In the extremely competitive fabric softener category, Snuggle® needed to boost its brand awareness with consumers and retailers. Big competitors, like Tide and Gain, had much larger marketing budgets and were very innovative with additional product launches. Due to skyrocketing media costs, Snuggle wanted a creative way to expose the brand to new customers, increase brand loyalty and create a new and cost-effective advertising channel.
Snuggle turned to brand extension licensing as a strategic solution to their marketing needs. There are many reasons for a company to grant a brand license. The most obvious is to generate income from the guarantee and royalty payments. But brand extension licensing can also assist in a number of other purposes. In some cases, those “other” motives to license might actually be more important to the licensor than the dollars that are earned.
For Snuggle, the company wanted to grow revenue, but their main objective was finding new ways to reach customers that would boost brand awareness and increase the equity of the brand. Through partnering with brand licensing agency LMCA, the licensing team identified Snuggle core values of softness and fragrance as target attributes to encompass a brand extension licensing program. LMCA identified licensees that would naturally extend Snuggle® into categories that would substantially increase consumer impressions.
Snuggle signed licensing deals for pillows, mattresses, home bedding, and towels to support the softness imagery. An air freshener license with full national distribution and high velocity sales supported the fragrance feature. Extending Snuggle into new categories, areas of a store, and into new stores overall, brought Snuggle into new businesses without making a major investment in manufacturing processes, machinery or facilities. Extending the brand into new categories brought new eyes and exposure in a different area of the store, reinforcing the Snuggle brand image and supporting the brand’s overall marketing efforts.
Generating approximately $1 Million per year in royalties, what started out as a trial program, is now one of Snuggle’s most successful and longest-running licensing programs. In conjunction with a dramatically increased media spend, funded by licensee partners, Snuggle has generated greater brand awareness with both consumers and retailers through the strategic use of brand extension licensing.
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LMCA has been helping companies grow through strategic brand licensing for over 33 years. Learn more about how licensing a brand can add significant value to your business and bottom line today. Contact us at https://lmca.net/contact/ to learn more.
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