Character Merchandising - US - December 2011

SCOPE AND THEMES
What you need to know
Data sources
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Sales in most categories of character merchandise down in 2010
Character-branded personal care products sales increased in 2010
Most Americans buy at least some character merchandise
Most character merchandise purchased in discount channels
Increased regulation could be undermining growth of food sales
SpongeBob SquarePants and Dora the Explorer most popular characters
Yet parents somewhat more likely to favor classic characters
Food and snacks, clothing, and paper products most popular categories
Blacks more likely to have purchased most types of character merchandise
INSIGHTS AND OPPORTUNITIES
Show parents how characters can be used to teach kids good habits
Develop educational materials than can be used by schools and parents
Figure 1: Team Umizoomi preschool math kit, November 2011
Consider letting kids and parents customize characters using online tools
INSPIRE INSIGHTS
Trend: Edutainment
Trend: Non-Standard Society
MARKET SIZE AND SEGMENTATION
Key points
2010 sales declined as many continued to embrace frugality
Figure 2: Retail sales of licensed merchandise, by product category, 2009-10
With few exceptions, sales decline across majority of property types
Figure 3: Retail sales of licensed merchandise, by property type, 2009-10
Declines in character merchandise sales consistent with overall declines
Figure 4: Retail sales of entertainment/character-based merchandise, by product category, 2009-10
CHANNEL ANALYSIS
Sales declines may be due in part to pricing pressure at mass
Figure 5: Retail sales of licensed entertainment/character merchandise, by distribution channel, 2010
Declines in Disney Store visits correlates with recession
Figure 6: Kids 6-12 Disney Store past month visit and favorite store, January 2006-December 2010
INDUSTRY CHALLENGES
Legal issues and licensing rights
Effectiveness of characters in marketing toward children invites scrutiny
Regulators often focus on food and beverage marketing
Declining median household income likely dampening sales
Figure 7: Median household income in inflation-adjusted dollars, 2000-10
MARKET DRIVERS
Key points
Growth of 6-11 segment should help to drive sales
Figure 8: Population, by relevant age groups, 2006-16
Minorities particularly important to character merchandisers
Figure 9: Population by race and Hispanic origin, 2006-16
Minorities more likely to have kids than whites
Figure 10: Households, by race of householder and presence and ages of children, 2010
Hispanics and Asian segments likely to play a key role in driving future sales growth
Figure 11: Hispanic population, by relevant age groups, 2006-16
Figure 12: Asian population, by relevant age groups, 2006-16
Box office slump may also be linked to sales declines
Figure 13: Top Grossing movies of 2011 (Jan. 3, 2011 through Nov. 29, 2011)
LEADING COMPANIES
Disney/Pixar
Nickelodeon
Warner Brothers
Hasbro
INNOVATIONS AND INNOVATORS
Hasbro and the Hub
Marvel clothing line
Figure 14: Aeropostale Spider-Man hooded sweatshirt, November 2011
Green Lantern: ties to toys, snacks, QSRs, and theme parks
Figure 15: Green Lantern roller coaster logo, November 2011
Spider-Man on Broadway
Figure 16: Spider-Man turn off the dark poster, November 2011
Disney/Pixar Cars merchandising success
SpongeBob SquarePants is everywhere
SpongeBob characters at the forefront of trends
Figure 17: SpongeBob SquarePants SillyBandz, November 2011
Characters licensed for video game development
Food and personal care products bear likeness
Dora the Explorer sales similar to SpongeBob
Dora merchandise covers gamut of product targeted toward kids
Better-for-you foods using characters appeal to parents and kids alike
Harry Potter
Burger King “King”
TELEVISION ADVERTISING
Use of characters in television advertisements
Farmers Insurance uses characters to capture the attention of adults
Figure 18: Farmers Insurance Group, X-Men First Class television ad, 2011
Dunkin’ Donuts uses Captain America to frame the brand as all-American
Figure 19: Dunkin’ Donuts, Captain America television ad, 2011
McDonald’s leverages Kung- Fu Panda 2 to promote happy meals
Figure 20: McDonald's, Kung Fu Panda television ad, 2011
Yoplait uses Cars characters and game to make Go-Gurt fun
Figure 21: Yoplait Go-Gurt, Cars television ad, 2011
Bel Furniture uses characters to attract parents and kids
Figure 22: Bel Furniture, SpongeBob SquarePants television ad, 2011
FAVORITE CHARACTERS
Key points
SpongeBob SquarePants remains most popular character among children
Figure 23: Favorite character and youngest child’s favorite character, August 2011
Disney characters especially popular with women
Figure 24: Favorite character, by gender, August 2011
SpongeBob popularity increases with age, Dora peaks younger
Figure 25: Youngest child’s favorite character-part 1, by children’s ages, August 2011
