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The 6 Benefits of
brand licensing to
Brand Owners
PETE
CANALICHIO
Through a licensing agreement, a company markets a
product or service (a licensee) using the brand from a
brand owner (a licensor).
Various Reasons Brand Owners License
Their Brands.
1.The ability to test drive new businesses or
geographical markets with minimal risk
A brand owner can try new businesses, or operate in
new countries with a smaller upfront investment than
by building and staffing its own operations.
The licensee handles
product
manufacturing and
distribution allowing the
licensor minimal
engagement and no
inventory
commitment.
2. Collect royalty revenue for the right to use the
Licensing generates revenue from a
minimum guarantee and through royalty payments.
General Managers
would welcome these
additional
payments to the
bottom line.
3. Expand their overall marketing support for the
core business
A weekly circular and gains an end-aisle display
generates product sales for the licensee and
endorses the brand owner’s core business.
An array of toys or
apparel tied to a
movie, sitting on a
store shelf, also helps
to promote the movie
itself.
A sports fan who wears a sweatshirt with the logo of
her favorite team subtly promotes the sports, the
league and the team.
A store display of
glassware or on a bar
reinforces the brand
image, supporting the
brand’s overall
marketing efforts.
4. Achieve a competitive strike
Licensing can be a smart and effective way to
combat a rival in a category core to their business.
By taking the offensive,
the licensor will in turn
take th competitor's
eye off of their own
core business.
5. Gain strategic knowledge
The licensor gains access to intangibles such as:
intellectual property
product design and marketing expertise
supply chain management,
new customer relationships and
strategic alliances.
A licensor and a licensee can exchange ideas to improve
the licensed category and other areas of both
companies' businesses.
6. Maintain control over an original creation
Licensing and registering the brands in multiple
markets protect the brand from being used by others
without authorization.
brand
PETE
CANALICHIO
PeteCanalichio.com/fast-track
Get Your FREE
Membership Today
Grab Valuable Resources
from Brand Licensing
Experts for 100% Free Today
Are you interested in extending your brand’s
influence, strengthening consumer
relationships, and generating unlimited
revenue from guaranteed royalty payments?

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The 6 Benefits of Brand Licensing to Brand Owners | Brand Licensing Companies | Business Branding

  • 1. The 6 Benefits of brand licensing to Brand Owners PETE CANALICHIO Through a licensing agreement, a company markets a product or service (a licensee) using the brand from a brand owner (a licensor). Various Reasons Brand Owners License Their Brands. 1.The ability to test drive new businesses or geographical markets with minimal risk A brand owner can try new businesses, or operate in new countries with a smaller upfront investment than by building and staffing its own operations. The licensee handles product manufacturing and distribution allowing the licensor minimal engagement and no inventory commitment. 2. Collect royalty revenue for the right to use the Licensing generates revenue from a minimum guarantee and through royalty payments. General Managers would welcome these additional payments to the bottom line. 3. Expand their overall marketing support for the core business A weekly circular and gains an end-aisle display generates product sales for the licensee and endorses the brand owner’s core business. An array of toys or apparel tied to a movie, sitting on a store shelf, also helps to promote the movie itself. A sports fan who wears a sweatshirt with the logo of her favorite team subtly promotes the sports, the league and the team. A store display of glassware or on a bar reinforces the brand image, supporting the brand’s overall marketing efforts. 4. Achieve a competitive strike Licensing can be a smart and effective way to combat a rival in a category core to their business. By taking the offensive, the licensor will in turn take th competitor's eye off of their own core business. 5. Gain strategic knowledge The licensor gains access to intangibles such as: intellectual property product design and marketing expertise supply chain management, new customer relationships and strategic alliances. A licensor and a licensee can exchange ideas to improve the licensed category and other areas of both companies' businesses. 6. Maintain control over an original creation Licensing and registering the brands in multiple markets protect the brand from being used by others without authorization. brand PETE CANALICHIO PeteCanalichio.com/fast-track Get Your FREE Membership Today Grab Valuable Resources from Brand Licensing Experts for 100% Free Today Are you interested in extending your brand’s influence, strengthening consumer relationships, and generating unlimited revenue from guaranteed royalty payments?