Feature: Licensing: Up and down the property ladder

By the end of this year, some of the biggest companies in the food and drink sector have pledged to stop marketing food high in fat, salt and sugar (HFSS) to children under-12. Many of these, which include Coca-Cola, Nestlé, Mars and Burger King, have been active in using popular film and TV characters in their promotions, but the kinds of tie-ins with films such as Indiana Jones and Kung Fu Panda that could be seen in stores and restaurants this year are unlikely to be repeated.

The owners of the entertainment licences are also taking action. Nickelodeon UK – which is behind several popular children’s characters such as SpongeBob SquarePants and Dora the Explorer – has announced that, from January 2009, it will not allow its properties to link up with brands that do not meet government HFSS criteria.

With organisations such as Which? and the Association of Teachers and Lecturers putting pressure on brand owners to curb their marketing to children, promoters are taking a more creative approach to using licences. “I don’t think brand partnership are dead,” says Robert Prevezer, chief executive of The Communications Agency. “It’s a case of being more imaginative, thinking outside of the box. The task for people like us is to look at partners that maybe you haven’t worked with before in completely different sectors.”

Jill Goldworn, co-founder of The Licensing Agency (TLA), notes that entertainment tie-ins have spread from quick-service restaurant and FMCG to any kind of market sector. In the US, where entertainment has a longer history of being used in promotions, new industries are turning to licences to boost their marketing in the face of increased competition, she says. “The next trend in entertainment licensing will for sure be coming from industries traditionally not a target for entertainment promotions. We are currently working closely with many new types of institutions in the US and elsewhere to deliver consumers with exciting, entertaining offerings and it looks extremely promising both for the American market and the rest of the world.”

This summer saw Suzuki join forces with cartoon robot Wall-e for dealership promotions, while the Iron Man action hero has established a winning partnership with Audi. Heineken has just announced a partnership with the new James Bond film, Quantum of Solace, that will lead to on- and off-trade promotions.

The Communications Agency has been working with Disney on all animated and live action releases since Aladdin in 1992, developing brand partnerships with adult-oriented brands such as Wagamama, the RAC, Orange and O2. It brought in the Pirates of the Caribbean for joint activity with BAA to promote airport retailers, identifying that the entertainment property would appeal to its target family market.

The Sex and the City franchise provided opportunities for adult-related licensed promotions, including the link-up between Sex and the City and Caroline Herrera fragrance 212, which was brokered by advertising company Pearl & Dean. This included experiential activity and promotion in Vue cinemas with women’s magazine Grazia. “This was very clever and smart because it was relevant considering the subject, the characters and the positioning of the movie, which were consistent with the fragrance’s,” says Jean-marc Lehu, associate marketing professor at Pantheon Sorbonne University in Paris and author of Branded Entertainment. “It was like attaching a rail carriage – the fragrance – to a very fast train – the movie.”

Lehu also applauds Mercedes’ promotional partnership with the film as well as Lego’s link-up with Indiana Jones and Batman The Dark Knight’s with Lamborghini. “In all those cases, there is a natural relevant symbiotic plausible relationship between the brand and the movie. Authenticity and relevancy must prevail, or it will be deception and critics who will prevail.”

Caroline Campbell, account director at Lime Communications, says she is very excited about the potential for the modern-day remake of 1980s hit film and TV series Fame. Lime has been appointed by its distributor to develop brand partnerships and promotions to support its release next summer. “It’s incredibly exciting to be working on a film which has already demonstrated its huge appeal to teens and adults of all ages.”

Adam Beswick, licensing manager at The Marketing Store, notes how promotions using licences have shifted towards gaining endorsement from parents. As well as the increase in sport properties, he says major TV series such as Heroes, 24 and Desperate Housewives have huge impact demographically. “They are almost seen as films in their own right and are broadcast over a long period of time. I believe there will be tie-ins with these types of licences as they are very campaignable and they are talked about a lot by younger adults.”

Paul Parry, head of distributor marketing at movie promotions company Filmology, says that there are still plenty of films around to appeal to a wider audience rather than just children. Filmology is currently looking at 150 movies for 2009 to 2011 that have potential for promotional partnerships with all kinds of relevant brands, he says, such as Fast & Furious 4, Hotel For Dogs, Pink Panther 2, Night at the Museum 2 and Transformers 2.

“Licensed properties are such a cost-effective way of communicating,” explains Vickie O’Malley, managing director of licensing specialist CPLG. “Using a licence allows brands to instantly communicate values through association and allows partners to tap into the power of the licence, its consumer products programme and associated marketing support. Top-rated TV shows, new and classic movies and personalities provide incredible opportunities in this way and can instantly position a brand where millions would have to be spent over considerable periods without the power of the licensed intellectual property.”

TLA is looking not just at family-related content but also sport-related, youth-related and adult-related properties. There are also now other entertainment properties from the worlds of video games, TV, artists and music. Denis Huré, TLA’s co-founder and chief executive, believes that there is more potential for licences than ever before in marketing. “End consumers are becoming more and more sophisticated,” he says. “While traditional promotions would have been highly effective a few years ago, multinationals now have to offer much more to be able to catch their attention. For instance, some of TLA’s customers realised an increase in their sales by 35 per cent when employing digital sales promotions and entertainment tie-ins, and others a sell-through twice as fast as usual thanks to the entertainment-linked sales promotion.”

However, there is still a place for using TV and film characters in marketing food and drinks to children, claims Prevezer at The Communications Agency, so long as it involves suitable brands. “In the current climate, it is about appropriateness,” he says. For instance, Nickelodeon UK has linked up with Danone in the growing children’s water category with a partnership between SpongeBob SquarePants and its Volvic Splash brand.

Kimberly-Clark has worked successfully with Disney through Kleenex and Huggies, using bespoke packaging tying in with Finding Nemo, Ratatouille and Cars. Kate Fenton, director of Kimberly-Clark’s agency, Multiply, says that, while integrated campaigns may have digital and in-store elements, the chief appeal to children is through the images on the packaging. “This is very much the positive side of licensing,” she explains. “It has a positive effect in that kids use tissues more, spread germs less and generally are a bit more hygienic, rather than more sensitive categories like food and drink.”

One of the most hallowed children’s entertainment properties, Sesame Street, is actively pursuing partnerships with food and drinks brands. But, according to Peta Thomson, category manager for toys, gifts and FMCG at CPLG, this is because of the increasing concerns about children’s health. “The foundation of the brand has been built on education and the health and wellbeing of children,” she explains. “Teaching children to live active, healthy lifestyles is central to the Sesame Street brand identity and as a result Sesame Street is the perfect licensed property to create that association.”

Sesame Street has developed Healthy Habits for Life to help children lead healthier lives, and this now features on organic breakfast foods, fruit and vegetables in the US. In a survey of children, 78 per cent initially chose chocolate over broccoli but when they were given the option again, with Elmo next to the broccoli and a generic character next to the chocolate, 50 per cent chose the vegetable.

Thomson believes these kind of promotional partnerships could be replicated in the UK, where Sesame Street airs on channels such as BBC2, CBeebies and Five. “Sesame Street recognises its power as a licensed property, using it appropriately to encourage healthy living.”