Smart ideas… it’s this week’s Licensing Lookout

Start Licensing’s Ian Downes has his view reinforced this week that variety is part of the licensing mix and that IP is increasingly being used in novel ways.

One aspect of licensing I enjoy is the variety within the industry. Over the years I have found myself working with a range of companies in different categories. I think I may have even been on more factory tours than Gregg Wallace!

From a business perspective this means that there are plenty of doors to knock on when it comes to new business, albeit a challenge always remains around selling the ‘business of licensing’. Anecdotally, I think there is a wider awareness of the licensing model these days which can make cold calls a little less frosty.

My Looking Out this week has reinforced my view that variety is part of the licensing mix these days and that IP is increasingly being used in novel ways. One area of growth is in advertising with licensed brands featuring more frequently in advertising campaigns; arguably this is because a well chosen brand can help advertising cut through.

LL1One great example I saw again this week is a press advertising campaign encouraging small businesses to consider using Smart Meters. I saw this advert in The Grocer. It features ‘Albert Einstein’ having lunch with business guru Deborah Meaden. I think there is also a TV commercial as part of the campaign. It is an interesting coupling – the rights to Albert Einstein have been licensed and I think he has featured in the Smart Meters campaign for some time. I presume he had proved to be an effective ambassador for the campaign. Adding Deborah Meaden to the campaign freshens it up and allows them to emphasis other campaign messaging.

Given the challenges faced by advertisers in terms of cost and reach, I think licensing has reason to be optimistic that it has a role to play in the creative side of advertising. Agents like Born Licensing have shown what can be done in the sector with a focused approach to business development.

LL3Another area of licensing that appears to be in growth is in the FMCG sector with food manufacturers working more frequently with food brands to create new products. This works particularly well in the context of brands that have unique taste and flavour profiles combined with a brand that consumers trust.

I spotted a great example of this in the market this week when I saw Hershey’s Cookies’n’ Creme crepes in the bakery section of Waitrose. I think there is also another flavour variant in the range. The Hershey’s brand is well suited to this category and makes sense from a NPD perspective. It stood out in a busy fixture not least because of the well established brand identity Hershey’s brings. But beyond this, it is a product that has to deliver on taste and flavour to ensure ongoing success. Of course, for Hershey’s this last point is critical as licensed products have to deliver a consistent brand experience that enhances the core brand.

Interestingly, and returning to the power of personality licensing, snack company Insane Grain confirmed recently that footballer Harry Kane had invested in the brand. Part of Harry’s investment journey was being involved in a limited edition pack ‘Insane Kane’ that was sold via the brand’s website and TikTok. It was reported that this product sold out quickly and this encouraged Kane to invest. This deal provides some insight into the role personalities and influencers can play in FMCG. It is also revealing that Insane Grain was able to sell direct to consumers with the help of the Harry Kane name and following. This route to market and selling methodology opens up opportunities for licensing.

LL2Finally, and returning to Christmaswatch, it was interesting to see how Lidl had dipped into the licensing market this week with a number of licensed products featured in the Lidl Weekly promotional magazine. I presume these offers also feature in the middle of Lidl.

Featured licensed products include cookware from The Hairy Bikers, a Barbie Mini LED lamp, Disney watches, plus a PAW Patrol torch and projector. There was also a lot of apparel lines featuring brands like L.O.L., Peppa Pig, Jurassic World and Disney.

Seemingly Lidl has recognised the variety that licensing offers a retailer and found a way of incorporating it into its weekly offers. Seeing licensing used in this way confirms that it is a flexible and adaptable business model that has the potential to make an impact in a variety of marketplaces.

As a licensing executive it pays to be open minded and alive to new opportunities… you never know where a licensing conversation might take you.

Ian Downes runs Start Licensing, an independent brand licensing agency. His Twitter handle is @startlicensing – he would welcome your suggestions for what to look out for.

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