The Blake Project, the brand consultancy behind Branding Strategy Insider, delivers interactive brand education workshops and keynote speeches designed to align marketers on essential concepts in brand management and empower them to release the full potential of the brands they manage.
Today on Branding Strategy Insider, we're taking another question from the BSI Emailbag. Lawrence, a brand marketer in New York, New York writes:
“How do I license a brand name? I have the idea to connect a cartoon name to an alcoholic beverage. MGM is the owner of the rights. What is the best way to start? And what are things to keep in mind when approaching MGM?”
Thanks for your question Lawrence. Here are some of the things you should do to prepare for licensing the MGM brand name:
1. Determine whether the cartoon character has the permission to extend in to an alcoholic beverage or not. Think of the cartoon character as a brand. Do the consumers of the brand expect to buy alcoholic beverages? If the cartoon character has an adult fan base, then maybe. Conduct research within the core fan base that you can share with MGM.
2. What will be your business plan? What retail channels will you sell them in and at what price? What sort of marketing efforts will you put towards the brand licensing program. As a licensee, you should have answers to these questions ready. Also, have a sense of what sales numbers you will be able to achieve. You will eventually be asked these questions by MGM.
3. Be ready with a ballpark idea of what royalty rate you will be expected to pay MGM. Research what percentage comparable brands demand. Know your financial structure, i.e. expected MSRP, margins etc.
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Sponsored by: The Brand Licensing Workshop