There are three ways to market your product:
- Under your own brand name
- As a commodity or store brand/private label
- By licensing an established brand
Number three is known as “brand acquisition.” A company acquires an established brand by licensing it for use on their product(s). It’s almost like renting the equity in the name brand.
This shortcuts the need for spending millions of dollars to create a new brand from scratch. Consumers know the acquired brand, and this generates trial. For example, the potato chips Broad Street Licensing Group put together in the UK with a particularly distinctive flavor brand have been successful because consumers trust that brand, and the company that licensed the brand (Burt’s Chips) put it on an outstanding, tasty product.
Brand acquisition is one of the services licensing agencies like Broad Street Licensing Group provide to companies seeking a way to market their products more effectively. You might wonder why a manufacturer doesn’t simply call a brand they’re interested and do the work themselves?
Would you go into court without your own lawyer?
Tomorrow we’ll discuss the dangers in brand acquisition that a good licensing agency can help companies avoid problems.