The checkout counter: Red Cross licensing initiative hits stores.

The American Red Cross (ARC) has been at the ready to help people prevent, prepare for, and respond to emergencies for 125 years. But now, that effort will be featured on the selling floor of your local mall. This past spring, the ARC launched a new licensing initiative aimed at helping families become better prepared for an emergency.

Initial Red Cross licensees and products include a line of hand-crank emergency radios by Eton Corporation, Red Cross collector ornaments designed by Kurt Adler, latex exam gloves by Magla, and a line of baby health and wellness products by RC2/First Years. In every instance, packaging, point of purchase displays and other promotional vehicles will include Red Cross safety, wellness and preparedness information.

The percentage of the purchase price contributed to the Red Cross will be clearly designated on the packaging, adhering to Better Business Bureau Wise Giving Alliance guidelines.

"It took us over a year to really focus on the licensing program and determine whether we wanted to launch it," explained Jennifer Charnetski, senior officer, corporate partnerships and cause marketing, at the Washington, D.C., headquarters. "The Red Cross has tremendous equity, not only as a cause but as a brand. We had products in our online store that were selling reasonably well--for an online store. But we did some research and found that people wanted to buy products in retail stores where it would be convenient and easy for them."

The ARC's cause marketing unit reviewed many co-branding product specials that it hadn't previously explored rather than going forward with sole-branded Red Cross licensed products. During the internal process, which lasted approximately a year, the organization developed a strategy that produced two general categories: mission-driven products and affinity items. Mission-driven items include products for "preparedness, safety and wellness everyday." Affinity items are geared toward people who buy products to show their support for causes they care about. Products will include apparel and home decor items.

Prior to the initiative's public launch, the ARC teamed with Campbell Associates LLC, a licensing agent that specializes in socially responsible licensing. In addition to its four current partners, the organization is in discussions with, or will be seeking, licensing partners for additional everyday safety, wellness, and preparedness products such as safety lighting, flashlights and nightlights; home health aids; interactive games and educational toys; roadside safety products; sun care and aquatic safety products and apparel. Ongoing negotiations precluded Charnetski from mentioning any potential new deals.

The length of each licensing deal depends on the company and the product, Charnetski said, although most of its licensed programs are longer than its cause marketing contracts.

"Most of our licensing contracts are in the 2- to 5-year range," explained Charnetski. "The reason for that is that it takes a lot of work up front to promote the new product for its use internally, make sure the product meets our specifications, the packaging, make sure the messaging adheres to our mission and messaging. Then there's the sell to retailers, which often takes a bit of time depending on retailer's schedules. Unlike some of the cause marketing programs where products can be in stores rather quickly, we're seeing that these are taking several months to a year into the product development ramp-up."

The percentage per sale that the ARC will receive varies by product. The organization closely examines industry guidelines for royalties in the different product categories, Charnetski said. The goal is to generate a revenue stream with price points that are affordable for the consumer retail market.

The retail items cannot be found at the ARC's online store since its four licensed partners distribute primarily through retail and that was the goal when the nonprofit was selecting its partners. In looking for a licensing program that would enable it to have products in retail, the ARC managers believe they have assembled a group with very strong retail relationships. There may be an online crossover with some future partners, Charnetski added, but right now the types of products that it offers are exclusive to retail outlets.

It will take some time to reveal whether or not the licensing program achieves the goal of raising significant, long-term, sustainable revenue. "We're really just spending this first year with products out in the market, to determine the success of the program," Charnetski said.