There is widespread recognition among children’s tv producers that income from tv programme sales is seldom enough to cover production costs. So brand licensing is often centre stage to increase revenue. However, if you start by thinking about brand innovation the upside is even greater.
Current Brand Licensing Model
The current brand licensing process is typically an auction. A producer makes a show. It’s then sold to broadcasters and aired. Production of a ‘style guide’ follows, with a synopsis of the show, the key characters and design elements. It’s usually an impressive tome, and a wonderful work of art. This is then sent to potential licensees with a brief asking them to come up with new product ideas. The product rights are then sold to the highest bidder.
Label Slapping Limits Value
But the current model often leads to little more than putting a label on a product. While there are a few bucks in adding a logo to a pair of pyjamas, pencil-case or rucksack, the benefits seem marginal. Does the label aid brand recognition, stand-out or value? More likely it relegates your brand to a commodity found in cheap and cheerful stores. Thus undermining the brand.
Out-Smart Your Competitors
Therefore thinking from a supply-push product development mindset alone isn’t enough. It’s akin to throwing mud at a wall – and hoping it sticks.
Moreover, markets are increasingly competitive. Media owners compete against retailers, and consumer goods companies. These businesses are amongst the most sophisticated organisations in the world. So, learning from, and out-thinking them, is helpful.
Invest in Consumer ‘Insights’
Consumers choose based on their needs; whether an offer meets their needs, and also by weighing up the benefits of competing offers. They subsequently buy when their ‘needs’ become ‘wants’. The retail trade also buys and stocks-up similarly. Based on what sets their store apart, and also what drives store traffic and meets their customer’s needs.
So invest in audience or market research to make better product development and brand innovation decisions. In particular, invest in meaningful insights on consumers’ needs and behaviours. Also understand what engages and sets your tv series apart. Look for unusual character and personality quirks. Do this at the same time as programme production, in order to maximise both programme development and brand innovation opportunities.
Create Stimuli to Push Boundaries
Stimuli (1) brings to life ideas. Thus better enabling consumers to react to ideas, and challenge and build them. It therefore moves conversations beyond the superficial to the detailed. In turn, helping to uncover more insights, and to better articulate how to differentiate products and services, and also command a premium. Ultimately for ‘hard-wiring’ into ‘style guides’ and also brand marketing plans, in order to deliver the required return on investment.
Brand licensing is a valid and powerful means of extending a brand into new markets and growing sales. However there are commercial upsides in thinking beyond slapping your label on a product. So think about what currently sets your brand apart or could in the future.
Extending programmes beyond the tv screen to create brands requires the programme’s unique essence to be truly understood. Do this by seeing through the audience’s eyes. Also by using creative stimuli to explore, and push creative boundaries.
The same thinking process applies to any organisation thinking about how to extend their product or service into new markets. Carpe diem.
(1) Stimuli reproduced courtesy BBC Worldwide. These are just a handful of some 70 plus ideas created in order to explore new product and brand innovation opportunities for The Secret Show. Read more about our approach to using creative stimuli in research.