Benefits of Brand Licensing
Why companies build brand licensing programs
Licensor, or brand owner
- Build brand
- Protect trademarks
- Generate revenue
Licensee, or manufacturer
- Grow market share
- Build competitive advantages
- Generate revenue
The benefits of brand licensing
Licensors or Brand Owners
- Enhances the brand image and grows the value of the brand
- Increases awareness of the brand and its core products
- Reinforces brand positioning and brand message
- Attracts new consumers to the brand
- Builds competitive advantage
- Builds stronger relationships with customers
- Gains entry into new distribution channels
- Allows consumers to exhibit their love of the brand
- Protects the brand via trademark registration and policing of marketplace
- Provides consumers genuine alternatives for illegal and unauthorized products
- Generates incremental revenues through:
- Increased sales of core product
- Royalties from the sale of licensed product
Licensees or Manufacturers
- Increases market share
- Opens new retail channels
- Gains shelf space at retail
- Increases awareness of their product
- Attracts new customers to their product
- Builds competitive advantage
- Increases sales through a wider assortment of products
- Lends credibility to their products
- Generates incremental revenues through the sale of licensed product
