Image may be NSFW.
Clik here to view.
In general, firms go international simply because they want to grow or expand operations. Far more certain motives contain creating far more revenue, competing for new capital, diversifying and recruiting new talent.
far this fiscal year 5 Leveraging one more brand’s attributes can put a new spin on an current product line, as California Pizza Kitchen demonstrated with its frozen pizza line with Kraft. Customers gave California Pizza Kitchen and Kraft permission to create an upscale alternative and edgy flavor profiles in a highly commoditized category, permitting both the brand and the category to attain new customers.
Leveraging a confirmed brand also improves analysis efforts. The licensor ought to offer information with regards to their brand’s awareness levels, attributes, and core users. When researching the appeal of a licensed solution, consumers can offer concrete responses primarily based on a brand they know, rather than imagining their reaction to a hypothetical solution they have however to see or taste.
In addition to brand metrics, a licensor with an established licensing program can give best practices for leveraging their brand in new categories and channels, as nicely as potentially connect licensees for cross-promotions. When numerous licensees integrate their advertising efforts, they increase media purchasing energy, gain distribution for their promotions, and attain higher promotional energy inside particular retailers.
Further, licensing gives a platform for makers to combat retailers’ private labels. Innovation by way of licensing gives shoppers a cause to invest a small far more on a branded item. As Lynn Dornblaser, director of consumer package goods insight at Mintel, discussed in a recent edition of AdAge now is the time for ideation and innovation for products that answer shoppers’ preferred for value, high quality, and pleasure.” 6
A firm with diverse sources could generate an inbound licensing division as a single arm of an overall partnership improvement group. The brand group and the inbound licensing group must operate collectively to establish how licensing will serve the overall brand technique. This inbound licensing group communicates often with current and prospective licensees, acts as a filter when bringing opportunities forward to brand teams, and facilitates negotiations by engaging the suitable legal groups. Designating a distinct team permits development of inbound licensing experience, which can then be deployed as a competitive benefit in the marketplace.
