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

Sears Holdings to close 120 or more Sears and Kmart stores

It should come as no surprise to anyone who shops brick and mortar stores these days that Sears Holding the parent to Sears and Kmart is planning to close 120 or more stores around the US.

Most retail competitors did fairly well this year and particularly this holiday season. Why did Sears not enjoy the same benefits of consumers going out and spending?

Simple.

Sears has no brand identity and hasn't for many years. Yours truly has written numerous times that Sears is a retail brand dinosaur that should close up and die. The brand hasn't had a positioning of note since maybe the "softer side of Sears" over a decade or more ago that helped consumers understand they were also sellers of soft goods (apparel) besides hard goods, (tools).

Sears used to be the catch all retailer one could go to, to get anything (besides food) you needed. It was America's store. They sold virtually everything. As WalMart exploded as the mega retailer of the past decade and retailing in general became more defined and brand specific, Sears lost its way. It isn't known for good pricing, service or selection or unique goods (that are consistent with its mid-America brand--Kardashian products make absolutely NO sense at Sears but don't get me started about that emperor's new clothes business). Sears exists because of inertia not because of any reason to exist and that is why I expect the brand to be out of business within two years or less. Sears is just completely out of step with the world in which we live today. Period.

Watching out for you everyday.

Eli

 

Macys expresses uncertainty about relationship with Martha Stewart after announcement of J C Penney deal

As discussed in a previous post, Martha Stewart has been successfully able to distribute her branded goods broadly across the retail planet, however, Macys did react to the news that she had sold a percentage of her company and would be building shop in shops in J C Penney's US wide. They did not end their relationship with her but indicated they would "re-visit" their product selection under her brand.

What likely will happen is a jockeying for position. Macys will keep Stewart's products if they are distinctively exclusive to the retailer and not somehow copied for inclusion in Penney's. Further, they probably will want to readjust their financial relationship with her to a more favorable one.

Macys is a higher level retailer than Penney's and has been fairing well in the economic downturn by offering unique and meaningful brands and products to its customer base. Stewart's line of home goods has been important to Macys so just giving it up likely would not be a good idea. Macys deal with Stewart expires end of 2012. They should renew. One iffy note. Apparently according to the Wall St. Journal, Stewart's company did NOT tell Macys about the Penney's deal until just before it went public which probably caused some major ill-will.

Altough Macys noted a concern about "brand proliferation" of Martha Stewart branded goods (too much of a good thing in too many places) I believe her brand is strong enough to do well in more types of retail concerns and I also believe Macys will see this too.

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

 

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

Grammys and Tonys rock; and why the Oscars is always so boring

After watching the Grammys last night I was excited to discover music groups and solo acts that I had never heard of before who were awesome and engaging and worth exploring. The night also explains why the Oscars and the Golden Globes are so boring.

The Grammys and the Tonys (for Broadway performances) are designed to entertain, educated, fascinate and open the door to new experiences for the viewing public. It's a free mega-entertainment event that's some of the best television you can watch on non-cable TV.

Last night I discovered Esperanza Spalding for example....an amazing dynamo of jazz talent that honestly I would never have heard had it not been for the Grammys. Wow factor. (Thank god it wasn't that Biebette talentless child!). And what about all the acoustical talent? Incredible music, pure, energetic, exciting to watch. If anything, for me, this night of television reawakened my interest in new musical acts and specifically a desire to go to iTunes and (pay to) download a lot of new stuff. The evening should prove very profitable for the music industry.

And who will forget the aging but ageless body of Mick Jagger who never disappoints. And Barbra Streisand. Well, her voice is not quite what it was but still amazing nonetheless even if she looks pretty chunky she still is an American icon. Having so much diversified talent on one show is just what television should be about. (I even like the fact that the Grammy academy head is named PORTNOW...probably was PORTNOY and got lost in translation somewhere along the way).

In contrast, the Oscars (in just a few weeks) is the emperor's new clothes. Lots of artifical hype and self-congratulations about and for mostly mediocre talent. It is always boring (except women and some men like to watch the red carpet who is wearing what schtick) too long and rarely does it send me to go see a movie I hadn't already passed on. At least the Golden Globes are short and to the point. The Oscars are way too long. Maybe they should have a one hour red carpet event with 30 minutes of warp-speed award presentations and that would be it. Short, slightly entertaining and boom done.

I will probably buy the Grammy album featuring the music from last night plus watch the show replay to learn more about new talent and drop some dime becoming better acquainted with them.

Watching out for you everyday.

Eli

 

The Brand Man Speaks launches "@elitalks" on twitter for current updates on marketing news

Beginning today, The Brand Man Speaks launches its first twitter account @elitalks to provide its readers with faster more current and sometimes of the moment comments on what's happening in our world of consumption.

Using twitter for its greatest strengths, @elitalks will comment on news, rumors and information as it happens/surfaces that sparks a Brand Man response or reaction.

Please sign up for my twitter account.

Thanks

Eli