Branding: What's In a Name? -- More Than You'd Expect.
Dear Friends:
There is constant chatter about what a "name brand" is worth. With speculators actually creating an aftermarket for the purchase and sale of domain names, corporate names, and other seemingly ephemeral but-power-packed particles of intellectual property, there is no question that a catchy-sounding (e.g., search engine magnetic) or readily recognizable brand or trade name (like Famous Amos, Slinky, Harley-Davidson, Dunkin' Donuts or The National Newspicker) is a valuable asset. Many newly-created companies have invested vast sums in buying brand names (such as Ovaltine and Barricini) to give consumers a perception of continuity or security in a product or service.Quite recently, New York's financially troubled Tavern On The Green restaurant declared bankruptcy, and is in the process of arranging for an auction of its tangible assets in order to generate sufficient proceeds to pay off its creditors. The restaurant's name has been estimated to be worth perhaps as much as $19.0 million... although the name will be sold or licensed separately from the auction of the restaurant's tangible assets. It is entirely possible that the name, "Tavern On The Green" may be worth more than the sale proceeds of all of the restaurant's assets at auction.
Does it pay to invest in branding? Absolutely. It is possible that your trade or brand name may eventually be worth more than any patents or other rights relating to the use of any technology that you may own. Did Dolce & Gabbana invent clothing? Nope. But their imprimatur on any fashion item of clothing can increase its value by a tremendous multiple. If the gym socks which you purchased at CVS bore the Ralph Lauren name and Polo insignia, you would have, assuredly, paid a great deal more for them -- despite the fact of the quality being identical.
Consumers are comforted and made to feel more secure in buying designer names. They think that they are getting a better product because it bears a well-established, prestigious designer label. In fact, the people whom they seek to impress are duly impressed by the presence of the designer label as well, which futher secures the value of the brand, and the comfort in choosing to purchase it. Good branding is potent and contagious. Branding (through a combination of buzz, advertising and endorsements) is an amazingly good investment.
A word of caution: be certain to perfect the ownership of your brand or trade name just as you would a patent or a copyright.
A brief excerpt from an article which appeared in The Associated Press follows:
NY's Tavern on the Green restaurant bites the dust
By VERENA DOBNIK, Associated Press Writer Verena Dobnik, Wed Dec 30, 6:06 pm ET
The former sheepfold at the edge of Central Park, now ringed by twinkling lights and fake topiary animals, is preparing for New Year's Eve, when it will serve its last meal. Just three years ago, it was plating more than 700,000 meals annually, bringing in more than $38 million.
But that astronomical sum wasn't enough to keep the landmark restaurant out of bankruptcy court. Its $8 million debt is to be covered at an auction of Baccarat and Waterford chandeliers, Tiffany stained glass, a mural depicting Central Park and other over-the-top decor that has bewitched visitors for decades.
Even the restaurant's name is up for grabs. At stake is whether another restaurateur taking over the 27,000 square feet of space, owned by the city, can reopen as Tavern on the Green.
For 75 years, since it first opened amid the Great Depression, the Tavern has attracted clients from around the world.
Former Tavern mogul Warner LeRoy, befitting his heritage as son of a producer of "The Wizard of Oz," searched the globe for the whimsical goods after he took over the Tavern's lease in 1973. He died in 2001, leaving the business to his wife, Kay LeRoy, and daughter Jennifer LeRoy.
As the end of the family's operating license approached, the city sought competing bids.
The LeRoys lost to Dean Poll, who operates the stylish Loeb Boathouse restaurant overlooking the Central Park lake and offered to invest $25 million on Tavern renovations. The city awarded him a 20-year license in August, citing his significant capital investment and vision; the new Tavern will incorporate green building technology while a conservatory-style dining space will complement the original Victorian architecture.
The decisive moment in the intellectual-property dispute over the name comes in January. That's when a Manhattan federal judge will either side with the city and rule that the moneymaking name Tavern on the Green, valued at about $19 million, can be used by whoever operates the space or say the LeRoys own it.
If the city loses, Poll will use the name Tavern in the Park, creating a new menu of American cuisine with fresh seasonal ingredients and reopening by March, said his attorney, Barry LePatner.
"We're going to bring the park into the restaurant," said LePatner, by eliminating the thick shrubbery around the premises to reveal Sheep Meadow, where the animals grazed until 1934, housed in the 19th century Victorian Gothic shed that is part of the restaurant.
Just about everything from the current restaurant will be for sale Jan. 13 through Jan. 15 at a Guernsey's auction held live at the Tavern, with a public preview there from Jan. 6 to Jan. 12.
The city's parks department has asked the bankruptcy court to bar the sale of items that "cannot be removed without irreparably damaging the space they occupy," according to an objection that department lawyers filed in court this week.
Those items include lavish decorative elements on the Crystal Room ceiling, chestnut paneling, brass lettering for The Bar and six banquettes.
A judge has scheduled a hearing on the disputed items for Jan. 11.
A New York magazine reviewer once asked, "So what if the Eisenhower-era menu is strictly an afterthought?"
But the things that annoy some about Tavern on the Green are exactly what made it irresistible to fans...
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Take a look at TNNW BUZZWORKS for a bit more about what is entailed in igniting the Buzz that leads to the creation of the Brand. Hmmm.... The Buzz that leads to the creation of the Brand.
Faithfully,
Douglas Castle
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