Editor's note: Bryan Urbick is founder and chairman of Consumer Knowledge Centre, a London research firm.

How animated characters on packages can - and do - entice kids is an age-old topic. Licensed characters on packaging have been encouraging children (and parents) for decades and it would be safe to say that most major fast-moving consumer goods companies will have, at some point, either fashioned or borrowed an iconic brand character to help promote their child-targeted products. It's one of the oldest tricks of the trade yet here we are in 2011 and still brands become confused when it comes to what draws attention and what packs a real punch.

What has changed in this age of technology is the clever way some of these brand characters are being delivered. Take Nestlé's use of augmented reality, which has seen some 26 million Nesquik, Honey Stars and Cookie Crisp boxes being transformed into 3-D augmented reality video games. In this instance, the key character is from the recently-released animated film Rio. Regardless of Rio's notoriety, the use of technology makes for a very slick marketing tool, elevating the use of brand characters to new dimension - literally. Yet the question still remains: Are brand characters ticking all the right boxes? Is cool new gadgetry and the use of new technology enough to do the job of growing brands in the long run?

Develop meaningful stories

Consumer Knowledge Centre's research into the use of characters has involved children as young as 18 months and consistently shows that to be successful using brand characters, marketers must develop meaningful stories that connect the brand values, personality and message with the character. When using familiar characters from television, film or other media such as video games, it's important to build similar connections with existing stories and experiences from the original media. Provided each is done in a way that is particularly relevant to the target audience and gives them a new and different experience of the licensed property, it can improve the success of the brand or product. Equally, it is essential to develop (for brand characters) or emphasize (for licensed-character properties) personality traits that connect to and deliver a brand's core message.

In other words, mere recognition of iconic characters is often not enough to guarantee product success. And though cool new technology will draw some attention, the enduring brand benefit only comes with deeper connections beyond recognition and liking of the character used.

Five tiers

Our work has allowed us to define five tiers regarding the use of licensed properties with branded products, which we hope will help clarify the issue.

Tier 1

The most basic use of characters on products is defined as "logo slap." The main focus here is kid-pull and the market is rife with examples of this. Shelf life for these products is generally short and parents frequently resent them because they often end up buying products the child begs for, only to find interest is quickly lost and the product does not yield good value. This approach may lift sales in the short term but can generate negative feelings and does not enhance the brand experience in the long term.

Tier 2

A slightly more sophisticated approach is when characters and properties are used for a particular promotional reason (i.e., when a film is released) and often have some giveaway that is character-/property-related. It's somewhat of an old-fashioned way of promoting products and parents may or may not like them, depending on whether they were going to purchase the product anyway. Kids often pester parents to buy the product simply because they want the enclosed toy, for example. Once purchased, the kids then ignore the product and focus on the usually short-lived enjoyment of the toy. This can lead to parent resentment and cynicism, particularly if they have to pay a premium for the product. With food and beverage products in particular, this practice has been highly ridiculed in recent years predominantly because of the obesity issue.

Tier 3

The next evolution of character use occurs when the packaging or product shape is changed or the character is evident on or as an integral part of the product. Good examples are Lego Fruit snacks in North America (using the iconic Lego shape); Thomas the Tank Engine pasta in the U.K.; and Colgate's toothbrushes that have the character-shaped handles. The shape adds excitement for the kids and enhances the eating/usage experience. Parents often use these types of products to entice young children to engage in certain foods or categories and the general acceptance is relatively high. Parents are less disappointed in these uses of characters, particularly if the use of the character helps them resolve a problem (i.e., convincing kids to eat certain foods, encouraging them to brush their teeth, etc.).

Tier 4

A nuance shift for character-affected categories - and one that tends to have a more natural fit and a stronger chance of success - are products that have some genuine relationship with the character. Sports equipment with LazyTown's Sportacus is a good example of character relationship. Not only do children see Sportacus having fun and therefore readily relate to the product, parents also view this favorably since it encourages their kids to get out, play and enjoy physical activity. Dora the Explorer with Spanish tuition is another good example. Again, great adoption by the kids and often full support from the parents.

Tier 5

Finally, the most effective strategy and the one most likely to be longer-lasting is the character-integrated approach. This can be a combination of character-affected and character-related categories but also includes an extra layer of uniqueness that makes the product distinctive. They are particularly valuable in the food and beverage sectors. Sportacus Sports Candy from LazyTown is an excellent example. Sportacus encourages the kids of LazyTown to eat fruit and vegetables, which he calls "sports candy." With character-integrated products parents seem less bothered by having to pay a premium (assuming it is not exorbitant) because they know that the products they are purchasing will achieve some bigger objective - in this case, getting young children to want to eat their vegetables.

A huge impact

Whether a product is new to the market or a relaunch of an existing brand, the good use of licensed-property characters can have a huge impact on market share and profitability. Marketers should aim to avoid the logo slap (even if the technology is cool) and simple promotional gimmickry if they want the best and most enduring use of their licensed property. Equally, understanding how to effectively reach an ever-changing young target audience is crucial to obtaining the financial returns expected from their investment.