Promotional licensing is one of the major propellers of the licensing and merchandising industry in India. It conveniently draws out the ordinariness and gives you a platform to stand out. It also aids you in generating positive visual impressions and increases the shelf-life of the product.
Promotional licensing is generally defined as a marketing agreement between a manufacturer and a licensor to use its intellectual property (IP) in promoting a product.
What goes into promotional licensing is, however, better rooted than just an agreement. It gives you the freedom to develop a unique marketing approach and helps in positioning the product in accordance with ongoing trends. The task of transforming the product into being market-ready can be a daunting one. In order to achieve the desired results one has to initially work on developing the said product. The first step of creating a product is ideation and conceptualization which comes packed with an adherent need to identify audiences and segments which the manufacturer wishes to tap.
Promotional licensing paves the way for you to break into the market and an entirely new segment with a recognised factor in your hand, which is why it is of crucial importance to select an IP that is well-known within the targeted segment. Creating a detailed product roadmap to formulate a business plan for the IP will help market the product in suitable ways. It is imperative for marketers to understand and harness the power of an IP in order to imperalize a brand to its maximum attainable height. This will not only create value for the brand but also serve as a medium for people to connect with it. For instance, McDonald’s has collaborated with Nintendo for their ‘Happy Meal’ toys. They have licensed the ‘Super Mario’ range which includes Mario, Princess Peach, Luigi, Yoshi the Dinosaur, Koopa Tortoise Shell and the familiar question mark block. All of these products are easily recognised by all the 80s and 90s kids as well as the millennials and this gives McDonald’s an edge in terms of relatability. The retail or distribution channels established by a manufacturer further back the product.