Movie merchandising is an interesting method whereby fans can preserve precious moments from films for a long time.
They can hold on to their feelings by clutching products that look similar to the one they saw in the movie or that remind them of the movie in some way.
Merchandise representing certain movies is available to consumers when the production studios license the right to sell spin-off products to manufacturers.
Producers and distributors usually do not manufacture film-related products themselves. They license the right to sell these products to other companies (the 'licensee').
In most cases, there is no risk to the producer or distributor (the 'licensor') because the licensee incurs all manufacturing and distribution expenses.
If the movie flops and the products do not sell, generally it is the manufacturer who incurs the loss. The producer/distributor typically receives an advance payment for each product, as well as royalty payments which are a certain percent of gross revenues from sales to retailers (i.e., the wholesale price).
Moreover, sometimes this merchandising helps in advertising the movie also.
For example, if McDonalds agrees to distribute millions of Roger Rabbit cups to its customers, and spend a huge amount of money to advertise the promotion, the movie benefits from increased audience awareness.
Toy Story served as a vehicle to promote toy characters whose sale, in turn, promoted the film they starred in.
Walt Disney built an empire marketing Mickey Mouse ears and other toys, not to mention the enormous revenue generated from theme parks.
Movie merchandising and Hollywood
In the United States, movie merchandising is big business. According to sources, licensed products generate more than about $73 billion a year, of which $16 billion is derived from entertainment such as movies.
Consider this. For its animated film 101 Dalmatians, Disney made deals with more than 130 companies including cross-promotional deals with McDonald's, Dr Pepper and Frito-Lay.
In ET, you may recall a scene in which a child shared some of her Reese's Pieces candy with the friendly alien.
As a result of exhibiting that product in the film, its sales increased an incredible 65 per cent.
Merchandising based on some Hollywood films have been a big success in India. Recently, Pottermania hit India. A number of brands related to toys, games, designer kids wear, stationery have cashed on the Harry Potter series books and films.
During a market survey, Weekender found that Harry Potter was very popular with children in the age group of eight to 14 in metros and even in small towns.
Most school libraries had several copies of the Harry Potter series and they were constantly in circulation.
Weekender introduced T-shirts, caps and bags based on the character. Scholastic introduced colouring kits with sketches from the Harry Potter book.
The kit contains a 'magic colouring book' whose concept is borrowed from Potter's secret diary. The colours on a white page come alive only when a particular pen is used.
The book can be used both for drawing and keeping 'secret diaries.'
Lego and Mattel planned various Potter toys and games which have been conceived around the most popular sequences from the book. Of the several games designed by Mattel, one is the Harry Potter Hogwart's electronic play school with hi-tech sound and light features.
...and Bollywood
Merchandising movie memorabilia has a huge potential in India also considering that movies are the biggest and most popular form of entertainment in the country.
Many of us would remember the success of Maine Pyar Kiya that led to high sales of the 'Friend' cap, and Salman Khan's leather jackets.
Hrithik Roshan, star of the hit Kaho Na Pyar Hain, signed contracts that allowed his name and picture to appear on a variety of products like video games, pens and perfumes in return for a share.
Marketers of major brands have been constantly analysing Bollywood to cash in on the high-potential movie merchandising business.
Egmont Imagination India -- makers of entertainment items for children -- launched an entire range of Badhaai Ho Badhaai products. This included an entire range of activity books, which included a 'Graphic novel' with the full story of the movie, a mystic pencil book and a jumbo colouring book based on the movie and its characters for children.
Aamir Khan Production and indiatimes.com tied up with Archies to bring out Lagaan merchandise like writing pads, jigsaw puzzles, greeting cards, posters, slam books and photo albums.
This memorabilia was available at exclusive Archies outlets in several cities across India and online on indiatimes shopping.
While merchandising brings extra value to a film by way of long lasting mementos in the hands of the consumer, the merchandiser also gains. Hence it results in a win-win situation.
However there has to be synergy between the movie and the product. Also, it is not easy to find the right merchandiser. What may be a big rage in the West may take time in India.
For instance, GI Joe took two years to take off here, but today it is a successful brand. Tele Tubbies, which was a rage in the United Kingdom and the US, did not get the expected response in India.
Film merchandising is a very evolved concept in the West, while in India its potential has been realised fairly recently.
The writer is head-market research, Kidstuff Promos & Events.
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