Marketing Question:
Identify & discuss FIVE major macro-environmental factors that are likely to affect the success & growth of Hello Kitty?
CASE:
Hello Kitty: Can Hello Kitty Continue to Rule the World?
She’s the cat who appears on everything from diamond jewellery to pencil cases, with her own theme park and even a branded hospital.
Recently, a newly opened 30‐bed Hau Sheng Hospital in Yuanlin, Taiwan, which aims to relieve the stress of childbirth for women, was completely decked out in Hello Kitty theme. The four storey hospital is decorated in pink with cartoons of the white cat looming out from every possible surface. Newborn also get everything Hello Kitty, including pink or blue receiving blankets, nurses dressed in pink uniforms with cat‐themed aprons, cot linen and room decors. This is Hello Kitty healthcare.
Hello Kitty, a cartoon cat, has appeared on branded merchandise since 1974. But how has the brand’s owner, Sanrio, created a USD$1 billion (SGD1.5 billion) marquee with a personality so appealing that it has been able to cross cultures, product sectors and move into experiences as diverse as theme parks and hospitals?
Roberto Lanzi, President of Global Consumer Products (Europe, Middle East and Africa) for Sanrio, admits that the success of Hello Kitty and its many manifestations might look a little odd to anyone not familiar with the business. He explains: ʺOne of the key points of Hello Kitty is its ability to transcend product categories. It is the only brand in the world where you could buy a lollipop or a bottle of red wine. Itʹs also one of the only licensing companies in the world that does more than USD15.7 million (SGD24.5 million) a year in pure diamonds.ʺ
For most licensed brands, there is a moment when success turns into over‐exposure. This does not seem to have been an issue for Hello Kitty, however. Starting out 34 years ago as a cartoon cat on a purse, it has appeared on everything from mainstream school notebooks to edgy, pricey Fender Stratocaster guitars. When McDonald’s created Hello Kitty Happy Meals in Tokyo, people queued up outside in a way usually reserved for rock concerts. When McDonald’s offered limited edition Hello Kitty premiums along with its Happy Meals in Hong Kong, Taiwan and Singapore, customers mobbed the restaurant’s outlets. Many bought the food and immediately throwing it away, just to get their hands on unique Hello Kitty dolls dressed in traditional Asian costumes.
According to Sanrio’s Lanzi, the ingredient tying together every license is that using the cartoon cat should bring a little bit of ʹjoyʹ to any product or service. Tsai Tsung‐chi, director of Hau‐Sheng Hospital with Hello Kitty branding, agrees, saying that the hospital brings a smile to mothers at a very difficult and frightening time. Lanzi adds: ʺHello Kitty was created with the focus of being a small gift, whatever the product. The proposition has always been ʹsmall gift, big smileʹ.ʺ
Martin Roll, business and brand strategist at VentureRepublic, and author of Asian Brand Strategy, says that there are many reasons for Hello Kitty’s popularity. ʺUnlike many of the Disney characters and other popular cartoons that emote and develop a distinct personality, Hello Kitty is a rather boring cartoon figure,ʺ he claims. ʺIt does not even have a mouth to talk. Hello Kittyʹs Zen‐like calmness and faceless expression are the main reasons for its appeal across age groups and markets.
There are 500 new Hello Kitty products launched around the world each month and 500 lines are discontinued. The idea is, according to Sanrio, to change the range to match different and emerging marketing, business and cultural trends across the world.
Apart from the hospital, Sanrio recently signed a licensing deal with mobile handset manufacturer Sony Ericsson, which has launched a range of Hello Kitty branded phones. Lanzi says: ʺMobile phones are a very natural product for the Hello Kitty brand. Children are now using mobiles just as much as teenagers and adults. They are objects that everybody has in their pocket and it is always seen. It is great for exposure.ʺ
While Sony Ericsson may advertise its Hello Kitty branded phones, Sanrio relies purely on its partners and word‐of‐mouth. It doesn’t have a ʹnormal licensing strategyʹ, according to Lanzi.
ʺThe big difference between the Hello Kitty and our competition is that Sanrio never advertises any aspect of the brand, he claims. We don’t rely on animations, films, TV shows or anything like that. We are probably one of the only brands in the world that relies on our partners, merchandising and word‐of‐mouth to keep us out there.ʺ
VentureRepublic’s Roll explains: ʺOne of the important factors that differentiates Hello Kitty in the world of cartoons and characters is that it is not alive with stories, gimmicks and pre‐determined personality before it reaches people.ʺ By being a simple cartoon with very minimal characteristics, the brand actual
Identify & discuss FIVE major macro-environmental factors that are likely to affect the success & growth of Hello Kitty?
