Favorito Takes a look at Round 5

November 24, 2008

Branding and marketing maven Joe Favorito fills in for Darren Rovell over at CNBC and takes a look at the MMA figurines being marketed by Round 5. MMAPayout’s Kelsey Philpott recently featured the collectibles maker and Favorito adds more perspective on the company. Favorito hit on the attractiveness of doing deals outside of the UFC purview:

The difference, says Damon Lau, Round 5 president, is that instead of going after the UFC brand, the company works directly with the fighters, allowing each athlete full creative control of the look of his figurine as well as the ability to sell sponsorship on its trunks. Round 5 also provides the athletes a per-unit commission that is four- to five-times the standard for the toy industry.

There are excellent merchandising opportunities outside of the UFC structure but the key is finding the ones that have the wide distribution that make the numbers make sense. Round 5 is good example of a company that has a highly rewarding that has broken through with wide distribution, with over 3,500 outlets nationwide for their offerings.

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