Licensor or Brand Owner
- Builds and strengthens the brand image beyond traditional boundaries and builds brand value
- Increases awareness of the brand and its core products amongst consumers who otherwise might not be brand aware
- Helps to reinforce brand message and position in the marketplace
- Attracts new customers to the brand name
- Allows consumers to acquire authorized rather than illegal or unauthorized products using the brand name, marks and logo
- Enhances the importance of the brand name to existing customers
- Allows entry to additional or new trade channels
- Protects trademarks by broadening the trade use of marks
- Generates revenue beyond the normal revenue and profit stream of the brand owner
Licensee or Manufacturer
- Grows market share by associating it products with a brand name and image that transcend the intrinsic retail value of the product manufactured
- Builds competitive advantages over competitors with weaker or no brand awareness
- Generates greater revenue without the start up costs associated with brand development and promotion
Licensees or Manufacturers
- Increases market share of core products through brand acceptance
- Opens new retail channels by channeling channel appropriate brands to their proper niches
- Gains shelf space at retail by offering multiple valid alternative profit solutions to the retailer
- Increases awareness of product offerings
- Attracts new customers to existing products
- Builds competitive advantage over companies who compete only on price
- Increases sales through a wider assortment of products, giving reasons for additional space
- Lends credibility to their products through brand association
- Generates incremental revenues through the sale of licensed product over and above core non-branded products