Brand Extension
You Could Grow More… By Licensing a New Brand

How do companies use licensed brands for strategic growth? There may be as many ways as there are brands and companies. But there are a few main themes, and one of them is likely a smart growth strategy for your company. Licensing is a great tool for launching new sales initiatives and building businesses, for example:

  1. Market entry: Entering a new country or geographic region where your brand isn’t well known? Licensing a brand is perfect. If you choose a brand that has strong local recognition with your target customers – or even one that’s a global powerhouse, strong everywhere – you get an automatic head start.
  2. Outgrowing OEM: Many companies start life as successful OEM manufacturers or distributors. At some point, they might note that other companies are getting the higher margins that come with branded products versus their smaller margins on OEM. This is where a licensed brand comes in. In addition to the recognition that customers give a strong brand, licensed brands already have a brand image and marketing assets. This makes it easier to remodel your salesforce and build a marketing team, speeding up your new non-OEM business launch.
  3. Stuck in a (great) rut: It’s a good problem to have – you’re so successful at a huge account that you can’t expand without them getting mad. These successful ‘captive’ relationships with large distributors and retailers are tailor-made for licensing. With a licensed brand, you can offer a product that looks different (and may also be feature-differentiated) to new customers and channels. The risk to your existing accounts goes down, and your sales go up.
  4. New products, new customers: Had a great idea for a new product or a whole new line? But your current customers would never buy it? You need a licensed brand. First, your new target customers will respond better to your products if they’re marketed under a brand they already know and trust. Second, your existing customers won’t be left wondering why your core brand is making something that doesn’t fit its image. Problem(s) solved!

You probably have some great operational capabilities already, like design, production, sales and distribution. Licensing could be your strongest strategy to leverage those capabilities and expand into new products, customers, channels and geographic markets.

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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