Less then perfect Brand Extensions, less then perfect reporting

The Wall Street Journal Online has a piece here about what the author, Mario Marsicano, calls "Bizarre Brand Extensions". It is from July 15.
The "original article", a bit longer, can be found on Mental Floss and was published there a month ago on June 16.

The "bizarre extension" Gerber singles - food for adults - is not that bizarre.
In quite some numbers adults turn to baby food, when their teeth are gone or when they want to have an easy to prepare meal with nutritional value.

Of course, they do not need a special product, much less want packaging that screams "I have problems chewing".

What is the benefit of your own Top Level Domain (TLD)?

Maybe I am stupid. Because I do not understand the current hype about brands applying for their own TLD.

Let's say you apply for and get the following TLD:   .YourBrand

To create an internet address, you have to put something in front of the TLD. So maybe you stick to countries or languages and create www.USA.YourBrand or
you create www.EN.YourBrand.

How is that better then www.YourBrand.com, which you already own?
And which you will not give up.

Of course, you could also create things like www.Sales.Yourbrand or maybe www.Service.Yourbrand. But is that better to memorize?

How ill your email addresses improve?
From my point of view, something like JonDoe@Sales.YourBrand is not better then JonDoe@YourBrand.com.


If you have reasons for brands to invest a couple of hundred thousand Dollars in a TLD and essentially becoming a registry, please write!

When not to expand your brand?

The pros and cons of brand extensions are arguable.
There is neither a scientific answer, nor an empirical one.

Thus, the following is a statement, up for discussion.

If your brand:

• started your category like Xerox copiers,
  

• was not setup as an umbrella brand from the beginning
  

• and has no real brand competing like Red Bull in energy drinks

then there is a big chance, that brand extensions will fail.

Your customers do not distinguish between brand and product.
It is unlikely, that they will follow your brand into other categories.

It is interesting to see, whether Polaroid will be successfull.

eBay starts initiative against restriction

For some years now eBay is tied up in litigation with manufacturers of branded products in Europe. Two issues caused law suits in among other countries France, Germany and Austria:

1. marketers of premium products want to control online distribution of their products and

2. eBay refuses responsibility for trading of counterfeit products on its platform.

Now ebay calls its clients and users to participate in an online petition, see here: https://secure.ebaycampaigns.com/en/ to change European legislation.

Energizer brand license for solar

According to business wire, a developer, manufacturer and marketer of solar panels and products, today announced that it has signed a global licensing agreement with Energizer.

Energizer, one of the largest manufacturers of batteries, will grant the licensee the global rights to its trade name for solar-powered chargers and related products.

The agreement is supposed to run three years.

Again Asians buy parts of a Brand

Reportedly,  Pierre Cardin is selling parts of his Chinese business as licenses.
Two companies from mainland China are buying licenses for ready-to-wear and accessories for 200 Mill. Euros.

Jil Sander Jewelry

After signing a brand license for shoes in May, Jil Sander now announced the launch of jewelry.

Jil Sander had tested successfully its brand fit for the new category with a small offering. Now it signed with an Italian company a global brand license for a full collection of high end jewelry.

The licensee is active in Europe, Asia and North-America with subsidiaries.

Lacoste Cellphone License

Lacoste is following in the footsteps of Levi's, Giorgio Armani, Prada, Mandarina Duck and others by entering the market for cellphones.

We had predicted a while ago, that cellphones will be to this decade,
what sunglasses were to the 90ies.

Lacoste signed a license and products are expected to be on shelfs by 2010.

The licensee also holds a brand license of Hummer,
the brand recently sold by General Motors.

Calvin Klein fabric license

Calvin Klein, Inc. has entered into a licensing program to manufacture and distribute a line of designer decorative fabrics including multi-purpose and upholstery wovens, window fabrics and decorative trimmings under the Calvin Klein Home brand.

The collection will launch in summer with up to 200 SKUs for distribution to the interior design community.

Calvin Klein Home also has licensed collections for bedding, table linens, rugs and tabletop.

Joint Venture or Licensing ?

Seth Godin, a well-known marketing book author, speaker, marketeer and blogger, has a good piece about why joint ventures fail often and why licensing is the better alternative. You'll find it here:

http://sethgodin.typepad.com/seths_blog/2009/06/why-joint-ventures-fail-so-often.html

Joint ventures might work well in plain B2B environments.
When you are marketing products or services to consumers, it gets difficult. Like for SonyEricsson, Fujitsu Siemens, Sony BMG, etc.
A joint venture that seems to work in the consumer area is BSH Bosch Siemens Hausgeräte (home appliances).