Figure 26: Youngest child’s favorite character-part 2, by children’s ages, August 2011
Younger children prefer characters on clothing
Figure 27: Images children aged 6-12 years like on clothing, by gender and age of child, May 2011
INFLUENCE OF CHARACTERS ON PURCHASE BEHAVIOR
Key points
Those with more children in the home buy more character products
Figure 28: Character merchandise purchases compared to last year, by presence and number of children in household, August 2011
Parents of younger children most likely to buy character merchandise
Figure 29: Character merchandise purchases compared to last year, by parental status and children’s ages, August 2011
PURCHASES FOR CHILDREN
Key points
Parents prefer to buy classic character merchandise over contemporary
Figure 30: Character merchandise purchases for children, by number of children in household, August 2011
Parents of older children most interested in contemporary characters
Figure 31: Character merchandise purchases for children, by parental status and children’s ages, August 2011
PERCEPTIONS OF CHILDREN’S ATTITUDES TOWARD CHARACTER MERCHANDISING
Key points
Children are more likely to use character merchandise
Figure 32: Parents’ perception of their children’s attitudes toward character merchandise, August 2011
Parents of three or more report children prefer character merchandise
Figure 33: Parents’ perception of their children’s attitudes toward character merchandise, by number of children in household, August 2011
Older children have strongest preference for character merchandise
Figure 34: Parent’s perception of their children’s attitudes toward character merchandise, by children’s ages, August 2011
ATTITUDES TOWARD CHARACTER MERCHANDISING AND CHILDREN
Key points
Slightly more than half of adults find the use of characters to be exploitive
Figure 35: Attitudes toward character merchandising and children, August 2011
25-34 year olds least likely to see character merchandising as exploitive
Figure 36: Attitudes toward character merchandising and children, by age, August 2011
Parents are less likely to see using characters as exploitive
Figure 37: Attitudes toward character merchandising and children, by parental status, August 2011
Parents of children across ages find many characters too adult-like
Figure 38: Attitudes toward character merchandising and children, by parental status and children’s ages, August 2011
ATTITUDES TOWARD CHARACTER MERCHANDISING
Key points
Many feel products with characters are overpriced
Figure 39: Attitudes toward character merchandising, August 2011
Women are more likely to notice a character before the product
Figure 40: Attitudes toward character merchandising, by gender, August 2011
Parents more likely to be reminded of childhood by character products
Figure 41: Attitudes toward character merchandising, by parental status, August 2011
CHARACTER MERCHANDISE PURCHASE CATEGORIES AND RECIPIENTS
Key points
Most character merchandise purchases are for children
Figure 42: Types of character merchandise purchased in the past 12 months, bought for whom? August 2011
 ANY PURCHASE REASON
Women are more likely to purchase character merchandise
Figure 43: Types of character merchandise purchased in the past 12 months, by gender, August 2011
25-34 year olds generally most likely to buy character merchandise
Figure 44: Types of character merchandise purchased in the past 12 months, by age, August 2011
Parents of young children more likely to buy clothes and décor
Figure 45: Types of character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
 PURCHASED FOR SELF
Men more likely to have purchased character merchandise for self
Figure 46: Types of character merchandise purchased for self in the past 12 months, by gender, August 2011
Those without children or with only one more likely to buy for self
Figure 47: Types of character merchandise purchased for self in the past 12 months, by presence and number of children in household, August 2011
Parents of older children more likely to buy character merchandise
Figure 48: Types of character merchandise purchased for self in the past 12 months, by parental status and children’s ages, August 2011
 PURCHASED FOR CHILDREN YOUNGER THAN 12
Parents of younger children more likely to buy character clothing
Figure 49: Types of character merchandise purchased for children younger than 12 in the past 12 months, by children’s ages, August 2011
 PURCHASED AS A GIFT
Women more likely to buy character merchandise as a gift
Figure 50: Types of character merchandise purchased as a gift in the past 12 months, by gender, August 2011
45-54 year olds most likely to buy character paper goods as gifts
Figure 51: Types of character merchandise purchased as a gift in the past 12 months, by age, August 2011
Those with a single child in the household most likely to buy character products as gifts
Figure 52: Types of character merchandise purchased as a gift in the past 12 months, by presence and number of children in household, August 2011
