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Trademark Licensing and Brand Extension

A marketing strategy undertaken by numerous companies in which corporate management takes a broad, strategic marketing view of the future of their companies via their trademarks and brands. Companies that utilize this strategy are able to capitalize on the foundation of strong and well-established trademarks and brand names that have broad-based and loyal consumer franchises. In extending a brand, the brand assets are licensed into product categories that are outside of the brand owner’s core competencies, but have a natural affiliation with the brand owner’s customer base.

This marketing strategy enables the brand to enter an entirely new product category through a licensing agreement or other business arrangement without having to expend the resources necessary to build the infrastructure to manufacture and distribute in the new product category. The brand owner avoids this cost, and also receives a royalty payment for use of the brand as well as greater brand awareness via the licensed products. In brand extension licensing, the licensed product assumes the identification of the brand to the consumer or end user, and to the retailer. Co-branding is the process of joining two or more brand names or trademarks on a single consumer product. This form is utilized when all brands are strong and each adds value to the product or service. In trademark and brand licensing, CONSOR reviews all the strategic alternatives for licensing-in or licensing-out and formulates a plan that will enhance the brand and increase brand awareness, while generating incremental revenues.

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