Licensing is a marketing tool; so powerful to give the licensee the temporary right to exploit and develop a brand in an agreed market. It’s a fast and riskless technique to capitalize brand in short time
11. 11
LICENSING
INTERNATIONAL LICENSING MARKETS:
U.S./CANADA 65.0%
WESTERN EUROPE 22.0%
JAPAN 9.8%
AUSTRALIA/N. ZEALAND 1.3%
SOUTH/CENTRAL AMERICA 0.7%
SOUTHEAST ASIA 0.5%
87%
USA/EU
12. 12
LICENSING
45%
OF LICENSING
ROYALTIES ARE FOR
CHARACTER AND
ENTERTAINMENT
PROPERTIES
39. What is the difference between :
39
1. Brand extension
2. Line extension
40. 1.Brand extension
• Brand extension or brand stretching is a marketing
strategy in which a company, marketing a product with a
well-developed image, uses the same brand name in a
different product category.
• Organisations use this strategy to increase and leverage
brand equity
40
41. 1.Brand extension
• Brand Extension is a marketing strategy
according to which, a well known brand
uses the same brand name to enter into a
totally unrelated product category.
• It is done primarily to leverage on the
existing brand equity.
41
42. 1.Brand extension
• ….since building a brand is costly, once you
have built a brand you should leverage its value
by using the same brand name to other new
categories.
• For example,Virgin, which was initially a record
label, entered into other line of business like
aviation, game stores, video stores, telecom, etc
42
46. 2.Line extension
• Line Extension (or product extension) is a
marketing strategy according to which the scope
of the product a brand represents is increased
i.e. when you are adding varieties or variations
or flavors of the same branded product, you are
basically doing line extension.
• Like brand extension, line extension is also done
to leverage on the brand equity by targeting a
bigger chunk of the user base.
46
47. 2.Line extension
• Line extensions examples are different
variant of 7Up,Nachos, Dove soap etc.
• When Coke introduced Diet Coke to
target the diet conscious people, they did
line extension
47
56. Licencing contract
56
.
brand
royalties
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt
57. Licencing contract
57
.
brand
royalties
Only
production
Development
Production
Distribution
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt
58. Licencing contract
58
brand
Cost of good Turnover
Royalty
Owner of
the
property
BBuuyyeerr ooff
tthhee rriigghhtt
59. Licencing contract
59
ALL ACTIVITIES OF
LICENCING AND
BRAND EXTENSION
MADE BY THE
LICENSOR -
OWNER OF A
PROPERTY -
60. Licencing contract
ALL BRAND
ACQUISITION
ACTIVITIES MADE
BY THE LICENCEE -
OWNER OF THE
RIGHTS -
60
61. 61
Brand extention
ACTIVE
LICENSOR
ADVANTAGES
• Circulation of brand
• Increase visibility
• Create new customers
• Reinforce brand equity
• More emotional contact of the
customer
62. 62
3 phases
Pre-analysis
Brand value analysis
Audience/consumers
target definition
Potential markets
analysis and definition
Planning
Licensing
strategies
Business Plan
Creative material
Support
programme
implemetation
Licensor selection
Negotiation and
agreements
Production cycle control
Results analysis
63. 63
1- analysis
Licensor who wants to do brand extention
has to evaluate the brand in terms of:
• Awarness
• Visibility
• Recognizability and Relevance
• Customer base
65. 65
2-planning
Winnie the
pooh
7dwarfs Mickey mouse
today
Mickey mouse
vintage
Objective Result
maximization
Quality project Massification Quality project
Age target 0-4 y 15+ All Adult 19+
Products Coherent with
target
RTW + fashion
accessories
All RTW + fashion
accessories
Channels Mass market
Wholesale
wholesale Mass market
wholesale
wholesale
66. 3-implementation
66
START-UP
Ad hoc consultancy
Process outsourcing to
specialized Agency
MODEL DEFINITION
Business opportunity
Business results
AD HOC STRUCTURE
Internal structure
•Light
•Commercial
•Marketing
•Legal
•Self-liquidating by revenues
67. 67
Brand extention
PASSIVE
LICENCEE
ADVANTAGES
• Immediate competitive
advantages
• Production of succesful
product
• Easy access to trade
• Leadership within the
market
• credibility
68. 68
Pre-analysis
market analysis
Portfolio analysis
Segment to enter
Planning
portfolio strategies
Active brand scouting
Presentation material
Implemetation
Contact and presentation
to Licensor
Business plan
presentation
Negotiation agreement
Production cycle control
Results analysis
3 phases
69. LOW-RISK WAY TO BUILD
BRAND AWARENESS
PROMOTES THE CORE
PRODUCT
INCREASE APPEAL TO
DIFFERENT GROUPS
STRENGTHENS
TRADEMARK RIGHTS
69
LICENSING
72. 72
From
shoes
to total
look
Contract terms:
LICENCOR BALDININI gives
SABATINI the LICENCE to:
•Develop a complete line of
total look WRTW and MRTW
•Produce
•Advertise ( catwalk, event,
fairs, advertising, press)
•Distribute WW
Contract terms:
LICENCEE SABATINI pays:
•Entry fee
•Royalty fee 10% net sales
Involved for 10 years
GRANTED MINIMUM clause
80. Licencing history
80
Origins:
TEDDY BEAR and
