 

Watching out for you everday.

Eli

Will quickie marriage (72 days) significantly damage Kardashian brand?

When I started to write this piece my own first question was, why does anybody care? Fortunately or unfortunately the Kardashian Klan have built a nice multi-million dollar business all about nothing or  better known as being famous for being (untalented) and famous.

However, there is enough interest in the question of whether Kim Kardashian had built a real brand or just a marketing fad, flash in the pan. In my opinion Kim has yet to "earn" rights to be called a true brand. Most of her antics are PR stunts (and let's not forget without a sex tape she would be absolutely nothing and we wouldn't be wasting our time on this) and not brand building efforts. Launching perfumes, apparel lines, getting paid to appear at clubs and bars and getting married on a reality show for $17Million doesn't not make a brand.

People are more fascinated with her nothingness as entertainment and not about a vision, a journey or some meaningful element to make people believe something she is offering has any real value. Her deal with Sears is a ridiculous one. Kardashian wouldn't be caught dead in a Sears unless she was picking up a paycheck for an appearance.

Now let's address this divorce business. Maybe had she made it past a year or even six months she would have some credibility. But this 72 day PR game wasn't love or a real marriage. It was a paid for "appearance" event in which she got paid in cash and in kind. Poor guy, hope he didn't really see anything in or have feelings for her. I also hope he is laughing to the bank for all this mess. Although he comes off more of an embarrassment to himself than she does because she is not in the least bit embarrassed about being a shill for anything or everything with a payday attached.

Now you might feel that Kardashian isn't much different than Paris Hilton. I beg to differ. Whether you liked it or not she had a particular way of being, a slogan ("That's hot") and a sense of style (not necessarily one you might like). She acted in a TV show that was somewhat entertaining. Kim Kardashian is a poor (woman's?) man's version of Hilton. Hilton had pedigree for her debutante behavior. Kardashian's father was an unknown until the O J Simpson case (like instant fame, "new" money). The Hiltons have been a fixture in America for years.

Will the business of Kardashian be hurt by this divorce? Likely. It exposed her as having nothing honest or real about herself and her so-called fans will probably feel cheated, lied to, deceived but quickly wake up from their delusion of fascination and become disgusted. No journey here just a young girl trying to make a buck. I would suggest Ms. Kardashian be careful not to spend all her quickly earned cash too fast because the gravy train is likely to end soon.

Watching out for you everyday.

Eli

Sears taking Kenmore appliance brand on the road.

Sears, the retail giant that continues to flounder with an uncertain identity and declining sales is expanding the distribution of its once exclusive brands. Recently Sears starting selling its superb and well regarded Craftsman tool line in stores beyond its own. Now Kenmore appliances will be sold at stores like Costco.

Craftsman was always a top brand among its loyal customers. It's lifetime money back guarantee along with outstanding quality made it the go to brand for DIY and professionals alike. Premium pricing didn't seem to hurt the legendary brand. Unfortunately, the rest of Sears hasn't fared as well, except Kenmore. Kenmore was known as a low end appliance brand until the division upped its quality and design when the housing boom began to explode. In the past decade Kenmore Elite products have come to rival in quality and style super lux brands of Viking and Subzero.

As Sears tries to figure out how to increase revenue and possibly bring more younger affluent consumers into its stores, it has decided a good step is having the Kenmore brand sold in many more retailers beyond their own doors. Costco appears to be the first major retailer to carry the brand.

There is no question to me that Kenmore has established itself as a top appliance brand and independent quality reports back that up. However, I am not sure that the vast majority of prospects know Kenmore has been an exclusive Sears brand and now with its broader distribution I don't see this actually bringing more people to Sears. The rest of the Sears brand identity is so weak and undistinguished it will be difficult to attract these younger more well-heeled consumers to the retailer just because they produce Kenmore appliances.

