License to Brand

Can an Exclusive Brand strategy be overdone? At Target?

It may be possible to have too many exclusive brands…but the real question should be “how good are those brands,” rather than “how many brands are there?

Mike Duff at BNET raises some interesting ideas in a recent piece when he says, “Target is turning into a souvenir stand as the company marks occasions ranging from store openings to the change of season by rushing another exclusive line of products through its stores.” He goes on to say that consumers may be overwhelmed by the amount of exclusive brands at Target.

I can’t speak to how these short-term exclusives tie into Target’s overall strategy. But it seems that in this economic environment, adding excitement and discovery to the shopping experience is a worthwhile focus. And exclusives, even if not explicitly recognized as such, are a way to freshen up a store’s customer experience. 

The question that I think merits discussion is, “Is Target picking the right exclusives based upon a clear strategy for the brand on the front door?” Generally I believe that no one does it better than Target. They don’t just throw brands out there to see what sticks. They are selective with the brands they introduce and their exclusives consistently reinforce the Target brand’s overall positioning….fun, fashion, and excitement.

Exclusive brands can drop more pennies to the bottom line but their real value is that they can nurture and enhance the chain’s banner brand. If they do that, then the specific amount of those exclusive brands is less important. 

What do you think of Target’s short-term exclusive brands as a strategist? Do you like them or do they just confuse and overwhelm you as a shopper?

 

So what’s the strategy with Sears exclusive brands?

What’s the strategy? Got me! I simply can’t figure out how Sears’ recent moves with their exclusive brands come together as part of a consistent brand-based strategy. What does Sears stand for? Or better yet, what does Sears’ management want the brand to stand for in the future? And how do Sears and K-Mart differ in terms of their brand positioning?

There doesn’t seem to be a clear vision. Sears recently announced its acquisition of an exclusive license for the RCA brand for LCD TV’s – to be sold at both Sears and K-Mart. How does this type of exclusivity help either Sears or K-Mart establish a unique brand identity? At the same time, Sears is going to allow its venerable Craftsman and Kenmore brands to be sold at Ace Hardware. That’s a great deal for Ace, but it has to dilute the value of these brands from Sears' perspective. Craftsman and Kenmore are classic examples of how exclusive brands can make a retailer a destination. No longer, I suppose.

And as Lydia Dishman at BNET has recently commented, Sears' fashion strategy is all over the place. You’ve got the acquisition of exclusive trendy fashion brands like Bongo without a merchandising strategy to support it. And then there’s Sears’ concept of opening up branded golf boutiques as a store-within-a-store concept.

In one way Sears is on the right track by recognizing that exclusive licensed brands should be part of their brand turn-around strategy. But I once heard a definition of positioning as “having to say no.” So by definition, a positioning strategy means having a clearly articulated, relatively narrow and consistent, focus. I hope there’s more strategy behind the curtain that we can see. And I hope that a year from now, I’ll be eating my words.

Hey there’s an idea! Eating. Maybe Sears should get into the food business. A deal with Aldi for the value end of the business, and one with Dean and Deluca to cater to the golfing crowd that just bought a new putter?