Brand Out-Licensing

Brand Out-Licensing

Once a brand potential has been recognized and the decision to realize it has been made, brand licensing (out-licensing) can be a strategically valuable instrument for brand growth. Especially when the extension stretches beyond the owner’s current organizational capacities or requires a different business model and skillset, brand out-licensing is an option. Clearly, an appropriate set of equities should be available for the brand to credibly enter an unknown product category. When considering a brand stretch with a partner, the brand owner needs to be aware of the potential change in brand perception that is fueled by moving into new product areas.

 

The advantages of brand out-licensing programs can be summarized as follows: The brand is strengthened by additional investments and can increase its overall sales volume. New products trigger new interest, new sales channels increase brand presence and, if managed properly, cross-selling activities allow promoting the brand across licensors’ and licensees’ product categories. All the potential advantages of licensing partnerships need to be viewed with respect to potential positive or negative retransfer effects on the brand image and core product categories that are related to and offered by the brand (licensor). Brandway guides brand owners through the different phases of a licensing program, supported by appropriate partners.

 

· License Exploration

· Licensing Strategy

· Licensee Search

· License Realization

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