Leveraging Your Strengths

What is intellectual property? It may include recognized brands and image libraries, or copyrights and trademarks. Your company may have a collection of signature images or a license for a specific type of tool. There is also tangible value in resources such as a good art department, good relationships with suppliers and manufacturers and an established distribution base.

But most companies don't use intellectual property to its full advantage by referencing it in every aspect of product development. A company's assets become truly valuable when they leverage intellectual property; by utilizing your core competencies your company can position itself for growth and enhance profitability. Here are some things to consider when thinking about your company's intellectual property.

Do you have an extensive collection of artwork or a unique color scheme, talented designers or a top-notch sales and marketing team that can increase distribution? Take stock of your resources, both in property and personnel. Once you've established your company's strengths, you can design a plan for growth. Whatever your core competencies are, find ways to exploit them when expanding product lines.

Now that you have a good idea of your strengths, look through your image and design library to determine the extent of your intellectual property. Ask, “What sets my company apart in the industry?” This is particularly pertinent in industries where companies are trying to appeal to a certain lifestyle; the goal is to develop recognized strengths and signature products.

Many companies focus entirely on trends, introducing new product every season. While this may seem innovative, it can diminish a company's image if it never establishes a foundation of signature products. In a mature, fiercely competitive market, it's not enough to bring fresh product to the marketplace. Being “new” is not always the answer.

Many companies develop products with the final customers in mind, forgetting that they need to appeal to key buyers. A good product that's geared toward your customer base is worthless if it doesn't catch on with buyers and retailers. If your company's signature products have been successful with buyers, it will be much easier to introduce new products. It's the buyer's job to judge what will be popular with consumers. If you can win over a buyer, your products will probably succeed with end customers as well.

New product lines must support existing ones. Customer perceptions are closely related to product foundations, including all the qualities that make a line recognizable. If you've developed a line around vibrant photography, it would be unwise to switch to soft-hued watercolor.

The key is to pinpoint your product foundations, stick with them and figure out creative ways to build on them. To extend your product range for maximum effect, plan for new products that will reinvigorate existing lines. New products should never be developed unless they link back to current product.

This consistency should be carried through everything from packaging, marketing programs and advertising to trade show presentations. A simple, meaningful message that is recognizable to your customers is the key to successful marketing and sales. Regardless of the medium — be it brochures, fliers, email blasts or ad layouts — collateral materials should emphasize your message and sustain interest in your products.

One company that understands the value of leveraging intellectual property to its advantage is Paper House Productions, Woodstock, NY. In developing a new product line, Paper House looks first to its collection of iconic, licensed images.

At its founding, Paper House specialized in greeting cards. The images were the company's primary resource. Seeing the potential this resource offered, the company began broadening its image library. Paper House was able to obtain exclusive images and use them to branch out of the greeting card market.

A central challenge was determining how to create new lines while staying true to the high-resolution photography Paper House was known for. The first non-paper products were metallic bookmarks that used 3D versions of the images; this foray has been hugely successful.

Paper House Productions built a successful new product line from its foundations by:

• Recognizing that its library of images could be applied to a wide range of products.
• Capturing the same sense of emotion found in the original images.
• Developing good relationships with key corporate buyers, and keeping store-ready samples or design mock-ups to show buyers. Once it has quantities, Paper House places full production orders. This keeps cash flow manageable.
• Enlisting a professional product development company to create packaging and lend insight into sampling, tooling, production costs, order quantities and logistics.

When used correctly, a company's resources and intellectual property go a long way. The key is to support creativity while providing a clear path to growth. Referring back to core competencies and applying them to every aspect of product development helps guarantee structure and discipline throughout the process.

Understanding and leveraging the value of your intellectual property will ensure successful product lines time and time again.