Home Archives Subscribe Advertise FAQ Feedback Contact Us  
Industry News Trends
PPAI News
Products
Decoration Processes
Sales and Marketing
Business Operations
Research
Profiles
Editorial/Opinion
Online Exclusives
PPB Newslink
PPB Supplements
Promotional Consultant
Promotional Consultant Today
The Navigator
This Month's Poll
How much vacation time will you take this summer?




  
PPAI
 
Article Tools: Print | Email | Add Comment
Share |

Riding the Coattails of Brand Loyalty
By: Ted Jackson , English Emprise
Issue: 2000jul

Whether it’s clothing, watches, cars, tools or even bottled water—today’s society is undeniably brand conscious. We’re attracted to brands that project messages we like. Some shirts are cool. Some soft drinks make us feel young.

Forward-thinking companies understand that if their brand carries a message, it carries equity. Companies now are using that equity to deepen relationships with customers by offering supporting products that reflect the personality of the brand. It’s called relationship marketing, and it works.

Those in the promotional products industry can benefit from these relationship marketing programs. By using a brand strategy, you can help your customers stand out in a crowded field of competing messages—which makes you stand out among your competitors.

While rarely increasing cost, branded products carry a higher perceived value than unbranded products. Companies engaged in relationship marketing have made substantial investments in their brand image, including research and comprehensive marketing programs. They go to great lengths to ensure their brand is favored by the public. So, when you offer a high-quality branded item as a promotional product, you’re capitalizing on the equity of the brand they’ve created.

Quite simply, customers, prospects and employees enjoy receiving high-quality products that carry the distinctive brand of a company they like or recognize as unique.

Licensing: Not Just a Way To Make More Money

Branded products often are offered to the public through licensing agreements with outside organizations. There are many reasons companies license their brands—not all of them good. If a company’s primary motivation is to develop an additional stream of income, licensing can be a big mistake. By allowing an outside organization to have control over the brand’s image, the brand is put at tremendous risk. In fact, it is very likely the brand’s equity will be diminished if the sole motivation is profit.

Although a good licensing deal will provide a company with additional income, the true value of licensing lies in its potential to grow the brand. Successful licensing deals bring customers closer to the company, strengthen their identity with the brand and encourage long-term relationships.

Licensing requires the same attention to detail, analysis and demographics as all other aspects of marketing. In fact, as customers begin to contact the licensing company for branded products, they see no difference between the licensing company and the brand.

At English Emprise, we discourage companies from entering into licensing agreements—even with us—if their only motivation is additional income. Our licensing agreements are designed to build brands.

For example, we’ve developed a line of corporate gifts for Maker’s Mark fine bourbon whiskey that reflects the beloved brand’s friendly yet sophisticated image. As master licensee, English Emprise formed a division dedicated to serving Maker’s Mark customers with relevant products—not just any products, but products that deepen relationships and support the brand. Behind our award-winning catalog is exhaustive research of the brand position, marketing plan and demographics. When we developed products, each was consistent with the style and tone of the brand.

What does this mean to you in the promotional products industry? With the public’s ready-made interest in a brand, a branded item can be a promotional tool with punch. To make a good thing even better, we often personalize Maker’s Mark products, providing a powerful medium for a customer’s message.

For example, at an important trade show, one of our customers gave away Maker’s Mark bourbon-flavored cigars, which come in a glass tube sealed with the distillery’s distinctive red wax. Personalized with the customer’s Web address, the cigars were so popular they were saved and remembered. The company was still getting profitable response months later.

A large broadcasting company chose to give Maker’s Mark gourmet chocolate and coffee beans as year-end corporate gifts, along with a note thanking advertisers for their business. Company officials said never before had they received any response to corporate gifts—but this time they were overwhelmed.

Not all branded products are created equal, however. Some companies that say they’re engaged in relationship marketing actually treat their collateral products as the stepchildren of the ad agency, and the quality of both the products and service can suffer. Orders may be processed inefficiently or in a way that detracts from the brand image—which could decrease the value of the product in the eyes of the receiver.

Also, products that deliver a message that is inconsistent with the company’s image do nothing to add value to the promotional product. A low-quality T-shirt or boring coffee mug can’t be made interesting or valuable by simply adding a recognizable logo.

Considerations for Selecting Branded Products

If you’d like to ride the coattails of brand loyalty, consider the following questions when choosing a branded product for your customer:

  • Is my customer’s business consistent with the branded product?
  • Can this product be used to meet my customer’s goals?
  • Is this a high-quality product that recipients will value?
  • Does this product project an image that is consistent with the image of the brand?
  • Is the licensing company handling this product responsive to my needs and the needs of my customer by offering personalized service and accurate fulfillment?

    When a quality branded product is consistent with both the brand image and your customer’s goals, you have a tremendous opportunity for success. Branded products are powerful tools you can use to set yourself apart from your competition by helping your customers do the same. PPB

    Ted Jackson is president and founder of Louisville, Kentucky-based English Emprise, master licensee for Maker’s Mark.

    Comments (0)
    * Name:
    * Email:
    Company:
    * Title:
    * Comments:
       









    • Home | Archives | Subscribe | Advertise | FAQ | Feedback | Contact Us | Site Map