Licensing is a marketing tool; so powerful to give the licensee the temporary right to exploit and develop a brand in an agreed market. It’s a fast and riskless technique to capitalize brand in short time

1. 1
LICENSING

2. 2
make or buy?

3. 3
Buy brands

4. 4

5. 5
Licencing

6. LICENSING
<< In licencing we trust >>
6

7. 7
LICENSING
1. ENTERTAINMENT
2. CORPORATE
3. SPORTS
4. FASHION
5. ART

8. ENTERTAINMENT
CHARACTERS AS
PRODUCT
ENDORSERS
8
LICENSING

9. CORPORATIONS:
STRENGTHEN THEIR
TRADEMARK
PREVENT PIRACY
ADD REVENUES
MORE EXPOSURE
9
LICENSING

10. LICENSING
$150 BILLION
WORLDWIDE
BUSINESS
10
LICENSING

11. 11
LICENSING
INTERNATIONAL LICENSING MARKETS:
U.S./CANADA 65.0%
WESTERN EUROPE 22.0%
JAPAN 9.8%
AUSTRALIA/N. ZEALAND 1.3%
SOUTH/CENTRAL AMERICA 0.7%
SOUTHEAST ASIA 0.5%
87%
USA/EU

12. 12
LICENSING
45%
OF LICENSING
ROYALTIES ARE FOR
CHARACTER AND
ENTERTAINMENT
PROPERTIES

13. CORPORATE LICENSING:
FOOD & BEVERAGES 31%
APPAREL 16%
ACCESSORIES 7%
GIFTS & NOVELTIES 6%
HOUSEWARES 6%
TOYS & GAMES 5%
13
LICENSING

14. 14
cartoon

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17. 17
LICENSING
DISNEY CONSUMER PRODUCTS:
• MICKEY MOUSE
• WINNIE THE POOH
• POWER RANGERS
• LIZZIE McGUIRE

18. 18
LICENSING

19. 19
LICENSING

20. 20
LICENSING

21. 21
LICENSING

22. 22
WARNER BROS. CONSUMER PRODUCTS:
LOONEY TUNES
HARRY POTTER
SCOOBY-DOO
LICENSING

23. 23
LICENSING

24. 24
LICENSING
NICKELODEON:
SPONGEBOB SQUAREPANTS
DORA THE EXPLORER
BLUE’S CLUES
JIMMY NEUTRON
RUGRATS

25. 25

26. 26

27. OTHER POPULAR ENTERTAINMENT
LICENSORS:
27
LICENSING

28. 28

29. 29

30. 30
sport

31. 31 Fashion licencing

32. 32 Fashion licencing

33. 33
definition
Licencing is a marketing tool.

34. 34
definition
Gives the licencee
the temporary right
to exploit and develop a brand
in an agreed market

35. 35
players
Licensor: Owner of a brand
Licencee: Buyer of the rights
to use the brand
in the market

36. Brand
extension
36

37. Brand extension
37

38. Strategic or tactic ?
38

39. What is the difference between :
39
1. Brand extension
2. Line extension

40. 1.Brand extension
• Brand extension or brand stretching is a marketing
strategy in which a company, marketing a product with a
well-developed image, uses the same brand name in a
different product category.
• Organisations use this strategy to increase and leverage
brand equity
40

41. 1.Brand extension
• Brand Extension is a marketing strategy
according to which, a well known brand
uses the same brand name to enter into a
totally unrelated product category.
• It is done primarily to leverage on the
existing brand equity.
41

42. 1.Brand extension
• ….since building a brand is costly, once you
have built a brand you should leverage its value
by using the same brand name to other new
categories.
• For example,Virgin, which was initially a record
label, entered into other line of business like
aviation, game stores, video stores, telecom, etc
42

43. Best example ever of brand extension
43

44. Best example ever of brand extension
44

45. Best example ever of brand extension
45

46. 2.Line extension
• Line Extension (or product extension) is a
marketing strategy according to which the scope
of the product a brand represents is increased
i.e. when you are adding varieties or variations
or flavors of the same branded product, you are
basically doing line extension.
• Like brand extension, line extension is also done
to leverage on the brand equity by targeting a
bigger chunk of the user base.
46

47. 2.Line extension
• Line extensions examples are different
variant of 7Up,Nachos, Dove soap etc.
• When Coke introduced Diet Coke to
target the diet conscious people, they did
line extension
47

48. 2.Line extension
48

49. 2.Line extension
49

50. BRAND EXTENSION
any marketing activity to
extend a brand beyond its
original product category
50

51. GAS JEANS extends to bags
51

52. BVLGARI extends to perfumes
52

53. Giorgio Armani extends to eyewear
53

54. Licencing contract
54

55. Licencing contract
55
.
brand
royalties

56. Licencing contract
56
.
brand
royalties
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt

57. Licencing contract
57
.
brand
royalties
Only
production
Development
Production
Distribution
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt

