Pig That Made Its Creators Billions

Brand Stories & Strategies Children’s Products & Services 23.02.2017  0 107 0
Pig That Made Its Creators Billions

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The Birth of a Billion-Dollar Idea: The Tale of Peppa Pig

How can a simple animated character become incredibly commercially successful? The story of the brand Peppa Pig proves that it is indeed possible.

The Beginning

Like many profitable ideas, Peppa Pig was born spontaneously over a pint of beer in a bar in London in 1999. Phil Davies, Mark Baker, and Neville Astley, friends since their college days in the 80s at Middlesex University, were discussing creating a new animated character. At that time, most children's cartoon protagonists were male, but the trio decided to break the mold by inventing a female character. During their conversation, the idea of a little piglet as the main character of a new series emerged, giving birth to Peppa Pig right in that bar.

Prior to Peppa Pig, the company had previous animation experience producing a show called "Big Knights" about two clumsy knights, Boris and Morris. Although the series, consisting of 13 episodes, aired on the BBC and garnered positive critical reviews, it was ultimately canceled. After this setback, the creators vowed never to work with the BBC again and decided to pitch "Peppa" to other networks.

Securing Funding

The team quickly sketched the piglet and even wrote the script for the first 52 episodes. They approached Nickelodeon's Nick Jr, which was part of MTV Networks, with strict conditions for the show: Peppa Pig would air only during children's prime time once a week for a year. Despite the unusual demands, the network swiftly greenlit the project. However, Nick Jr. was willing to invest only 12% of the needed £1.3 million. The developers had to find the rest of the funds themselves.

To secure additional financing, they attended the Cartoon Forum, a conference for animators seeking funding for their projects. Despite the challenges, they managed to find an investor who funded 50% of the project. The remaining funds were gathered through personal investments, borrowing from relatives and friends. With the required sum in hand, development could begin.

The Early Stages and Success

After raising the necessary funds, the animators opened an office in London. In the first year of work, the three of them single-handedly managed the entire creation process of Peppa Pig. Neville Astley conceived the episode scripts and illustrations, Mark Baker handled the show's distribution on channels, while Phil Davies served as the producer.

The first episode of the series premiered simultaneously on May 31, 2004, in the US on Nick Jr and in the UK on Channel 5. The first season quickly gained popularity, and within a year, Peppa Pig was being broadcast in over 120 countries worldwide.

Although the brand did not immediately achieve commercial success, things turned around when toys based on the series started selling after an episode where Peppa appeared in an angel dress with wings. In the first year after launching the merchandise, sales exceeded £1 million. From then on, the brand's profits grew exponentially.

Company Sale

In 2015, Peppa Pig's company valuation surpassed £1 billion. That same year, the creators sold 70% of the brand's shares to the corporation Enternational One. This corporation was already involved in promoting Peppa Pig globally and previously owned about 17% of the brand's shares. In the deal, each founder received approximately £50 million and a 5% annual royalty from the franchise. Enternational One now holds 87% of Peppa Pig's shares and becomes the primary owner of the brand.

Following the acquisition, the company continued its growth trajectory. Within a year, they increased revenue from branded products by nearly 400% in the US and expanded into emerging markets like China, India, and Russia. Experts from The Guardian predict that within a couple of years, the brand's value could reach £2 billion.

Peppa Pig Today

Today, the lovable pink pig is much more than a simple animated character. Over 13,000 diverse Peppa Pig products are released annually, sold in over 150 countries. Thematic amusement parks based on the series are open in the UK and Italy. In just 2016, Enternational One closed over 500 new distribution deals for the brand's products.

So, why did a regular animated character become so popular? The secret lies in its simplicity. The creators aimed to depict real-life situations that every child faces daily through a visually appealing and memorable character. Kids quickly identify with Peppa and grow fond of her, prompting parents to purchase new toys and bringing astronomical profits to the brand.

Share this story with your friends on social media and ask for their thoughts on the popular animated series and its commercial success.

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23.02.2017  0 107 0
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