Bottom Shelf

If you have any business in the toy business, you have a retail exclusive or event scheduled this year. Okay, you might not have that — as the number of retailers declines — but you at least have one of the following: a QSR tie-in, an anime show, a live theatrical tour or a classic property with a modern touch.

All was fair game at the American International Toy Fair in New York City, which celebrated its 100th year.

This year, the Toy Industry Association is adding a smaller show for mass-market buyers. The Fall Mass Market Toy Expo: The Show for Early Buyers will take place Oct. 21-23, 2003 in New York City’s toy district. The traditional show is set for Feb. 15-18, 2004 at the Jacob K. Javits Convention Center and at showroom locations in the toy district.

Meanwhile, it’s not all fun and games in Toy Land. The toy market shrunk by 2.8 percent to $20.3 billion in 2002, according to data from The NPD Group, Port Washington, NY, and toy makers are facing competition from the video game industry, which is up from $6.5 billion three years ago to $10 billion.

As toy firms and consumer product marketers struggle to eke out ad budgets, and the looming threat of war and economic concerns exacerbate the ruthless competition among toy retailers, many are turning to promotions to create additional visibility and drive sales.

Drag Racing

Mattel’s Hot Wheels is on course heading straight to Hollywood. The El Segundo, CA-based toy maker is working with Columbia Pictures on a movie based on the miniature die-cast vehicles. (Mattel found success in turning toys into movie stars with Barbie’s Nutcracker and Rapunzel home videos and this fall’s Barbie of Swan Lake.) The Hot Wheels flick, which was negotiated by Los Angeles-based Endeavor, will release theatrically in 2005.

To celebrate Hot Wheels’ 35th anniversary, Mattel is launching a line of cars tied to a character-driven story line. The World Race will come to life in a series of four home video games from PlayStation 2 and GameCube. Plus, Interscope’s rock group Smash Mouth wrote a song for the campaign called Hot, which is featured in the videos and will be on the band’s fourth album this summer. Fanscape, Los Angeles, brokered the partnership.

“It’s bringing the brand to a whole new level and is a 360-degree marketing campaign all in celebration of the 35th anniversary,” says Chris Corman, senior brand manager for Hot Wheels.

RetailTOYment

Everyone is fishing for some form of exclusive deal, but the true granddaddy of them all is property exclusives. And Walt Disney Co. is doing just that when it launches all of its product tied to the TV series Kim Possible at Wal-Mart stores in July. The line spans 17 departments and will be sold exclusively at Wal-Mart through year’s end. This is Disney’s most aggressive marketing push for a TV series and illustrates a new strategy of building up TV franchises instead of movies. “There are few who can execute a program like this well for an exclusive property launch — but this is the case of a great retailer, a huge company and great licensors,” says Mark Siegel, VP-marketing and business development at Los Angeles-based Equity Marketing, master toy partner for Kim Possible.

To plug SpongeBob SquarePants’ Lost Episode, licensing partner Mattel planned a multi-department scavenger hunt at Wal-Mart last month. Next, to promote the theatrical release of the Looney Tunes: Back in Action, Mattel and Warner Bros. will host an event at Wal-Mart the day after it premieres in November. “We’re trying to delve a little deeper with our retail relationships and build more hype,” says Tor Sirset, Mattel’s director of entertainment marketing.

Securing an area with items from several different departments is key. “Getting the leading categories like home video and action figures in one display area is very effective,” says Cindy Fukunaga, VP of FUNimation Productions Ltd., a brand management company which produces anime hit Dragon Ball Z and other shows.

Next is ensuring the promotion matches what’s on shelf — hard to do when planning takes place months and months ahead, says Bob Brennan, director of licensing at Ft. Worth, TX-based FUNimation.

But exclusives aren’t for everyone. “Exclusives are done when you can’t get a mass partner for a broad program,” says Russell Brown, senior VP-consumer products, promotions and media sales at Marvel Enterprises, Inc., New York City. “Why be in 500 store doors when I can get in 10,000?”

Toys to go

Okay, so you have a QSR and a mass-merch partner, how about bringing them into the same program? FUNimation did just that this spring with Burger King and Toys ‘R’ Us. Along with the Dragon Ball Z premium in Kids Meals, consumers received a coupon good for $5 off a $20 purchase of Dragon Ball product at TRU. Equity Marketing created the toy premiums.

Next month, Dragon Ball stars in a meal program at CKE Restaurant’s Carl’s Jr. and Hardee’s. Through June, kids receive Dragon Ball toys and a $5 coupon good for two new Dragon Ball DVDs from Musicland’s Suncoast stores. “Anime is only getting bigger and bigger in the U.S.,” Brennan says. Elsewhere, Bandai has sweeps, online and mobile programs planned for its various anime properties, such as Ultimate Muscle: The Kinnikuman Legacy Superior Defenders and Zeta Gundham, while Westcott Marketing Group is gearing up for national promotions for ShoPro Entertainment’s Hamtaro property.

He-Man, being resurrected by Mattel with a TV series on Cartoon Network, will appear in a McDonald’s Happy Meal program next month. Meanwhile, McDonald’s has reportedly teamed with Pawtucket, RI-based Hasbro for a promotion around its Naknak toy collection offering seven collectible, monster-themed figures.

Building blocks

Boys have LEGO, and now girls have ello. That’s what Mattel was thinking when it launched the first system for girls to design and create jewelry, houses and other items using interconnecting pieces and stickers.

“The line builds off the less-linear way that girls think and play,” says Lisa Tauber, director of marketing for Mattel girls’ division.

To build awareness for the product line, Mattel is heading out on a 70-to-80 stop tour starting Memorial Day, featuring a 20-by-20 foot area where moms and girls can play with ello product. U.S. Concepts, New York City, handles.

Elsewhere, stage tours will be a hot ticket in the upcoming year. HIT Entertainment’s Bob the Builder kicked off his first 90-city road stint last month. HIT pal Barney is currently on a two-year Barney’s Colorful World tour presented by Toys ‘R’ Us. A bounce-back offer lets attendees bring their ticket stubs into TRU stores to receive a phone card good for a free chat with Barney.

The Clifford the Big Red Dog stage show, produced by Turnstile Entertainment, is set to premiere in 2004. And Nickelodeon and Clear Channel Entertainment, both New York City, have teamed for Dora the Explorer Live — Search for the City of Lost Toys. The show kicks off this month and is scheduled to perform in 32 cities.

Hello Miffy

Toy manufacturers like Hasbro are hoping to give the industry a spike by updating classics like the Easy Bake Oven (no light bulb required) and Twister (a voice recorded to music tells you where to jump).

Amsterdam, Netherlands-based Mercis bv, with the help of New York City-based Big Tent Entertainment, is in the midst of launching its 46-year-old Miffy and Friends children’s book character stateside. The character, which is often confused with Hello Kitty, has an interactive exhibit at The Crayola Factory through the end of the year.

At retail, Mercis teamed with Barnes & Noble to offer a Miffy and Friends note tote for $2.95 with the purchase of two Miffy books. Costumed characters hosted new store openings and events. While Mercis bv is taking careful steps to establish Miffy in the U.S., the timing has worked out well, says Marja Kerkhof, managing director at Mercis bv. “There is a reevaluation of classic properties; the next big thing has not arrived yet,” Kerkhof says. “Miffy fits in great as a family-friendly character.”