Sunbeam supports its powerful brands in major licensing initiative

DSN Retailing Today, August 7, 2000

Sunbeam Corporation is poised to re-energize the marketplace in targeted and strategic categories that will help retailers maximize sales and margins through venerable brand names that offer the consumer added value.

As it begins to roll out its many new licensed products, Sunbeam is working closely with its various licensees to ensure maximum impact on store shelves. New products will be seen at retail, featuring the powerful brands of Sunbeam(r), Coleman(r), First Alert(r), Mr. Coffee(r) and Sunbeam Grillmaster(r). The recently created corporate licensing division of Sunbeam is in the midst of signing up manufacturers to create products in categories that both complement and coordinate with their core products. A good example of a license that coordinates is microwave ovens from Curtis, Int'l., while a brand extension that complements is Sunbeam Grillmaster kitchen and BBQ textiles by Elrene Home Fashions. Elrene will also launch a line of tabletop textiles under the Sunbeam brand in 2001, and will collaborate with the dinnerware and flatware licensees Sunbeam plans to sign soon.

Under the revitalized Coleman Licensing program, products ranging from fishing rods and two-way radios to work gloves and hand-sanitizers are currently being rolled out. Since Sunbeam Corporation's brand names (other than Coleman) have never been licensed, it's particularly exciting to see such new Sunbeam branded products as a full line of hair-dryers, make-up mirrors and curling irons in a personal care launch. In time for the hurricane season, there is a fully-featured line of First Alert weather radios. Century-old brands like Sunbeam and Coleman, as well as more recent brands such as Mr. Coffee, First Alert and Health-o-Meter(r) engender loyalty among consumers, while conveying a rich heritage. "Leveraging the equity in these brands on today's new products will help retailers differentiate themselves in this increasingly competitive retail environment," says Linda Morgenstern, senior vp of licensing for Sunbeam Corp. Referring to the abundance of Sunbeam brands, Morgenstern adds, "Manufacturers and reta ilers alike should look at our company as providing seven ways to improve your shelf-esteem."

According to the recent Harry Beckwith book, "Selling the Invisible," consumers will pay up to 40% more for a national name brand like Sunbeam over a store or generic brand, says Morgenstern. "The consumer," she continues, paraphrasing the book, sees a national brand like Sunbeam as more than just a recognizable name or symbol; it's also a warranty for performance and value."

Such a trusted brand as Sunbeam--widely known among consumers for its solid product performance, traditional styling yet innovative functions, moderate pricing and warm memories of home and family--will enhance the margins of retailers looking to break out of the private-label/generic brand niche.

These extensions are building on an already established name. Brand awareness of the Sunbeam name is over 90%, and the brand has No. 1 industry ranking in coffee makers, electric blankets, juicers and bread makers, with No. 2 rankings in such other industry categories as cooking grills, blenders, vegetable steamers, hand mixers and espresso machines.

Sunbeam's licensing program is both aggressive and finely targeted, bringing enhanced equity to the brand among consumers. "We're teaming with licensees who can bring added value to the particular product while maintaining competitive price points," says David Mitchell, president of licensing for Sunbeam Corp.

The new Sunbeam "Mighty Bulb," for instance, boasts a five-year life at a minimum of a warrantied 5,000 hours. Such a bulb is competitively priced with standard bulbs, which last a mere 1,000 hours.

"Light bulbs have already turned out to be a terrific opportunity for us," says Morgenstern. She adds, "You couldn't invent a better brand name for lighting than Sunbeam." Sunbeam has partnered with L'image Home Products Inc. on light bulbs, and, for fourth quarter, will be offering "rope lights" for both innovative lighting applications in the home or on the porch, or as wrap-around Christmas tree decorations.

While Sunbeam chooses not to manufacture such appliances as dehumidifiers or vacuums in-house, the licensing division is considering manufacturing partners for those product lines, among others. "We are selecting experts in particular categories to build in innovations that enhance the brand for consumers, says Morgenstern. "Large kitchen appliances would just be a natural extension to our existing core product categories of small appliances."

Among other partnerships, Sunbeam is working with Empyrean Bioscience (alcohol- and fragrance-free hand sanitizers), Springfield Precision Instruments (timers and thermometers) and Team Products (pest repellers). Sunbeam, which has a 65% awareness when it comes to outdoor grills, is also building on its Grillmaster Series with products for the $2 billion outdoor cooking industry.

In addition to large appliances, licensed Sunbeam product categories that currently remain available include: cookware, kitchen and household organizers and gadgets, cutlery, glassware, food storage containers, alarm clocks, floor care, and ironing boards and laundry accessories.