58. Licencing contract
58
brand
Cost of good Turnover
Royalty
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt

59. Licencing contract
59
ALL ACTIVITIES OF
LICENCING AND
BRAND EXTENSION
MADE BY THE
LICENSOR -
OWNER OF A
PROPERTY -

60. Licencing contract
ALL BRAND
ACQUISITION
ACTIVITIES MADE
BY THE LICENCEE -
OWNER OF THE
RIGHTS -
60

61. 61
Brand extention
ACTIVE
LICENSOR
ADVANTAGES
• Circulation of brand
• Increase visibility
• Create new customers
• Reinforce brand equity
• More emotional contact of the
customer

62. 62
3 phases
Pre-analysis
Brand value analysis
Audience/consumers
target definition
Potential markets
analysis and definition
Planning
Licensing
strategies
Business Plan
Creative material
Support
programme
implemetation
Licensor selection
Negotiation and
agreements
Production cycle control
Results analysis

63. 63
1- analysis
Licensor who wants to do brand extention
has to evaluate the brand in terms of:
• Awarness
• Visibility
• Recognizability and Relevance
• Customer base

64. Brand essence
64

65. 65
2-planning
Winnie the
pooh
7dwarfs Mickey mouse
today
Mickey mouse
vintage
Objective Result
maximization
Quality project Massification Quality project
Age target 0-4 y 15+ All Adult 19+
Products Coherent with
target
RTW + fashion
accessories
All RTW + fashion
accessories
Channels Mass market
Wholesale
wholesale Mass market
wholesale
wholesale

66. 3-implementation
66
START-UP
Ad hoc consultancy
Process outsourcing to
specialized Agency
MODEL DEFINITION
Business opportunity
Business results
AD HOC STRUCTURE
Internal structure
•Light
•Commercial
•Marketing
•Legal
•Self-liquidating by revenues

67. 67
Brand extention
PASSIVE
LICENCEE
ADVANTAGES
• Immediate competitive
advantages
• Production of succesful
product
• Easy access to trade
• Leadership within the
market
• credibility

68. 68
Pre-analysis
market analysis
Portfolio analysis
Segment to enter
Planning
portfolio strategies
Active brand scouting
Presentation material
Implemetation
Contact and presentation
to Licensor
Business plan
presentation
Negotiation agreement
Production cycle control
Results analysis
3 phases

69. LOW-RISK WAY TO BUILD
BRAND AWARENESS
PROMOTES THE CORE
PRODUCT
INCREASE APPEAL TO
DIFFERENT GROUPS
STRENGTHENS
TRADEMARK RIGHTS
69
LICENSING

70. 70
Case history
licensor licencee

71. 71
From
shoes
to total
look

72. 72
From
shoes
to total
look
Contract terms:
LICENCOR BALDININI gives
SABATINI the LICENCE to:
•Develop a complete line of
total look WRTW and MRTW
•Produce
•Advertise ( catwalk, event,
fairs, advertising, press)
•Distribute WW
Contract terms:
LICENCEE SABATINI pays:
•Entry fee
•Royalty fee 10% net sales
Involved for 10 years
GRANTED MINIMUM clause

73. 73
Case history
How to
expand
the brand
worldwide

74. 74

75. 75
STRATEGY
Extreme Segmentation by:
Geography
Licencee
Product
NO BRAND STRATEGY BUT ONLY FINANCIAL
STRATEGY

76. BRAND EXPLOITATION
INSTEAD OF
ENHANCING BRAND
76
VALUE

77. Licencing history
77

78. Licencing history
78

79. Licencing history
79

80. Licencing history
80
Origins:
TEDDY BEAR and
Theodor Roosvelt
MICKEY MOUSE,
DISNEY

81. From ’50 to nowadays
81
’50
WARNER BROS
and LOONEY TUNES
Target: KIDS
TV SERIES

82. From ’50 to nowadays
82
’60
PEANUTS
GARFIELD
Target: KIDS
COMICS

83. From ’50 to nowadays
83
’60
GARFIELD
Target: KIDS
COMICS

84. From ’50 to nowadays
84
’70
PARAMOUNT
GREASE,
STAR TRECK,
MORK&MINDY
STAR WARS
Target: TEEN
TV SERIES and
MOVIES

85. From ’50 to nowadays
85
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES
and MOVIES

86. From ’50 to nowadays
86
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES
and MOVIES

87. From ’50 to nowadays
87
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES and
MOVIES

88. From ’50 to nowadays
88
’80
Corporate Brand
COCA COLA,
HARLEY DAVIDSON,
M&M’s
MATTEL

89. From ’50 to nowadays
Starts developing a WW communication
model financed by the licencee
89

90. From ’50 to nowadays
90
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry

91. From ’50 to nowadays
91
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry

92. From ’50 to nowadays
92
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry

93. From ’50 to nowadays
93
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry

94. 94
fashion licencing
Usa
Ralph Lauren
Tommy Hilfiger
Europe
Pierre Cardin
Christian Dior

