The once optional business opportunity for companies to expand their brands through Brand Extensions has today become an increasingly necessary instrument to survive on the market.
By expanding its business to specific segments, if properly executed, a company can achieve differentiation and a real competitive advantage over competitors. In the long-term increasing Brand Awareness and business growth will result in maximizing brand strength and increasing brand value.
Brand ExtensionOriginated in the Consumer Goods Business, Brand Extension means expanding the product portfolio under the same brand name. Well established products are extended and complemented by new ones, in closed or distant categories. Depending on how intensively and extensively this strategy is applied, brands are grown encompassing the entire lifestyle of the consumer.
LicensingAs part of this strategy, the licensing of products, especially in the Fashion and Design Markets, is becoming increasingly important. Most of the times, special know-how and specific manufacturing techniques are required. By licensing, the brand can expand its product portfolio without having to deal with critical internal issues.
The owner of a brand (Licensor) or even a single person, in Personal Branding strategies, assigns the rights to use his brand for a particular product category to a company (Licensee), which, depending on the contract, takes care of the design, production, distribution and communication of the resulting products. The licensor is paid license fees and gets the opportunity to enter rather quickly and safely into strategically interesting but unknown or risky markets. The licensee must respect the key brand characteristics and complies with the given quality standard.
OWN BRANDSThe licensee is usually a traditional company with the necessary expertise and excellence in manufacturing. Italy is considered to be a leading country, both in the production of raw materials, as well as in manufacturing of consumer goods.
As manufacturers, these companies have the necessary know-how in the production of special, high- quality products but they can also successfully distribute articles of the same category under their own brand. Expanding the business through this path is becoming increasingly important for strategic and financial covering, particularly for small but also for large companies.
Since 2011, we have been managing the annual 12-day Masterclass Licensing & Brand Extension. at POLI.design - Founded by the Politecnico di Milano in Milan. In this context, we have welcomed managers of international companies, working with different approaches in the fields of Brand Extension and Licensing, as highly profiled guest speakers and we organized visits with our students to companies and factories specialized in licenses.