CHARACTER MERCHANDISE CATEGORY PURCHASE DETAILS
Key points
 FOOD AND SNACKS
Parents of younger children most likely to buy character fast food
Figure 53: Food/snack product character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
Men more likely than women to buy food and snacks with characters
Figure 54: Food/snack product character merchandise purchased in the past 12 months, by gender, August 2011
 CLOTHING
Parents of younger children most likely to buy character-branded clothing
Figure 55: Clothing character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
Most character clothes bought for children, though many buy for self
Figure 56: Clothing character merchandise purchased in the past 12 months, by gender, August 2011
Parents more likely to buy character clothing, especially T-shirts
Figure 57: Clothing character merchandise purchased in the past 12 months, by parental status, August 2011
 PAPER GOODS AND SUPPLIES
Parents of older children are more likely to buy character paper goods
Figure 58: Paper goods/supplies products character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
Women more likely than men to purchase paper goods with characters
Figure 59: Paper goods/supplies products character merchandise purchased in the past 12 months, by gender, August 2011
 TOYS AND GAMES
Parents of younger children most likely to buy character soft toys
Figure 60: Toys/games character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
 PERSONAL CARE PRODUCTS
Personal care products most often purchased for young children
Figure 61: Personal care products character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
Figure 62: Personal care products character merchandise purchased in the past 12 months, by gender, August 2011
 HOUSEHOLD DÉCOR
Parents of younger children most likely to buy character-branded linens
Figure 63: Household décor products character merchandise purchased in the past 12 months, by parental status and children’s ages, August 2011
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
White respondents are least likely to purchase character merchandise
Figure 64: Character merchandise purchases compared to last year, by race/Hispanic origin, August 2011
Black respondents among most likely purchasers of most categories
Figure 65: Types of character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Black respondents most likely to have purchased character merchandise for self
Figure 66: Types of character merchandise purchased for self in the past 12 months, by race/Hispanic origin, August 2011
Blacks are the biggest purchasers of character food/snacks
Figure 67: Food/snack product character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Blacks and Hispanics most likely to buy character clothing
Figure 68: Clothing character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Whites more likely than blacks to purchase paper goods
Figure 69: Paper goods/supplies products character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
APPENDIX—OTHER USEFUL CONSUMER TABLES
Influence of characters on purchase behavior
Figure 70: Character merchandise purchases compared to last year, by age, August 2011
Figure 71: Character merchandise purchases compared to last year, by household income, August 2011
Figure 72: Character merchandise purchases compared to last year, by parental status, August 2011
Purchases for children
Figure 73: Character merchandise purchases for children, by gender, August 2011
Perceptions of children’s attitudes toward character merchandising
Figure 74: Parents’ perception of their children’s attitudes toward character merchandise, by gender, August 2011
Figure 75: Parents’ perception of their children’s attitudes toward character merchandise, by Hispanic origin, August 2011
Attitudes toward character merchandising and children
Figure 76: Attitudes toward character merchandising and children, by gender, August 2011
Figure 77: Attitudes toward character merchandising and children, by household income, August 2011
Figure 78: Attitudes toward character merchandising and children, by marital status, August 2011
Figure 79: Attitudes toward character merchandising and children, by race/Hispanic origin, August 2011
Attitudes toward character merchandising
Figure 80: Attitudes toward character merchandising, by parental status and children’s ages, August 2011
Figure 81: Attitudes toward character merchandising, by marital status, August 2011
Character merchandise purchase categories, any purchase reason
Figure 82: Types of character merchandise purchased in the past 12 months, by age, August 2011
Figure 83: Types of character merchandise purchased in the past 12 months, by household income, August 2011
Figure 84: Types of character merchandise purchased in the past 12 months, by marital status, August 2011
Character merchandise purchase categories, purchased for self
Figure 85: Types of character merchandise purchased for self in the past 12 months, by age, August 2011
