The Power of Licensing

Stuart Pollock, President

Strategic Thinking | Creative Solutions | Dedicated Service

1 What is Licensing?

• Licensing is the process of leasing a legally protected entity - Trademarked or copyrighted

• Licensing is a marketing and brand extension tool that is widely used by everyone from major corporations to the smallest of small business.

• Licensing can extend a corporate brand into new categories, areas of a store, or into new stores overall.

2 Licensing 101: Key Players

• Licensors • Intellectual Property (IP) owners that provide the content to be licensed in return for marketing and promotional value

• Licensees • Lease the rights to for certain properties to be represented by their merchandise • Utilize the strong brands to promote sales of their products and enter different markets

• Agents • Assume duties for their clients (i.e contract negotiations, product approval processes, financial processing, etc) to save time and costs • In return the agent receives a certain percentage of all royalty revenues • Supply expertise and network of contacts

3 Why Licensing?

• Brand expansion into new categories

• Maximizing revenue without capital investment

• Enhancing authenticity, credibility and value for your brand

• Maintaining control over your original creation and profiting from brand extensions

• Protect your brand from being used by others without authorization

4 The Power of Hollywood: Promotional Licensing

When it comes to big Marketing Budgets, one thing has not changed, Hollywood Studio’s are one of the biggest advertisers in North America.

On average, Marketing Budgets for a Tent Pole release is over $100 million dollars.

In addition to the studio’s marketing, cross promotional efforts with brands will more than double the marketing spend

5 The Power Of Hollywood

Big television events are opportunities for Studio’s to advertise their upcoming movies:

★Super Bowl ★Academy Awards ★The Grammy’s

Targeting these big events with national broadcasting is a best in practice way to leverage their brand and ….

6 QUANTAS & MODERN FAMILY (Australia)

• Cast & Crew Travel For Vacation-Themed Episode in Australia

• Integration in episode

• Ad Buy on ABC During Episode

• “Modern Down Under” Airfare Promotion Offering

• Red Carpet Qantas Event Featuring Cast Appearances

• Exclusive episode content including in-flight content

TWENTIETH CENTURY FOX CONSUMER PRODUCTS PROMOTIONS TOYOTA & MODERN FAMILY HIPCHAT & OFFICE SPACE

• US Character License: Bill Lumbergh (Gary Cole) • Digital Banners + OOH • Digital Video campaign • Timing: 6 Month activation until August ‘15

HIPCHAT & OFFICE SPACE HIPCHAT & OFFICE SPACE HIPCHAT & OFFICE SPACE HIPCHAT & OFFICE SPACE PANDA EXPRESS & FRESHHIPCHAT OFF & OFFICE THE SPACE BOAT

• QSR promotion focused around Chinese New Year. • Show mention in TV Show episode “Year of the Rat” airing February 2nd • In-Store posters and table cards • Cross-promotion on Fox and Panda’s websites and social media

APPLE TV & THE SIMPSONS APPLE & THE SIMPSONS Campaign showcases key moments and characters from television’s most iconic properties. Campaign consists of TV, OOH, andTHE digital SIMPSONS elements. FEATURED IN CURRENT APPLE TV CAMPAIGN

APPLE TV & THE SIMPSONS APPLE & THE SIMPSONS YOUTUBE & THE SIMPSONS APPLE & THE SIMPSONS

THE SIMPSONS FEATURED IN CURRENT APPLE TV CAMPAIGN CARTIER & FOX FILMS PRESENTS: THECARTIER FILMS & FOX PRESENTS: OF THE FILMSMARILYN OF MARILYN SNICKERS & FOX FILMS PRESENTS: THECARTIER FILMS & FOX PRESENTS: OF THE FILMSMARILYN OF MARILYN BUD LIGHT & INDEPENDENCE DAY: CARTIER & FOX PRESENTS: THE FILMS OF MARILYN Turning your Brand into a License • Licensing represents a way to move a brand into new businesses without taking on a major financial burden.

• Maintaining control over brand image while reaping the benefits of additional revenue and exposure in new channels and store aisles.

19 What are the Benefits of Association?

 Breaks though the “clutter” of promotional and advertising messages by leveraging a hot property that consumers are looking for  Provides a “halo” effect from the entertainment property’s marketing/advertising plans

 Enhances or creates consideration for your product by virtue of the association with the property (i.e. target-relevant)

 Provides a further point of differentiation from your competitor (promotional licenses are offered on a category exclusive basis and give access to all visual assets, including style guides and film clips).

 Provides access to “can’t be bought” experiences for contests/sweeps (i.e. trips to movie premieres, co-branded premiums and prizing options, etc).

 Gets your sales staff and retailers excited with unique sales incentives (dealer loaders, sales kits), incremental impactful displays, and/or mascot visits at your retail stores 20 Case Studies

21 Case Study: Tony Hawk

Objective: • To monetize the Tony Hawk brand in Canada. Taking an iconic brand and continuing its relevancy in Canada.

Program Description: • Direct to Retail (DTR) program exclusively tailored for Walmart Canada. • Launched an all encompassing line of clothing, backpacks and accessories. • The launch was augmented by a multi pronged marketing campaign. • The brand will continue to be supported by marketing.

Results: • Awareness of the brand • Monetizing the brand in a “brand friendly” way

22 23 24 Case Study: Molson Coors

Objective: • To expand and create a Molson Coors merchandising program.

Strategy: • Create an extension of the Molson Coors brands to strengthen their brand message and positioning in the market as leader in the Canadian Beer industry and also realized the incremental revenue opportunities from their undeveloped brand marks and retail presence.

Program Description: • Develop a license and retail strategy for Molson Coors, recognizing the desired articles that fit the Molson Coors brand as well as white space for retail development • Segal Licensing created a formalized process to ensure efficient management of the expanded program (legal, financial and product) • Signing on top tier licensees

Results: • Increased impression levels for the brand at retail • Year long support for key categories with dedicated retail space • Specialty programs at key retailers in Canada • Create a revenue source where none existed before

25 Studios: FOX SONY MGA Alien Franchise Bewitched Little Tikes American Horror Story Blacklist Num Noms Bob’s Burgers Charlie’s Angels Project MC2 Family Guy Dawson’s Creek Modern Family Married with Children MOLSON COORS Scream Queens Partridge Family Coors Light Son of Zorn Starsky & Hutch Molson Canadian The Fox Films of Marilyn Monroe The Goldbergs Molson Dry The Simpsons Molson Export TEMPLE STREET Pilsner LIONSGATE PRODUCTIONS Rickard’s Family of Brands Dirty Dancing Orange is the New Black The Next Step PGS ENTERTAINMENT Reservoir Dogs Brands: Lost and Found Music Studios Alvin & The Chipmunks (TV Series) The Royals AMERICAN SANRIO MGM GREETINGS Gudetama Vikings Hello Kitty (and Friends) Care Bears Pink Panther BILLBOARD Mister Men and Little Miss Rocky CANADIAN KENNEL ZAG PARAMOUNT ICONIXCLUB Miraculous Ladybug Baywatch Digital: Breakfast at Tiffany’s Peanuts Cheech & Chong – Up in Smoke Strawberry Shortcake ACTIVISION Clueless KING FEATURES Skylanders Grease Mean Girls Betty Boop ROVIO The Godfather Franchise Popeye Angry Birds Top Gun

Stuart Pollock, President E-Mail: [email protected] | Cell: 416.399.1191 | Work: 416.545.5589