Hill Corp., a company selling treadmills under the Hill brand name now wants to move into the child bicycle trailer category.It enters into an agreement with Cobalt Inc., a child bicycle trailer manufacturer.Cobalt will produce child bicycle trailers integrated with the Hill brand and sell them in the mid-tier market.In return for the rights to use the Hill brand, Cobalt will pay Hill a percentage of the sales.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of brand licensing, as Hill Corp. is granting Cobalt Inc. the rights to use the Hill brand in the child bicycle trailer market in exchange for a percentage of sales. This allows Hill Corp. to extend its brand into a new product category without actually producing the products themselves.

Hill Corp, a Company Selling Treadmills Under the Hill Brand Name