Interview With David Howitt Of Meriwether Group, Portland

What were your key learning’s there?

Licensing done right can be a boon for a brand – royalty dollars, additional marketing and exposure, expanded distribution, more ways to touch your consumer and expansion into global markets. However, done incorrectly, licensing our your brand marks can kill a brand. It is mission critical that the product categories are right, the distribution channels fit and that above all, the product is iconic and completely in synch with the mother brand. Licensing out your brand should never be seen as simply a sales or royalty generator. First and foremost, it must be a strategic decision about how to grow your brand in the right way.

Tell us what you do.

We are brand expansion experts. We understand brands and how to care for them. We offer companies a way to engage in holistic, careful and strategic growth through partnering and licensing. We take all elements into consideration when working with a brand. Anything and everything that can effect the consumers emotional connection with the brand – PR, Events, Product Categories, Distribution Channels, Segmentation, Assortment Plans, Deal Structure. Whatever you call it, brand management, holistic brand expansion, licensing etc . . . . what really matters is that you have to immerse yourself in the culture and DNA of the company and then build a strategy that FITS.

What do brands need to consider when they’re approaching licensing?

It’s important to develop into relevant categories. Categories that fit within the brand values – why is a surf company making cell-phone covers? Companies shouldn’t be just slapping on logos to make sales. Licensing is a very strategic aspect of brand management.

Brands need to ask themselves if licensing is right for them, then they need to consider which channels are right for them. Does it make sense for an athletic footwear company to have a perfume? Will your consumers “believe” that the product they are being asked to buy is part of the brand. It is critical to approach licensing out your brand strategically. What are the best categories, partners, channels etc . . .?

There are a lot of companies out there licensing their products to drive sales but to the determent of the brand. Ralph Lauren, Harley Davidson, Coca Cola and Disney are a great examples of licensing done right. However, there are more examples of inappropriate branding than there are good ones. Brand managers see the bottom line – but fail to see the cost of their decision. After all, your brand is the most important and valuable thing you have!

You need to make sure your licensed product is different and sets you apart from crowded categories. You can’t just slap your logo on a product and hope it builds your brands

Why would a brand manager consider licensing over other brand building activity?

First, done right, it is the quickest, least expensive and least resource intensive way to expand your product offering into relevant product categories. That means more channels and therefore more consumer impressions at retail.

Second, most licensees are required to spend a $$ in marketing the mother brand. This means more budget for the brand manager – especially as she will have full control of their advertising through approval rights.

Are there any trends in licensing?

Headgear. People become walking billboards for brands. Von Dutch is a good example here.

Time-pieces. More and more people are wearing watches as a fashion accessory. Having your brand mark on a cool watch is powerful. Every time a person looks down at their watch, they are reminded of your brand.

Kids Apparel. There’s a real buzz here. Brands are targeting a younger and younger consumer. Today’s 11 year old is plugged in and understands brands. Taking down your core line and interpret them into kids clothes in order to get the younger consumer to develop an early attachment to your brand. Most brands can’t do kids stuff themselves – it is a different sourcing, design and development process. Also, because kids grow out of clothes – it has a different margin profile at retail. You really need to be a specialist to get after this category.

Other areas include: Home goods, technology extensions and lifestyle items.

There are so many iconic, young brands that are ripe for expansion through licensing. Bathing Ape, Run Athletics, 555 Soul, LRG, DC Shoes, Amharic just to name a few. adidas, Nike and others can not replicate what these great young brands have. They are real!

The lesson is clear though, do not rush and do not over expose. You have to sit on the eye of needle. Expand and grow, but always stay real and focused. Rica Wear, Ecko and others are bloated, overexposed to some extent and at risk of offending their core consumer. We help brands stay “sought after”, unique, real and focused – while at the same time, growing the company.

Thank you

Meriwether Group