The Power of Licensing

Marketing Assault- Licensing

Yesterday, while enjoying a pleasant walk down the cereal aisle in our local supermarket, my eyes were suddenly drawn to a small donkey and a giant green ogre staring at me from the front of a white cereal box. Right away I recalled a preview I had seen in the theater heralding the release of Shrek III.

"Well, isn't that precious," I thought. "Those clever marketers got their message on a General Mills box of cereal." As I was musing on my recent discovery, I turned around and spotted Shrek on the front of a box of breakfast bars. This second sighting did the trick, I started noticing Shrek on nearly every product aisle -even in the hair products! Then I wondered, "Who is shelling out money to who?"

Typically the company with the product requests the license since it allows them to benefit from a short term popularity of some super occasion�such as a major motion picture. Various businesses such as John Deere, on the other hand, are long-term businesses. John Deere symbolizes basic American family values and has a whole division dedicated to getting the John Deere name to show up all over. John Deere licenses the use of their brand name for toys, games, tools and clothes. Often, they co-venture the project.

Although many large businesses are able to set up gigantic licensing projects, little businesses and emerging companies don't have that capability. Many ask, "How do we go about using large business marketing strategies in our small business?" Use the following 4 ideas to get your brand out more:

Get affiliates that agree to refer your name � If your company is focused on supplying a component of the value chain for numerous businesses, it's probable that people will happily refer business to you, especially if it reinforces your partner's offering. Referral fees fluctuate from a couple dollars, to as high as 20 percent of the sale. Although, 10 percent is the average for most businesses.

Permit other businesses to license and sell your products� Once more, if your product adds a worthwhile component to the value chain, you can authorize other companies to sell your product as their own. An illustration of adding a part to the value chain is having a company that provides ball bearings to auto manufacturers. Share a fee that is anywhere between ten and seventy-five percent of the sale price depending on the type of goods you offer.

Create and Share supportive products that have your brand on them � If you offer one product that's useful to another company's customer base, you have the option of selling your product to the partner business' customer base. For example, we had a client offer a training CD produced by an herbal supplement company as a present to patrons of their health food store.

Co-Brand new products � Generate products and services collectively with other companies in your value chain. For example, if you're a patent lawyer, generate an information product about intellectual property rights and then distribute it through contract manufacturers. If you manufacture animal shampoo, co-produce a particular product with a busy veterinary hospital.

How does a emerging company market the way a booming business does? Be a Shrek. Get your brand visible everywhere possible. Hunt for opportunities to stick your name on things. Know who your customers are. Be aware of what they buy and the places they like shopping at. Figure out how to put your brand name onto their products. Work the deals and share the profits. If you do this right, you will make a ton more cash and noticeably boost your business.

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