Theodor Roosvelt
MICKEY MOUSE,
DISNEY
81. From ’50 to nowadays
81
’50
WARNER BROS
and LOONEY TUNES
Target: KIDS
TV SERIES
82. From ’50 to nowadays
82
’60
PEANUTS
GARFIELD
Target: KIDS
COMICS
83. From ’50 to nowadays
83
’60
GARFIELD
Target: KIDS
COMICS
84. From ’50 to nowadays
84
’70
PARAMOUNT
GREASE,
STAR TRECK,
MORK&MINDY
STAR WARS
Target: TEEN
TV SERIES and
MOVIES
85. From ’50 to nowadays
85
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES
and MOVIES
86. From ’50 to nowadays
86
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES
and MOVIES
87. From ’50 to nowadays
87
• ’70
• PARAMOUNT
• GREASE,
• STAR TRECK,
• MORK&MINDY
• STAR WARS
• Target: TEEN
• TV SERIES and
MOVIES
88. From ’50 to nowadays
88
’80
Corporate Brand
COCA COLA,
HARLEY DAVIDSON,
M&M’s
MATTEL
89. From ’50 to nowadays
Starts developing a WW communication
model financed by the licencee
89
90. From ’50 to nowadays
90
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry
91. From ’50 to nowadays
91
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry
92. From ’50 to nowadays
92
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry
93. From ’50 to nowadays
93
’90
U.S. ENTERTAINMENT
INDUSTRY
Forecasts Master Licence
As Part Of The Project
SIMPSON
SOUTHPARK
SPIDERMAN
HARRY POTTER
POKEMON
Fashion Industry
94. 94
fashion licencing
Usa
Ralph Lauren
Tommy Hilfiger
Europe
Pierre Cardin
Christian Dior
95. 95
fashion licencing
’60
Model Developed
By French Brands
Christian Dior +
Louis Feraud +
Pierre Cardin
105. 105
The purpose of this
evening is to give
importance to our
Fashion. The ladies
are kindly requested
to wear dresses of
pure Italian
inspiration".
157. fashion licencing in Italy
157
THE ‘BIG’:
VALENTINO, FERRE’,D&G
Take back governance and ownership of licencee
through financial operation
Objective: take complete control of supply chain
158. fashion licencing in Italy
158
THE ‘OTHERS’:
Renato Balestra, Enrico Coveri
Objective: maximization of profits through a complete brand
licencing by broading categories
Risk: dilute the brand equity in the long term
159. Licencing in Italy: dimension
Properties avaliable > 2.000 brands
licensor 223
licencee 975
average 2,45
159
163. 163
On August 12, 1981,
IBM introduced its new revolution in a box,
the "Personal Computer"
complete with a brand new
operating system from Microsoft, a 16-bit computer
operating system called MS-DOS 1.0.
164. • In 1980, IBM first approached Bill Gates
of Microsoft, to discuss what Microsoft
products could do for IBM.
• Gates gave IBM a few ideas on what
would make a great home computer.
• Gates was more than happy to write a
164
version for IBM.
165. • Microsoft had never written an
operating system before.
• Gary Kildall had written the most
successful operating system of the
165
time.
• Mr Kildall who refused to sign a non-disclosure
agreement with IBM
166. • IBM soon returned to Bill Gates and gave
Microsoft the contract to write a new
operating system, one that would
eventually wipe Gary Kildall's QDOS
• Microsoft bought QDOS for $50,000,
keeping the IBM & Microsoft deal.
166
190. Licencing project
Vision Fun, enjoy kid-in-you
Consumer group 4-100 y.o.
Brand essence Smart, innovation,fun,
190
colour
Trademark benefit There’s a chupa for
everybody
Communication
proposition
Life is less seriuos
191. 191
Brand extension
Not only a lolly-pop but a life style for
KIDULT
No rigid structure,
mass and prestige
Toys
Apparel
Accessories
School
Shoes
T-shirt
parfumes
<number>
Strong tradition in production of luxury goods, hats, shoes, jewelry and rich fabrics
absence of a unified Italian fashion center to compete in the mid-century global market.
Duality between France haute couture and American casual fashion
<number>
3rd edition
<number>
Shoe maker
emigrated to Hollywood where he find his succes
shoes designed like art object
anatomy study
Ferragamo with Audrey Hepburn
<number>
during the first Italian fashion show in florence ferragamo launched "kimo", a sandal with an interchangeable ankle-sock
<number>
the woman who shaped fashion as we know it today
Clothes for sporty woman
Armenian sweater and the first succes.
Themes collections
rivalry with Coco Chanel
<number>
she starting using the zip for woman dress
she invented clothes chain and the ready made clothes
women finally could express their personality through their dress
<number>
change of social role and status
the first models, Twiggy
change of shilouette
mini skirt from Mary Quant
<number>
The birth of Prèt à porter
the broke whit French fashion
ready to wear fashion
confortable fashion
<number>
Hollywood influenced by made in Italy
italian car, movies, actress, cartoons
Gina Lollobrigida
Gucci, Pucci and Cassini
<number>
Brand identity
new dyeing tecnology
<number>
Milan
licensing and eyeglasses
<number>
start from La Rinascente
1974 first men collection
destructured jacket
<number>
The main Italian fashion cities are today
Florence
Rome
Milano