Marketing animation brands involves a unique approach. These brands start as intangible concepts, such as images or movie characters, so they use branded merchandise to extend the brand's reach beyond screens.
This strategy, known as merchandise licensing, allows companies to produce branded products like cosmetics featuring Hello Kitty or T-shirts with Superman. These products are made by licensees who buy the right to use the brand, not the brands themselves. Merchandise licensing is a powerful marketing strategy that enhances brand visibility and consumer engagement, allowing the brand owner to earn on that too.
Hello Kitty as a brand had a major problem: most companies outside of Asia didn't want to buy a license for the brand, as it had a very bad reputation. Hello Kitty was associated with something cheap, pink, only for little girls. This hindered the growth in sales of licensed products. The huge number of pirated products made the situation worse. Moreover, the brand's head office did not adapt the promotion strategy to each market individually.
To address these challenges, we implemented several strategic initiatives. Firstly, we engaged legal counsel to combat piracy, protecting the brand's integrity and value. Secondly, we diversified the brand's color palette, moving away from its traditional pink image to incorporate more universally appealing colors. This not only refreshed the brand's aesthetic but also made it more inclusive to a broader audience. Lastly, we tailored our promotion strategy to the assigned market, recognizing that Hello Kitty's perception varies across different regions, such as Tokyo and Moscow.
These efforts resulted in a transformed Hello Kitty brand. Major companies took notice of the repositioned brand, leading to increased interest and investment in licensing agreements. The audience for Hello Kitty products diversified, expanding beyond its traditional demographic. Consequently, manufacturers in lucrative sectors such as food & beverage and apparel began signing contracts with the brand, driving substantial commercial success.