In the midst of increased competition, brand extension licensing
has enabled companies from disparate industries to successfully
expand into new markets and generate new revenue streams.
GE, Martha Stewart and Sunkist are just a few examples of the companies who have discovered that brand extension licensing can provide powerful marketing benefits and generate significant royalty revenues. Each of these companies has generated over $1billion in annual licensed product sales.
Typically, extending a strong brand into a new product category is less expensive and less risky than creating a new brand for the new product line. In addition, existing brands often generate sales faster than new brands. Brand extension licensing allows companies to capitalize on brand and obtain great value from what is often an underutilized asset.
Creating successful brand extension licensed products requires
experience in brand management, strategic planning, business development,
and trademark law. As a result, many firms choose to outsource
these licensing functions.