The Clean Boot Blog

Ever wondered how PepsiCo, a company focused on catering beverage needs of consumers, sells branded tees or caps? While companies sometimes produce these things themselves, other times they may select another producer to manufacture and market these items under their brand name. In return for printing their brand name, these brands ask for a certain sum of money from the licensees. Such a settlement is called ‘Brand Licensing’ that can be defined as a contractual agreement that entitles a company that markets a product/service to lease a brand from the producer. The brand owner gets a portion of the profit in return.

Benefits of Brand Licensing to Manufacturers and Licensees

There are a plethora of benefits of brand licensing to producers and licensees. That is why this approach is so powerful. Service providers borrow the rights to a brand to integrate into their products, but generally, they do not share the ownership. Having access to prominent brands, their logos and trademarks, provide tremendous benefits to the licensee.

The most significant of these is the marketing power the brand transfers to the licensee’s merchandise. Building a brand is a tedious process and can take years, hefty finances and above all lots of luck.

Benefits for the Licensee

Instant Recognition

You may have the best product in the world but it’s of no use if it fails to grab customer’s attention in the market. Having a brand license means immediate international recognition. While you may not be able to measure its worth now, the revenue the manufacturer will generate in the long run can make all the difference.

Augments Credibility

Let’s take an example of a software house that develops amazing gaming software. They have introduced their products to a number of retailers, but all have turned them down. What if they can license the FIFA trademark? They now stand to gain instant authenticity and credibility to their games.

Cost Reduction

A manufacturer that holds the rights to license a brand usually acquires the licensor’s chosen prices by its suppliers. This can include a wide range of factors including resin, delivery and other services, Also, they’re entitled to gain access to the brand’s style guide, which provides them with the opportunity to create better products. Having the licensor’s style guide not only helps with design time but also facilitates the approval process and guarantees that their items represent the same look as the other licensed service providers.

Enter New Regions and Distribution Channels

Taking on a brand license can help service providers and producers gain access to new distribution channels and even enter new regions. For instance, by licensing the rights to a mid-range brand, they could easily get access to departmental stores and increase their income. Similarly, a Europe-based manufacturer may be able to gain access to the U.S. markets by licensing any of the major U.S. brands.

Opens the Door of Opportunity

Once a manufacturer or service provider acquires one license, it will open more doors in business. They will more likely get more licenses from popular brands as the brand owners know the company meets the standards for the licensing process.

Benefits for the Licensor

Marketing Support

In many cases, the licensee will be needed to provide marketing funds to back the licensed category. This marketing commitment, in turn, provides supplementary support to the brand presence. For instance, if a licensee markets its product in a regular circular and gains access to an end-aisle display, the marketing doesn’t only augment product sales but also advocates the core property.

Access to New Channels

Licensing provides the brand an opportunity to check the feasibility of a new category without actually contributing anything additional to the manufacturing process. In a fully-established licensing program, the property owners preserve control over brand presence and get additional profit in return.

Enter New Business Regions

Through licensing, the licensor can test new business ideas or move into new regions where there are more room and acceptance for their products. Since manufacturing and distribution is the responsibility of the licensee, there’s very little brand engagement with the product as well as no inventory commitment at all.

Strategic Knowledge

Since licensees are experts in their specific fields, they provide the brand access to their intellectual property. As true partners, both parties can begin to share platforms where they share ideas and work in collaboration to grow the licensed category.

In conclusion, brand licensing offers many benefits to both parties, but more than that, it empowers consumers to invest in products and services they want from their favorite brands.

Are you interested in upgrading your brand influence? What strategies do you have in mind to strengthen customer relationships and generate a continuous stream of revenue through royalty returns?

Recycling is not a new term especially if you belong to the ‘Go Green’ revolution. But, throwing a bottle into the recycling bin isn’t helping the environment as much as you think. Even if you invest time to sort different recyclable materials, it doesn’t necessarily mean everything you throw in the dedicated bins will be processed. This is where the concepts of ‘reduce’ and ‘reuse’ come into play.

Here are 11 smart ways through which you can reuse the things in your recycling bin:

1. Paint Plastic Containers to make New Planters

Take empty plastic containers and clean them thoroughly. Spray paint your containers and let them dry. Repeat this step three times for a flawless finish. Apply a clear coat and hot glue cord around the top. Use these new planters to cover tiny succulents.

2. Reuse Nut Cans

Peel off the label and paint with your favorite color. Use these painted nut cans to store essential bathroom accessories.

3. Make Pocket Organizers Out of Your Used Lotion Bottles

Take empty lotion bottles, peel off the labels and clean with some rubbing alcohol. Cut out a paper template, keep it on the bottle and cut along with lines with the help of a sharp cutter. Use sand paper to even out the surfaces. Hang these bottles on your wall and use them to store makeup brushes or stationery.

4. Use Empty Bottles to Make a Charging Cradle

You can also use the empty lotion bottles to make a DIY charging cradle for your home. Simply cut the bottle short enough so that you can see the screen. Also, make a hole for the charger’s plug and spray the whole cradle with your favorite color. Apply a clear coat for neatness.

5. Use Wine Bottles to Make Oil and Vinegar Dispensers

Decant your liquid kitchen ingredients such as oil and vinegar into an empty wine bottle. Simply, peel the labels off and fill in bottles with the help of a bottle pourer. Make sure to label them so you don’t have any difficulty finding your required ingredients.

6. Reuse Cereal Boxes to Make a Junk Drawer

Cut your empty cereal boxes with a sharp cutter so that it can be easily placed into a drawer. Cover with a wrapping sheet and you’re all set to organize your junk without breaking the bank.

7. Use Tissue Paper Box to Hold Plastic Bags

Instead of overstuffing your drawer with plastic bags, place them inside an empty tissue box. It will be much easier to reuse these bags when you need one to use as a garbage bag in your bathroom.

8. Use Baby Food Containers to Make Stick-On Spice Jars

Baby food containers can be used to make cute spice jars that you can stick onto your fridge for convenient use. Simply paint these containers or cover with your favorite decorative sheet. Stick magnets on the lid.

9. Nail Cans to the Fence

Nail empty cans to the fence so that your plants can have access to more sunlight. You can also paint these cans in different colors and include the name of each plant for a more personalized look.

10. Empty Mint Cans as a Travel Kit

You can easily make your DIY travel kits by using empty mint cases. Use them to hold your basic meds, contact lenses or you can also use them as a travel-friendly sewing kit.

11. Use Candle Jars to Store Makeup

Wiggle a butter knife on the sides to scrape all the excess wax. Clean thoroughly with soap and water. Use these jars to store your makeup and other beauty essentials.

There you have it. These simple yet effective tips will help you upcycling junk inside your home without much effort. The best part? You will be able to experiment with your creativity and create things you can use in your daily life.