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Brand name licensing is all about the marketing, not just the dollars

Listed here is a glimpse at how models use licensing to help advertising objectives:

Licensing reinforces brand values

Shortly right after Asa Candler acquired Coca Cola from founder-inventor John Pemberton in 1891, he positioned the manufacturer as a lifestyle—sound acquainted?—with print, billboard and issue-of-sale marketing. He also emblazoned the symbol on non-beverage goods, like clocks, wallets and pocket knives. That positioning ongoing appropriate up to the present as the corporation now works by using licensing with well-known designers and style models to burnish the brand’s life style standing.

Licensing builds awareness and manufacturer indicating

Febreze is 1 of P&G’s billion-dollar brands and a leader in the air care classification. What will make Febreze distinctive is its know-how: Febreze does not just mask odors, it removes them whilst smelling very good. P&G reinforces brand equity by licensing Febreze for use on solutions exactly where odor elimination is vital to customers, such as Happy trash baggage and Contemporary Phase cat litter.

Licensing raises consumer touchpoints

Baileys, among the the world’s greatest-selling liqueur models, utilizes licensing to reframe the brand message—encouraging shoppers to make it a component of their every day life. Baileys accredited the manufacturer for coffee creamers, chilled and frozen desserts, coffee pods and chocolate, all to be enjoyed at various periods of the day during the year.

Licensing opens new distribution channels

As a result of licensing, Coca-Cola can be observed at style retail, Febreze in the pet aisle and Baileys in the grocery retail outlet. Briggs & Stratton, a maker of small engines employed largely in other companies’ ability products that it supplies to other corporations for their branded electricity machines, wished to acquire its have branded items. Making use of licensing, Briggs & Stratton now reaches shoppers with branded engine oil, gasoline containers, air compressors, air conditioning tools, quality gas and a lot more.

In all of these occasions, licensing enables these models to enter corporations with strategic value that drop outdoors the companies’ core companies, when educating people about manufacturer which means to guidance marketing and communications aims.

Even though brands make revenue as a result of licensing, it will typically be a very smaller percentage of their prime line. Chasing the razzle dazzle of a ringing funds register can guide to errors – the product or service could possibly be completely wrong, the excellent inconsistent or brand name perceptions baffled.

Bear in mind Colgate frozen entrees, Daily life Savers soda, Cosmopolitan yogurts, Coors Rocky Mountain spring water, Frito-Lay Lemonade or Ben Gay aspirin?

Some of these thoughts had been supported by analysis and all are in major groups with important income options and royalty income probable. Every single supposed model extension failed, and I’m certain generated a brand disconnect with people, which is by no means a good thing. There are extra current illustrations of brands (I’ll defend their names) who pursued licensing in sizable merchandise groups, blinded by sizeable economic guarantees, only to experience failure, agreement disputes and, in some cases, litigation.

I’ll stop where by I commenced. Licensing is an successful advertising and marketing and communications tool. Do it suitable, do it strategically, align it with model plans and goals and the money will occur. But really don’t do it just for the cash. That is basically the side dish.

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