The Hindu Business Line : A bigger footprint

It's definitely a kids' world. But for market leader Cartoon Network it is no child's play to undertake the Herculean task of keeping kids entertained. Turner Broadcasting System, a Time Warner company popularly known for its animated channel, Cartoon Network, which has carved a niche for itself, is now going one step further to entertain children: it plans to set up theme parks. The company recently unveiled its plans to launch two innovative theme parks, designs based on its Indian kids' channels Cartoon Network and Pogo. Why theme parks? Ian Diamond, Senior Vice-President and General Manager of Turner Entertainment Networks Asia, says, "At every instance, we have developed new connection points to link with the consumer. We have been constantly evolving our offering to the kids in concord with their tastes and we thought it to be the right time to venture into the theme parks segment in India." He then adds, "Theme parks help build the brand faster."

Apart from the "right time." The figures also do the talking. With the growing disposable income and the burgeoning middle class, the current size of the consumer market for leisure is expected to touch the $1 billion (Rs 5,000 crore) mark in the next few years. The leisure industry, which is made up of family entertainment centres (FECs), malls, multiplexes and amusement parks (including water parks), has a current consumer market size of around 30 million people.

Currently, there are close to 200 FECs in India which are expected to go up to 400 in the next few years. But what stands out in this sector is the explosive growth of amusement parks. They contribute nearly 40 per cent of the total leisure industry's turnover. In 1993, there were just two parks with an investment of approximately $3 million (Rs 14 crore). Over the years, the number has shot up to 55. CNE has decided to locate both its parks in the Capital, which Diamond justifies by saying "the per capita income of Delhi is more than twice the national average, giving Delhiites a high disposable income level, translating into higher footfalls for the parks."

The upcoming FECs, called Cartoon Network Townsville and Planet Pogo, will be spread across 3.5 to 6.8 acres and will have up to 13 rides. The first FEC is expected to open to the public by October 2006, followed by Cartoon Network Townsville in mid-2007.

"As kids' entertainment's super brands, our constant endeavour has been to provide a complete lifestyle brand experience through every initiative that we launch in India. It is thereby fitting that we extend our expertise to the realm of theme parks, providing for the very first time, world-class and next-generation theme parks that will truly catapult India into the league of high-quality destination entertainment centres for kids and their families," says Diamond. CNE is ploughing in around Rs 550 crore along with International Recreation Parks Private Ltd and Unitech Amusement Parks Ltd to develop these parks. In addition to foraying into theme parks, CNE has also scaled up its licensing and merchandising business in the country. Says Diamond, "We now offer 500 products in 13 different categories across 2,000 retailers. Having built a successful kids' super brand, we leverage the same in the merchandising business and it's a runaway success."

In fact, from a 24-hour kids' channel to kids' buddy (what with branded merchandise as well), Cartoon Network in India has witnessed a steep rise in popularity amongst the children in the country. The company started its operations in the country a decade ago as a cartoon channel and has now evolved itself into a multi-fold entertainment giant for the kids. In a span of ten years, the company has established a strong and loyal fan following for its channels and merchandising goods such as Beyblades, which seem to have struck the right chord with the children. The company on its part too has kept a close track of the changing trends and fads with the children by customising its operations. Starting with Turner's Cartoon Network being locally aired, to its foray into theme parks, the company has monopolised the mind space of the youngest strata of the Indian population.

The company also designed Pogo the channel to meet and cater to the Indian audience tastes.

And why not? The kids' segment aged between eight and 12 is a Rs 20,000 crore segment consisting of almost everything from books, to gaming consoles to Beyblades to pizzas. Of this, as per industry estimates, the leisure and entertainment sector is currently pegged at $227 million (Rs 1,000 crore) annually.

The figures speak for themselves. No wonder, CNE too wants to jump onto the bandwagon to cater to the growing demand from the brand-savvy child.

Be it through merchandising, licensing, theme parks or Cartoon Network and Pogo, the company has garnered a chunky share of the kids' market.

And surely with its theme parks coming up and merchandise enjoying ample shelf display in numerous retail shops, CNE is all set to woo the young consumer like never before.

More Stories on : Brands | Resorts & Amusement Parks | Children & Parenting | Radio/TV

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