The toy business can be a tough game, and toy companies can’t always play by traditional rules if they are going to stand out from their competition. Manufacturers are leveraging every marketing tactic they can — including QSR and retail partnerships, licensing opportunities, live events and character tours — to ensure kids and parents notice their brands.
Last month, Toy Fair gave marketers a first look at the latest innovations in Toy Land. Presented by the Toy Industry Association at the Jacob K. Javits Convention Center and at showrooms throughout the New York City toy district, expectations for the 101st exhibition were upbeat. While the retail landscape continues to shift to the biggest players, attendees expect continued growth in the U.S. toy market throughout 2004, which will lead to increased promotion and licensing partnerships.
“Promotions, whether they are QSR, retail or packaged goods partnerships, are excellent ways of exposing the brand to the consumer in different venues and in different ways,” says Leslye Schaefer, senior VP-marketing and consumer products at New York-based Scholastic Entertainment.
As mass-merchandisers like Wal-Mart continue to slash toy prices, they undercut smaller retailers — veteran retailers KB and FAO Schwartz filed for bankruptcy last year. Eager for volume but wary of anonymity in a mass-merch sea of toys, brands are trying new marketing approaches to stand out.
“We’re spending most of our money with retailers by funding ads and promotions,” says Brian Rubinstein, national sales manager, Oregon Scientific. “TV isn’t what it used to be — we are trying a grassroots marketing approach and are trying to work with each retailer in spending our money wisely, whether it be providing an everyday low price, funding ads, displays and allowing the customer to experience our products in-store.”
American Greetings’ plush Care Bears are bundled with video tapes and distributed at mass-merch stores such as Wal-Mart and Target. To date, over six million videos have been distributed. Promotion will continue in 2004 as the company prepares for the release of Journey to Joke-a-lot in October 2004, the first new entertainment by Care Bears in 22 years.
“Our retail initiative for 2004 includes in-store appearances by our costume characters with our key partners — Wal-Mart, Target, Kmart and Toys ‘R’ Us,” says Michael Brown, VP-licensing, American Greetings.
Scholastic began a cause marketing partnership with Kohl’s in February. The Kohl’s Cares for Kids initiative sells certain products to benefit local children’s hospitals. Specially priced Clifford The Big Red Dog books and plush toys are sold both at Kohl’s retail locations and at www.kohls.com with all proceeds benefiting the charity. In-store Clifford displays and coloring sheets support.
“This partnership gives Kohl’s the opportunity to do something special and also lets us become associated with something really unique that fits our mission for our character,” Schaefer explains. “We want to give our customers a new way to experience Clifford.” Scholastic also offers an exclusive line of toys, Play! Scholastic, in the Imaginarium secton of Toys ‘R’ Us.
Disney’s Baby Einstein has joined with ThermoScan by Gillette to offer a special on-pack promotion that features a Baby Einstein music CD. The CD will be bundled in ThermoScan packaging and will be distributed at Wal-Mart during Baby Days beginning this month.
“Everyone is looking for their own hook or angle, and retailers are our window to the customer,” Schaefer says. “The more these brands tie in with different licenses, the more opportunities they represent in the marketplace.”
On the road again
Taking a brand on the road and generating viewer exposure is important in establishing a consumer relationship.
Scholastic is launching the Clifford The Big Red Dog stage show, a large-scale musical production this month. Scholastic and NY-based Turnstile Entertainment will bring the Clifford characters to life in front of children and their families across the country — further extending brand recognition.
Care Bears are featured in a preschool curriculum program developed by American Greetings and Youth Marketing Institute (YMI) to educate children about caring and sharing. The national program, You’re Never too Young to Care, launched last fall and will continue throughout 2004. It has been distributed to 25,000 preschools and has reached more than eight million preschoolers, teachers and parents.
“We’re trying to make sure that kids have new experiences with Care Bears and leverage the equity of the brand,” Brown points out. “We had phenomenal success with the number of teachers that have used the program and shared materials with other teachers.”
Tech savvy kids
With video games, computers and other technology-infused devices topping wish lists this year, brand marketers are licensing their characters to electronic products.
Oregon Scientific has encountered tremendous growth over the last three years by bringing to life its Barbie and Hot Wheels electronic products. The learning company continues to upgrade its products by adding bigger IC chips to provide better graphics, improved screen activities and even foreign language capabilities.
