The Brand Licensing Process - Step 2 : Determine How To Win

1. The Brand Licensing Process Step 2 : Determine How To Win PETE CANALICHIO After identifying the brand extension goals, the next step is to determine how to go about executing the extension. The brand owner must determine whether the company has enough resources to complete the endeavor. Brand Extension Considerations 1. Mobilize key departments to conduct their own due diligence. Determine whether the company has the competency to design, produce and market the product with internal resources. Evaluate the competency of manufacturing or sourcing the product and conduct a cost/benefit analysis of manufacturing versus sourcing the product. 2. Determine whether there is sufficient budget and capability to market the product. The lack of capability to market the product effectively can affect the decision whether to manufacture the product internally. If capable of designing, producing and marketing the product, a company can proceed with product development. 3. Outsource manufacturing and use resources for marketing, a time-consuming proposition. First, potential target companies must be identified. Next, due diligence must be completed before negotiating on a price. Once acquired, the company must be integrated within the existing company structure. Even if a company decides to go with the last option and the timing fits, it still may not have the marketing budget or the capability to go forward. 4. License the brand to a manufacturer of the product in the same category. The manufacturer (or licensee) possesses the capability to manufacture the product and market it. They also possess the necessary relationships with distributors and retailers. Entering a new market via licensing has lower risk in terms of investment. You may decide to enter a new product category via licensing as you evaluate your go-to-market strategies. Alternatively, your brand could be solicited by a manufacturer who believes his product would be a good fit for your brand. As shown in the figure, the brand marketing team starts the process by evaluating the product category of the manufacturer from a brand extendibility perspective. Sales & Marketing Competency? Evaluate Product Category for Brand Fit Eligible Product Categories Solicitation for Your Brand Alignment of Brand Team License Manufacture or Source Acquire or License Licensing Process Acquire License Issue License Licensing Process Issue License Grab V aluable 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? Get Your FREE Membership Today PeteCanalichio.com/fast-track PETE CANALICHIO