By Amit Bapna
The confectionary giant Parle Products had to create excitement for its Milk Shakti cream biscuits basis a valuable consumer insight. Typically regular cream biscuits though liked by the kids are resisted by the mothers who are the gatekeepers on the kids eating habits, and on the other hand the do-good biscuits are something that the kids do not take to easily, according to Mayank Shah, group product manager, Parle Products.
The solution came from the iconic characters Tom & Jerry who were licensed and imprinted on the biscuits before they were baked. The characters helped the kids relate to it even while keeping the mom happy. Its success has already made the brand launch another variant – this time a twin cream offering in chocolate and strawberry flavours continuing with the character imprint.
In its pursuit of strengthening its portfolio in the kids segment in India, the lighting division of the Dutch major Philips decided to take the character route by launching Disney-themed LED lighting products.
Hero Cycles, a leading player in the kids cycle category with over 30 per cent share, was convinced about the potential of this segment, more than any other. Earlier this year they launched the range of branded bicycles: Mini Mouse and Princess for girls and Mickey Mouse, Spiderman and Cars for boys, amongst others.
“The characters work very well for the kids by increasing their preference since it is akin to owning the character,” shares Rajesh Gulati, president, corporate strategy and planning, Hero Cycles. With this offering, the brand is looking at a completely new segment, the gifting market, in a big way.
The new range is currently selling 5000 units a month and plans are to clock 100,000 pieces by March 2015. These and many other brands in India have started to look at character licensing keenly in a bid to increase sales as well as create a favourable disposition for their brand in a cluttered market.
While licensing in the US and Europe is at a much more evolved level, India is just about starting to get there. Disney is leveraging the art of storytelling and creation of sustainable IPs very well having emerged as the largest brand licensor in India.
Shares Abhishek Maheshwari, head, consumer products, Disney India, “Over Rs 1,000 crores is being spent on Disney products by consumers in India and there are over 3000+ SKUs in the market that range from toys to stationery fashion to home solutions, food, health and beauty.”
The iconic characters of Mickey-Mini Mouse, Toy Story, Cars, Superheroes, Star Wars and the rest are becoming ubiquitous. Closer home, Chhota Bheem created by Hyderabad-based Green Gold Animation has emerged as pure-play Indian success story.
Launched in 2008, the character amassed a huge fan following amongst kids and families in a short span. As per Rajiv Chilaka, managing director & founder, Green Gold, today the character has a life much beyond the small screen and is present in over 3000 SKUs ranging from comic books, home video to apparel, toys, back to school merchandise, shoes etc.
Nearly 40 per cent of it’s revenues are coming from the licensing and merchandising opportu- nities that range from juice packs to a soon to be launched mosquito repellent brand. Chhota Bheem has even reached global shores – in Indonesia it is telecast in the local language and in Singapore in Tamil to cater to the resident population there.
Adds Chilaka, we are looking at the global market keenly and have plans to go global not just in content but even in L&M (licensing & merchandising) space. Even brand owners have started seeing character-licensing differently. Says Anand Singh, director, Cartoon Network Enterprises, South Asia, Turner International India, “Earlier there were fears of cannibalisation and about the character becoming more prominent than the product.” A slew of successful campaigns with brands like Cadbury Gems & Dairy Milk, McVities, Real juice have helped them realise that character licensing actually complements marketing activities, he adds.
Ben10, the biggest boy’s franchise globally, is one of Turner’s most successful characters and has more than 75 licensees across categories in India. More localised success stories could be coming to the fore in which Bollywood is emerging as a key player. Already films like Krrish 3 and Dhoom 3 have opened up the immense possibilities of licensing.
Yash Raj Films’ Dhoom 3, released last year managed more than 20 partners that ranged from a specially created Dhoom tyre launched by Ceat to Barbie collector dolls and Hot Wheels bikes from Mattel, marking the California based toy company’s maiden merchandising association with Bollywood.
There were many other brands like Gulf Oil, Bombay Dyeing, Steelbird as a part of the licensing arrangement. Confesses Rohit Sobti, vice president (licensing & merchandising), Yash Raj Films, “It needed a lot of mindset change internally for all of us to accept and open up to the fact that a 40 year old consumer brand (like Yash Raj Films) would be on many other brands.” Realising it’s immense potential, YRF has also started looking at licensing in a big way across gaming, products, TV animation, experience, celebrity brands, ecommerce, and representation of 3rd party entertainment brands, he adds.
Jiggy George, founder-CEO of Dream Theatre, a brand management and licensing agency views the growth in ecommerce in India as a way to fuel brand licensing. It provides addressability to fans, a better range than brick and mortar.
Cash on delivery guarantees extended distribution. Along with tie-ups for characters like Tom & Jerry and Pokemon, the company has been at the forefront of launching consumer products for the first successful digitally built brand: Angry Birds that became big without TV penetration.
Currently, the Angry Bird franchise has over 400 products in around 20 categories. Even as licensing grows, two of the major pain areas remain piracy and reach. While the former is being tackled, the latter is being aided by modern trade growth, increased digital penetration and growth in ecommerce.
Branded shop-in-shop concepts, character corners and dedicated web pages are helping in not just showcasing the entire range but giving the consumer the choice of browsing multiple products from their favourite characters.
According to Pinakiranjan Mishra, partner and national leader – retail and consumer products, EY, ecommerce will surely give a boost to licensed brands to reach out to more consumers as an additional channel. However the real upside could be if the ecommerce players become licensees themselves.
For instance, Kook N Keech a private label launched by the leading ecommerce site Myntra has got into a character licensing arrangement with Disney and Marvel characters and has actually seen a huge traction for the site with characters that include Mickey Mouse, Iron Man, Captain America and Hulk.
Points out Ganesh Subramanian, Chief Operating Officer, Myntra. com, “Leading fashion brands globally are looking at characters keenly as they are in vogue”. They are not limited to kids anymore; even adults are picking character-led merchandise in a big way, he adds.
Mickey Mouse, Angry Birds, Chhota Bheem images taken from respective company websites
MEC India has announced the appointment of Premnath Unnikrishnan as South Head – Digital. Prior to joining MEC, he was with Interactive Avenues, a leading full-service digital marketing company. Based out of Bangalore, Premnath will report to Vishal Chinchankar, Digital Leader – India.
