Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. BSI readers know, we regularly answer questions from marketers. Today we hear from Lawrence, a brand marketer in New York, New York who asks this on brand licensing…
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.
Lawrence, go here for more on the basics of brand licensing. For brand owners interested in the benefits of brand licensing start here.
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The Blake Project Can Help: The Brand Licensing Audit
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