Entertainment licensing in India

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This is a deck presented at Brand License India 2012, supported by LIMA.

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  • Contrary to the buzz that slowdown in economy dented the health of Indian entertainment and media industry last year., the sector swelled y 17.5% to touch Rs 80,000 cr. This growth is also backed by the strong consumption in Tier 2 and 3 cities, continued growth of regional media and fast increasing new media business, according to a report by CII and PWC.The industry is estimated to achieve a growth rate of 13% in 2012.The report suggests that the rate of expansion will accelerate to 2016 by which time the business will be worth Rs 1,45,700 crore. That translates into a compounded average growth rate (CAGR) of 15% over the five years.
  • Lets think for our selves and see how media impacts us as consumers…. We all have role models and icons that we follow…
  • No more an Idiot Box – today TV is educating as it is entertaining. Be it on TV, On Computer, on Mobiles…. Content is ever evolving and smart.Education by discovery/POGO MAD/news channels/DoraPersonality development – galligallisimsim teaches good habits for life in children or WWE encourages kids not to be a bully and be a STAR with its anti-bullying campaign Exposure – vatioustv shows, online blogs that helps understand latest gadgets, fashion trends, vacation destinations or even career optionsOpportunity – india’s got talent or kbc…. Now opportunities are not so rare!Awakening – we all are more aware of our rights as a citizen of India and the various social issues in the country.Rejuvenation – a de-stresser at the end of a hard work’s day!
  • Once you have a character or an IP making waves on TV or at movies or even from Gaming (given the Angry Birds fame) the next logical step for any marketer is to be able to leverage its popularity to gain visibility at retail and in a manner that drive sales through licensed consumer products at retail.In the much cluttered marketplace, where it is very expensive and time consuming to get brand recognition and brand affinity; many companies choose brand extension licensing to launch new products by leveraging the power of the existing strong brand and shout out through the clutter.
  • Licensing is a marketing and brand extension tool that is widely used by everyone from major corporations to the smallest of small business. Entertainment, sports and fashion are the areas of licensing that are most readily apparent to consumers, but the business reaches into the worlds of corporate brands, art, publishing, colleges and universities and non-profit groups, to name a few. Having said that Entertainment and Character Licensing is the biggest segment.
  • Companies and not just entertainment companies use various tools to reinforce its brand positioning and build high recall through advertising such as viral campaigns, online ads, print ads and commercials. Another way to build the brand equity is through providing consumers with product or services that will reinforce the brand further. And many marketers choose licensing as the way forward for brand extensions in the categories which is not core to the company’s original line of business.
  • Many brand owners are waking up to the idea that their brands have a value that can be exploited in areas outside their current existence. The core equities of their brands can be used to raise much-needed additional revenue which can contribute directly to their bottom-line not to mention the visibility gained retail.
  • Licensing model is successful when the new product or a brand extension deepens the meaning of the brand and extends its attitude in a way that is believable and leads to increased consumption.
  • Many Brand Managers choose brand extension licensing to launch new products by leveraging the power of the existing strong brand and shout out through the clutter.Brand Managers are keen to deliver the brand message through experiential marketing.Licensed Brand extensions are seen as an excellent strategy to enhance and reinforce existing brand equity.Typically, a licensee benefits from the popularity of a particular brand. However, there is also a reciprocal benefit that the licensor receives from the advertising and promotional support by the licensees.Because the investment in building the brand has already occurred, there are few additional costs associated with putting forth a licensing program. As a result, a high percentage of revenue is pure profit.Finally, the licensing program lends exponential increase in brand exposure, a cornerstone for developing consumer preference and a strong brand; consider the sheer number of impressions generated by hundreds of licensed products and the marketing communications to all the stakeholders–consumers, shareholders, employees, suppliers, etc.
  • Its tempting for any marketing team to think of ways to convert the cost center function of marketing to a profit center by leveraging the very brand that they have created and built over the years and extend it via licensing. While that is true, it is essential to know that the game of brand extensions and licensing is a tricky one to play. If not done right, the licensing program may actually hurt the mother brand and bring its equity down. It is important to extend your brand in categories that fit the brand’s positioning and customer needs. Its important to research the opportunity available for brand extension before the launch. Map the category, map your customer and then draw up your brand extension/licensing program. Ensure the right quality and distribution set up for the licensed merchandise. Monitor and review. Note that even one licensed product failure can cause great damage to the mother brand.
  • Reducing the risk associated with new product launch. The consumers find comfort in brands they are familiar with and are more comfortable with a new product from those brands.Transferring the brand values and consumer favor towards the brand, to the licensed product or service. = Providing added value and differentiation from competitive offerings.Gaining from the momentum of the core brand’s marketing activity provided by the licensor.Giving credibility for moving into new market sectors through product extensions.Gaining additional retail space and favor.
