The 5 Pillars of Successful Licensing
IMC Licensing
May 20, 2025

The potential for licensing a brand is exciting!
When we speak with marketers and brand owners about licensing their brand, we always come back to a few key pillars that define long-term success. Licensing can unlock exciting brand extension opportunities, but only when there is a solid foundation.
In our experience, several factors determine whether a licensing deal will yield expected results and grow successfully over many years.
1) Brand equity fit
Brand equity fit is the first and foundational pillar for a successful licensing strategy. Does the licensed product authentically reflect the brand’s core values and image? Will the brand extension make sense to the market? Will it be seamless or appear as a forced fit?
EXAMPLES OF BRAND EQUITY FIT IN LICENSING
Corona has extended its brand into lifestyle categories by licensing beach apparel and accessories. This is an obvious extension of its “fun and sun” equity. Clearly, it wouldn’t make sense for Corona to license its brand in cold-weather-related apparel. If Corona wanted additional extensions, it should focus on categories related to this equity.
Another example is our licensing program with TABASCO and how we took key insights from hot sauce consumers to create an unlikely extension that hit big!
2) Consumer & retail demand
No matter the brand’s strengths, there must be consumer and retailer demand for the licensed product extension. A consumer insights and data-focused approach will serve the brand owner well when evaluating licensing opportunities.
Even if data supports the case to license, gaining retailer commitment can be a challenge. E-commerce launches are an economical vehicle to do a proof of concept in today’s retail market. Online demand can spur retailer demand and assist in capturing desirable shelf space at retail. The direct-to-consumer model is a critical component in licensing deals.
EXAMPLES OF CONSUMER & RETAIL DEMAND IN LICENSING
Fabletics and Away are brands that launched in the direct-to-retail channel before heading to stores. Licensing partners can follow a similar path to build momentum before expanding.
IMC was able to generate a successful licensing program with Sweet Baby Ray’s and Bridgford Foods based on retailer demand from Walmart. And, the program is still in market today!
3) Product quality
Product quality cannot be taken for granted when it comes to creating a successful licensing strategy. Poor quality can erode consumer confidence and then negatively impact the brand(s) involved. Product quality must, at minimum, meet consumer expectations.
Using the Corona example, if they launched a line of sunglasses, consumers would probably expect them to be sold at convenience stores, Walmart, and other discount or off-price channels. Consumers would expect Corona-branded sunglasses to be ideal for fun and sun at the beach. They would not expect the same quality from Corona as they would from Ray-Ban branded sunglasses that retail for $90+ and are sold in specialty channels.
Understanding and delivering the right level of quality reinforces trust and brand perception.
4) Marketing and promotion
It’s surprising how often a comprehensive marketing and promotion plan is overlooked in licensing strategies. Often, licensees don’t think they need to market or promote the licensed product, assuming instead that it will somehow “sell itself.” Licensees may believe the brand owners’ marketing efforts for their core products are enough to support licensed extensions.
This can be a costly mistake, even with well-known brands. It’s essential to work closely with your licensee to ensure you have a strategy for marketing and promoting the licensed products; if no one knows they exist, they won’t buy the licensed product.
5) Strong partnership
Partnerships are the fifth and final pillar for success for brand licensing strategies. The most successful programs are built on collaboration, transparency, and shared goals.
We almost always refer to licensing deals as licensing partnerships, and that is very intentional. Brands and licensees must collaborate not only in executing the deal but also in ensuring the ongoing success of the relationship.
Transactional, hands-off deals often lead to mismatches in brand equity, poor product quality, or weak marketing. With a partnership approach in mind, we have seen deals be widely successful, lasting decades, serving loyal consumers, and generating significant returns to both the licensee and licensor.
Delivering Results and Growth
Licensing is more than just putting a logo on a product. Thoughtful and strategic licensing deals can be lucrative for both parties, particularly where natural synergies exist and there is commitment from both sides.
Success is most likely when there is an alignment on goals, a strong commitment to collaboration, and the right support systems in place. By grounding licensing deals in these five pillars, brands and partners set the stage for long-term, mutually beneficial results. A little more preparation now can yield financial benefits for years to come.
Want to speak to a proven brand licensing agency? Reach out to us today and schedule a quick introductory call.