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There are many benefits for manufacturers . For instance , the power of brand licensing became clear to an eyewear manufacturer when our agency facilitated a partnership with a famous sunscreen brand on a line of polarized sunglasses . Customers at the point of purchase immediately understood the brand equity , that these enhanced glasses would provide sun protection . The line of sunglasses is still going strong today .
Manufacturers are exposed to – and get involved with – licensing in several different ways . Some manufacturers have seen competitors in the same product category enter into successful brand partnerships . Others that focus on OEM and direct sourcing might be interested in diversifying their product portfolio . Some may be launching a new product and simply want to get a recognizable brand attached – one with the right brand equities – to strengthen the launch .
No matter what ’ s sparking interest , brand licensing can help manufacturers grow their business in meaningful and expedited ways . Here ’ s how .
To begin , working with a well-known brand that immediately resonates with the target consumer – and is backed by significant past and current marketing support – allows a manufacturer to borrow on that brand ’ s equity . The manufacturer can now capture a much broader consumer base by tapping into the brand ’ s loyal users and even engage in cross-promotional opportunities with the core brand .
Brand licensing can also help manufacturers get placement of their products into new retailers . Let ’ s say a manufacturer has a strong relationship with Target but can ’ t seem to break into Walmart . By working with a brand that ’ s already successful at Walmart , a new door quickly opens for the manufacturer .
Increase market share
Brand licensing is a way for manufacturers to diversify product lines , enter new channels of distribution and increase market share . For example , if a manufacturer currently offers a product at an opening price point , they can begin offering new products at a higher price point due to the added value that a brand partnership brings . This can be a great way to help get products into new retailers , too . By licensing a variety of brands , a manufacturer can in fact distribute multiple lines of products , all at different price points – and even different stores – that don ’ t directly compete with each other . In other words , if you ’ ve got a strong product at a particular retailer or at a certain price point that doesn ’ t allow you to take the brand product into other price points , look to another brand to expand !
Let ’ s take a look at another specific real-life example of a manufacturer that successfully embraced brand licensing . Our firm worked with a family-owned , leading manufacturer of cookware and homeware that had a robust privatelabel business
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