Many companies come to us asking about brand acquisition licensing, yet failing to understand what it is and how it can help them.
Simply put, brand acquisition licensing is “renting” the equity in an established brand name and putting that brand on your product(s). The licensing means you pay the brand owner a royalty to use the equity in their mark to induce trial of your product. Consumers don’t know your brand, but they will readily try a brand they’re familiar with.
For example, Broad Street Licensing Group works closely with BIC-USA to acquire the licensing rights to brands and properties such as “Walking Dead,” NASCAR, NHL, Playboy, music legends like Johnny Cash, Florida Georgia Line, Aerosmith, AC/DC and others for BIC’s Lighter Group. Non-refillable pocket lighters are a commodity that consumers purchase based on price or convenience. But adding a favorite brand to the outside means that fans of the the NHL teams pictured above will want to purchase one or more of the lighters. BIC’s lighters are the best in the category and the addition of popular brands and properties on the lighter makes them even more desirable.
While BIC didn’t have to build its own brand, adding a licensed brand to a new product or line saves you the cost of building a brand from scratch. Maybe you have been supplying a retailer with private label products, and wonder if you could do better in the marketplace by licensing a brand name. The answer is generally an unequivocal “yes.”
If you want to know more, reach out to us here.