Sometimes it seems as if every licensing deal these days takes the form of a capsule collection or limited edition, as licensors and licensees look to test a concept, reduce their risk, and generate excitement. But good old-fashioned brand extension is alive and well in many categories.
Take the automotive industry as an example. This past December, Ford licensed Thor Industries’ Livin Lite division—also a licensee of other brands, from Polaris to Jeep—for a range of trailers and campers. Meanwhile, earlier in 2015, the recreational vehicle brand Winnebago licensed Champion Home Builders for a line of modular homes and park-model RVs.
Other manufacturing industries have witnessed significant brand-extension deals in the past year as well, as when small motor maker Briggs & Stratton partnered with Alton Manufacturing for air compressors and associated tools and accessories. The former’s long-established licensing program already includes engine oils and fuels, small engine batteries, garden hoses and gas cans, work gloves, and diecast vehicles.
And, in the tire industry, manufacturer Goodyear, which has been getting a lot of press for its lifestyle licensing efforts, has also done a number of true brand extensions in the past year, including with Shenzhen Intrabrands for car accessories in China, Stemco for truck air springs, Kent International for bicycle tires and tubes, and Titan International for farm tires.
Although a number of new agreements have come to light in recent months, brand-extension licensing in the car, tire, motor, and related industries is nothing new. Licensing has long been a primary tool to create branded spin-offs ranging from Autolite lead-acid batteries (made by Exide under license from Honeywell) to Mustang restoration parts (produced by Dynacorn International under license from Ford).
These deals serve as a reminder that traditional, long-term, brand-extension licensing continues to flourish, in these sectors and others, when licensor and licensee have complementary objectives, consumer bases, distribution channels, and brand images.
To receive Raugust Communications’ January 2016 e-newsletter, going out on Tuesday, January 19, sign up here. The issue’s Licensing Trend of the Month focuses on the Internet of Things and the potential ramifications for the licensing business. To read all of the previous Licensing Trends of the Month, visit the archives.
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