Many brands and businesses might find licensed branding appealing. It seems easy; put a couple of licensed characters from a popular children’s movie on the packaging of your family-friendly consumables, and reap the reward of increased sales. But it’s often not that rosey. Licensed packaging has a number of hidden pitfalls that are dangerous for the unsuspecting business. Before we get to the negatives, let us take a look at the reasons why businesses consider licensed packaging as a good alternative to their more conventional packaging.
-Licensed packaging creates exposure for a brand, opening up new avenues of interested consumers.
-A licensed packaging campaign can expose a brand to a brand new geographical area by using a license that people from that area understand.
-If done properly, licensed packaging can increase a businesses revenue tenfold!
Negative Licensed Packaging
Now that we understand the positives impact of licensed packaging (done right), take a look at how your business may actually suffer as a result of licensed branding where it has been applied ineffectively.
- Licensed packaging, and the introduction of an alternative businesses logo or characters costs a lot of money, and there is nothing that can determine whether licensed packaging will work. There have been previous cases and examples of this form of packaging failing altogether.
- Some consumers see licenses as a way of selling a product, rather than an accentuate on the quality of the product itself. When this is the case, consumers are likely to distance themselves from your brand.
- A product’s packaging can over-emphasize the licensed brand, creating a situation whereby the product’s original branding is ‘drowned out’ by the newly licensed branding campaign. That means that customers who already trust your brand are unlikely to spot the brand on the retail shelf.
- Sometimes licensed packaging does not accurately reflect the products on which they are marketed. For example, a health food product for children, covered in licensed packaging marketing the new LEGO Batman movie. Parents associate cartoon and animated characters with unhealthy foods, and will alienate them from your health-centric product.
Before you consider licensed packaging and the use of your own character, characters from other childrens movies, alternative business logos or even trendy names and faces in showbiz, make sure that you consider alternatives. Additionally, ensure that by using licensed packaging that you do not destroy the branding of your own product.