Licensed products still prevail

Posted on by Chief Marketer Staff

SUMMER VACATION IS winding down and kids are gearing up for a back-to-school buying frenzy. New products and characters are hitting store shelves, TV screens and movie theaters just in time for a fall marketing blitz.

“The relationship between moms and kids is more collaborative now,” says Penny Schenk, director of promotions at Cincinnati, OH-based WonderGroup. “Moms will let their children pick out one thing and in-pack offers, premiums and characters tend to get the kids’ attention at the shelf or while they’re sitting in the cart.”

“Seventy-five percent of all purchase decisions are made at shelf — there’s nothing like seeing SpongeBob or Shrek,” Schenk points out.

Kids’ properties are still going strong as new characters and storylines are constantly being introduced.

While entertainment and character licensing — including film, TV and animated characters — has declined by more than 20% over the past 10 years, the sector has stabilized in the last three years at approximately $14 billion annually, per The Licensing Letter.

“This sector is down,” says Marty Brochstein, executive editor of The Licensing Letter. “It’s still one of the major categories, though it’s been superseded by the corporate trademark business.”

A handful of new television shows and characters will hit the small screen this year, generating new licensed products and partners. “In general, there is a bigger reliance on TV-based properties rather than film-based properties,” Brochstein says. “Movies are seen as promotional opportunities, as opposed to an opportunity to build a long-range licensing program. They are in and out of theaters rather quickly, whereas TV offers repeated exposure week after week, day after day.”

Children tuning in to their favorite shows often gobble up any related merchandise, ranging from plush toys to bedroom sets featuring their beloved characters. Fans of Miss Spider’s Sunny Patch Friends will soon be able to pick up toys, apparel, accessories, home furnishings, music and outdoor products related to the series.

Miss Spider launches on Nick Jr. this fall and I see the potential for CPG and QSR partnerships,” says Tracy Ewing, VP-marketing for Nelvana Limited. Such partnerships would help to create buzz for the brand and characters.

Outside of the U.S., Nelvana holds all rights to Nickelodeon’s The Fairly Odd- Parents and is planning a major promotional push behind the series for back-to-school. Through a partnership with Kraft Canada, the 17.7 million on-pack Kraft/Crayola “Every Pack Wins” promo will give consumers a chance to win prizes during September.

Scholastic Entertainment has entered into its first-ever promotional partnership with a QSR for its unique riddle-and-rhyme property I Spy. Kids will soon be able to get their hands on I Spy premiums at Carl’s Jr. and Hardee’s restaurants across the country. Over 3.5 million premiums will be distributed to more than 3,000 restaurants as part of their Cool Kids Combos meals. The 10-week program kicks off this month and runs through October.

“Four items will be in-store initially and then an additional four items will roll out in time for Halloween,” explains Leslye Schaefer, Scholastic Entertainment’s SVP-marketing and consumer products. In October, meals will be distributed inside two different I Spy-branded Halloween buckets.

Branded meal bags and in-store channels such as P-O-P, banners, window postage and drive-thru signage support. Additionally Scholastic’s I Spy, Carl’s Jr. and Hardee’s Web sites will link up to further increase awareness.

United Media has signed a variety of new deals and renewed partnerships for Arthur, the award-winning television series. Currently the UK restaurant chain Caffe Uno is featuring Arthur on its children’s menus and premiums from now through September. A QSR promo is set to launch in January with Wendy’s. More than 12 million premiums will be distributed in Canada, Japan, Mexico and the U.S.

Nestlé’s Libby’s Juicy Juice has renewed its sponsorship of the show; Arthur appears on juice boxes along with an on-pack offer for a children’s book and a $15,000 on-pack sweeps. The promotion runs now through October. Momentus Solutions is also launching an Arthur-branded vitamin strip (similar to Listerine Pocketpacks) for kids this year. The new vitamin strips will be available in eight SKUs at most mass, drug and grocery stores.

Kids’ vitamins are a hot product: Warner Bros. characters are featured on versions that should appeal to health-conscious parents and children. One-A-Day Kids Justice League and The Powerpuff Girls-branded vitamin supplements from Bayer feature 3-D character shapes in orange, cherry and grape. The new vitamins will be supported with a national FSI this month.

The stars of the Justice League will also be featured at the Justice League Racing Weekend Presented by Hot Wheels Aug. 21-22 at Michigan International Speedway. Nine cars will be emblazoned with the familiar heroes of DC Comics’ Justice League.

“This race is a tie-in with the NASCAR program and we expect to generate a lot of sales during the back-to-school time frame,” says Dave Hedrick, VP-promotional marketing and branded foods for Warner Bros. Consumer Products. “NASCAR fans are very loyal and we are tapping into that fan loyalty with this promotion.”

The races will feature collectible merchandise and car graphics. Targeted advertising, online promotions, on-site exposure and initiatives and P-O-P support. The three-year old series becomes Justice League Unlimited this fall, as new characters join the original seven members.

