Merchandising is a very nice concept for a two way profitable investment for both the merchandiser and the merchandise small or cottage firms. Usually the merchandise department of any company opts for the smaller business group who has the man power and raw material to create the merchandise but needs sponsorship and support for other areas such as a forum to market it, a distributional channel and a brand name, which is eventually supported by the big bannered company who approaches them for the commodity.
For any big brand name merchandising works as a big way of branding which actually reaches the consumer as a product. For e.g. many big brand of coffee shops do a merchandising for cups, mugs, cookies, promotional watches etc. which we can buy over the counter. It has always proved to be a success as mostly people buy such products for two main reasons. First to show loyalty towards that big brand and secondly because such products are not available anywhere else other than those particular outlets. This way of branding turns successful as for products such as cookies, if they are loved by the buyer; he or she might come to pick them again and again and for product like a coffee mug; it will definitely drive a subconscious attention towards that brand name. So next time if he or she plans for coffee outside it is pretty possible that this particular brand comes to his mind along with the other first few options.
It is just not so with coffee shops but it is very common with almost all types of industries now. Many company do it as a fund raiser or charity for small business groups providing them with an umbrella of their brand, and what they earn is ‘branding’ for their name. Other companies buy the commodity for these small business groups for a nominal price and sell it on a higher price makes a profit with the margin price they get on top of the branding for their name.
So when it is next time you are giving your fan a chance to flaunt his or her promotional watch featuring you?