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I often wonder if brands fail to use exclusivity as a marketing tactic.

The idea that they can produce limited quantities of high value and high worth products and services and make them available only to a select and pre-selected audience of high rollers.

The problem is, that’s the old way.

Perhaps we are witnessing the arrival of something new- Democratic Exclusivity.

I’ve recently been following the story of David Chang’s new restaurant in New York, Momofuku Ko.

The restaurant only has 14 seats and you can only reserve one online on a first come first served basis.



This is especially interesting, because unlike days of old where it was who you were that got you a table, this is all about a democratic process where it doesn’t matter who you are.

Instead, if you are prepared to be patient and work, you will get rewarded with entry.

Brands could be exploiting Democratic Exclusivity in all its multiple forms; from designer editions, to limited time offers.

Couple it with the Internet, and “exclusivity for all” suddenly has meaning. This is all about blending scarcity and timing, when you play with the two elements you create buzz and intrigue.

Lots can be done here.



Posted by Ed Cotton At the end of the last century, every brand was rushing to participate in a new form of commerce, e-commerce.

With everyone shopping online is there now more of a value on the real shopping experience? Is the retail-shopping environment, one of the most popular pastimes of global consumers, the place you need to be establishing your brand?

This isn't about participating in the retail business as a retailer, but using it as a core part of your branding strategy.

With media costs escalating out of control and reach becoming increasingly questionable, the retail store is fast becoming the branding tool of choice for brands that are looking for global reach and to leave an indelible mark in consumer's minds.

Brands that aren't tradtionally retailers are making the leap across into this space.

Obviously, it also helps if you have something to sell, but it's especially interesting to see some surprising new entrants.

The global soccer organization FIFA has just opened its first store in Singapore airport and plans to open others in London, Tokyo and Los Angeles.

Then there's Ferrari, who many would have expected to be the last brand to open stores, are using stores as a branding tool and a revenue generator. The company is opening them at a fast pace. In 2007, it opened Beijing, Los Angeles, Shenyang, Barcelona, Al Kobar, Abu Dhabi and Macao and this year will see openings in San Francisco, Miami and Honolulu.

While opening retail outlets might seem strange in a world dominated by technology. However, it's clear that certain areas of specific cities- Rodeo Drive in LA for example or Las Vegas are quickly becoming experience retail centers. Places where people spend time and indulge themselves in experiences. This is not shopping as chore, but shopping as entertainment and it certainly makes sense for certain brands to be present in this emerging media channel.

Retail allows brand to create a media that performs two functions; a brand experience and if done correctly and with the right partners, a revenue generator that allows the brand to recoup some of its expenses.

It will be interesting to see the role agencies and media buying companies will play here, but I somehow can't imagine anyone putting global store openings as a line item on the media plan.

Perhaps, it would be the mark of true integration, if one of the large holding companies could make this type of cross-functional thinking happen

Posted by Ed Cotton Ferrari’s marketing team is having a lot of fun extending the brand and opening up stores to celebrate and sell the brand. The progress has been relentless and broad, ranging from the obvious clothing lines and key chains to the more surprising Acer laptop. The rapid build of these extensions is starting to look reminiscent of fellow Italian brand, Gucci, when, at one point in the late 70s it had over 1500 product licenses.

Marketing experts will tell you that brand extensions are fine as long as they remain true to the brand’s DNA. There’s also another theory based on credits and debits, which states brands can do what they like as long as they continue to out perform on the positive aspects of their core DNA. In the case of Ferrari, this means winning drivers and constructors titles in Formula One, which they achieved in Brazil last weekend and the continued production of head-turning automobiles.

However, their latest extension may suggest that madness is creeping into the system, or the team invited the editor of The Onion to make a pick. A 7,000 Euro Ferrari-branded Segway isn’t something that one would naturally expect from Ferrari, it’s as far from the brand’s DNA as it could possibly be and its dangerously touching the point of ridicule.

Perhaps I am completely missing the point and this is the first signal of a new “electric powered” Ferrari brand.



Posted by Ed Cotton If you were fortunate enough to have $1.7 million in spare change and the skills of a race car driver, Ferrari would have sold you an FFX (race ready Enzo) sadly the program is now sold out.

The car comes complete with its own pit crew and 6 races over a 2 year period. The FFXs were out in force at last week's Ferrari Challenge event at Infineon Raceway in Napa, California.

It's an amazing example of the ultimate in luxury brand experiences.









Ferrari used to be an elusive brand; the only time you used to see it was in car magazine reviews, on television winning Formula One championships and if you were lucky, you might a glimpse of a red one zooming down a city street.

In the last couple of years, Ferrari seems desperate to stick its brand name as many places as possible, the inevitable culmination of these decisions is opening up retail stores, the latest in Beverly Hills, Los Angeles.

It’s reported the store will sell Ferrari clothing, accessories, shoes, toys and key chains.

Perhaps even the laptop?


Ferrari seems to be heading down the familiar path taken by a number of luxury brands.

1.    Financial management as the company orders increased revenue generation.

2.    Executives appear reluctant to devalue core product lines by making cheaper versions and instead opt for licensing deals.

3.    Licensing deals require no investment and are money in return for the use of the brand name.

4.    Financial management gets hooked on “licensing crack” and orders more.

5.    Several years later, researchers in the brand’s marketing team find tracking studies that show significant declines in the brand’s premium and exclusivity image perceptions.

6.    New management arrives at the company and is concerned about the brand’s fall demanding that all unnecessary licensing deals and stopped and order the brand to retrench.

While it might be premature and unfair to label Ferrari as another casualty of over licensing, the brand must seemingly have good reasons to do this, brand development activities contributed 23% of annual revenues in 2006.

Gucci made the mistake of over-expanding through extensive licensing in the early 80s and almost killed their brand.This happened because most of the licenses were too closely related to their core fashion product and the knock-on devaluation effect was faster.

Ferrari likely feels its brand expansion is controlled and in categories that have very little connection to the brand’s core product, luxury sports cars.

In addition, there’s a lot of financial pressure to cash in on the brand’s massive fan base, many can only dream of owning the real thing, but a key chain is well within reach.

However, when does it stop and what selection criteria is used to decide what licenses are right for Ferrari brand and what’s not?