OVERVIEW
"Penstar's purpose is to assist companies with targeted brand extension by manufacturing and marketing quality jewellery featuring their brand logos."
One of the most effective brand extension strategies is through licensing the use of well known brand logos for merchandising appropriate products. Here's how BE Research defines brand extension “Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category.”
However, for successful and ongoing brand extension using jewellery, it must be an appropriate and natural fit for your company, brand image and logos. Having a famous logo adorning a piece of jewellery is not enough to generate sales. The brand and its associated logos must relate to consumer lifestyles in that way.
Merchandising signet rings and pendants with the famous Harley-Davidson logo has been a successful brand extension for the company over many decades. But how did Harley riders, 90% being male, respond to Harley-Davidson branded perfume and cake decorations? Lets just say that Harley-Davidson merchandising learned some very valuable lessons!
Merchandising products such as caps and t-shirts featuring the Chicago Bulls logo is an ideal brand extension for the club,
but how would Chicago Bulls cologne or lipstick appeal to fans! No more needs to be said. (Note: I'm quiet sure that the Chicago Bulls have never licensed these products and probably never will :)
The point is, that brands and chosen extensions have to be an appropriate fit, and the extension products should complement & enhance, not diminish the brand image.
Is Your Brand Logo Suitable to be Represented in Jewellery?
If you have been contacted by Penstar and invited to consider our services then we believe that your brand logos are a very suitable match to be used in jewellery merchandise. We do not approach companies that we do not think have logos that are suited to jewellery either cosmetically or in brand image. Some brand logos and trademarks are more suitable than others, depending on the look of the logo. For example, complex and bulky logos are obviously less suitable to grace the top of a signet ring than a more simple, easy to reproduce logo.
Company or Consumer?
a) Company - As we just explained, not all jewellery featuring corporate logos is suitable for general merchandising to consumers but can potentially be used at a company level. For example, famous brands such as Wal-Mart, KFC, Sears, Microsoft, McDonalds, 3M and many others, all have logos that could potentially be used in jewellery. However, would a Microsoft, 3M, Wal-Mart or McDonalds signet ring relate to their millions of customers and become a desired purchase? Probably not. That's not a negative comment against these great brands, but even the most loyal consumers are unlikely to associate with these brands in that particular way.
Could you imagine a Microsoft burger or a Budweiser printer! Of course not, as brand managers are very protective of their brand image and its associations. However, these brands could very effectively use their brand logos in jewellery at a company only level for managers, franchise holders, highly performing employees, etc, but not as brand extension products for consumers.
b) Consumer - Other famous brand logos are well matched at both company and consumer level. For example, the famous Harley-Davidson bar and shield logo is a natural fit for jewellery and a perfect match for selling to consumers as licensed merchandise. The Harley-Davidson logo not only looks great in jewellery, but the brand has a powerful lifestyle association with many Harley owners. A lifestyle association, "Proud Owner" is the vital key for successfully merchandising licensed jewellery featuring brand logos. The ring or pendant featuring a brand logo is a point of connection and pride between the consumer and that brand which they love to be proudly associated with.
Brand Licensing
Penstar is focused on seeking opportunities to manufacture and market jewellery based on well known and suitable brand logos and images. The jewellery featuring your brand logos can be sold as merchandise to your customers or fans; or at a company level only, for managers, franchise owners, employees etc, if it is not suitable for a brand extension to consumers.
If you would like more information about using your brand logos in jewelry and potentially establishing a merchandising license agreement with Penstar, then please contact us today.
References
www.brandextension.org/definition.html
http://brandfailures.blogspot.com/2006/11/extension-brand-failures-harley.html
http://www.fastcompany.com/magazine/109/next-brand-extensions.html
http://brandfailures.blogspot.com/2006/11/tired-brands-polaroid.html
