COMPLACENT MARKETING
Maximizing Marketing Budgets Through Licensing
By Diana Obath
The country and the world have taken an economic hit over the past few months . Many economies are reporting a slump in growth and rising inflation and taxation is the order of the day . Kenya is just recovering from an electioneering period and has since recorded the highest inflation rates in September 2022 standing at 9.1 % compounded by increments in excise tax and rising fuel costs which have a direct impact on both essential and non-essential goods and services . Companies are re-looking budget with cost management strategies being the main focus at this time .
However , organizations of all sizes are still expected to deliver profits and grow the bottom line despite the realities of the challenges in the market forces that they face . Marketing teams have been forced to find more affordable , innovative and efficient ways to drive sales and retention while customers continue to cut back on spending .
Marketers must at this time leverage on their relationships , draw dividends from customer loyalty and trust they have built over the years and be very decisive about where to spend their marketing budgets . Consumers will stay with brands that will offer them the most value and benefits and therefore marketing needs to work on building relationships and lasting connections with their customers . Larger brands have mastered the idea of creating and building connections with their customers in a way that drives direct revenue at minimal expense because they have full understanding that relationships are a form of currency , and a form of income .
The Share a Coke campaign launched in 2013 and 2014 that saw the logo replaced with popular names printed on Coca Cola labels is a good example of a marketing campaign that created a lasting impression across the world . The personalization of the cans and bottles worked well to create brand love and loyalty that have stayed with customers to date . Often times , you will still bump into these customized cans and bottles in many houses or offices , some of which have never even been drunk or opened . This just goes to show how authentic and personal a connection consumers had with this campaign and the brand . We can conclude due to the popularity of the campaign , it delivered
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Brand licensing works to maximize revenues for a certain period of time while creating a real connection with the customer in their brand journeys which has a long-term effect on the company ’ s income . It is convenient for turbulent times and offers many benefits that support other marketing objectives and activities . the revenue the company was seeking to achieve and succeeded in delivering other marketing objectives all at one go .
The Share a Coke campaign is a great example of brand licensing . A simple , yet effective way to rent or lease a brand name , slogan , character and this particular campaign excelled at creating a connection and engaging with its customers . Brand licensing works to maximize revenues for a certain period of time while creating a real connection with the customer in their brand journeys which has a long-term effect on the company ’ s income . Consumers purchase from brands they trust and admire as well as those with which they can find a connection with or connect to the brand promise . Brand licensing is convenient for turbulent times and offers many benefits that support other marketing objectives and activities .
Licensing works in a number of ways and offers the flexibility for brands to associate with customers and products outside the usual scope . Guinness has licensed its brand name to be used on a full range of marinades and barbecue sauces that feature its distinct stout taste . This form of licensing gives Guinness the opportunity to earn value in a product category where it has no expertise while building a brand name and connection with more customers than its current beer customers offering it strategic business value . This means that the brand will be used by people the beer manufacturer would never have reached in the first place and may acquire a new perception even among non-alcoholic consumers by satisfying their alternative needs through the marinades and sauces .
Licensing also works as an effective tool to strengthen relationships with different
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