95. 95
fashion licencing
’60
Model Developed
By French Brands
Christian Dior +
Louis Feraud +
Pierre Cardin

96. 96
fashion licencing

97. 97
fashion licencing

98. 98
fashion licencing

99. 99
fashion licencing
Haute Couture +
Industrialisation =
Prét-à-Porter

100. fashion licencing in Italy
100
Italian Fashion
Designers Started
Building Their
Brand Equity
Through a
Licencing Strategy

101. fashion licencing in Italy
101

102. 102
'50
'70
'60
'80
'90
?

103. 103
'50s
First Italian Fashion Show
Florence, February 12, 1951

104. Immediate success with
American buyers and journalists
104

105. 105
The purpose of this
evening is to give
importance to our
Fashion. The ladies
are kindly requested
to wear dresses of
pure Italian
inspiration".

106. shoes
designed like
architecture
106

107. the sandal with the sock
107
"Kimo",
the "Kimo" sandal

108. 108
the wedge heel
Judy Garland

109. 109 ...and the cage heel
Patended heel

110. 110
The invisible sandal
Inspired by the
fishermen on the
Arno river

111. the woman
who shaped
fashion
as we know it
today
111

112. 112 the connection with Surrealist movement

113. Salvator Dalì and the Lobster Dress
113
The Lobster story
Lobster Phone by
Salvator Dalì

114. 114

115. the Shoe Hat 115

116. change of
social roles and
status
mini skirt
116 '60s

117. The birth
of
Prèt a Porter
117

118. Hollywood influenced by Made in Italy
118

119. total look and life-style
119

120. '70
s
Made in
Italy
Ferrè,
Versace,
Armani
120

121. The overthrow of the
TRICKLE DOWN THEORY
fashion from the street to the catwalk
121

122. 122
New dyeing
technology
Brand
identity:
United Colors
Of Benetton

123. 123
provocation

124. 124
provocation

125. 125
social issues

126. 126
social issues

127. 127
social issues

128. 128
'80s
Milan as the
new fashion
capitals
Top models
Licensing

129. 129
Armani
start from La
Rinascente
destructured
jacket

130. 130 Armani jackets in the time

131. 131 '90s-today

132. Regionality
132

133. 133
Dolce&Gabbana
Inspired from
Italian cult
movie,
and folklore

134. 134
Sicilian style

135. Fashion
Sites
135

136. FLORENCE
Pitti Immagine
"Galleria del
costume" Palazzo
Pitti
Salvatore
Ferragamo
museum
136

137. 137
Via de' Tornabuoni

138. ROME
138

139. 139
Via Condotti

140. MILAN
Milano Fashion week
Milano Unica
Salone del Mobile
(design week)
140

141. via Montenapoleone fashion dinstrict
141

142. Galleria Vittorio Emanuele
142

143. fashion licencing in Italy
143
Italian Fashion
Designers Started
Building Their Brand
Equity Through A
Licencing Strategy

144. fashion licencing in Italy
144

145. fashion licencing in Italy
STYLE INDUSTRIAL
PRODUCTION
145

146. fashion licencing in Italy
WW BRAND
DEVELOPMENT
146

147. fashion licencing in Italy
ENHANCING
BRAND VALUE
INSTEAD OF
BRAND EXPLOITATION
147

148. fashion licencing in Italy
148
Step One
From handcraft
model to
industrial model
Step Two
From core product
to total look

149. fashion licencing in Italy
149
CORE PRODUCT
Core product licencing TOTAL LOOK

150. fashion licencing in Italy
WW BRAND DEVELOPMENT
MADE IN ITALY
150

151. fashion licencing in Italy
LICENCING IS
THE FASTEST WAY
151
TO TURN
MMAADDEE IINN IITTAALLYY
INTO A GLOBAL STARDOM

152. fashion licencing in Italy
152

153. fashion licencing in Italy
Not only a single designer-entrepreneur
153
TOTAL LOOK

