Is Hed’s approach to merchandising crazy?

Rovio business model

I started to analyze Rovio’s business model, which is not so new one, but it require a good strategy execution. The major difference to gaming companies is a brand extension of games to merchandises. Rovio branded products are e.g. coffee, cosmetics, theme parks,… This is same strategy that Disney or Lucas have executed for a long time with movies, animation, theme parks and lots of various merchandises. In addition, Rovio thinks the pirates are helping promote its brand  — “so long as the product is well made.” This is unusual thinking.

Brand awareness as business model?

I assume that this kind of business models will be targets for several companies in the Future, where brand awareness is the key and exploitation of awareness with the broad offering of merchandises.

Brand awareness business model examples:

Coffee:
http://www.paulig.com/en/products/angrybirds

Cosmetics
http://www.youtube.com/watch?v=rY9KL-zuSX0

Theme parks:
http://www.lappset.co.uk/Products/Angry_Birds_Activity_Parks.iw3

Television networks adopt Rovio’s Angry Birds merchandising strategy
http://econsultancy.com/fi/blog/10488-television-networks-adopt-rovio-s-angry-birds-merchandising-strategy

11.12.2012 event in Helsinki, where  Peter Vesterbacka from Rovio will tell about more how they have done it. See more in Finnish (tilaisuus suomeksi Helsingissä) >>>

 

See final (so far) business model presentation: