December 6, 2022


Stock development

Brand licensing is all about the marketing, not just the money

Listed here is a seem at how brand names use licensing to guidance advertising aims:

Licensing reinforces brand values

Soon just after Asa Candler procured Coca Cola from founder-inventor John Pemberton in 1891, he positioned the manufacturer as a lifestyle—sound familiar?—with print, billboard and issue-of-sale advertising. He also emblazoned the brand on non-beverage items, such as clocks, wallets and pocket knives. That positioning continued ideal up to the existing as the enterprise these days takes advantage of licensing with popular designers and trend brands to burnish the brand’s lifestyle name.

Licensing builds recognition and brand that means

Febreze is one particular of P&G’s billion-dollar manufacturers and a chief in the air care classification. What makes Febreze various is its engineering: Febreze does not just mask odors, it eliminates them whilst smelling good. P&G reinforces manufacturer equity by licensing Febreze for use on products and solutions exactly where odor elimination is important to individuals, like Happy trash baggage and Clean Action cat litter.

Licensing increases shopper touchpoints

Baileys, amid the world’s best-advertising liqueur manufacturers, works by using licensing to reframe the model message—encouraging customers to make it a section of their every day lives. Baileys licensed the manufacturer for espresso creamers, chilled and frozen desserts, espresso pods and chocolate, all to be enjoyed at different periods of the day all through the calendar year.

Licensing opens new distribution channels

As a result of licensing, Coca-Cola can be observed at fashion retail, Febreze in the pet aisle and Baileys in the grocery keep. Briggs & Stratton, a manufacturer of little engines made use of largely in other companies’ electricity devices that it provides to other organizations for their branded electricity devices, required to acquire its very own branded products. Making use of licensing, Briggs & Stratton now reaches consumers with branded motor oil, fuel containers, air compressors, air conditioning equipment, quality gasoline and much more.

In all of these instances, licensing makes it possible for these manufacturers to enter corporations with strategic benefit that drop outside the house the companies’ main businesses, when educating consumers about model that means to assist marketing and advertising and communications targets.

Although brand names make revenue via licensing, it will often be a very compact share of their best line. Chasing the razzle dazzle of a ringing money register can guide to faults – the products could be improper, the quality inconsistent or brand perceptions baffled.

Don’t forget Colgate frozen entrees, Lifestyle Savers soda, Cosmopolitan yogurts, Coors Rocky Mountain spring h2o, Frito-Lay Lemonade or Ben Gay aspirin?

Some of these strategies were supported by investigate and all are in massive categories with important gross sales options and royalty earnings possible. Each and every intended manufacturer extension failed, and I’m absolutely sure created a brand disconnect with buyers, which is hardly ever a good thing. There are much more current examples of models (I’ll safeguard their names) who pursued licensing in sizable products categories, blinded by sizeable fiscal guarantees, only to deal with failure, agreement disputes and, often, litigation.

I’ll close the place I started. Licensing is an powerful internet marketing and communications instrument. Do it ideal, do it strategically, align it with brand plans and objectives and the money will come. But really don’t do it just for the money. Which is just the aspect dish.

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