Continuing on the topic of brand extension, regardless of the branding treatment, extensions can occur in the following ways:
• you manufacture the product (or supply the service) yourself
• you acquire a company that makes the product (or supplies the service)
• you source the product or service from some other organization, but put your name on it
• you license your name for use by another company that makes the product or supplies the service.
(Use brand licensing to extend the brand into new categories, expand the meaning of the brand, reinforce key brand associations, build your brand as a badge, or bring your brand to life in new ways. You should avoid licensing your brand where it doesn’t make sense just to make a few extra revenue dollars. Where the licensing department resides in your organization structure will have a large impact on how well licensing is used to build (versus bleed) the brand.)
• you form an alliance or joint venture with another company to supply the product or service
Obviously, the pros and cons of the various methods include speed to market, fit with core competencies, upside revenue and profit potential, asset risk, amount of control over the brand delivery, and the degree to which you are committed to the category in the long term.
The Blake Project Can Help: The Brand Licensing Audit and The Brand Licensing Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education