  • Entertainment licensing in India

    1. 1. The Power of Entertainment Licensing A presentation by Mayuri Pitale, CPG, WWE India.
    2. 2. Components of media and entertainment industry TV Films Outdoor Radio Indian Media & Entertainment Industry Internet Print Music Gaming Animation A presentation by Mayuri Pitale
    3. 3. A significant shift The Indian Media and Entertainment industry grew by 17.5 % in 2012 to Rs 80,000 crore. The industry size would reach Rs 175,000 crore in the next 4 yrs. Cable digitization, the promise of wireless broadband, increasing DTH penetration, digitization of film distribution, growing internet use are all prompting strategic shifts in the way companies work. While television continues to be the dominant medium, sectors such as internet, digital advertising, and gaming will increase their share in the overall pie. A presentation by Mayuri Pitale
    4. 4. Keeping the numbers aside… A presentation by Mayuri Pitale
    5. 5. We have been fans of shows and characters from TV A presentation by Mayuri Pitale
    6. 6. We have been fans of characters from Movies A presentation by Mayuri Pitale
    7. 7. We have been fans of bands and artists Music A presentation by Mayuri Pitale
    8. 8. And the new one on the block, characters from Gaming A presentation by Mayuri Pitale
    9. 9. Positive Influence of media and entertainment 1. Education 2. Personality development 3. Exposure 4. Opportunity 5. Awakening 6. Rejuvenation A presentation by Mayuri Pitale
    10. 10. This Illustrates the importance of ENTERTAINMENT in our lives A presentation by Mayuri Pitale
    11. 11. Entertainment Licensing As The Bridge TV shopping Movies Social Media Gaming TG Consumes media and aspire to be like their icons Newspaper/ Magazines Food court TG Indulges in Retail therapy multiplex Infotainment Play zones A brand is the single USP for many products today. After Media, the brands endeavor to reach out at retail. As most of the TG today when not consuming Media is out at retail as a habit. Licensing facilitates this passage. A presentation by Mayuri Pitale
    12. 12. Licensing is a mere gateway to a way of doing business in an ever-widening range of product categories and types of properties. A presentation by Mayuri Pitale
    13. 13. Many marketers choose licensing as the way forward for brand extensions in the categories which is not core to the company’s original line of business. A presentation by Mayuri Pitale
    14. 14. Licensing remains as one the most exciting activities of the marketing mix for the entertainment brands. A presentation by Mayuri Pitale
    15. 15. Leverage the Circle of Influence Attitude Belief Consumption A presentation by Mayuri Pitale
    16. 16. Why entertainment licensing works Leverage the power of the existing strong brand and shout out through the clutter. Licensing as an experiential marketing tool. Licensing is an excellent strategy to enhance and reinforce existing brand equity. Not to mention the reciprocal benefit that the licensor receives from the advertising and promotional support by the licensees. Licensing revenues tend to be the most profitable revenues of the company. The licensing program lends exponential increase in brand exposure, a cornerstone for developing consumer preference and a strong brand. A presentation by Mayuri Pitale
    17. 17. But with a word of caution: It is important to safeguard the brand even before looking at the monetary gains of royalty earnings through licensing. A presentation by Mayuri Pitale
    18. 18. Retailers/Licensees gain from licensing Reducing the risk associated with new product launch. Transferring the brand values and consumer favor towards the brand, to the licensed product or service. Providing added value and differentiation from competitive offerings. Gaining from the momentum of the core brand’s marketing activity provided by the licensor. Giving credibility for moving into new market sectors through product extensions. Gaining additional retail space and favor. A presentation by Mayuri Pitale
    19. 19. WWE A Case Study A presentation by Mayuri Pitale
    20. 20. • WWE fuels the most dedicated audience on the planet, with television programming available in nearly half a billion households worldwide and more than $1 billion of merchandise sold last year. • Fans love our Superstars and follow them any way they can: on TV, at live events, on pay-per-view, in video games, through print publications and on the Web. • Fans buy their CDs, merchandise, and programming on demand. • They go see their movies, buy their books and carry their favorites with them on their mobile phones. We’ve been at the top of the sportsentertainment industry for over half a century, and every year we’ve found new ways to grow. • WWE is a global integrated media and entertainment powerhouse that can take your business to new heights. A presentation by Mayuri Pitale
    21. 21. With original television and multimedia content being produced 52 weeks a year with no reruns or off-season, WWE is a living, breathing and always-evolving brand. A presentation by Mayuri Pitale
    22. 22. WWE is Entertainment A presentation by Mayuri Pitale
    23. 23. Talent 160+ Superstars, Divas & Legends Television Programming available to 500 million television households/week globally broadcast in 30 languages to 145+ countries worldwide WWE Events 2.1m fans attended 327 events in 2010 Pay-Per-View #1 pay-per-view event airing in 100+ countries WWE Music Group Worked with Guns N’ Roses, Metallica, John Legend and many more Consumer Products 200+ licensees worldwide $1.2bn in global retail sales in 2010 WWE.com 12.8 million unique visitors/month 378 million page views/month 27.3 million video streams/month Home Video Leads DVD sports category with 43%+ market share (US) WWE Studios 9 films slated for 20102012 WWE Mobile 100+ mobile operators globally mobile content deployed in 36 countries WWE Magazine 5.2 million+ annual readers WWE Kids 564,000 annual readers
    24. 24. Understanding the brand from the Global stand point A presentation by Mayuri Pitale
    25. 25. Who We Are Equities • • • • Iconic superstars Compelling story lines Passionate and loyal fan base Multi-generational experience Attributes • • • • • Entertaining Fun Approachable Athletic Humorous
    26. 26. Global Audience Age Distribution Male Skew • 21% between 8-18 • 66% Male • 24% between 19-34 • 34% Female • 24% between 35-49 • 31% is 50+ World’s most passionate fans!
