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Riding on the crest of the success obtained in the television content business, popular television networks in India have woken up to the immense opportunities in the merchandising and the consumer products businesses. With receptive Indian audiences yearning for more, the consumer products business of TV networks seems to be on the threshold of a quantum leap. Following the path strode by youth networks like MTV are kids channels such as Cartoon Network.
In order to tap the kids genre with branded merchandise (T-shirts, skirts, bed linen, erasers, umbrella and even vanity case), Cartoon Network announced its foray into the consumer products business in the country.
Do members of the advertising and marketing fraternity back such initiatives taken by the TV networks? While trying to explain the heightened merchandising activity by the kids’ channels, Basabdatta Chowdhuri, COO, Madison Media Plus, states, “It makes far more sense in the kids’ genre in India because of the widespread popularity of these characters. This adulation can be extended to consumer products and a revenue model can be created from the same. This is one reason why we see a lot of potential in kids’ channels. In India, you can see cassettes and CDs that are based on popular television properties such as STAR Parivar or ‘Indian Idol’. But in the kids consumer product segment, there is not much choice and the sector is not as organised as the adult sector today.”
John Friend, Sr. Vice President Worldwide, Cartoon Network Enterprises, adds, “Indian consumers are sophisticated and passionate and connect with brands. In fact, there is something wonderful about this country, which has so many young people. As kids grow, they find different ways to express themselves. And one of the ways in which they express themselves is to present them with an access to all those who they identify with: for e.g., a lot of young girls would identify with the ‘Power Puff’ girls. So, this trend creates a nice opportunity for us in terms of building the brand and building the merchandising business.” Explaining what will make their merchandise work, Friend says, “Good brands, smart strategies, great partners and above all, we make really really great products.”
Having said that, youth channel MTV too has dabbled into the consumer product area and tied-up with Pantaloons. It leveraged its VJs like Nikhil Chinappa, who endorsed the accessories and offerings in specially created communication campaigns. Though a considerable time has passed since the association between the two entities was discontinued, it leads to several questions: does merchandising by TV channels work; and how does the initiative of being present in the consumer space help TV channels get additional benefits or add on newer revenue streams?
Hema Govindan, Head of Marketing & Communication, Walt Disney Television International (India), answers, “The presence of fun, innovative and compelling products builds an emotional bond with the character. The consumer affinity towards the characters finally helps drive viewership on the channels. It is also true the other way around; having watched your favourite characters on screen; there is a desire to possess the same, which drives purchase. It is fair to say that both consumer products and TV channels go hand-in-hand in supporting and building each of the businesses.”
To read the entire story, grab your copy of Impact Advertising and Weekly magazine issue dated May 30-June 5, 2005