1. The Power of Entertainment Licensing
A presentation by Mayuri Pitale,
CPG, WWE India.
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. 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
5. We have been fans of shows and characters
from
TV
A presentation by Mayuri Pitale
6. We have been fans of characters from
Movies
A presentation by Mayuri Pitale
7. We have been fans of bands and artists
Music
A presentation by Mayuri Pitale
8. And the new one on the block, characters from
Gaming
A presentation by Mayuri Pitale
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. This Illustrates the importance of
ENTERTAINMENT in our lives
A presentation by Mayuri Pitale
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. 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. 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. Licensing remains as one the most exciting activities
of the marketing mix for the entertainment brands.
A presentation by Mayuri Pitale
15. Leverage the Circle of Influence
Attitude
Belief
Consumption
A presentation by Mayuri Pitale
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. 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. 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
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. 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
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
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. 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. 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. SOCIAL MEDIA POWERHOUSE
more fans than:
Sources: Facebook and Twitter counts as of March 2012.
more followers than:
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. …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. 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. …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. 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
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. 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. 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. Retail Touch Points
WWE merchandise available through LFR and
distribution at over 30,000 touch points pan India.
A presentation by Mayuri Pitale
39. WWE Retail Events
We bring down WWE superstars
to India every year!
A presentation by Mayuri Pitale
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
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.