I believe Sears is a old dinosaur and it will be a very difficult brand task to fix without a major strategic change. The brand doesn't have a definitive place in the retail world today and it has struggled for quite some time to figure out what positioning to use to establish its presence. The last major push of any note was "The softer side of Sears"  over a decade or more ago when the retailer made a big push into apparel and soft goods. Their most recent push behind the Kardashian sisters is a miss-step in my opinion given the brand image of those girls is nothing but high end super deluxe and no female consumer is really going to believe they would wear the clothes under their label sold at Sears. Likely to go the way of Sarah Jessica Parker's Bitten line sold at now out of business retailer Steve and Barry's.

Watching out for you everyday.

Eli

 

Abercrombie & Fitch diss "The Situation" and all cast of Jersey Shore: Offers payments to NOT wear their branded apparel

In what I first thought was a joke (and I am not sure that it isn't) Abercrombie & Fitch the preppy and sexy high school and college oriented high priced apparel retailer has offered to pay the cast of the hit but vulgar TV reality show "Jersey Shore" to NOT wear their branded clothing. The company claims the rowdy cast, especially Mike "The Situation" Sorrentino, has damaged the brand's image by wearing its clothing on and off TV.

In all seriousness I think it is a brilliant PR effort to get attention for the out of the limelight no longer hot young people's brand. The company has suffered greatly in recent years during the grand recession by not more actively using price promotions to keep consumers coming through their doors versus their competitors. A and F is noted for its high priced line of casual collegiete cool apparel which during the days when Americans were flush and feeling rich was a huge hit.

The move is interesting in light of the fact that the company has walked a fine line down this path before.  Historically, a large percentage of sales are to both gay and straight fit men in their 40s and 50s who are clearly not their prime targets. Older body conscious (primarily gay) men are a very loyal group of consumers of the A and F brand because the product shows off buff bodies well and is perceived to exude a young sexy cool vibe to that audience.

Look for my interview on Fox News tomorrow on this subject.

Watching out for you everyday.

Abercrombie & Fitch shares fall day after 'Jersey Shore' diss, as 'The Situation' hits back: MyFoxORLANDO.com

 

Eli

 

 

Will J Lo's split from Marc Anthony derail apparel launch at Kohl's? Unlikely

Speculation among the media is that J Lo's public split from husband of 7 years Marc Anthony will have a sobering impact on the pending launch of two lifestyle brand product lines at mass merchandiser Kohl's.

I think this is one of those cases where J Lo's launch may benefit from the split, yet her hubby's line may quickly fizzle.

J Lo has done a remarkable job of re-inventing herself this past year increasing her public exposure and profile mega-fold for the first time in some years. Her successful participation on American Idol did wonders for her image especially as a style icon.

Many people always wondered about the marriage which appeared to be a good one at first but in some ways seemed a strange match. Reports indicated that Anthony was a control freak and with J Lo's increasing popularity and income stress over losing control may have forced the split. Rumors about a fling with Cuban born hunk "Levy" on her most recent video shoot certainly contributed to her sex appeal and image enhancement.

I believe that J Lo will be even more popular and in demand now that she is splitting from Anthony. As long as the divorce is (mostly) amicable I see no reason why her new apparel line won't be a hit at Kohl's unless the designs and product itself are disappointing, poorly made or not considered good value. She's hot, sexy, on top of her game, looks amazing and yet remains an inspiration to millions of women and craved by many men (Sexiest woman in the world according to People this year).

On the other hand, Anthony's popularity is limited and more niche oriented and his appeal was heightened by his marriage to J Lo. I see his "Q" factor and overall appeal, especially interest in his still unlaunched men's line for Kohl's diminishing fast. As a single act he lacks mass appeal and his style factor again was mostly enhanced by his attachment to her.

The couple has said that they will continue to work together on a latin oriented talent reality show for the moment but it remains to be seen if this pairing can still go the distance professionally. A tough move for most celebrities after they divorce.

I'll check back on this subject a month or so after the product launch.

Watching out for you everyday.

Eli

Amazon fails in second attempt to offer Lady Gaga "Born this way" 99 cent download without problems

Amazon, in an attempt to give Apple's iTunes a run for their money by stealing a growing share of the music download business tried unsuccessfully again this morning to offer the new Lady Gaga album for 99 cents without issues.

