Principles for Successful Brand Licensing in 2015
In my meetings and exchanges with foreign factories outside of the USA, those with brave intentions to scout disciplined, profitable opportunities across our fruited plains, I am inevitably asked the question of brand importance towards garnering success. I am asked what is the “Doctrine of Necessity” to ensure success with consumers and retail merchants with respect to brand value, brand recognition, brand density and brand profitability? This level of intense brand scrutiny is designed to ensure the cold steel of the P&L is successfully written in hot black ink, not cold bright red.
As I like to say, “questions are the answers,” especially in suggesting such an important promissory response in the language of brand benediction to wide eyed global hunters determined to make a profitable market in a new land of opportunity.
A multitude of highly relevant questions across the product eco-system must be served up onto any global planning table. The primary goal of the questions is to determine the juxtaposed competitive muscle of their expected product lines inclusive to features, advantage and benefits to cosmetics to supply base availability to COGS (cost of goods sold) to margins to shelf pricing, to product and price elasticity.
Many additional questions with respect to market research chores such as consumer preferences, targeted demographics, etc. based upon product disciplines, product forecasts are standard in such an important exchange. The finale brand question and answer for the factory is: “do we travel through door A or door B.” Door A: Do we prink, create and invest in a newly created brand mantle for our products future?Door B: Do we license, rent or lease an already formidable market brand to super fuel, super draft our intended product shelf and market share?
Brand Licensing gurus Pete Canalichio and Bill Jachthuber tested my mettle and industry positions throughout an interview exchange we had exploring the value proposition of brand licensing opportunities in the language of brand prinking versus brand linking. Take a listen here: