Corporate Culture

During and after the global recession that began in 2007, the trend in corporate licensing was for branded products to serve as key complements to the core business—true brand extension—rather than falling under the heading of awareness-generation.

But the pendulum definitely seems to be swinging back these days, as marketers create merchandise that is primarily promotional in nature (although it should be noted that most of the products are for sale, sometimes at hefty price points). This strategy is particularly popular among food, beverage, and restaurant brands.

Some of the objectives of these marketing-driven merchandising campaigns include:

• Promoting specific products. Kellogg’s Froot Loops and British apparel label Awaytomars sold a capsule collection to celebrate the former’s fan-created wild berry flavor, the first new variety to be integrated into the cereal in a decade. KFC paired with Enviro-Log for a firelog that smells like the chain’s original-recipe chicken, with its “11 herbs and spices.” IHOP partnered with Bamko for an online shop offering a PancakeWear Collection designed around the word pancakes and similarly themed phrases. Most recently, Hardee’s signed Tipsy Elves to create ski suits called “Melt Wear” to promote its new Angus Thickburger Melts.
• Capitalizing on a pop-culture moment. Starburst introduced an all-pink line of items such as neon signs, t-shirts, and jackets retailing from $20 to $650, designed by Project Runway winner Erin Robertson. The items are tied to the meme “I am a pink Starburst,” which social media users cite to tout accomplishments or pride. In October, Nissin launched a range of limited-edition merchandise embracing college students’ love of Cup Noodles and Top Ramen, including knitted hats, snapback caps, pillows, inflatables, Halloween costumes, baby onesies, and pet clothing.
• Underscoring advertising or marketing themes. Esurance reinforced its “surprisingly painless” tagline with a limited-edition assortment of giftwrap featuring spokesperson Dennis Quaid’s face, as well as other wrapping tools (cards, boxes, and tags) with humorous phrases involving the concepts of honesty and simplicity. The products could be ordered free online; a pop-up in Chicago offered gift-wrapping services using the items.
• Expanding awareness for logos and brands. Some corporate IP owners are taking the traditional social expression-licensing route with logo-identified t-shirts and other products. Wychwood Brewery and AB InBev both recently partnered with Poetic Brands for a line of logoed t-shirts featuring the likes of Wychwood’s Hobgoblin and AB InBev’s Beck’s and Boddington’s logos. Taco Bell licensed Tipsy Elves for ugly Christmas sweaters, one of a number of novelty logoed products the QSR brand has offered.
• Positioning a brand as a lifestyle. A number of licensors have entered into collaborations with designers. Cognac label Hennessy paired with Opening Ceremony, while Heineken partnered with streetwear label Union. Kentucky Fried Chicken teamed with Nigo for streetwear inspired by its logos and menu items. And Anheuser Busch worked with HUF on a collection of anoraks, denim jackets, and other apparel and non-apparel items. These represent just a few of many examples.
• Enticing collectors. Shake Shack worked with New Zealand-origin direct-to-consumer footwear marketer Allbirds on a limited-edition sneaker, available for just one day for $100 (special-edition shake included) at the restaurant’s location in New York’s Madison Square Park.

Many initiatives meet more than one of these objectives.

Of course, while these promotional, novelty-driven, and often short-term initiatives seem nearly ubiquitous now, there are still plenty of good old-fashion brand-extension deals being negotiated. Recent examples: Bailey’s licensing Clabber Girl for a line of baking chips and Danone for a range of coffee creamers, and Tony Roma pairing with Walmart Japan/Seiyu for ready-to-eat ribs and other foods.