All Licenses

What is licensing?

Let’s say that your company makes... just by way of example ... snack cakes. How do they reach the consumers?

First they are packaged, and then they are offered to retail stores and placed on the shelves, where snack cake fans can buy them.

Various questions arise for the manufacturer:

  1. What should we call the snack cakes?

  2. What should be placed on the packaging, and how should the design look?

  3. How can we turn this product into a “brand,” a trademark?

  4. How can we convince category brand managers at chain stores to choose our product?

  5. Will it attract the attention of potential buyers?

  6. How can we encourage both first and subsequent purchases?

  7. What should be done so that buyers give preference to our snack cakes?

  8. How can we increase the number of people who enjoy snack cakes?

Licensing is intended to solve these and other marketing challenges. It is a tool to shorten a product’s path from production to purchase.

How does this happen?

Ideally, any producer should have a study done on its consumer profile. Consumer interests determine which license is chosen; the visual appeal and core values of that license are transferred to the packaging and trigger a response from the buyers.

Licensing brings in not only the target audience, but also a packaging design based on the provided style guide, as well as more promotional opportunities.

In short, a license will:

    • Ensure instant recognition of the product

    • Attract the attention of a wider audience (both retailers and end consumers);

    • Engage new sales channels;

    • Engage new sales channels;

    • Make it possible to compete with bigger, more well-established manufacturers.


As a result:

    • Your product becomes available to a new, larger audience;

    • You receive new platforms for product communication;

    • A deeper usage/consumption experience is attained;

    • Consumers get involved at different levels.


Licensing is one of the most effective modern marketing and brand development tools.

The main provisions of a licensing contract relate to royalty rates, minimum commitments and advance payments, timing, territory, and sales channels. The stages following contract execution include the development of product design/layout, production, promotion and sales, expansion of the distributor base, contract execution with chain stores, sales promotion via chains, and reports to the licensor.

We have been working with licensing for more than 20 years, and we will be happy to answer any questions you may have.