What is Sports Brand Licensing?
Where the owner of a sports brand grants another company / manufacturer the right to use its brand or trademark in association with a product or service for an agreed time and within an agreed territory.
- Specialist companies acquire the right from the brand owner to develop, manufacture, market and distribute products bearing the brand under licence.
- The brand owner is compensated by being paid a royalty in the form of a percentage of the sales price of the licensed products.
- The brand owner retains full control at all times of the design, look and quality of the product and its packaging, as well as its marketing, positioning and the retail channels through which the licensed products are sold.
A Powerful and Effective Tool:
Licensing can be a powerful and effective tool in a sport brand’s marketing mix. Licensing is among the most credible forms of communication, which provides fans with additional opportunities to interact with the brand in fresh and exciting ways.
Sports licensing programmes include, inter alia teams, unions, franchises, federations, events, and individual players/ athletes.
Licensing is an important component of a sports brand’s commercial and marketing programme, which supports brand building, protects the brand’s intellectual property, generates revenue, and re-enforces a sense of identity and belonging for all fans.
Objectives of Sports Licensing?
The objectives of licensing are generally viewed from different perspectives, namely:
- The licensor (brand owner) whose primary objectives are brand awareness/marketing/exposure (Promotion), brand protection, and generation of revenue (Profit);
- The licensee (manufacturer, retailer) whose primary objective is increased sales (licensed products have greater perceived value); and
- Supporters and fans who buy licensed products to demonstrate their loyalty, sense of belonging and support for a particular team or sport.
CASE STUDY: South African RugbyBrand Values
Iconic, National Pride, Honour
SA Rugby’s licensing agent since 1996
Product visibility, affordability and accessibility to all supporters of Springbok rugby both nationally and internationally.
Expand the SA Rugby brand to include further product category growth
Develop relationships with “best in class” licensing partners
Secure and maintain successful partnerships with key licensees and major retailers throughout South Africa and in other markets
The establishment of the most successful sports licensing programme in South Africa.
Category Examples : Apparel, Bags & Accessories