By using third-party licensees to manufacture new products and services that reflect their signature brand attributes, these names have a chance to remain relevant to consumers, even after the brands’ respective bankruptcies. Licensing has now become their business strategy and their reason for being.

In addition to these formerly bankrupt brand names, many brands across a variety of struggling industries could take a page from licensing’s proverbial “play book.” Industries like education, automotive, luxury, travel, the media and non-profits are among the most troubled, with countless brand names and companies under stress in our current economy. Could implementing a licensing strategy save these companies and strengthen their respective industries?

Few tools seem very effective in improving the performance of these industries in this economic climate—including traditional business methods, promotions or advertising. Perhaps the power of licensing can be tapped to help these ailing industries effectively reach consumers and maintain relevance through the tough times. Some brands in these industries have already harnessed licensing—and are using it well. However, as a whole, these industries could greatly benefit from licensing’s ability to attract new consumer segments across a variety of categories and retailers, as well as its ability to raise brand awareness, introduce new products and generate additional revenue streams with little or no risk.

Take higher education institutions, for instance. Creating new online learning platforms through third-party technology providers could guarantee students receive an education at a more profitable margin with the highest excellence in Web 2.0 learning. By branding third-party platforms with institution names—ensuring the quality of education and experience is comparable to that within the classroom setting—the respective schools gain new consumers (students) while generating new revenue (tuition) and building longer-lasting brand loyalty (alumni).

Luxury is another product category that has obviously taken a hit in recent months. In fact, according to market research firm Bain & Co., global sales of luxury goods will decline 7 percent in 2009—this coming off a 9 percent growth in 2006, a 6.5 percent growth in 2007 and a 3 percent growth in 2008. Licensing’s role for luxury products is simple: create more affordable options, whether that means new accessory lines from well known apparel brands or more moderately priced “bridge lines” or collections. Luxury remains a viable category. Consumers simply want to know that the products they are buying are priced right and worth it. Many brands are doing just that—creating jewelry, eyewear, shoes and handbags—at a variety of price points. Historically these new entries aren’t meant to drive these brands’ business, but rather are meant to engage the consumer in new product categories and use them as “brand ambassadors” or “human media” as the overt branding in many of these categories publicizes their brand adherence. In our current environment, amidst the precipitous drop in the luxury market, many brands’ bridge lines may actually turn into their lifelines.

Media brands have recently adopted licensing to create strategic and experiential new offerings, including new services and retail experiences. A few examples include USA Today airport news and convenience stores, Better Homes & Gardens furniture at Walmart, and Food Network kitchenware products at Kohl's. These and many other licensing initiatives from storied media brands help the in-print or on-air experience evolve from static to experiential. Licensing helps these brands to interact directly with consumers outside of flipping pages or watching programs. Not only that, licensing also helps create new media consumers—in some cases within new demographics entirely—while at the same time effectively communicating core brand qualities. In addition, with advertising revenues down, it is not unthinkable that some media properties may actually find themselves converting to a 100 percent licensing strategy, ceasing to publish and instead licensing their names to relevant consumer products.

The travel industry is also suffering, as leisure and business travelers alike are cutting back on their number of trips. With fewer traveling, airlines, hotels, rental cars and tourist destinations are in dire need for enhanced consumer awareness and improved consumer perception. One licensing strategy that could be adopted by well-known airline and hotel brands might be to develop a free, added-value, travel-agent-like mobile application to provide consumers with a seamless planning experience. This might encompass everything from booking airfare or hotel reservations to renting a vehicle or recommending restaurants, activities or itineraries at select destinations. This branded mobile application would permit consumers not even using the brand’s core services to derive value from it. Over time, they may come to view the brand as possessing significant travel expertise. This could help to build a more loyal consumer base and effectively position the brand as reliable, trustworthy and accommodating—attributes that will pay dividends when leisure and business travel begins to rise and the travel industry bounces back (which it will do).

How about the automotive industry? Ford recently announced it is exploring a new Mustang licensing program to engage ‘tween girls. For Ford’s popular Mustang brand, this program not only creates new touch points for young people and their parents at retail, it also creates and further develops an affinity for the Mustang brand at a young age. When the ‘tween girls purchasing “Pony Girl by Mustang” products grow up, they also may feel predisposed to want to drive a Mustang. This is one way in which licensing is helping Ford ensure it is top of mind amidst a new generation of drivers.

Perhaps most interesting of all is the role licensing can play for not-for-profit groups or organizations, such as the American Red Cross, American Kennel Club (AKC) or Sierra Club. For all of these brands, licensing has not only allowed each organization to create new revenue streams and introduce new brand attributes at retail, it has also allowed each to further promote their respective cause by encouraging consumers to “adopt” the behaviors each organization supports. For example, the American Red Cross developed a licensed line of health and safety items that actually encourages consumers to be prepared and respond quickly in a crisis—directly parallel to the organization’s mission. AKC has a line of licensed agility products designed for ‘tweens and children to help them take better care of their animals while at the same time helping pets live a healthier, happier life. The products help advance AKC’s vital mission. The Sierra Club recently launched a line of eco-friendly apparel. These sustainable clothing items not only create additional awareness for the non-profit, but they help consumers identify and buy products that are better for the environment, a sort of “do good” licensing.

Whether or not brands are experiencing declines, licensing can play an important role in building brand awareness, reaching new consumers, communicating new brand attributes and even generating additional revenue. In the last decade, brand extensions—particularly for corporate brands—have become more sophisticated and strategic, ensuring licensing has a greater piece of the marketing pie and making it possible for licensing to become a strategic part of a business’s success, or at least one of the most productive tools in the marketing arsenal.