Posts

What is a Licensed Brand?

What is a Licensed Brand?

in /by

Can You Leverage the Power of Great Branding for Your Own Gains?

Brand licensing is one of the best marketing tactics that a business can adopt. And what is a licensed brand, you ask?

Brand licensing is defined by the Business Dictionary as the act of leasing a brand name to another company. The leased brand is then used in a particular manner, in a defined territory, for a specified time. It is, however, one that many companies and brands are not taking advantage of.

The company that rents the brand is known as the licensee, while the one giving the brand is the licensor. So what is a licensed brand? It is that brand that has been given to the licensee by the licensor.

The licensor gets royalties while the licensee uses the name of the brand to market their product or service.

The licensee benefits by reaching a wider audience because they are able to tap into the customers of the other brand. With a licensed brand, a product or service is able to break into a new market and grow strategically.

Brand licensing also helps small brands to increase their revenue while the big brand diversifies on the revenue streams, and the licensee is able to build a strong relationship with the customers interested in their brand.

When trying to learn what a licensing brand is, a study of the following questions is helpful:

  • What Companies Use Licensing? Now that you know what a licensed brand is, it is helpful to know which companies use licensed brands. Brand licensing can be used by all types of companies, big and small, in different industries: Entertainment, consumer products, sports, and corporate entities all use licensed brands to grow their customer base and increase sales.

Some of the biggest global licensors include; Disney™ consumer products, PVH™ Corp, Mattel™, Warner Bros™, Iconix™ Brand Group, and Nickelodeon™, to mention but a few.

  • What Is A Manufacturer Brand?A manufacturer brand results from when a manufacturer markets their goods under their own name. Examples are Toyota™, Ford™, Intel™, Apple™, Sony™, Canon™, Budweiser™, Kraft™, and millions more of such brands. 

Manufacturer brands are more trusted than retailer brands because they offer great prices and quality; the manufacturers want to maintain brand loyalty, so they ensure the high quality of the items before they put their name on it. 

  • What Is A Mixed Brand?A mixed brand occurs when a product is marketed under its own name and the name of the reseller, or when a manufacturer produces two products for market segmentation. A good example is Toyota and Lexus; the Lexus brand was introduced by Toyota into the US market because in that market, the Toyota brand was viewed as a value brand. Another example is where a manufacturer will allow a store, such as Walmart or Sears, to have their name on their product.
  • What Are Licensing Fees?A licensing fee can either be money paid by an individual or business to a government agency to practice certain trades or run certain businesses, or fees paid by the licensee to the licensor of the brand to give them the rights and abilities to use their brand as agreed.

Now that you know what a licensed brand is, you can incorporate brand licensing to grow your business and expand your customer base.

 

 

How to Build a Brand

How to Build a Brand

in /by

Creating a brand means giving your target customers something to identify with, to establish brand loyalty; this is the dream of every business out there.

One of the top worries for businesses is how to build a brand so they can enjoy a loyal following. So, how do you build a brand?

Building a brand is one of the most lucrative things you can do for your business…but it is also the hardest. So how do you create a successful brand?Follow this step-by-step guide if you are wondering how to build a brand that you target audience will associate with:

  • How do you create a brand identity? Your brand identity is the way your business speaks to its target audience, how it stands out from the competition, and what makes people want to engage with your business. Your brand identity should speak to your customers in a consistent tone and voice, and give them a consistent experience. Your brand identity defines how your customers identify you. It includes everything from logo, color palette, typography, design system, photography, illustration, interactive elements, video, web design, and iconography. These elements help determine how your customers will visualize and identify your brand. 
  • Determine your target audience. Before you even embark on building your brand, you must know who you are building it for. Describe your target audience using very specific terms. This will help you to identify what problems this audience has and what they like so you can build a brand that meets their needs and they can relate to.
  • Identify your unique selling point. This is what you are bringing to the table. Identify what makes you different from the competition—something that your target audience will relate to. This is essentially what will help you to build a successful brand and make you stand out from the crowd.
  • Determine your brand name, mission statement, and slogan. These elements do not only identify your brand; they sell it, too. Have a good brand name, write a clear mission statement for your business based on your USP and the needs of your target audience, and have a slogan that your customers can relate to. Then you can create a logo and illustrations for your brand identity.
  • How long does it take to build a brand? Creating a brand can take a long time for a new business. Apple™, for instance, took a long time to become a brand, because it took so long to develop the iPhone and iPad, which they are known for.
  • What are the key elements of a strong brand? Some key elements stand out in strong brands. To learn how to build a brand successfully, then you must learn to incorporate these elements in your brand:
    • Target audience – the people you are targeting.
    • Brand promise – tells your audience what to expect from buying your product.
    • Brand values – what your brand stands for.
    • Brand voice – have your own personality that speaks to your audience.
    • Brand positioning –what position you hold or intend to hold in the mind of your customer.
    • Brand perception –where you have come from, where you are, and where you intend to be in the future.

Hopefully this article has educated you on how to build a brand for your product; now you can go ahead and build your own successful brand from scratch.