    27. 27. WWE Is Generational Balanced Age Distribution 24% 29% 23% 25% 2-17 18-34 35-49 50+ TV Audience Demographics Source: Nielsen Media Research, Primetime, 12/27/10-12/25/11
    28. 28. SOCIAL MEDIA POWERHOUSE more fans than: Sources: Facebook and Twitter counts as of March 2012. more followers than:
    29. 29. FROM GRANDPARENTS AND BABY BOOMERS… 2643 Adults 50+ (000) 2236 2148 Average Viewers 1392 949 458 Source: Nielsen Media Research, Primetime, 9/25/11-12/25/11
    30. 30. …TO THE NEXT GENERATION OF LOYAL FANS Average Viewers 618 572 600,000 Boys 6-11 (000) 289 400,000 329 200,000 174 164 133 90 0 Source: Nielsen Media Research, Primetime, 9/25/11-12/25/11
    31. 31. FROM OUR CORE AUDIENCE… 1321 Average Viewers 1139 1056 Men 18-34 (000) 1,000,000 528 500,000 190 62 0 Sources: Nielsen Media Research; NBA (ESPN/TNT, 10/26/10-4/13/11); MLB (ESPN, 3/31/11-9/28/11); NHL (Versus, 10/7/10-4/5/11); RAW, SmackDown (12/27/10-12/25/11)
    32. 32. …TO THE GATEKEEPERS OF THE WORLD Average Viewers 2721 Females 2+ (000) 1982 1675 1381 1150 1014 Source: Nielsen Media Research, Primetime, 9/25/11-12/25/11
    33. 33. Consumer Products • Over $1billion in global retail sales in 2011 • Global partners include: • Mattel - Toys • THQ - Video Games • Topps – Collectibles/trading cards • Over 130 licensees globally • 16 international licensing agents • Product distributed in 86 countries • Walmart WWE’s #1 retail partner across multiple categories • Multiple category penetration at Walmart, Target, Toys R Us, Kmart, etc. • Major promotions with retailers such as Walmart and FMCG Giants such as Pepsi Co. A presentation by Mayuri Pitale 33
    34. 34. Understanding the brand from the Local stand point A presentation by Mayuri Pitale
    35. 35. WWE India On TV 365 Days a year! Specials outscore cricket! On Line India is 4th globally in popularity , crossing 15 Million page-views per month! At Retail Toys, games and Trading Cards available across 30,000 touch points pan India A presentation by Mayuri Pitale
    36. 36. WWE on TV • Over a decade of programming on Ten Sports • 68 million viewers on Ten Sports • WWE specials outscore Cricket in terms of TVR on Ten Sports • GRPs (gross rating points) crossing Cricket, Football, Tennis and other sports on the channel!
    37. 37. Mobile Content • Second most popular viewed content on mobile devices (apart from cricket) with 5 million downloads a year! CPG • WWE toys with Mattel • WWE Topps Trading Cards • WWE and THQ video Games Online • Over 10 million page views a month on wwe.com – India website though Sify • 850,000 unique visitors on our India website. • WWE merchandise to launch in categories such as apparel, back to school, stationery, rideons, novelty by Feb 2013.
    38. 38. Retail Touch Points WWE merchandise available through LFR and distribution at over 30,000 touch points pan India. A presentation by Mayuri Pitale
    39. 39. WWE Retail Events We bring down WWE superstars to India every year! A presentation by Mayuri Pitale
    40. 40. WWE Summit Our yearly licensee/trade meet A presentation by Mayuri Pitale
    41. 41. Unlike many “static” licenses, WWE’s characters and storylines frequently change. This is great news for licensees because WWE fans have an insatiable need for the latest and greatest products. A presentation by Mayuri Pitale
    42. 42. Thank you! A presentation by Mayuri Pitale

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