The Brand Man Speaks

Brand "Tiger Woods" put to its biggest challenge; Will sponsors stay on or bail?

The recent car "incident" involving the biggest richest branded athlete Tiger Woods is the first real test of the golfing greats ability to manage his brand (worth billions) under extreme stress beyond the course.

Brand Tiger Woods has become the biggest athlete brand in history primarily due to his squeaky clean beyond reproach family man/super athlete identity. There have always been rumors here and there about women coming on to Tiger...quite frankly I am amazed he hasn't been the target of more damaging rumors earlier kudos to his extremely well oiled PR and management machine.

But now comes the real test. Had the incident occurred during "normal" hours of the day or even evening I would bet silence without deviating from "full speed ahead" would have made this matter disappear and Tiger would be completely unscathed. However, the time frame of 2:30AM (or thereabouts) really won't allow this matter to be just ignore and pushed aside. Everyone knows it was a very odd hour to be out and about and to be "unnerved" (for a guy with nerves of steel) enough to smash his SUV leaving him unconscious within a few feet of his own home spells big trouble.

Tiger is going to have to come clean one way or another with the public or at least with authorities. Unwillingness to talk in our culture equals hiding something.

A brand like Tiger's worth more than 1 Billion Dollars has a lot to lose so his crisis management team must not make any mistakes.

As with other athletes, sponsors have so far said they are behind their man. However, I believe, many will reduce their use of Tiger, even eliminate it, for a period of time hoping for a positive resolution soon. The longer nothing is said and public opinion creates its own spin on the events, the more damage to the brand and the more likely sponsors are going to suspend their relationship with him or even drop him altogether.

Since Tiger was so "clean" this event only magnifies the circumstances and every move is being watched and monitored by the press and public alike. We, the public, want to believe in his fairy-tale life and career and unlike some other athletes or entertainers who get into trouble, we really do want everything to be ok with Tiger and for him to still be the gold standard among athlete/celebrities. If anything, we can accept that he is human, as long as we are told some of the truth versus nothing that is believable right now.

One thing in his favor; he didn't (it appears so far) do anything illegal just possibly (if rumors pan out about an affair) something questionable to negatively impact his perfect very moral family values posture.

Come Clean Now Tiger, show us you are human, seek forgiveness and get back to what you do oh so very very well...play golf.

Watching out for you everyday.

Eli

Brand Reinvention: Defunct retailer brands get new life: Linen and Things revisted

The recession has taken a toll on a whole host of retailers many of whom were well known names in the consumer products industry. Several notables include Polaroid, Sharper Image and home goods retailer Linen and Things.

When Linen and Things went out of business some months ago after failing to recapitalize and restructure out of bankruptcy, many thought it was a dead brand name. Not so. A partnership of Gordon Brothers Brands and Hilco Consumer Capital bought the former retailer's brand and have reinvented it hoping to capitalize on good will, a notable name and a strong loyal consumer base through email addresses.

The new venture is only web based with no effort to launch any brick and mortar stores. The goal to use a lower overhead business model via the internet to regenerate the brand into a profitable one.

Can it be done? Maybe yes, maybe no.

Linen and Things came to life in a robust economy in which consumers couldn't stop consuming especially for their homes. Housing sales were booming and people were spending lots of time in upgraded home environments entertaining and living large. Bed Bath and Beyond created the big box "discount" home goods category and Linen and Things was a me-too follow up.

When Linen and Things business started to waiver, I wrote that one of the reasons it was suffering (and Bed Bath and Beyond was not) was it had no real brand identity. It was just enjoying the spill over from Bed Bath and Beyond and it thrived on sales generated by easily available and plentiful discount coupons (20% off a single item) to spur sales. BB and B also used these coupons, but they were distributed more sparingly. I had at any one time 3 LNT for every 1 BBB coupons. That drove my business to LNT over BBB frequently.

I found the stores very very similar, preferring BBB which seemed to have more higher end goods and an overall better selection. But save for the coupons, I really couldn't see any reason for LNT to exist...other than the sheer volume of people buying stuff for their homes.

As the economy faltered, so did the fortunes of LNT, as has been the case with many me-too brands when consumers cut back spending and the brands with less identifiable reasons for being had little to keep them in business.

Can LNT reinvent itself and succeed just online? I think it can as long as its brand strategists understand they have to create a meaningful reason for being....a pricing strategy that under cuts BBB significantly because the LNT brand's overhead is so much lower?...perhaps offering unique items BBB does not carry that are desired by consumers (yes, consumer interest is key...just carrying different stuff that doesn't sell isn't going to work)....great online service? Top notch experts online or by phone to help with decisions, (BBB is weak in this area both online and in-store)...

I have read that the company is planning to launch a private label brand called, "Linen and Things" as well. That might have some value (if the products are good value) given consumers strong interest in private label brands these days...decent quality and a great price...

