Character merchandising, also known as character licensing or character branding, is a marketing strategy that involves the use of fictional or real characters, often from popular media or entertainment, to promote and sell various products and services. This strategy capitalises on the popularity and recognition of specific characters to enhance the appeal and marketability of goods.
Use of characters: Character merchandising involves the incorporation of well-known characters, whether they are from movies, TV shows, books, comics, or other forms of entertainment.
Diverse products: The characters are used to adorn a wide range of products, including toys, clothing, accessories, stationery, home goods, and more. The goal is to leverage the characters' popularity to boost sales across various consumer products.
Brand extension: This strategy is a form of brand extension where the popularity of a character is extended beyond its original medium (e.g. a movie or TV show) to generate additional revenue through the sale of merchandise.
Cross-promotion: Character merchandising often involves cross-promotion, where the success of a character in one form of media is harnessed to enhance the marketability of related products. For example, a popular animated character may be featured on lunchboxes, backpacks, and clothing.
Licensing agreements: Companies that own the rights to popular characters often enter into licensing agreements with manufacturers and retailers. These agreements grant permission for the use of the characters on merchandise in exchange for royalty payments.
Fan engagement: Character merchandising helps build and maintain a fan base by allowing consumers to express their fandom through the purchase of products featuring their favourite characters.
Marketing and promotion: The use of characters in merchandise serves as a powerful marketing tool. It can attract attention, create brand recognition, and drive sales through the emotional connection that fans have with the characters.
Legal considerations: Character merchandising involves navigating legal aspects, including intellectual property rights and licensing agreements. Companies must secure the necessary permissions to use characters to avoid legal issues.
Character merchandising is a widely employed strategy in the entertainment and consumer goods industries, effectively leveraging the popularity of characters to create a strong connection with consumers and drive sales of associated products.
You can learn more about this topic with our Intellectual Property notes.
