brands use strategic licensing for greater business growth
Licensors seek to strengthen their brands or trademarks, drive consumers back to their core products and services, and create a new revenue stream. Strategic licensing helps achieve those objectives. It helps brand owners launch new products with a low risk burden, and create happiness among their fan bases.
Licensors may have other goals too:
- Leverage brand equity without building inventory
- Launch in a new category outside their core competency
- Create a high volume of brand impressions with minimal cost or complexity
- Reach new consumers
- Use a marketing tactic that pays money rather than just costing money
Establish a new catalyst for positive word of mouth
AT BRAND SQUARED LICENSING, WE CHAMPION THIS FUNCTION For
Strategic licensing is a way for brands to create that emotional new moment that shoppers never knew they always wanted.
Oftentimes a brand owner will not have capital to jump into a new aisle of the store – or a new category, or a new daypart – and the inventory risk and bandwidth stretch is overwhelming. Licensees will do that on behalf of brands.
The right strategic licensing agency can take, or create, those concepts and turn them into reality.
If you have never executed a licensing campaign before, chances are you do not have that expertise in-house. You may decide to outsource the effort to an agency that develops and executes brand extension initiatives through licensing – an agency that helps brands enter new product categories through licensed manufacturers.
An agency that does type of work all day, every day, across product categories and across brand types. That is what we do.
We believe that licensing helps brands achieve larger business goals, much like every other function in the marketing mix (e.g., advertising, in-store promotion, PR, product placement).
LOTS OF COMPANIES WILL TELL YOU THEY CAN DO THIS.
Strategic licensing requires a diverse team that can champion strategy, vet partners with time-tested criteria, negotiate on behalf of clients with economics and legal protection in mind, and manage licensees toward product and channel development in keeping with the original strategy.
Success in strategic licensing means far more than chasing after the big idea.
Finding the right partners who agree in the business proposition, developing product that is priced right and creates consumer demand, and overseeing the growth of an assortment from multiple manufacturers that appears as if it call came out of your warehouse–requires a very unique background and skill set. These limitless details become a devil’s playground for managers busy running their core business, or agencies without direct experience in the craft.
Click through to Using An Agency to learn more.
We rely on our point of difference to achieve those client successes, which is our take on the four P’s:
A Picture is worth a thousand words – Click through our work