Whatever it is, LNT will only succeed online if it develops a core reason for being that resonates with consumers and is significantly distinguished from BBB and any web-only home goods "store". One key competitor in the web only game is Overstock.com which offers an amazing array of home goods for some incredibly low prices. (I recently picked up a high end flatware set for 70% less than a home goods store and 40% less than Amazon.com). So if LNT takes a discount pricing posture they have stiff competition already in the web only marketplace.

I expect more defunct brands to be reinvented but online only.

Watching out for you everyday.

Eli

Michael Jackson: a small personal memory

As the world prepares to mourn and celebrate the death of musical talent extraordinaire, Michael Jackson, millions of people have started to share how he impacted their lives and the lives of a generation. Me included. Not since Elvis does the world have an entertainment legacy brand that will be much greater after death than during life...as long as it is managed well, (let's hope, since so many people have had their hands in his life I imagine more will want a piece of him in death).

I grew up with the gloved-one's music finding it irresistible and mesmerizing...finding it impossible not to learn nearly all the words while marveling at his dance skills...(which I sadly tried to but unsuccessfully mimic). I along with millions got to know Michael from a far until I had a short very personal experience a few years back.

Before Lionel Richie became a client, I had the opportunity to meet him for the first time with some friends over brunch at the celeb packed restaurant The Ivy. Lionel arrived very late to our small gathering on the cell phone intently listening to "someone" at great length. Even after Lionel sat down with us...some 15 minutes later...we still hadn't been formally introduced because he was still on the phone.

Noticing our growing discomfort with what appeared to be the "rudeness" of staying on the phone as food arrived, Lionel put the phone on mute and handled it towards me...but saying first..."it's Michael he wants my advice and I have to listen". Michael? I inquired. Michael Jackson he responded. And with that Lionel handed me the phone for a very brief time. I listened as the King of Pop sadly and soulfully expressed his love for people and how he was misunderstood. This was the time of his first court case for child molestation and those close to Michael like Lionel were making themselves available to be there for him in his time of need....as many wouldn't listen to him as the world began to shift their opinion of the K.O.P. from honor and worship to disdain and disgust.

Lionel, who had co-written and produced "We are the World" the hugely successful charity song with Michael,  was very worried about him self-destructing at that time, understandably. There were so many people in his life trying to tell him what to do, we all talked about how difficult it might be for him to get out of this situation unscathed. He settled out of court with his accuser but public opinion was not favorable.

After that time Michael seemed to become a Howard Hughes type and the world became further confused by his behaviors and his popularity waned. Additional litigation and money woes didn't help his image either.

But alas on the eve of his highly touted come-back tour he leaves us for good. Now, despite his many behavioral and money issues, which will never go completely away, the world has shifted its opinion and now is taking the time to celebrate the genius that he was and the impact his work has had on the world for the past 50 years.

Thank you to Lionel Richie for giving me a memory like no other.

Watching out for you everyday.

Eli

H&M, the cheap chic Swedish based retailer to sell high end Jimmy Choo line

As the economy continues to plague the retail industry, cheap chic Swedish based retailer H&M is taking a step to meld more high end fashion names with lower prices at its stores worldwide.

After showcasing limited edition apparel from such fashion and celebrity names as Madonna, Stella McCartney, Karl Langerfeld, Roberto Cavalli among others, H&M has struck a deal to sell shoes and accessories from luxury brand Jimmy Choo. Choo shoes are most well-known (and rose to notoriety) for their frequent appearance and inclusion in the story line of the TV Show, "Sex and the City". Many feel that Sarah Jessica Parker's character Carrie Bradshaw single-handily put Jimmy Choo on affluent and not so affluent women's "must have" list.

I believe the key to surviving this retail meltdown is providing meaningful and desirable as well as unique merchandise to consumers at a "good" value. Women will always love their shoes but will love them more at a better price. At the same time, luxury brands are suffering greatly and associations with retailers like H&M can help boost consumer interest and sales in these difficult times.

In a related effort, high end retailer Neiman-Marcus announced that it will begin offering more value-priced quality goods this summer and fall to offset the brand's image as only a purveyor of high priced goods. Neiman's like Saks 5th Avenue has seen double digit sales and profit declines for several reporting periods over the past two years and has been looking for ways to stop the bleeding a bit.

The question is; can a retailer like Neiman's go somewhat down market and not tarnish its years of branding itself as a retailer to the rich and famous? Can it offset its long-term brand image to bring in more shoppers? Is this a good idea or just a short-term revenue generating gap until economic conditions improve?

