A License for Growth

A License for Growth

Toll, T.A.

Buijs, J.A. (mentor)
Roscam Abbing, E. (mentor)
De Jonge, F. (mentor)

Industrial Design Engineering

Strategic Product Design

2012-10-26

Fatboy aspires to be a lifestyle brand serving their consumers in their daily life with playful and edgy, yet simple and stylish products. The question from the Fatboy stakeholders is: Can licensing the Fatboy brand be used to generate extra revenue, as if so, how? Licensing is a form of brand extension that enables a secondary firm to use the name, logo and tone of voice of a brand owner in order to develop, market and sell its own goods in turn for a royalty fee. All within an agreed territory, for an agreed period of time. To be able to provide tailor-made advice, we first examine the Fatboy brand as is. This helps us to understand how licensing could fit their business. In this context, theory is reviewed regarding branding, portfolio extension, and licensing in particular. All to be find in appendix A. Illustrations are provided to compare licensing to other brand extension types (i.e. outsourcing and co-branding). These illustrations (appendix D. and attached poster) include the actor network, value chain, and a criteria flow when to opt for which option. Combining theory with the Fatboy brand objectives, culture, and past experiences, the author advices Fatboy to only use licensing if: New knowhow is needed that is not (yet) available to Fatboy. A distribution channel is needed which is not available and in which Fatboy can not or will not invest. However, in both cases Fatboy should adhere to a strict set of criteria to make a go, no go, decision. Key is whether the new proposition fits the Fatboy brand concept. In case of choosing licensing anyhow, several steps are conducted to set up a proper licensing deal (page 38 and the attached poster) Licensing brings great benefits for companies who want to extend their portfolio with non-core business products without the need for unique design or radical innovation. Part of the Fatboy brand equity are their unique category interpretations and product design. Strict control is therefore recommended should they want to ensure that all brand extensions are designed consistent with the brand values. Moreover, Fatboy should also determine which parts of the value chain they want to control under all circumstances. To do so, Fatboy may consider to always do the concept development and detailing themselves. This implies that a licensee would only produce and distribute the portfolio extension.

brand
licensing
extension
Fatboy

http://resolver.tudelft.nl/uuid:b8302093-2cf2-4ec6-8963-43181dfe08ed

Campus only

Student theses

master thesis

(c) 2012 Toll, T.A.