Greetings!
The licensing world will be gathering in Las Vegas at the Mandalay Bay Convention Center from June 8th - 10th for their annual Licensing International Expo. The Expo is the largest brand licensing show in the world, attracting retailers, brand owners and manufacturers from all over. Anyone wishing to explore brand licensing or grow their existing programs won't want to miss this event.
Licensing Brands will be in Las Vegas for the Expo and welcomes the opportunity to meet with you.
We continue our series on the Pitfalls of Brand Licensing with the problems licensing programs encounter when they fail to follow a rigorous approvals process. I hope you find this information valuable.
Sincerely,
Pete Canalichio
Vice President Business Development
Branding Strategy Insider features "Don't Blame Brand Licensing"
Pete's blog on Don't Blame Brand Licensing was published this week on Branding Strategy Insider.
Don't Blame Brand Licensing
Here on Branding Strategy Insider, Jack Trout makes a compelling argument for why not to consider licensing as a method of brand extension. Furthermore, he backs it up with multiple examples of established brands with flawed licensing programs that serve to prove his hypothesis. After reading about Pratt & Whitney and Pierre Cardin, what CEO in their right mind would choose to risk the company's crown jewels to a group of third party manufacturers which don't have a clue about how to build a brand, let alone manage one? With so much at stake, only those CEOs that are either reckless or desperate would consider licensing. Right?
Read the entire article at http://www.brandingstrategyinsider.com/2010/05/dont-blame-brand-licensing.html
Pitfalls of Brand Licensing: "Failure to follow the approval process"
Licensees may not fully understand the approvals process designated by the licensor and may not give it due consideration. Often the licensee expects that approvals will come relatively easily and quickly. Instead, many products are not approved because the licensee has not followed the approvals process.
When this happens, the licensee may miss a modular shipment date or end up selling unapproved product. Missing a ship date can mean losing millions of dollars in sales and damaging a critical retailer relationship. If that isn't bad enough, the price of selling unapproved product can be even higher. For example, if an unapproved product contains a harmful substance such as lead paint, the fallout from the impact of injury to consumers can be devastating to the licensor's brand. For this reason, the penalties for selling unapproved products can cost the licensee the total revenue received from the sale of all unapproved product and the loss of the license.