Pint-sized flicks

A handful of movies geared to kids will launch this fall both in theaters and on DVD. Studios are rolling out original titles, as well as a wide selection of publishing-based, classic and retro properties.

This October, DreamWorks’ highly anticipated computer animated film, Shark Tale, hits theaters with an array of promotional partners. Returning partners include Burger King, General Mills and Hewlett-Packard, as well as new deals with Coca-Cola, Krispy Kreme Doughnuts and Great Clips.

“We tend not to roll out our promotional partners on the same day; instead, we scatter them,” explains Anne Globe, head of DreamWorks Consumer Products marketing and promotions. “DreamWorks also provides customized animation for our promotional partners — this is just another extension of the quality of entertainment we provide.”

Burger King will serve up a Kids Meal program featuring 10 different Shark Tale premiums over a five-week period at nearly 8,000 locations across the U.S. A national TV campaign, in-store merchandising, an Internet component and Kids Club birthday direct mailers will support. The Burger King program continues the five-picture alliance announced by DreamWorks and BK in 2001.

Coca-Cola will feature Shark Tale on more than 100 million packages in the U.S. alone. The company will also tie its teen-focused Real campaign to the strong hip-hop music component of the film. A national TV campaign and in-store displays in more than 40,000 retail locations support. Minute Maid and Hi-C will focus on mothers of younger children with Fin & Games, and Coca-Cola will support the promotion with a national sweeps, radio spots, in-theater fountain cups and an Internet component.

“One of the things that we hear from kids about sweepstakes is ‘I’ll never win,’” Schenk says. “If a company offers up one big prize it tends to lose appeal — whenever they can say thousands of prizes that’s a good thing and kids see it as more of an opportunity. Also anything that’s instant win appeals to kids — this generation is all about instant gratification and anything on the computer.”

General Mills continues its multi-picture partnership with DreamWorks and will feature the film on more than 40 million packages. A Shark Tale limited edition cereal will be created as well as Shark Tale-themed fruit snacks. Fun activities and premiums will be featured on specially marked boxes supported by a TV campaign, in-store efforts, FSIs and p.r.

Great Clips, the value hair care brand, is diving into its first-ever movie promotion. The program will feature a national sweepstakes and be supported by TV, radio, print and in-salon signage. Utilizing its presence in NASCAR, Great Clips will also incorporate Shark Tale into its car design and create a die-cast miniature version of the car, which will be available trackside and in mass and specialty stores.

Executing its first extensive film promo to date, Krispy Kreme Doughnuts will allow consumers to sink their teeth into Shark Tale-themed doughnuts supported by an in-store campaign.

Extending the reach of American Greeting’s retro property Care Bears, a licensing program leveraged by The Joester Loria Group is rolling out this fall in support of the new direct-to-video release of Journey to Joke-A-Lot.

“One of the promotions we’re doing around the movie is with Betty Crocker’s fruit snacks. General Mills will be featuring rebates for the movie on packaging,” says Debra Joester, president and CEO of The Joester Loria Group, New York City. “We also have a number of retail events scheduled for fourth quarter this year. On Oct. 16, Toys “R” Us will kick off National Care Week, which is part of our national preschool program. We will have a Care Bear character costume appearance in every Toys “R” Us in America all on the same day. There will also be an in-store activity.”

Other retail initiatives include Mervyn’s adding a new Care Bears home décor line that will be promoted throughout the year, an exclusive apparel collection at Target and several retailtainment events at Wal-Mart.

Girls of all ages are sure to enjoy Mattel’s new launch of Barbie products with the company’s new Worlds of Barbie marketing strategy. Forever Barbie consists of core consumer products and targets girls ages three to eight; Princess and Fairytopia is geared to girls three to six; Cali Girl is for girls ages six to nine; My Scene targets girls ages seven to 10; and Vintage Barbie is for collectors and adults who grew up with the plastic blonde bombshell.

Barbie’s fourth feature film, Barbie as the Princess and the Pauper, debuts in stores this September with a slew of consumer products. The My Scene Masquerade Madness, an in-package DVD, will be available this fall and will air on Nickelodeon.

Mattel signed a deal with PUIG Beauty and Fashion Group to develop a scent for girl — Barbie Eau de Toilette. The sophisticated scent will be available at Federated Department Stores beginning this month in two sizes, 40 ml and 75 ml. A Barbie cosmetics line is also in the works.

“By taking the essence of a toy and/or the story that accompanies the toy, we can translate these concepts to different products that are relevant to children today,” says Richard Dickson, senior VP-Mattel Brands Consumer Products. “We are able to create new brand extensions that tie both the toy and its products seamlessly together.”

Mommy Strictest

Children influence their parents’ buying habits through different modes of communication. According to the youth marketing agency WonderGroup, there are six different “mom segments” that represent the most permissive to the most restrictive parenting styles.

“I think the Gen X mom is just different — she’s a little more confident in herself and she’s confident overall in her parenting skills; she doesn’t feel as guilty as the Boomer mom,” says Denny Schenk, director of promotions at WonderGroup.

