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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?"

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