Why license your brand?
When you license your brand, you grant the rights to a licensing partner who can manufacture, market and sell products bearing your brand name. Youll collect royalties from the arrangement and, oftentimes, an advance of those royalties in exchange for letting the licensee use your brand.
What is meant by brand licensing?
Brand licensing is a way for brand owners to increase their current fan base and move into new businesses categories without major investment in new manufacturing processes. It allows retailers and manufacturers to stand out from the competition and offer consumers the hottest brands as well as drive sales.
What is an example of Licence?
For example, the purchase of a movie ticket allows the ticket holder a license to enter the theatre at a particular time. Licenses that are acquired by contract normally include the right to use property that is protected by patent, copyright, or trademark.
What does brand licensing mean in marketing?
When you license your brand, you are giving another company permission to use your intellectual property on products they produce and sell. You can earn an upfront advance as well as royalties, which are calculated as a percentage of total sales or net profits, depending on the licensing agreement.
What is meant by brand licensing?
Brand licensing is a way for brand owners to increase their current fan base and move into new businesses categories without major investment in new manufacturing processes. It allows retailers and manufacturers to stand out from the competition and offer consumers the hottest brands as well as drive sales.
What are the best examples of brand licensing?
An example of a brand licensing agreement includes Reeses, who knew the large market for peanut-based chocolates, but instead of trying to create the products themselves, they licensed their brand to other manufacturers. They gave the license agreement to Betty Crocker, who had experience and expertise in the field.
What are examples of brand licensing?
What are some examples of brand licensing? Some examples of brand licensing are when companies license their name or logo to be used on another companys products or services. For example, Nike licenses its name and logo to be used on apparel, shoes, and other sporting goods.
What is an example of Coca Cola licensing?
In the brand expansion example above, licensees designed the Coca-Cola tee shirts, caps, shoes and sunglasses. They then had these products manufactured; they sold them to a retailer, delivered the product and paid a percentage of their sales to the licensor.
How much does brand licensing cost?
Royalty rates are typically 5-10% of a retail price, or 15-20% of a wholesale price. However, these are usually subject to agreement. An advance payment of 25% is often used for higher value licenses.
What is the difference between co branding and brand licensing?
Licensing and Co-Branding, in Short Licensing fees typically amount to a small percentage of the sales price but can add up quickly. The other type of partnering strategy, co-branding, is an arrangement that associates a single product or service with more than one brand name.