Figure 86: Types of character merchandise purchased for self in the past 12 months, by household income, August 2011
Figure 87: Types of character merchandise purchased for self in the past 12 months, by marital status, August 2011
Character merchandise purchase categories, purchased as a gift
Figure 88: Types of character merchandise purchased as a gift in the past 12 months, by household income, August 2011
Figure 89: Types of character merchandise purchased as a gift in the past 12 months, by marital status, August 2011
Figure 90: Types of character merchandise purchased as a gift in the past 12 months, by race/Hispanic origin, August 2011
Figure 91: Types of character merchandise purchased as a gift in the past 12 months, by parental status, August 2011
Figure 92: Types of character merchandise purchased as a gift in the past 12 months, by parental status and children’s ages, August 2011
Character merchandise purchase categories, categories not purchased
Figure 93: Types of character merchandise not purchased in the past 12 months, by gender, August 2011
Figure 94: Types of character merchandise not purchased in the past 12 months, by age, August 2011
Figure 95: Types of character merchandise not purchased in the past 12 months, by household income, August 2011
Figure 96: Types of character merchandise not purchased in the past 12 months, by race/Hispanic origin, August 2011
Figure 97: Types of character merchandise not purchased in the past 12 months, by marital status, August 2011
Figure 98: Types of character merchandise not purchased in the past 12 months, by parental status and children’s ages, August 2011
Character merchandise purchase specifics, food and snacks
Figure 99: Food/snack product character merchandise purchased in the past 12 months, August 2011
Figure 100: Food/snack product character merchandise purchased in the past 12 months, by household income, August 2011
Figure 101: Food/snack product character merchandise purchased in the past 12 months, by age, August 2011
Character merchandise purchase specifics, clothing
Figure 102: Clothing character merchandise purchased in the past 12 months, August 2011
Figure 103: Clothing character merchandise purchased in the past 12 months, by gender, August 2011
Figure 104: Clothing character merchandise purchased in the past 12 months, by age, August 2011
Character merchandise purchase specifics, paper goods and supplies
Figure 106: Paper goods/supplies products character merchandise purchased in the past 12 months, August 2011
Figure 107: Paper goods/supplies products character merchandise purchased in the past 12 months, by household income, August 2011
Figure 108: Paper goods/supplies products character merchandise purchased in the past 12 months, by age, August 2011
Character merchandise purchase specifics, toys and games
Figure 109: Toys/games character merchandise purchased in the past 12 months, August 2011
Figure 110: Toys/games character merchandise purchased in the past 12 months, by gender, August 2011
Figure 111: Toys/games character merchandise purchased in the past 12 months, by age, August 2011
Figure 112: Toys/games character merchandise purchased in the past 12 months, by household income, August 2011
Figure 113: Toys/games character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Character merchandise purchase specifics, personal care products
Figure 114: Personal care products character merchandise purchased in the past 12 months, August 2011
Figure 115: Personal care products character merchandise purchased in the past 12 months, by age, August 2011
Figure 116: Personal care products character merchandise purchased in the past 12 months, by household income, August 2011
Figure 117: Personal care products character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Character merchandise purchase specifics, household décor
Figure 118: Household décor products character merchandise purchased in the past 12 months, August 2011
Figure 119: Household décor products character merchandise purchased in the past 12 months, by gender, August 2011
Figure 120: Household décor products character merchandise purchased in the past 12 months, by age, August 2011
Figure 121: Household décor products character merchandise purchased in the past 12 months, by household income, August 2011
Figure 122: Household décor products character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
Character merchandise purchase specifics, other items
Figure 123: Other character merchandise purchased in the past 12 months, August 2011
Figure 124: Other character merchandise purchased in the past 12 months, by gender, August 2011
Figure 125: Other character merchandise purchased in the past 12 months, by age, August 2011
Figure 126: Other character merchandise purchased in the past 12 months, by household income, August 2011
Figure 127: Other character merchandise purchased in the past 12 months, by race/Hispanic origin, August 2011
APPENDIX—TRADE ASSOCIATIONS