“Three years ago the laptop market was dead,” Rubinstein says. “We invigorated the right licensees and stayed true the each license to really reinvigorate the laptop category. As new technologies come out and chip prices come down, we can use a bigger chip, keeping the laptops at the same price point — as a result content will constantly improve.”
Leapfrog’s Quantum Pad will continue to showcase the learning adventures of Scholastic’s The Magic School Bus with new software. Marvel is also releasing a new lineup of interactive games with Activision, both hand held and console, riding on the success of the last Spider-Man game.
“Activision is releasing new Spider-Man 2 games,” says Tim Rothwell, president-worldwide consumer products for Marvel. “We are also developing products with new partners Leapfrog and V-Tech to develop a more expanded line of offerings.”
Teaming up
Various licensing agreements have also been made for 2004 as brands partner up for character recognition.
Clifford makes his debut in the pet health category as Scholastic joins forces with Merial Limited’s Heartgard Plus. The pet health education campaign begins this winter in schools and veterinary clinics. Clifford will serve as the official spokesdog for Heartgard Plus and will be featured in educational and promotional activities in more than 60,000 elementary classrooms and 8,000 veterinary offices nationwide.
In-clinic promotional activities include a special Clifford plush give-away with the purchase of Heartgard brand products; a reprint of the Clifford storybook, The Big Itch, with a new foreword that provides pet health care tips, will be forwarded to veterinary clinics and participating clinics will feature Clifford signage and plush displays.
In addition to veterinary clinics, Merial and Scholastic will be bringing Clifford to elementary schools in 2004 to promote responsible pet care among children. Kindergarten and first-grade teachers in over 60,000 classrooms will receive a Clifford lesson plan that includes a poster, stickers, a take-home tip sheet and a Heartgard coupon offer.
American Greetings joined up with General Mills to launch a Care Bear fruit snack program for June 2004. The on-pack promotion is scheduled to initially launch on two million boxes.
In yet another partnership, Baby Einstein is teaming up with Kimberly-Clark’s Huggies for the Discover and Play Sweeps highlighting the Baby Einstein product line. The sweeps will be featured on a full-color wrap of the April issue of Family Fun and on www.babyeinstein.com.
A total of 250,000 homes in the U.S. and Canada will receive the magazine. The sweeps runs from March 1 through May 31 and 20 winners will receive a prize package of Baby Einstein products worth $200, plus a six-month supply of Huggies diapers.
“The $200 prize bundle will include everything you need to expose your baby to the world — videos, books, CDs, toys, an activity gym and more,” says Jessica Oifer, marketing manager for Baby Einstein. “The offer encompasses many different themes and several of the new toys debuting at Toy Fair will be included in the bundle.”
Baby Einstein is also seeking to establish partnerships with infant product manufacturers, and has partnered with Graco to produce Baby Einstein-branded baby strollers.
“We are rapidly expanding into a number of different product categories,” explains Rashmi Turner, director of communications for Baby Einstein. “The items that have come out from us already are distinctively Baby Einstein. We create a way for an infant to discover something with some sort of interactive element.”
Food for thought
By joining forces with QSRs, brands are able to put their characters into kids’ hands by offering branded premiums, activities and in-store materials.
Scholastic partnered up with Wendy’s this February to promote Clifford The Big Red Dog. Over 5,000 locations in the U.S. and Canada participated in the promotion which featured a special line of five premiums in kids meals, in-store signage, branded meal bags with Clifford activities and promotion on the Wendy’s Web site. Scholastic also plans a partnership with another undisclosed QSR in 2004 to promote its new Clifford DVD release.
“QSR promotions are extremely important to us,” points out Schaefer. “It’s a wonderful way to reach consumers beyond retail and another venue for us to use to expose our brand to kids and their families.”
Overseas, American Greetings is tying down a QSR promotion with McDonald’s in its European franchises. The company has nothing planned for the U.S. at the moment and is carefully watching the new health-conscious initiatives being launched by QSRs in the U.S.
“QSRs are a great exposure vehicle, but we are concerned with how that matches up for us,” explains Brown. “We’re looking for endorsements that are good for kids, however there may be QSR opportunities in the future.”
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