It’s no surprise that traditional kids marketing is often most effective at reaching the permissive segments of moms, or 42% of the population. However, marketers can no longer turn a blind eye to the restrictive segments, or 58% of the population, and they must learn how to better position brands, develop new products and communicate directly with these restrictive moms while not turning off the audience of permissive moms.

Permissive parents tend to view the world with a more relativistic perspective and judge each situation on its own merits; they tend to be more impulsive in their decision-making; they tend to be responsive to outside influences such as other people, media and brand images; and they are more indulgent and responsive to their kids.

Conversely, restrictive parents exhibit a higher level of control over their kids; they tend to have a world-view that is more absolutist and often judge other people’s conduct based on standards endorsed by authority; they are more deliberate decision makers and more purposeful shoppers; they are less responsive to outside influences; less responsive to their kids’ requests, and less indulgent.

Marketers must grapple with these two distinct forms of parenting and position their products to attract both types of buyers. Understanding these segments allows marketers to effectively target their messages.

New Kids’ Shows Debuting This Fall

Miss Spider’s Sunny Patch Friends

This new 3D animated series is about Miss Spider, her family and a world filled with bugs of all shapes, sizes and colors. The series encourages children to appreciate the difference in others and takes audiences on pint-sized adventures in a big little bug world. Debuts in September on Nick Jr. Consumer products roll-out Fall 2005. Fisher-Price signed as master toy partner

Avatar

This anime-inspired epic is about 12-year-old Aang, a reluctant hero who must restore balance to his war-torn world. Debuts in November on Nickelodeon. Consumer products roll-out 2006

Lazy Town

A playful new show with get-up-and-go promoting a healthy, active lifestyle for kids. Debuts in August on Nick Jr. Consumer products roll-out Fall 2005

The Backyardigans

Five backyard friends sing, dance and imagine themselves into amazing adventures. Debuts in October on Nick Jr. Consumer products roll-out Fall 2005-Fall 2006

The Misadventures of Maya and Miguel

Latino twins Maya and Miguel Santos, their loving family and bilingual pet parrot Paco are about to make their debut in this fun comedy. This new animated sitcom is geared to six- to eight-year-olds. Debuts in September on PBS Kids. Consumer products roll-out Spring-Fall 2005

Postcards from Buster

A spin-off of the popular Arthur series follows Arthur’s friend Buster as he travels cross-country to explore and learn about diverse cultures. Debuts in October on PBS Kids. Consumer products roll-out Still seeking licensees at press time

The Batman

This all-new Batman series features colorful, action-packed animation. This is a fresh take on Batman — he’s in his mid 20’s and only in his third year of being a super hero. Debuts in September on Kids’ WB. Consumer products roll-out Fall 2004 soft-launch, Fall 2005 broad-launch

Justice League Unlimited

The heroes of the Justice League return with a bold new look. Batman, Superman, Wonder Woman and Green Lantern continue to lead the universe’s most powerful superheroes. Debuts in August on Cartoon Network. Consumer products roll-out products currently available

Kids’ Fall Flicks

Shark Tale This CGI-animated undersea adventure stars a shark mobster and a precocious fish. Featuring the voices of Angelina Jolie, Renee Zellweger, Jack Black and Martin Scorsese. DreamWorks Studios premieres the film in October. Promotional partners include Hasbro (master toy licensee) and Activision (video games).

The Incredibles This animated flick stars a former superhero, Mr. Incredible, and follows his family’s survival. Walt Disney Pictures premieres the film in November. Licensing targeted toward boys and girls ages three to eight.

The SpongeBob SquarePants Movie SpongeBob and his faithful friend Patrick journey to Shell City to retrieve King Neptune’s stolen crown and save Mr. Krab’s life. Paramount Pictures/Nick Movies rolls out the film in November. Promotional partners include Mitsubishi, Burger King, the Cayman Islands, Holiday Inn and Kellogg’s.

Direct-To-Video

G.I. Joe: Valor vs. Venom (Fall 2004) This full-length animated release from Paramount Home Entertainment features the iconic characters of Hasbro’s G.I. Joe vs. Cobra saga.

Care Bears: Journey to Joke-A-Lot (October) Join Funshine Bear as he sets off to look for a place where his sense of humor will be appreciated. From Lion’s Gate Family Home Entertainment.

Barbie as the Princess and the Pauper (September) The fourth Barbie feature film features the buxom blonde as both the princess and the pauper. Also from Lion’s Gate Family Home Entertainment.

Barney’s Colorful World! (September) This live stage show takes Barney, Baby Bop, BJ and their friends from the community and the jungle to the Arctic and the sea. From HIT Entertainment’s HOT Entertainment Studios.

The Wiggles: Santa’s Rockin’ (September) The Wiggles rock and roll all over the world with special guests Santa Claus and John Fogarty. Also from HOT Entertainment Studios.

Bob the Builder: Snowed Under the Bobblesberg Winter Games (September) Bob and his dream-machine team are off to Bobblesberg for the Winter Games. Also from HOT Entertainment Studios.

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