Brands are more than graphic devices. They are shorthand to customers about what you stand for.
As a customer you know that a brand immediately imparts a set of emotional responses which you can choose or reject based on your needs and experiences.
Brand Licensing is process of granting rights to use a Trademark or Copyright property or other Intellectual Rights for specific products or services in a specific territory, for a specific period of time in return for specific financial terms usually in the form of royalty payments (usually based on units sold) or fixed fees (usually for promotional activities).
Perhaps your business could use a Brand License to grow your sales. Think of a Brand as tool you could Rent Out or Borrow. We use the terms License [Out] and License [In].
License [OUT]
If you are a well established Brand Owner you could use Brand Licensing to grow your business into other markets.
By finding a suitable partner you could license them the rights to use your brand. With your brand management knowledge and their manufacturing and distribution capabilities your brand could be on sale in other markets, generating revenue and increasing your return on brand investment.
Brand Licensing is an effective tool to take your products to market - without you setting up the whole manufacturing and supply chain structures.
There are well practised processes in developing an effective licensing program:
• Intellectual Property Management – legal services to ensure your valuable
trademarks are protected by law.
• Brand Manual – details how your brand is used from product manufacturing,
quality assurance programs, packaging through to advertising and retail
merchandising.
• Business Management, Financial and Administration – the management
processes where you control how your brand is used and the income
you receive for use.
License [IN]
If you are a manufacturer or retailer you could use Brand Licensing to grow your business in YOUR market.
By identifying a brand which would enable you to reach new customers, different price points or distribution channels you could accelerate your sales growth. The brand equity, consumer recognition, production resources (such as designs, molds and brand marketing tools) which are provided for your use as a licensee means you can enter the new segment perhaps more rapidly than creating your own.
Using a well known brand is a powerful competitive advantage in enhancing your own company reputation with customers and invigorating your total sales and marketing program.
Consideration of a brand license within your sales and marketing program should include:
• Feasibility Study – including alignment with existing company resources.
• Business Support Services – including production tools, launch and
promotional services.
• Contract – Term, Financials, Obligations, Renewals and Exit.
