Discuss the licensing process, focusing on the seven key steps involved across four stages. In your discussion, picture yourself responsible for the development of a licensing plan f

SPT 525: Midterm

Read the below statements/questions carefully and make sure that you understand what is being asked. The questions may have multiple parts to consider.

Questions are worth 25 points each (the exam is worth 100 points total).

1. Discuss the licensing process, focusing on the seven key steps involved across four stages. In your discussion, picture yourself responsible for the development of a licensing plan for your company who is new to licensing. Walk through the process and highlight key issues with each step. You may use your Sport Licensing Plan company as the example. When possible, comment on specific actions you would take. Our company would first find out if there is a minimum purchase requirement. Most companies require a minimum royalty guarantee, so it would be our job to find that information out first. Next, we would need to contact the licensing department of the organization we are trying to align ourselves with. Since we are new to this, we would need to verify how to become a licensed vendor for that organization. Have certain members on our team send out formal request as well. We have to be ready to present a business plan for the organizations in case it’s asked. Our company must provide information on how we can help expand their organization in the area we are already established in. Then we would have to be ready to negotiate the deal. In order to earn their trust, we would agree to a limited product line contract with a small probationary period. If we meet their needs, then we will asked for an expanded line.

2. Using specific examples, identify and discuss the licensor’s main objectives and concerns/issues that they will need to address when preparing to enter into a licensing relationship. Be specific. Licensors want their licensees to be able to market, manufacture, and commercialize approved products as fast as possible. Their goal is to find a licensee that will work hard to understand the essence of their brand and developing the licensed product in a way that it appeals to the consumer. The want to know which distribution channels and geographic territories to target, how much to require for payment, how and when to launch, and when to roll it out. Example, Fitbit wanted to explore the fashion side with their Fitbit product. The partnered with Adidas because Adidas has very successful in China. (Withers, 2017).

3. Using specific examples, identify and discuss the licensee’s main objectives and concerns/issues that they will need to address when preparing to enter into a licensing relationship. Be specific. The licensee main objective is to help move the licensor’s product and earn a profit for themselves while doing so. The licensee goal is to achieve sales growth within their channel or enter a new market. Licensee has an expectation that the licensor will not jeopardize or burden their organization. Licensee expects a win-win situation for both

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not just the licensor. They look for minimal administrative requirements, which will hamper their resources. They expect timely approvals for products. As with anyone, licensees don’t want any “gotchas” in their contract. Brand support, market support, and sales support are expected from the licensor. Fanatics would be a good example of the licensee. They partnered with several of the biggest sports brands to help move their products through online stores and e-commerce. They partnered with the NBA to move products in Asia-Pacific. (Fanatics, 2017)

4. Describe and give a specific example of a sport strategic alliance. Make sure that you accurately state what a strategic alliance is and what it is not. Using a specific example from the current world of sport business (e.g., SBJ), identify and discuss what the key objectives/goals might be for each partner entering the strategic alliance. Strategic Alliance is a partnership between two organizations where both are able to maximize profit from the engagement. This is not a short time fix, but rather a long term relationship that creates value. Strategic Alliance is not a situation where one profits and the other stays stagnant. FedEx and the NFL has a successful strategic alliance that was recently renewed. That alliance builds individual ties to all 32 teams in the NFL. The new agreement signals the continuation of the FedEx Air & Ground NFL Players of the Week and Players of the Year awards program, a fan-driven platform that highlights the league’s leaders at the quarterback and running back positions. The program is part of the FedEx Cares global giving initiative, around which FedEx will donate $200 million to 200 communities around the world by 2020. FedEx has donated more than $1.7 million to communities around the U.S. since the inception of the NFL awards platform. (Sponsorship.com, 2017)

Fanatics. (2017). NBA and Fanatics Partner to Launch Official Online NBA Stores Across Asia- Pacific. Fanatics. Retrieved on March 25, 2018, from http://fanaticsinc.com/2017/12/19/nba- fanatics-partner-launch-official-online-nba-stores-across-asia-pacific/

FedEx. (2017). FedEx Renews National Football League Partnership. Retrieved on March 25, 2018, from http://www.sponsorship.com/iegsr/2017/05/01/FedEx-Renews-National-Football- League-Partnership.aspx

Withers, B. (2017). Fitbit's Real Reason to Partner With Adidas. The Motley Fool. Retrieved on March 25, 2018, from https://www.fool.com/investing/2017/11/11/fitbits-real-reason-to- partner-with-adidas.aspx

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