Almost 600 supermarkets from five major chains were set to roll out a new line of McDonald's licensed children's software in September, said Ken Currier, chief executive officer of Expert Software, Coral Gables, Fla.
The retailers carrying the six new CD-ROM titles of McDonaldland Software are 120 northern California units of Lucky Stores, San Leandro, Calif.; 242 northern California units of Safeway Stores, Pleasanton, Calif.; 100 stores of Pathmark, Woodbridge, N.J.; 109 stores of Tops Friendly Markets, Buffalo, N.Y.; and 24 stores of Glen's Markets, Gaylord, Mich., said Currier.
"In broad strokes, it seems like a good line to bring in for kids," said Jim Paterni, category manager at Glen's Markets, Gaylord, Mich. "It is supposed to have some educational application to it, which I thought would be a good addition to our computer software section."
Glen's has carried other Expert software products and Paterni is pleased with the results. "They are flexible with their products. They've been good to work with. They deliver on time. They have good promotional packages."
Other retailers involved with the McDonaldland software line declined comment.
Others, such as Ralphs Grocery Co., Compton, Calif., and Albertson's, Boise, Idaho, were expected to merchandise the line in future months, Currier said. Drug chains like Longs Drug Stores, Walnut Creek, Calif.; Genovese Drug Stores, Melville, N.Y.; Eckerd, Largo, Fla.; and Tops' Vix chain also were carrying the line, along with mass merchants and traditional software outlets, he said. The first five supermarket chains, however, had the product at the same time as other classes of trade. The software will not be sold at McDonald's restaurants, he said.
The six titles for Windows-based computers contain game and activity content targeting children ages 3 to 7, with a suggested retail price of $14.99 each. The titles are: "Silly Games," "Create 'n' Paint," "Stickers 'n' Fun," "Card Game Party," "Card Workshop" and "T-shirt Fun." Each comes with an animated McDonaldland screen saver and a coupon good for a free Happy Meal at McDonald's.
Packaging, shippers and other point-of-purchase materials prominently feature the image of Ronald McDonald, who is also an integral part of the content.
Besides the POP, Expert will be supporting the product with a web site, and print and TV advertising, said Currier. Co-op will be available for chain-specific promotions, he said.
The shippers come in 36-, 60-, 72- and-144 unit configurations. Expert plans six more McDonaldland titles next year, at which time the company will start seeking placement of permanent displays of the product in supermarkets and other classes of trade, said Currier.
"We believe the brand is really going to help pull that software through. We want to take the risk out and build the profit in so that the retailers can be successful in this category," said Currier.
With its push into supermarkets, Expert is trying to attract consumers who have bought new lower-priced personal computers, some costing as little as $1,000.
"That seems to be the magic price point, because all of a sudden, sales of home PCs are just climbing again like crazy," he said.
This has brought more of a lower-income demographic to the software category, as well as consumers unfamiliar with the computer market. Both of these trends indicate strong sales potential for software in supermarkets, he said.
The McDonald's brand gives consumers more confidence in making an impulse buying decision about the product, Currier stated. "If there is ever a doubt in the customer's mind about buying a product, they will usually walk away from the purchase. We have tried to combine the McDonald's brand with our brand and take away any of that uncertainty," he added.
"They may not know anything about software, but they know that every time they go into McDonald's they know what they are getting," Currier said.
"Our belief is that supermarkets, drug stores and convenience stores are probably not going to be successful selling $50 to $100 retail-priced software because that is very much of a considered purchase. But we do feel that there is an opportunity for those channels to sell software in the under $15 category, which is much more of an impulse purchase. That's really our specialty," he said.
"Our goal is to partner with those retailers, bring branded products in and try to take advantage of all these millions of new PC users that are coming into the marketplace, but aren't necessarily going to the traditional software retailers," he said.
Computer software ties in well with video offerings, Currier noted. "Our experience has been that many retailers have not been selling software in the past, but they have had some good success with video," he said.