154. fashion licencing – total look
154

155. 155
fashion licencing
MORE CATEGORIES
ReadyToWear
(RTW + KTW)
ACCESSORIES
(ties + scarfes + neckwear + custom-jewellery + eyewear +
watches + umbrellas)
LEATHER GOODS
(handbags + shoes + small leathergoods+ large leathergoods +
belts)

156. fashion licencing in Italy
156

157. fashion licencing in Italy
157
THE ‘BIG’:
VALENTINO, FERRE’,D&G
Take back governance and ownership of licencee
through financial operation
Objective: take complete control of supply chain

158. fashion licencing in Italy
158
THE ‘OTHERS’:
Renato Balestra, Enrico Coveri
Objective: maximization of profits through a complete brand
licencing by broading categories
Risk: dilute the brand equity in the long term

159. Licencing in Italy: dimension
Properties avaliable > 2.000 brands
licensor 223
licencee 975
average 2,45
159

160. 160

161. A case history
The Deal of the century
161

162. 1980
162

163. 163
On August 12, 1981,
IBM introduced its new revolution in a box,
the "Personal Computer"
complete with a brand new
operating system from Microsoft, a 16-bit computer
operating system called MS-DOS 1.0.

164. • In 1980, IBM first approached Bill Gates
of Microsoft, to discuss what Microsoft
products could do for IBM.
• Gates gave IBM a few ideas on what
would make a great home computer.
• Gates was more than happy to write a
164
version for IBM.

165. • Microsoft had never written an
operating system before.
• Gary Kildall had written the most
successful operating system of the
165
time.
• Mr Kildall who refused to sign a non-disclosure
agreement with IBM

166. • IBM soon returned to Bill Gates and gave
Microsoft the contract to write a new
operating system, one that would
eventually wipe Gary Kildall's QDOS
• Microsoft bought QDOS for $50,000,
keeping the IBM & Microsoft deal.
166

167. DDeeaall ooff tthhee CCeennttuurryy
BBiillll GGaatteess aanndd MMiiccrroossoofftt pprroocceeeeddeedd
ttoo mmaakkee aa ffoorrttuunnee ffrroomm tthhee
lliicceennssiinngg ooff MMSS--DDOOSS..
167

168. 168

169. 169
LYFE STYLE
COWBOY ICON
MARLBORO COUNTRY

170. MARLBORO
• LIFE STYLE
• COWBOY ICON
• MARLBORO
COUNTRY
170

171. LICENCE WITH PHILIPPE MORRIS
TOTAL LOOK + FASHION + MARBORO CLASSIC
Innovative business model: communication beyond ‘no-smoking law’
171

172. 172

173. 173
Case history

174. 174
How to
save the
business
turning
the target
around

175. 175
1953
MARILYN
MONROE
First issue

176. 176
1988 due to more
aggressive
competitors
PLAYBOY in 3
Business Unit:
– Publishing
– Entertainment
– Licencing

177. 177
Licencing
royalty, 1 billion $
revenues in 150
countries
Television
contracts
Publishing abroad

178. SEDUCTION + LUXURY = GLAMOUR LIFESTYLE
178

179. Sensuality vs sexuality
179

180. Cut cheap mass market licences
180

181. Built ‘high end’ project:
Parfumes + RTW +Lingerie
181

182. 182

183. CORPORATE
BRAND
LICENSING:
AUTOMOTIVE
BRANDS HAVE
MAJOR LICENSING
PROGRAMS
183

184. 184

185. 185
Case history #2

186. 1958:lolly pop candy on stick
186

187. 1991 licencing strategy
Brand extention
187

188. Very strong and wide concept
188

189. Brand
values:
Life style
Fun &
colours
Kid-in-you
189

190. Licencing project
Vision Fun, enjoy kid-in-you
Consumer group 4-100 y.o.
Brand essence Smart, innovation,fun,
190
colour
Trademark benefit There’s a chupa for
everybody
Communication
proposition
Life is less seriuos

191. 191
Brand extension
Not only a lolly-pop but a life style for
KIDULT
No rigid structure,
mass and prestige
Toys
Apparel
Accessories
School
Shoes
T-shirt
parfumes

192. 192

193. 193

194. PPoopp aarrtt
194

195. 195

196. 196
NNoowwaaddaayyss
33..000000 CChhuuppaa pprroodduuccttss iinn
lliicceennccee eevveerryy yyeeaarr
rreeaacchh oovveerr tthhaann 110000..000000
ppooss WWWW

197. 197
CCoommmmeenntt::
LLiicceenncciinngg aalllloowweedd
CChhuuppaaCChhuuppss ttoo
bbeeccoommee aa rreeaall
GGlloobbaall bbrraanndd

198. LLoooossee ccoonnttrrooll ooff yyoouurr bbrraanndd!!
198

199. 199

200. 200

201. 201