PART D
go online Go online to
The Wiggles CASE Dr SusanSTUDY Dann, consultant D 713 INTRODUCTION to key markets such as the USA. The G’Day LA annual promotion of Australian exports to the For a country whose economy is traditionally asso- USA regularly features influential figures from ciated with sport, agriculture and mining it has the Australian entertainment industry such as come as a surprise over the past decade that Nicole Kidman, Olivia Newton-John and Bindi
Australia also excels in the arts and entertain- CASE STUDY Irwin. ment. Although Australian performers have indi- A second indicator of the fact that entertain- vidually succeeded in the overseas market for ment is now considered a serious export is the many years, it has only been relatively recently peer recognition of entertainers in the annual that entertainment has been taken seriously as an Australian export awards. Not only does enter- Australian export. tainment and the arts have its own industry According to Austrade, Australian entertain- category award equal in consideration to more ment as an export category has grown massively traditional industries such as mining, agribusiness in recent years. Between 2003 and 2005 export and technology, in 2005 the entertainment growth in the music industry alone increased by category winners—The Wiggles—took out the 50%. This translates to annual sales of around overall Australian Exporter of the Year Award. $100 million. In 2005–06 entertainment and arts companies working with Austrade completed 459 OVERVIEW—THE WIGGLES export deals for a total value of $301 000 000. The impact and influence of the Australian The Wiggles is a band that targets the children’s entertainment industry, and the importance that music market and consists of four members who the government places on it, is evident from the dress in distinctive, colourful outfits. The original regular inclusion of entertainers in trade missions members of the group, identified by the colour of their costumes, were Jeff Fatt (purple), Anthony Field (blue), Murray Cook (red) and Greg Page (yellow). The group is well known for its large number of short and catchy original children’s songs. The band performs a large number of live shows every year and also has five television series, which are shown internationally. Their show also includes a number of other characters— Dorothy the Dinosaur, Wags the Dog, Henry the Octopus and Captain Feathersword. The Wiggles’ success as children’s entertainers is now an international phenomenon. With an estimated gross annual revenue in excess of A$50 million The Wiggles are listed as Australia’s highest earning entertainers. Over the past © 2007 The Wiggles Pty Ltd 16 years The Wiggles have grown from a group of local entertainers playing to audiences in seen, held or evaluated independently prior to PART D PART shopping centres to a major international act with use; approximately two-thirds of their revenue coming 2 heterogeneity—labour-intensive services differ from the US market. in delivery due to the varying competence of The history of The Wiggles is relatively well service providers; however, even technically known. Three of the original Wiggles, Anthony identical services will be subjectively Field, Greg Page and Murray Cook met at Mac- experienced differently by different people quarie University while studying early childhood 714 and at different times; education. Anthony Field knew musician Jeff Fatt from earlier days in the band, ‘The Cockroaches’. 3 inseparability—the production and consump- Together they wrote and recorded children’s songs tion of a service occurs simultaneously; and as part of a music project. The completed tape was 4 perishability—the fact that services are time- then sent to the ABC, which released it as a self- based and cannot be stored for later use. titled album in 1991. In 1992 The Wiggles adopted Arguably, for entertainers the easiest of these their distinctively coloured skivvies as costumes. characteristics to address is perishability. Like Based on these songs the band developed a many other services, technology provides enter- show that they performed initially at shopping tainers with the ability to capture their service, in centres and for preschools. In 1993 their spent 10 this case a performance, and allow it to be months touring around Australia and by 1996 consumed at the leisure of the individual. Record- were performing 500 shows across Australia. ings of music and film can be played and replayed From these relatively simple beginnings, the multiple times without any degradation or alter- band’s popularity amongst its target audience of ation in product quality, allowing fans to consume preschoolers has grown to the extent that in 2005 and reconsume elements of the entertainment they performed for more than a million fans at experience on demand. live concerts, sold $17 million in DVDs and However, it is clear that for any entertainment, $5 million in CDs. In addition there is now a wide multiple experiences of the same product result range of Wiggles merchandise as well as other in different levels of enjoyment. Hearing a song licensing deals. for the first time is very different to hearing it for During 2006, the 15th anniversary of the the fifth, tenth or hundredth time. For some creation of The Wiggles, the group faced a signif- people, increasing repetition brings increased INTERNATIONAL MARKETING IMPLEMENTATION INTERNATIONAL icant threat to their ongoing existence. Due to enjoyment; for others, the opposite is true. This illness, the ‘Yellow Wiggle’ Greg Page had to leave phenomenon brings into play the dual issues of the group. Potentially this could have meant the inseparability and inconsistency. end of The Wiggles. However, as the following Inseparability and inconsistency also vary demonstrates, the way in which The Wiggles have across the different types of entertainment developed as an act and as an export product product being created. For example, the same allowed the band to continue its success despite performer will be perceived very differently in a the loss of an original member. live performance when compared to a recorded performance. ENTERTAINMENT AS A SERVICE Inseparability also leads to issues surrounding co-production. The enjoyment of an entertain- Marketing