There is tremendous risk for Neiman's with this strategy especially since consumers see little reason for high end retailers to continue to exist favoring smaller boutiques for pricier goods these days...if they are buying at all. Are we seeing the end of the larger nation-wide luxury retailer? Possibly a slow death, however, just changing the goods to slightly less expensive ones isn't the answer. Saving Neiman's, if that even makes sense, requires a complete re-branding effort not a band-aid.

Watching out for you everyday.

Eli

Woody Allen protecting his image and brand successfully sues American Apparel

American Apparel the LA based clothing chain that is known more for lawsuits against its founder Dov Charney that its apparel settled a lawsuit for $5 Million with Woody Allen.

Woody Allen one of the most well-known movie personalities over the past several decades...he has directed, written and starred in many films....sued American Apparel for using an image of him as a Rabbi from the classic movie "Annie Hall" which earned Allen an Oscar as best movie. The image was used to suggest that Mr. Allen endorsed Mr. Charney's clothing line in an off-beat way. Mr. Allen objected to the use of his image and the association with American Apparel which was used in billboards in LA and NY without Mr. Allen's permission (or any payment for his likeness).

Charney is known for using very racy ads with good looking but not model perfect people. He is also been sued frequently (vs. other apparel manufacturer's for sure) for sexual harassment among other questionable behaviors. He just "moves" to a different vibe than most.

This is an important victory for people brands against the unlawful and uncompensated use of their images for commercial gain. The settlement occurred just before the lawsuit was to go to trial.

Mr. Allen originally was seeking $10 Million. Mr. Charney says he wishes it had not settled ....an action taken by his insurance company...so he says.

Watching out for you everyday.

Eli

Retailer H&M expands exclusive guest designer offerings to more stores

As the world wide recession continues to take a huge bite out of retail sales, several companies are honing their branding skills to gain as much market-share as possible.

Swedish retailer H&M which has expanded in the US dramatically in the past few years is taking its fashion forward super chic for cheap brand to another level.

In the past short runs of collaborations with high end designers and celebrities like Stella McCartney and Madonna have brought excitement and credibility to the retailer. However, these offerings were available in just a few stores and not the whole chain. The financial impact was limited by the limited availabilities. Loyalists complained they could not get the short term fashion offerings and were disappointed.

H&M will now place their guest designer apparel in nearly all their stores to meet consumer interest and demand.

This move helps further cement the brand's credibility as a leader in value priced high fashion in what is an increasingly difficult and competitive market. Many retailers have strictly gone the price discounting route and have forgotten to strengthen their brand value along the way as well. These missteps will be costly once the economy revives. H&M seems to realize that they can develop business strategies that deal with the recessionary climate and also simultaneously bolster the brand story to consumers distinguishing it from stores like Forever 21.

One analyst called it a drive to meet young fashion-oriented American's thirst for "designer gear at Main Street prices".  I think that is a good summary of H&M's goals.

Watching out for you everyday.

Eli

Kellogg's turns soured Phelps endorsement deal into humanitarian effort

Kellogg's one of the country's leading cereal makers has turned a bad deal into a good one benefiting thousands of really needy people.

Kellogg's terminated their endorsement deal with Olympian Michael Phelps after Phelps admitted use of illegal drugs at a party last year. The incident was photographed and featured on the Internet.

Kellogg's had already produced millions of boxes of Corn Flakes and Frosted Flakes brand cereals with Phelps mug on the front of the boxes. They pulled the product when they dropped him as a celebrity endorser. What to do with the tons of cereal? A really good thing.

Kellogg's donated all the cereal to a food bank in San Francisco where product was happily accepted including with Phelps' face. The food bank has said that they rarely get cereal products donated and this unfortunate situation had a silver lining for them.

Good move on the part of Kellogg's even if it was partially a PR stunt. In this economy food banks are really hurting and the donation of quality food to a deserving facility outweighs any self serving activity by the company.

Watching out for you everyday.

Eli

Super Bowl Ads 2009; Not very super: Pretty weak and boring

Like many millions of folks, including fellow marketeers, I spent a good part of Super Bowl 2009 watching the ads looking for memorable creative that would be worthy of $3 Million per spot.

Unfortunately folks, most ads were dull, boring, meaningless, stupid and certainly not memorable. If you are going to spend all that money to place a commercial in the Super Bowl, at least ensure the ad is one that will entertain and hopefully influence. In  my opinion, a lot of companies wasted a lot of money last night.

I found myself wondering, "what message are they trying to get across here?" in most cases and saying out loud, "that wasn't the least bit funny". By the end of the game, I had a very hard time remembering what brands had been advertised.

I feel the Bridgestone Tire ads (yes I do remember the brand) were the most "huh?" ads for me...seemingly disjointed and unclear what their message was all about. I certainly have no idea why I would want to buy that brand of tire.

The Cola wars are back but I didn't develop any partiality to one brand over another because of their ads.

Doritos? Awful just like the product in my opinion.

