Ad campaigns, licensing key to toy firms' success

Ad campaigns, licensing key to toy firms' success

By Lenah Susianty

JAKARTA (JP): A banner at Si Kancil, a restaurant in southern Jakarta, reads, "If your children know Mickey Mouse, why don't they don't know si kancil?"

Kancil (mouse deer) are often described in Indonesian fables as the cleverest of all animals. There are songs and books on si Kancil, but even after being around for as long a Mickey Mouse, si Kancil is barely known. The imported Mickey Mouse and an ear-less Japanese robot cat named Doraemon have won the hearts of many Indonesian children instead. Hundreds of items bear the face and name of Mickey Mouse or Doraemon, but not si Kancil.

The secret of Mickey's and Doraemon's success lies not only in strong advertising campaigns, but also in licensing.

The Walt Disney Company, which is in charge of all products related to the cartoon characters created by Walt Disney, granted PT Gramedia the license to publish Disney comics 19 years ago.

The comics made it easier for other Disney products to penetrate the Indonesian market because children -- who are the obvious target market -- as well adults have come to know the cartoon characters.

Doraemon went the opposite way. PT Elex Media Komputindo, a subsidiary of PT Gramedia, is a licensee of the Tokyo-based Shoga Kukan. It started publishing comic books and coloring books featuring Doraemon only after the TV cartoon character became popular on RCTI. The publication of Doraemon comic books then strengthened the position of the 22nd century cat in Indonesia.

"We wanted the license to publish Doraemon comic books because it is a famous cartoon character. Children know it, so the market for our books is obvious and guaranteed," said Retno Kristy D.G.P., an editor at PT Elex Media Komputindo.

PT Elex decided not to purchase licenses for other Doraemon products because there is too much Doraemon stuff, like inflatable toys, T-shirts and stationery, sold in Indonesia without a license from Shoga Kukan.

Walt Disney faces the same trouble. Every year about 40 cases of piracy are brought to court by the Walt Disney Company.

Piracy is listed as high in Indonesia and is one reason the Walt Disney Company opened a branch here about a year ago. Being in Indonesia enables the company to combat piracy and educate Indonesians of the importance of licensing and copyrights.

Disney's licensee

There are 57 foreign and domestic companies licensed to produce and sell Disney apparel, accessories, toys, stationery and food on the local market.

Disney's cartoon characters are categorized in three groups, the classic ones like Snow White and Cinderella, the standard ones including Mickey Mouse and Goofy, and the movie characters such as Aladdin, the Lion King and the Little Mermaid. There are 15,000 items produced worldwide based on these characters. In Indonesia, only 200 to 300 types of products, mostly clothing, have been licensed.

Licensing is clearly far from exhausted.

"There is still a big market for licensing, especially because many Indonesian companies want to grow quickly. Licensing could be the answer for them," said Hartojo Wignjowijoto, an economist and president of Asia-Pacific Economic Consultancy Indonesia.

"It is a pity because Indonesia has potential," added Iman Solichin, marketing manager for Indonesia's Disney Consumer Products.

"Take melamite plates. They are plain, uninteresting single color plates used mostly by children because they are unbreakable," Solichin explained.

"Children aren't interested in them if they are decorated with the picture of a cat. To them, the cat is just a cat. If you put a picture of Mickey Mouse, the effect is different. Mickey is not only a mouse, but a personality. For children, these cartoon characters are alive and the kid will want to use the plate," he said.

Solichin added that cartoon characters are accepted by people from any social class.

"If you wear a Mickey Mouse T-shirt, no one will say it's expensive. They will say it's funny. It's different if you wear another international brand-name T-shirt. There is no status behind it, every class can enjoy and appreciate these cartoon characters," Solichin insisted.

Licensing also facilitates producers in promoting and marketing their merchandise in and out of the country through international networks. Some of Disney's licensees in Indonesia, for instance, manufacture their products here, export them abroad and then re-import some of them.

Retno said that advertising costs of licensed products are lower because the image is already well-known.

"We don't have to finance big advertising campaigns because the Doraemon cartoon series has already made the character familiar," Retno explained.

"Producers who buy licenses don't waste energy thinking up designs because there are creative guidance books. You can produce almost anything," Solichin said.

Short cut

Hartojo believes companies looking for a short cut with few risks and a fixed market purchase licenses..

"Introducing and developing your own product takes time. Its hard in the beginning and is a long process before consumers want the product," he said, adding that establishing products and not relying on licensing is more suitable for Indonesia.

"In the long-run, establishing our own products is better than getting a license, because we have many resources, including labor," Hartojo explained.

Licensees are also heavily controlled in both management and production systems by the original company.

Disney's guide books provide producers with rules on choosing the right color for the dress of a cartoon character, its proper size, its proper facial expression and which products can be made for each character. For its 33rd animation film about an Indian girl, Pocahontas, to be distributed this year, Disney issued a guide book telling producers which colors can be used for Pocahontas' dresses, face and lips. All the major characters in the movie are covered by the books. Designs for T-shirts, bed covers, towels and watches are also provided.

Disney is very strict in maintaining the quality and image of its products. One guide book states that all the characters must be properly depicted on all merchandise to maintain the proper image of the character. Bromides of all the characters have therefore been prepared by Disney's artists. Licensees are not allowed to paint the pictures or faces of Disney's characters by themselves.

"The licensee is very dependent. Once the contract is stopped, there's nothing they can do. If everyone preferred getting a license, Indonesia will be weak because we would be dependent on international companies," Hartojo asserted.

This seems to be the trend in Indonesia though. Si kancil has become more and more distant from the lives of Indonesians. Ask a child what si kancil looks like and be prepared to hear him say, "Who is si Kancil?"