WHY BRAND LICENSING IS THE SOLUTION FOR YOU

Now that you have an idea about licensing, learn about the numerous benefits of Brand Licensing for both licensors and licensees. This free report outlines some of the obvious as well as some not-so-evident benefits of brand licensing.

BENEFITS OF LICENSING

Companies build brand licensing programs for a variety of reasons. For the brand owner (licensor), licensing gives them the opportunity to strengthen their brand while generating revenue and protecting their company's trademarks. For the manufacturer (licensee), licensing enables them to generate additional revenue while often building competitive advantages and growing their market share.

Core to the licensor in any brand licensing program is the opportunity to enhance their brands' image and grow the value of their brand. Licensing programs offer licensors the opportunity to increase the overall awareness of their brand and their core products while reinforcing brand positioning and brand message. By adding new categories through licensing, licensors can attract new consumers to the brand and offer existing consumers an opportunity to exhibit their love for the brand. This allows licensors to build competitive advantage, build stronger relationships with their customers and often gain entry into new distribution channels. In rare instances, licensing the brand enables licensors to provide consumers genuine alternatives for illegal or unauthorized products that are currently being sold in market. Finally, licensing generates incremental revenue for licensors through increased sales of core product and royalty revenue from the sale of licensed products.

For licensees, acquiring use of a brand enables them to increase their market share in their category and often results in gaining incremental shelf space at retail. This not only increases awareness of their product, but often attracts new customers thereby building competitive advantage. Having a prominent brand license can open new channels or regions for a licensee's product that were previously unavailable. Licensing lends credibility to the licensee's core products and often increases a company's overall value. This can help a licensee acquire additional licenses or even raise capital. Ultimately, licensing generates incremental revenue through the sale of licensed product.