License To Overkill Case Solution
The Vice President of MMW (Multi-Media Worldwide), Sheldon Bloomfield is facing a hit with a cartoon character “Baby Ruby”. Ruby has become one of the fastest growing show among the kids, on Television. Sheldon was considering upon the long-term profitability of the Baby Ruby i.e. whether Ruby is an evergreen property, which could provide income streams through licensing, for years in the long run(Nunes, 2002). Aspired from Ruby’s publicity and fame, many-stakeholder’s put their interest in getting Baby Ruby’s license from MMW. The proposals included an offer from the largest fast-food franchiser of the nation, which wanted to take Baby Ruby’s license and make it a tie-in with the kid’s meal. However, the investor didn’t want to put huge investments in an untested property, as they demanded exclusives, which were mostly run on single source. It would create pressure from Sheldon because if Sheldon wouldn’t get the deal done, the company might not get other chances to grow Baby Ruby’s position and profitability. On the other side, if the deals get finalized and Baby Ruby appeared on everything from T-shirts to spoons, them there was a possibility of lost charm and ever green profitability. Different commentators including Grant McCracken, Chief Executive Officer of CEO of Elvis Presley Enterprises, Bill Griffith and others had given their advice’s related to the problem faced by Sheldon in the case study.
Baby Ruby, a famous Television fiction series among the children even elders and famous book character, was just taken over through a license by MMW, through its Vice President – Sheldon Bloomfield. The Vice President believed that the company would be able to generate huge profits through licensing out the character to other vendors and it could be offered to three star movies. Both the deals would make the character famous, but Sheldon needed to find out the most lucrative property while maintain the ever green nature of Baby Ruby, as Baby Ruby is believed to provide the income streams through licensing, for years in the long run.
In order to assess the internal position of MMW, SWOT analysis has been performed, which is as follows:
- Baby Ruby was a famous television show, with strong growth opportunities in future.
- Baby Ruby had been most appealing since its development as there exists 12 books, based on the character only. It went famous after publishing of its first 15 years before, i.e. “Baby Ruby and Me”
- Sheldon had a vast experience in licensing out the children’s characters over the time. His career was totally based on selling, buying, trading and losing the licensing rights.
- Baby Ruby had a rating of 2.1 in just six months after being licensed out to one of the top children’s programming network.
- MMW had a variety of brands in its existing product portfolio, providing the a better position to the company as compared to other players in the industry.
- Baby Ruby had appealed to diverse demographics. Not only children but the elders including parents preferred to watch the TV show, because of its high quality story and nostalgic background.
- Baby Ruby was an untested property, which made the investors cautious about making huge investments. They wanted a promised return and character’s fame within the market, which was not guaranteed initially.
- The MMW’s existing product portfolio included short term but successful products, which again raised the concerns about the longevity of the character and evergreen profits for the company.
- A three- star movie was a potential and a profitable opportunity for MMY as Baby Ruby would get famous over the time and different vendors will approach MMW to grant the character’s license in order to increase their own sales and profitability.
- The licensing industry shows a huge growth potential with a market of total $80 billion. MMW can find more characters to license out in the environment with a huge growth.
The opportunities also included an offer from the largest fast-food franchiser of the nation, which wanted to take Baby Ruby’s license and make it a tie-in with the kid’s meal………………..
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