The Target-ization of Everything (TGT, KBH, MSO)

The Stalwart submits: Almost-chic discount-retailer Target (NYSE: TGT) is a pioneer in celebrity-designed mass-market goods. They understood that a toaster will always cost just a few dollars to make, but that they could double the price by having it designed by some well-known fashion designer. Even still, these toasters are cheaper than what you would get at William Sonoma or Design Within Reach. This is much deeper than a typical celebrity endorsement for instead of the celebrity merely wearing or using said item, they actually helped create it.

Now others are getting into the game in a big way as Martha Stewart (ticker: MSO) and KB Homes (ticker: KBH) are teaming up to sell, yes, Martha Stewart-designed homes:

The deal, whose financial terms were not disclosed, allows both Stewart and KB to expand into new areas.

"This will not only extend our brand but broaden our scope," said Stewart, in a phone interview with The Associated Press.

She added, "My homes are wonderfully constructed, beautifully designed and useful for the modern day home owner."

Stewart is also aiming to use the partnership to further market her collection of home furnishings and other products. The model homes will be furnished with her furniture collection and other products, and customers will be able to buy flooring, faucets, light fixtures, cabinetry and countertops.

For KB, the deal allows the home builder to expand into the higher-end market. The average size for a typical KB home is about 2,000 square feet, according to Karatz. In comparison, the Stewart-inspired dwellings will range from 1,500 square feet to 4,100 square feet and will be priced from the low-$200,000 to mid-$400,000 range. KB builds homes that carry an average selling price of $280,000, Karatz said.

While resembling Stewart's homes in Seal Harbor, Maine, Katonah, N.Y., and East Hampton, N.Y., these dwellings will also carry such design features that the she deems important -- large columns that define the rooms, large laundry rooms, and breakfast nooks.

Actually, it seems like a fine idea for both KB Homes (NYSE: KBH) and Martha Stewart. KB Homes suffers from the reputation that their houses are bland, shoddy, and cheap, and Martha Stewart, still needing to revive her own brand (The TV show hasn't quite done it), gets to make the ultimate leap from homemaker to homebuilder.

What other companies could employ this strategy that haven't done so? How about The Gap? Could they get their former spokesmodel Sarah Jessica Parker to design a pair of jeans or a blazer for them? What about fast-food companies with a signature Emerill-composed dish. Not sure how much of this could affect the bottom line, but having talented people attaching their reputations to mass-market goods seems like a really good thing.