Some licensed products are very much like the brand’s core product itself. They may be used the same way (like licensed food products for a food brand); they maybe used by the same consumers (like a board game based on a children’s cartoon); or they may be distributed in the same channels (like cocktail mixes for a spirit brand).
Such products achieve every brand manager’s goals, including the following:
- Supporting brand awareness through new products and impressions.
- Reinforcing brand imagery and equities through new brand associations.
- Supporting brand positioning, advertising and marketing – marketing that pays for itself.
- Increasing usage occasions.
- Expanding brand’s presence at retail – and its share-of-mind among shopping consumers.
- Enhancing brand ownership of its category.
- Surrounding your target.
- Sustaining market share and profit margins.
Licensing keeps the brand top-of-mind in new places and new ways. It is self-funded and revenue generating, providing by far the best return on investment in your marketing mix.
Traditional marketing methods are no longer enough to reach consumers effectively and ensure growth. A rapidly changing environment for brand managers requires smart and new ways to reach consumers and grow their businesses.
Licensing is a form of “experiential marketing” that offers the consumer unexpected ways to interact with and use a brand. Consumers are often more permissive and open to this unexpected interaction. They are willing to spend money to give this brand a new role and expand its presence in their lives. In purchasing the new consumer product, they in fact are confirming the brand’s meaningful role in their lives.