Competition is growing, shelf space is dwindling, and the retail market is shifting massively. So what does that mean for your brand’s licensing program going forward?
It is a huge concern. Top management is demanding annual program growth, but more and more we see licensors chasing the same old, tired categories often with the same old, tired licensees. How can your licensing program continue to grow and stand out amongst the pack? How can you breathe new life into your existing program to appease top management and cement your role as an integral part of your company’s success in licensing?
Here are some things you can do:
1. Think Big, Not Small
Big deals drive meaningful business results… from the licensor, to the licensee and the retailer/e-tailer. Small deals don’t. Bigger deals mean more revenue, and that gets management’s attention, which leads to more resources and more kudos for you and your team. Plus, administratively, the job is much simpler. Bigger is better!
2. Think outside-the-box about target categories
At LMCA we believe strongly in bringing our clients into strategic extensions that naturally fit their brand’s core attributes and promote brand growth, but we are also firm believers that outside creative thinking is most effective path towards great ideas and in-market successes. LMCA’s subsidiary ProdigyWorks is an exclusive Mensa-based of diverse high-IQ and creative thinkers that bring in rapid high-level outside thinking to come up with the next big ideas for some of the world’s great companies and best-loved brands. Identifying creative and strategic opportunities through the use of an outside innovation network can provide your company with winning and innovative new products and categories to pursue.
3. Test ideas against target consumers
Examining ideas against target consumers will help develop and refine them, confirm their validity, and quantify the opportunity. It has been an effective approach for LMCA in affirming the success of a licensing opportunity and proves helpful in soliciting the very best licensee and retail partners for our clients.
4. Engineer long-term partnerships, not just stand-alone licenses
The opportunity for tie-ins, cross promotions, joint sales calls, technology sharing, etc. can elevate results for both licensee and licensor dramatically. LMCA coordinates regular 3-day licensee/licensor summits for our clients and their licensees. It creates cohesion and brand alignment for the licensing program, fosters collaboration between licensees and allows licensees to share experiences, challenges and resources in a community forum. These cultivated partnerships have proven to really pay dividends for our clients.
Licensing is continuously evolving. Consumer preferences are shifting. To stay successful in an ever-competitive market, companies must continue to revisit ways they can stay on top of their game and keep their licensing program relevant and fresh. Repeat steps #2 and #3 every 2 years and insist that senior management participate in the process to foster alignment and grow a sustainable licensing strategy.
LMCA is a market founder and leader in making connections between growth companies and strong brands for licensing. We represent over $6.5B in annual licensed product sales. Let’s continue the conversation. Learn more about how brand extension licensing can expand your reach, your customer base and your bottom line. Contact Us Here
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