arts and entertainment products of any ment experience is as much a consequence of the kind is a difficult process. Like all services, enter- individual audience member’s frame of mind and tainment has to deal with marketing issues willingness to participate as it is due to the enter- surrounding the four key characteristics of tainer’s skill. services: The key defining feature of the entertainment 1 intangibility—the fact that a ‘service’ cannot be product, like all services, is its intangibility. It is PART D difficult to define exactly what it is about one UK for the first time. Since then the popularity of entertainer or type of entertainment that makes it The Wiggles on the international stage has contin- a success. The inherent intangibility of entertain- ued to grow, creating some unique problems for a ment is simultaneously the biggest asset and people-focused service product. biggest liability in determining the entertainment product. CONSUMER UNDERSTANDING The indefinable and intangible quality of One of the keys to success for The Wiggles is their specific entertainers contributes to varying levels understanding of their core target market— 715 of success at different times and is an asset in that preschool-age children. Coming from a back- it cannot be copied by rivals. However, because ground in early childhood education has given The this intangible quality cannot be replicated, the Wiggles an important insight into the way in which entertainment product remains one of the most young children think and what appeals to them. volatile of all services. Shows and songs are written from a child’s Services in the international marketplace face perspective about topics of interest to them— CASE STUDY additional problems. These have been discussed usually involving food or animals. Mindful of the in detail in the text, but there are two specific fact very young children can become confused or problems for the entertainment export industry. distressed by the unexpected, any surprises in live These are distribution and ensuring that the shows are explained before they happen and target audience has a shared frame of reference. children are communicated with in a way that is Distribution is the key to success for all export relevant but never patronising. industries. In entertainment, distribution is often The visual and sound appeal of The Wiggles handled at an international level from the outset, across nationalities and cultures is based on this for example in the film industry. However at an strong understanding of the developmental needs individual level, entertainers still need to break of preschool children. The fact that Wiggles into these multinational distribution networks. songs, and accompanying dance moves, are What is considered appropriate entertainment equally popular with very young children in varies significantly according to local cultural Australia, Europe, Asia and the USA demon- norms. Consequently, although significant strates how deep the group’s understanding of progress is being made exporting Australian arts their market’s needs and preferences are. and entertainment into new markets, much of the The secondary target market which The focus of successful export entertainers has been Wiggles must address is that of the parents. on the traditionally similar markets of the USA, Considering the age of their audience, parents UK and Europe. are the key gatekeepers to access to the market. It is the parents who control television viewing, as INTERNATIONAL EXPANSION well as purchasing decisions, amongst this age The Wiggles members maintain that they did not group. have a clear strategic plan for international expan- Parents are attracted to The Wiggles and their sion and export from the outset. Based on their products for a number of reasons, key amongst Australian success, The Wiggles made their first these being the educational component of the trip to the US in 1998 where they signed a music group’s materials. The rise of The Wiggles’ popu- and DVD deal with Lyric Studios. The following larity has coincided with an increased market year they released The Wiggles Movie in the USA demand for early childhood educational products. and toured the country as a support act for Barney However, this level of trust is difficult to maintain the Dinosaur. However, their big breakthrough in in the long term, especially when the group is the USA came in 2001 when they appeared in the involved in commercial franchising decisions. If, Macy’s Thanksgiving Parade, signed a licensing for example, The Wiggles endorse a product that deal with Walt Disney International and toured the parents believe is inappropriate, this could have a strong negative effect on their ability to reach TABLE 2 Wiggles’ partnerships PART D PART their core consumers. THE WIGGLES’ PRODUCT Product category Partners Toys Funtastic In services, the expanded marketing mix always Timat includes the additional element of ‘people’. In the TGA case of The Wiggles, the people element has been Tree Toys 716 core to the development of the product portfolio. Leisure Dynamics Despite their huge financial successes, The MTA Wiggles still see themselves primarily as educa- CA Aust Croftminster tors, rather than businesspeople. However, Learning Curve increasing demand for The Wiggles and their products has meant that a more strategic Apparel and Turning Point: outerwear and accessories swimwear approach to the product is needed; hence the Casco Blu: outerwear and decision in 2001 to recruit a general manager to sleepwear focus on the commercial elements of the brand. Brand Direct: footwear The Wiggles’ product portfolio is extensive. In Funtastic: Rainwear, underwear particular, the commercial opportunities that are Engelite: headwear, scarf and gloves presented through licensing and merchandising Samsonite: luggage bags and mean that Wiggles-branded products are available backpacks Vimwood: fashion jewellery, wallets, across a range of categories and through a variety key chains of partners (see Table 1). Food and Heinz In 2005 Wiggles World opened at the Dream beverages Pauls World amusement park on the Gold Coast and Ital Biscuits has been a huge success. Three Wiggles World’s Health and beauty Johnson & Johnson: sticking plasters have also just been introduced into theme