What is Brand Licensing?
“Brand Licensing is a legal process that allows your trademark and brand to be used by a third party on goods made for re-sale.” ( David Ball, Joint MD, Performance Brands)
When consumers see a licensed product, it should naturally fit in with the consumers existing perception of the brand.
However it should also go further. A successful licensed product will delight the customer, as they see their favourite brand expressed in a new and exciting way.
As a brand owner, you may want to license your brand to help build brand awareness and recognition.
Alternatively, you might be looking to create another income stream. Sometimes you’re looking to do both.
Corporate brands are often driven by raising brand awareness or consumer satisfaction. They choose brand licensing because if managed effectively it’s ‘free marketing’*
With character properties, licensing is seen as the lifeblood of the business, as it is a significant income generator i.e. for Disney licensing, represents 50% of their net income.
Brand licensing is an important part of your marketing mix. It is the only form of marketing that generates revenue.
Like all forms of marketing if you get it right it will enhance your brands reputation and increase your brand perception with your existing and potential consumers.
If you get it wrong however, it can do as much damage as any other failed product launch.
Performance Brands will be on hand to provide advice and guidance as you move into new product categories, changing the shape of your retail offering.
* Although many corporate businesses still have targets for brand licensing income.