Benefits of Licensing

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

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