Despite sending thousands of emails to prospective album buyers early today that assured the download problems had been resolved encouraging more people to purchase "Born This Way" the online retail giant failed to be able to deliver casting doubt on whether Amazon's tactics of virtually giving away the hottest new music for free is a wise decision for the brand.

Although Amazon should have expected their lost leader music deal to be a sensation on day one with the demand crashing the site, to announce that the company was fully ready to re-offer the deal to ready buyers and NOT be able to deliver on a second day does damage the brand's integrity and will cast a shadow on the honorability of their future attention grabbing offers.

Many prospective buyers feel deceived by this latest Amazon move.

Amazon needs to do a far better job of handling such offers before they go back out with another one or risk consumers lashing out at the company in very effective social media forums which might hurt other parts of Amazon's online business.

Watching out for you everyday.

Eli

 

TV spokesperson Mike Rowe: over exposed? Too many TV commercials airing at once?

In recent memory I cannot remember one TV spokesperson representing so many different consumer products at one time more than Mike Rowe. The former Discovery Channel "Dirty Jobs" star (as well as a Discovery Channel narrator for numerous shows) currently reps Ford, Tylenol, Viva, Lee Jeans and Caterpillar equipment.

Props to Mike who started his career at QVC by accident, however, I do believe it is possible that he is beginning to overshadow the products and is becoming over-exposed....too many spokesperson roles at once diluting his value to advertisers. Certainly, he is staying with products that are consistent with his "Dirty Jobs" blue collar brand ID, but I found myself the other day remembering him and not the brand of paper towels he was promoting (with his parents) because I had just seen him hawking Ford cars seconds earlier, (at least four different ford models mind you in 15 second snippets)

The other question is, is Mike so effective as a spokesperson and can transcend the "over-exposure" or is there a shortage of effective spokesperson talent in this country right now? 

You decide and let me know your thoughts.

Watching out for you everyday.

Eli

 

 

The risk or reward facing many luxury brands: do second tier brands dilute high end ones?

As the age of aspirational marketing developed into high gear in the 90s, luxury brands of all kinds looked to expand their presence by launching younger less expensive branded products to increase profits and to give consumers a pathway to the top as their incomes grew.

From Mercedes Benz to Dolce and Gabbana and Prada, makers of luxury goods decided the risk to the top tier brand was relatively low with the introduction of cheaper yet sportier versions of the most expensive products. For Mercedes the success of the small "C" Class sedan for less than $30,000 helped radically increase the brands profits and influence without significantly damaging consumer interest in their over $100,000 models.

Dolce and Gabbana, Donna Karan, Calvin Klein, Ralph Lauren and many more did the same. They created sub-branded products "attached" the the high end name and sold them for much less. Ralph Lauren developed an entire world of sub-brands with all kinds of names at all kinds of price points probably more successfully than any other luxury manufacturer.

However, in recent times, some of the luxury brands have decided that their high end consumers (as a result of the recession) wanted more distinction for their money and were turning to brands that did NOT have a collection of lower price products associated with their high end. Some experts have even expressed the fact that brands with multi-tiered sub-brands have "annoyed" and "upset" the true luxury brand consumer and that it was important to retrench.

One such example is Dolce and Gabbana, the luxury apparel label has for many years also produced D & G, a younger oriented lower priced line. The company has announced that it will discontinue the D & G line and only focus on their top end. One reason is that for many consumers other than price they saw the brand as one despite the slight difference in brand ID and paying $300 vs. $3000 allowed them to buy into the Dolce style for much less. The other may be getting celebrities back to brands that lost them when they launched the lower level lines.

The secondary lines were a boon to retailers like Bloomingdales that helped build profits in designer departments and created that stepping stone with consumer's rising affluence to the top tier labels, keeping the consumer more loyal to the store and more likely to buy other items at the retailer.

The retrenchment may be costly to brick and mortar retailers as the elimination of upscale but not too pricey brands will leave a noticeable gap in product selection especially for department type stores.

It will be interesting to see how many other brands like Dolce will scale back and go strictly for high end style price and glamour.

Watching out for you everyday.

Eli