Brand licensing is an ever-evolving sphere which can yield unmatchable results with the right approach. What lies inside this sphere is much more than just marketing; it is a revenue driver that provides organisations with a palpable edge over the others. With the rise of ‘new media’ it has now become imperative for brands to be socially empowered. Licensing serves as a variable in channelizing the consumer base for each brand and the range of merchandise further elevates the demand. In fact, it serves as a perfect amalgamation of classic marketing strategies and organic advertising. If you have an eye out for expansion with minimal risk and investment, licensing should be your choice. It will strategically extend your brand to new categories, markets and audiences. In order to develop a competent licensing strategy the following pointers must be taken into account:
- Identifying Brand Persona: The concept of a brand may sound simple but it is, in reality, a complex mechanism that revolves around market segmentation and product differentiation. People connect with each brand in a different way. Identifying how your brand makes your consumers feel will help you in analysing your brand personality and values. It will help you in formulating the products you can foray into. This will guide you in selecting your potential licensing partners.
- Defining Licensing Objective: Brand licensing being multidisciplinary has a lot to offer. A brand can only benefit from brand licensing if the objectives are defined in accordance with expansion plans. Brand licensing can aid you with brand extension, driving revenue, increasing visibility, promotions, and more. The trick is to align a brand the right way in order for it to appear in upscale product classifications or distribution channels. Licensing also paves the way for a brand to explore multiple opportunities without any significant financial commitment. Another vital fact is that brand licensing goes beyond retail and has the largest scope in terms of opportunities. Hence, do not stick to the classic approach. Instead, foray into the segment of your choice. It is of crucial importance to hierarchically set the objectives as per your requirements.
- Finding the Right Partner: The final step in successfully establishing your license development programme is finding the right partner. Some of the most important things which should be taken into account while selecting a partner are the quality of products and services, expertise in the field, distribution channels and business values.
A brand licensing deal should be a perfect integration of values of both parties and must benefit them equally. In a world where growth is the only constant, licensing brings in the edge that will make your product stand out. It will help you reinforce the brand values, extend brand awareness, and grant entrance into new markets and retail channels without increasing your capital expenditure. With all this is in check you will be on your way to brand licensing success.