parks Vimwood: hair accessories with US theme park giants, Six Flags. Wiggly Play Other consumer Hallmark: all party goods Centres, purpose-built indoor play centres, are products Anagram: balloons also being introduced in the USA and Australia. Hunter Leisure: carnival showbags Despite the vast range of licensed and acces- Ride on entertainment: Dorothy and INTERNATIONAL MARKETING IMPLEMENTATION INTERNATIONAL sory products, the core products of The Wiggles Big Red Car coin-operated ride remains education and entertainment. Unlike Media Australia: ABC Network, Disney Channel many other entertainers, The Wiggles do not rely UK: Nick Jr on CD and DVD sales to interact with their USA: Playhouse Disney audience base. Instead they spend up to six Italy: Jim Jam TV months a year touring. This emphasis on live New Zealand: TV3 South America: Disney performances differentiates The Wiggles’ approach to children’s entertainment and provides the opportunity for ongoing direct inter- actions with their fan base. played 12 shows in Madison Square Garden at a To maximise the benefits and reach of live time when renowned rock band ‘Coldplay’ were performances, The Wiggles have perfected considered the biggest band in the world after stadium shows with high quality performances playing only eight shows at the same venue. aimed at very large audiences. The extent of these The inseparability of the performance allows live performances also provides a direct compari- The Wiggles to provide an experience that creates son of success with other entertainers. For an enduring relationship with the audience. For example, when touring the USA, The Wiggles most children, a Wiggles concert is their first PART D experience of live performance. Despite the size that this demand extended beyond the traditional of the venues, and the number of people in the English-speaking markets for Australian entertain- audience, The Wiggles’ performances are charac- ers to multi-lingual markets. terised by a perception of individual attention. The most obvious way to enter the non- This is achieved through highly interactive English-speaking market was to simply dub performances that encourage children to partici- existing DVDs and re-record CDs in the appropri- pate in the show. ate language. However, with a strong live compo- Wiggles songs are always short, catchy and nent to The Wiggles’ appeal, the solution to this 717 easy to remember. Not only have they been a problem of meeting public demand for a live commercial success, but the quality of The product with finite limits to the amount of time Wiggles’ musical contributions has been recog- available was highly innovative. In effect, The nised by their peers, as is evidenced by their Wiggles have developed a franchise approach to winning of multiple music awards including four meet increasing international demand. ARIAs (Australian Recording Industry Awards) in This solution was initially trialled in the Latin addition to winning the Outstanding Achieve- American market where an alternative group of CASE STUDY ment Award in 2003. Wiggles, including two female Wiggles, was The Wiggles have succeeded in standardising a created. These Spanish-speaking Wiggles dress in highly personal and differentiated entertainment a similar way, perform the same songs and product, as well as making it tangible through the embody the same approach to children’s enter- use of characters and other cues. It is the consis- tainment as the originals. Similarly there are alter- tency of message and quality which helps to native Wiggles in Taiwan with further bands position the group as an enduring entertainment planned for other countries. product and helps to explain their international The franchise option is not without its risks. appeal. Most notably, it is difficult in any franchise oper- This consistency is drawn from the basic philos- ation to maintain full control of the product in ophy underpinning the group’s existence. The multiple venues and even more difficult for such Wiggles have set in place a set of values and behav- a person-centred service. However, this solution ioural standards that are consistent and central to does allow the original Wiggles more time to the brand. The ‘Wiggles Way’ is based around spend with family as well as on creating new ensuring all products reflect positive and ethical shows, programs and songs. ideas and that all members of The Wiggles and Ultimately the franchise solution, originally support staff adhere to a strict code of conduct created to serve the needs of a non-English- regarding what constitutes acceptable behaviour. speaking market as part of their international For example, The Wiggles are never seen riding in expansion, provided the original Wiggles with the their Big Red Car unless they are wearing seatbelts. means to overcome the potential crisis of the loss Similarly, they are never seen eating junk food. By of Greg Page in 2006. creating an intangible set of consistent standards, it The ‘Yellow Wiggle’ was able to be divided off is possible for The Wiggles philosophy and concept from the person playing the role with the result to expand beyond the four original band members. that the transition to Sam Moran was effected relatively smoothly. Again highlighting the MULTIPLE WIGGLES group’s understanding of very young children Increasing success, especially in the international and their need for consistency, the change of market, created extreme time pressures on The Wiggle was open and transparent. A short film Wiggles. Demands for personal appearances and was made to explain, in child-friendly terms, the live performances throughout the world could change, why it was happening and to introduce not all be met. Further, the inherent attractiveness the new Yellow Wiggle. of the sight and sounds of The Wiggles meant By adopting an innovative approach to defining and controlling a variable entertainment from the international experience have in turn PART D PART product, The Wiggles have succeeded as a major provided a model to ensure the longevity of the Australian export product. The lessons learnt group over time and in changing circumstances.
Bibliography Questions Harcourt, T. (2006) ‘Exporters get a Wiggle on’, Australian 1 What characteristics of entertainment as a service Trade Commission,