Budweiser needs to find a new ad agency.

A few were somewhat memorable.

The E-Trade talking baby is back with a friend and always gets a chuckle out of me. I enjoy this creative and think it is memorable stuff.

Pedigree Pet Food did a splendid job promoting animal adoptions showing why it is better to adopt a dog than many other (wild) pets. (Full disclosure: I provided expert commentary about this ad prior to its airing for a major media source...no pay...but I was already positively predisposed to the creative.)

Jason Statham continued his James Bondesque activities showing Audi's new A6 is one helluva fast car. I love the Transporter movie franchise I must admit. I think I might actually buy an Audi next time I have enough money to buy a new car, (if the economy improves).

Monster.com's "moose-head" ad was cute and clearly calls out that it is time to find a new job...if there are any out there......

The surprise hit for me was Cash4Gold.com. The late night direct response advertiser was "allowed" to buy space usually reserved for the prestigious consumer products/services brands because the economy is so weak and NBC had lots of unsold inventory. The bottom feeder advertiser used Ed McMahon and MC Hammer especially well to promote their mail-in gold redemption for cash service. It was surprisingly good creative that wasn't so cheesy as I would have thought and did a great job of message delivery with humor.

Finally, but it was an in-house ad for NBC's Hulu online service, Alex Baldwin did a nice "30 Rock" styled ad for the website that was extremely well-done and memorable.

What did you think? Share your thoughts.

Watching out for you everyday.

Eli

Michael Phelps: Pot smoking photo to undermine his brand value

Olympic Gold Medalist Michael Phelps has proved that his publicity machine can't prevent bad judgments from undermining his marketing value.

A tabloid picture of the 8 gold medal winner smoking a pot water-pipe at a university party this past November has caused the Olympian to make a public apology for his drug using behavior.  Prior to winning his gold medals Phelps had been arrested for driving while being impaired.

This incident could greatly diminish the "Phelps brand" which yours truly said in various press interviews during the Olympics was never going to be worth the billions many experts predicted. Besides the fact that it was going to be hard for his handlers to keep his name "current" and meaningful with few swimming events to compete in until the next summer Olympics, it was obvious from watching him be interviewed that he lacked the maturity of say an athlete like Tiger Woods.

Now many of his endorsements may be in jeopardy as consumer product companies have the option to drop him (and stop paying him) for this infraction. This photo questions Phelps ability to continue as a meaningful role model for young people around the world which is the reason so many companies wanted to throw millions at him in endorsement fees.

It is a sad day for athletes when these kind of events occur. However, it reminds us that even super athletes are just regular human beings and we shouldn't put them on such high pedestals and pay them so much money for being super athletes.

Watching out for you everyday.

Eli

Brand California may price itself out of the marketplace

The recession economy has played havoc on nearly every business, individual and entity in the United States including states and cities.

California is one of the most hard hit by the economic down-turn. The state's comptroller recently announced that it would not be able to pay tax refunds to consumers this year instead sending out IOUs for repayment sometime in the future. (Can you imagine that?)

The state benefited greatly from skyrocketing real estate values but that money was spent and short-lived. Now with housing prices and values collapsing by over 50% in some parts of the state the resulting real estate taxes can't possible cover the commitments made for that money.

Governator Arnold Schwarzenegger plans to raise taxes and fees everywhere including the state's sales tax which may soon cross the 10% mark in Los Angeles making it the highest in the land. Additionally, Arnold is planning increases in state levies like a higher alcohol tax from 4 cents to nearly 30 per 750ML bottle.

In one case this alcohol levy will change a notable brand "Two-buck Chuck", a wine sold by Trader Joe's from Charles Shaw for under $2.00 and a big favorite in Los Angeles. The tax increase will make it impossible for the brand to stay under $2 completely undermining its brand strategy. Wine industry folks would rather have the tax be part of the increased sales tax so the increase doesn't impact their marketing efforts. Even though the wine will still be a bargain at say $2.29, it's raison d'etre will change somewhat. This is akin to the fact that 99 cents stores are moving to over $1.00 with most items and now calling the stores in some cases 99.9 cents stores. The idea that a 99 cent store goes over the $1 mark markedly undermines the brand in the mind of the consumers even if it is only 1 cent more.

California may end up pricing itself out of the marketplace by making the state too expensive to live in or even visit. I believe for the first time in decades more people are leaving California than moving in...primarily because of high unemployment and the extremely high cost of living.

As dire a circumstance as this difficult economy is, it is important for brands of all kinds to be mindful of how short-term changes in their strategies may forever impact consumer perception and loyalty to those brands. This is not something to be done quickly or impulsively and requires careful thought and planning. It does not appear that California has done this homework or if they have, they haven't come up with a viable solution that does not undermine the brand.

Watching out for you everyday.

Eli