Conversations with Cause Marketers: Michelle Alfandari, President, Moda International Marketing

Many nonprofits are so put off by the jargon and legal issues surrounding licensing that they miss out on opportunities to generate significant revenue and awareness.

To demystify the process of starting a nonprofit licensing program, we turned to Michelle Alfandari, president of Moda International Marketing, which has worked with organizations from the National Trust for Historic Preservation to the Victoria and Albert Museum.

CMT: What is licensing?

MA: Trademark licensing encompasses brand extension and promotional licensing. In the first case, licensed products are naturally extended from the equity of a nonprofit's brand e.g., Sierra Club licensed clothing made from organic or recycled materials. Promotional licensing places a group's trademark on products such as caps and mugs. In addition, some groups have patents, know-how and other forms of intellectual property that can be licensed.

If the viability of a licensing program is established, then a licensing strategy must be developed that will include the positioning platform, targeted products or services, markets, customers and price points consistent with the organization's mission and identity.

CMT: How do nonprofits create value for their licensees?

MA: Licensing is not formulaic. Each trademark, organization, or brand must be considered on its own merits.

Nonprofit organizations are generally not consumer "brands" with an easily recognizable identity. Most nonprofits will have to consider brand development and brand building as part of their licensing program. Save The Children, for example, developed an association with children's art that has greatly enriched its brand.

On the other hand, nonprofits can offer the consumer and retailer a point of differentiation in an overcrowded marketplace (e.g., the "feel good" factor of a purchase associated with a good cause.)

Our client, the National Trust for Historic Preservation, is a good example. We determined early on that the National Trust would deliver more equity to the retailer and licensee as a co-brand on products closely connected to its mission of restoring and preserving America’s communities and architecture. As a co-brand the NTHP delivered credibility of historic provenance for products having to do with home décor, home building/remodeling/restoration – product categories that continue to be strong market performers.

These insights enabled us to bring together the National Trust with Valspar to create a line of historic paint colors derived from historic homes such as those of Woodrow Wilson and James Madison. Sold exclusively at Lowe’s the relationship has generated 6 figure royalty revenue annually for the National Trust.

CMT: How critical is a licensing agent in the development of a nonprofit licensing program?

MA: Nonprofits must compete in a marketplace of well-known consumer brands. To do this effectively a licensing agency specializing in brand extension will be able to assess the competitive landscape and identify the value that a nonprofit’s brand and its other intellectual property can deliver. An agency will also have established relationships with retailers and manufacturers and the know-how to develop and implement a strategy thus allowing the nonprofit to focus on its mission and objectives.

At Moda, we always work very closely with our clients to understand their objectives and cause marketing initiatives in order to ensure that the greatest return to the nonprofit is realized.

Learn more about Moda International Marketing by visiting www.modaintl.com