Branding Strategy Insider helps marketing oriented leaders and professionals like you define and grow brand value. BSI readers know, we regularly answer questions from marketers everywhere. Today we hear from Cheri, a Marketing VP in Jacksonville, Florida who has this question about the keys to a successful brand licensing program.
“We are exploring monetization through potential new brand extensions. The current focus is to evaluate brand licensing, which may include and not be limited to licensing our brand out. Our goals include creating an income stream while extending reach and building brand loyalty. As we consider a brand licensing program, what are the keys to success?”
Thanks for your question Cheri. Licensing continues to be a powerful option for accelerating growth and extending the value of brands, making the decision to begin a licensing program a key consideration at strategy meetings worldwide. For those brands exploring licensing today and what impact it may deliver, consider the following. Licensing is thriving. According to Global License Magazine, The Top 150 Global Licensors accounted for $280.3 billion in retail sales of licensed products worldwide in 2018 versus $271.6 billion in 2017.
Keys To Successful Brand Licensing
To quote JFK; “Things do not happen. Things are made to happen.” This surely applies to the programs behind these impressive numbers. They approach licensing with purpose and commitment and share the following characteristics:
- They are authentic to the brand. Packaging, product design language, brand messaging & tone, and quality all come in to play.
- They are legitimate whereby the licensed product /service design and quality are aligned with the brand.
- They are strategic, and clearly compliment core offerings.
- The brand is fully engaged (i.e. not segmenting licensed products in an ‘us and them’ mentality) as consumers will easily detect a lack of authenticity.
- They are willing to evolve with trends and the times.
- They understand it is their target customer that gives them permission where to extend and anchor the program in customer research.
- They ensure their program is strategically managed by those that understand both licensing strategy and brand strategy.
- They understand they have to be fully committed to the program, it is essentially a new business unit.
Brand licensing continues to be a powerful growth strategy, benefiting brands with equity as well as those that need to borrow equity.
We hope this is helpful Cheri.
The Blake Project Can Help: We offer brand licensing workshops to help brand owners develop a strategy for licensing or refine an existing one. Another way we serve our clients is through a Brand Licensing Audit which is an essential guide in considering, building and/or improving a program. Please email us for more.
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education