Licensing: A Formula for Success
Farberware brand equity can result in long-term business success
In today's marketplace, all product categories are increasingly competitive. Starting new brands from scratch might seem like a good idea, but the rate of failure is as high as 80%. Most new products are gone within two years of introduction into the marketplace. It takes years to build brand recognition and brand heritage.
Corporate growth is fueled by development of new products and brands.
Requires tremendous investments, both up front and ongoing, with no guarantee of success.
Licensing a proven brand provides access and credibility.
Gain immediate customer recognition, trust and acceptance.
Minimal initial investment or long-term expense.
The use of Farberware in the marketing of products works when there is a strong “equity fit” and the new products are a natural extension of the brand
Licensing Potential
Farberware is one of the preeminent brand names in the home products category that consumers recognize, respect and trust. This marketplace loyalty and heritage has been built by a brand that has flourished for over 100 years.
The Farberware brand is:
Highly regarded, well-known and extendable for premium-priced products
Proven selling power
A powerful consumer franchise that generates significant income streams
Tremendous trust with effective license agreements provisions to ensure integrity
Preemptive - cannot be duplicated
Positioned as an upscale brand
Appeals to both male and female consumers
Licensing Quality Controls
All licenses include strict and enforceable standards for quality, safety, style and appearance to preserve the integrity of the Farberware brand name.
Prior Approval
Prior approval of prototypes and production samples (including licensee’s submission of laboratory test results).
Licensor entitled to inspect random samples from production to ensure compliance with approved samples.
This provision in the license agreements covers product, packaging and promotional materials.
Post-Production Review
Licensee may proceed with production and marketing of products but is required to submit commercially available samples and test data to licensor for approval.
Unapproved products, packaging or promotional materials must be immediately removed from market.
This will be monitored on an ongoing basis.