CASE:
Hello Kitty: Can Hello Kitty Continue to Rule the World?
She’s the cat who appears on everything from diamond jewellery to pencil cases, with her own theme park and even a branded hospital.
Recently, a newly opened 30‐bed Hau Sheng Hospital in Yuanlin, Taiwan, which aims to relieve the stress of childbirth for women, was completely decked out in Hello Kitty theme. The four storey hospital is decorated in pink with cartoons of the white cat looming out from every possible surface. Newborn also get everything Hello Kitty, including pink or blue receiving blankets, nurses dressed in pink uniforms with cat‐themed aprons, cot linen and room decors. This is Hello Kitty healthcare.
Hello Kitty, a cartoon cat, has appeared on branded merchandise since 1974. But how has the brand’s owner, Sanrio, created a USD$1 billion (SGD1.5 billion) marquee with a personality so appealing that it has been able to cross cultures, product sectors and move into experiences as diverse as theme parks and hospitals?
Roberto Lanzi, President of Global Consumer Products (Europe, Middle East and Africa) for Sanrio, admits that the success of Hello Kitty and its many manifestations might look a little odd to anyone not familiar with the business. He explains: ʺOne of the key points of Hello Kitty is its ability to transcend product categories. It is the only brand in the world where you could buy a lollipop or a bottle of red wine. Itʹs also one of the only licensing companies in the world that does more than USD15.7 million (SGD24.5 million) a year in pure diamonds.ʺ
For most licensed brands, there is a moment when success turns into over‐exposure. This does not seem to have been an issue for Hello Kitty, however. Starting out 34 years ago as a cartoon cat on a purse, it has appeared on everything from mainstream school notebooks to edgy, pricey Fender Stratocaster guitars. When McDonald’s created Hello Kitty Happy Meals in Tokyo, people queued up outside in a way usually reserved for rock concerts. When McDonald’s offered limited edition Hello Kitty premiums along with its Happy Meals in Hong Kong, Taiwan and Singapore, customers mobbed the restaurant’s outlets. Many bought the food and immediately throwing it away, just to get their hands on unique Hello Kitty dolls dressed in traditional Asian costumes.
According to Sanrio’s Lanzi, the ingredient tying together every license is that using the cartoon cat should bring a little bit of ʹjoyʹ to any product or service. Tsai Tsung‐chi, director of Hau‐Sheng Hospital with Hello Kitty branding, agrees, saying that the hospital brings a smile to mothers at a very difficult and frightening time. Lanzi adds: ʺHello Kitty was created with the focus of being a small gift, whatever the product. The proposition has always been ʹsmall gift, big smileʹ.ʺ
Martin Roll, business and brand strategist at VentureRepublic, and author of Asian Brand Strategy, says that there are many reasons for Hello Kitty’s popularity. ʺUnlike many of the Disney characters and other popular cartoons that emote and develop a distinct personality, Hello Kitty is a rather boring cartoon figure,ʺ he claims. ʺIt does not even have a mouth to talk. Hello Kittyʹs Zen‐like calmness and faceless expression are the main reasons for its appeal across age groups and markets.
There are 500 new Hello Kitty products launched around the world each month and 500 lines are discontinued. The idea is, according to Sanrio, to change the range to match different and emerging marketing, business and cultural trends across the world.
Apart from the hospital, Sanrio recently signed a licensing deal with mobile handset manufacturer Sony Ericsson, which has launched a range of Hello Kitty branded phones. Lanzi says: ʺMobile phones are a very natural product for the Hello Kitty brand. Children are now using mobiles just as much as teenagers and adults. They are objects that everybody has in their pocket and it is always seen. It is great for exposure.ʺ
While Sony Ericsson may advertise its Hello Kitty branded phones, Sanrio relies purely on its partners and word‐of‐mouth. It doesn’t have a ʹnormal licensing strategyʹ, according to Lanzi.
ʺThe big difference between the Hello Kitty and our competition is that Sanrio never advertises any aspect of the brand, he claims. We don’t rely on animations, films, TV shows or anything like that. We are probably one of the only brands in the world that relies on our partners, merchandising and word‐of‐mouth to keep us out there.ʺ
VentureRepublic’s Roll explains: ʺOne of the important factors that differentiates Hello Kitty in the world of cartoons and characters is that it is not alive with stories, gimmicks and pre‐determined personality before it reaches people.ʺ By being a simple cartoon with very minimal characteristics, the brand actual