A character's universal appeal does not guarantee success in the licensed food sector. Sean McAllister finds the magic mix
Who's more entertaining, Bart Simpson or Scooby-Doo? This is the kind of question kids ask themselves when turning on the TV but when it comes to choosing a licence for a product, millions can rest on the answer.
Many companies find that associating their product with a popular film, TV or literary character can increase sales and raise margins  last year the licensed food market generated sales of £750m [Mintel]. "Licensing is a very effective way to get a brand with known equities to sell a product," says Andrew Levy, MD of Lima (International Licensing Industry Merchandisers' Association). "It is easier and cheaper to buy a licence than to create your own characters and brand."
Licences add something that Dave Lawrence, planning director at promotions agency Logistix Kids, calls eatertainment'. "They add enjoyment and entertainment to a child's experience of consuming a product," says Lawrence. He believes licences work particularly well with young children, acting as a brand surrogate'.
"Young children do not recognise brands such as Coca-Cola and Tango but they can identify with characters."
So what makes a successful licence? A starting point is good TV coverage. "Just look at Popstars. The power of television created one of the biggest selling singles in the UK virtually overnight," says Levy.
Children are fickle, their trends change rapidly, and if it is not on TV then it is unlikely they will want it. But predicting which programmes and characters are popular is difficult because kids are leading "multimedia lifestyles" says Lawrence.
Pauline Howarth, director of licensing and design at Bon Bon Buddies, warns that a successful property at the box office or on TV doesn't always translate across all retail categories. "Retailers often use toy sales as an indicator, but brands such as Power Rangers, Thunderbirds and Max Steel sold well within the toy sector, but struggled in the food sector," she says.
Howarth believes this is partly due to the competition food faces for retail space, particularly for character goods. "Retailers will often just buy safe' classics or the top character brand. And the simple fact is that Winnie the Pooh, Bob the Builder and The Simpsons steal share from the many toy' success possibilities," adds Howarth.
Levy describes getting licensed products on to the shelves as similar to putting the proverbial camel through the eye of a needle. But retailers should realise the opportunities. "Licensing can result in cross-promotional opportunities, more fun and theatre for shoppers, an increase in loyalty and ultimately a larger basket purchase," says Howarth.
Tesco is committed to offering licensed products and will have an average of two shelves dedicated to licensed products, and 12 at Christmas.
Jackie Hemmings, customer manager for Tesco, says: "We dictate to suppliers what properties we will stock."
Hemmings adds: "Kids should not want to throw away the box or label, so there needs to be a novelty factor. Manufacturers need to get down to the kids' level and understand their programming and try to catch it in a product."
{{FOCUS ON }}
Who's more entertaining, Bart Simpson or Scooby-Doo? This is the kind of question kids ask themselves when turning on the TV but when it comes to choosing a licence for a product, millions can rest on the answer.
Many companies find that associating their product with a popular film, TV or literary character can increase sales and raise margins  last year the licensed food market generated sales of £750m [Mintel]. "Licensing is a very effective way to get a brand with known equities to sell a product," says Andrew Levy, MD of Lima (International Licensing Industry Merchandisers' Association). "It is easier and cheaper to buy a licence than to create your own characters and brand."
Licences add something that Dave Lawrence, planning director at promotions agency Logistix Kids, calls eatertainment'. "They add enjoyment and entertainment to a child's experience of consuming a product," says Lawrence. He believes licences work particularly well with young children, acting as a brand surrogate'.
"Young children do not recognise brands such as Coca-Cola and Tango but they can identify with characters."
So what makes a successful licence? A starting point is good TV coverage. "Just look at Popstars. The power of television created one of the biggest selling singles in the UK virtually overnight," says Levy.
Children are fickle, their trends change rapidly, and if it is not on TV then it is unlikely they will want it. But predicting which programmes and characters are popular is difficult because kids are leading "multimedia lifestyles" says Lawrence.
Pauline Howarth, director of licensing and design at Bon Bon Buddies, warns that a successful property at the box office or on TV doesn't always translate across all retail categories. "Retailers often use toy sales as an indicator, but brands such as Power Rangers, Thunderbirds and Max Steel sold well within the toy sector, but struggled in the food sector," she says.
Howarth believes this is partly due to the competition food faces for retail space, particularly for character goods. "Retailers will often just buy safe' classics or the top character brand. And the simple fact is that Winnie the Pooh, Bob the Builder and The Simpsons steal share from the many toy' success possibilities," adds Howarth.
Levy describes getting licensed products on to the shelves as similar to putting the proverbial camel through the eye of a needle. But retailers should realise the opportunities. "Licensing can result in cross-promotional opportunities, more fun and theatre for shoppers, an increase in loyalty and ultimately a larger basket purchase," says Howarth.
Tesco is committed to offering licensed products and will have an average of two shelves dedicated to licensed products, and 12 at Christmas.
Jackie Hemmings, customer manager for Tesco, says: "We dictate to suppliers what properties we will stock."
Hemmings adds: "Kids should not want to throw away the box or label, so there needs to be a novelty factor. Manufacturers need to get down to the kids' level and understand their programming and try to catch it in a product."
{{FOCUS ON }}
No comments yet