In this year's diverse mix of nontheatrical children's video, more attention is being paid to quality and value-added merchandise sold at impulse price points .
Suppliers are reacting to the public's concern and demand for quality programming for their children with products that go beyond pure entertainment into education and special interest.
"Parents are going to want more quality programming," said Elaine Perliss, senior marketing manager at Columbia TriStar Home Video, Burbank, Calif.
Increasingly, suppliers are targeting supermarkets as an effective and powerful channel to increase unit sales of their products this year because of the many cross-promotional opportunities afforded within the retail format.
"This year it will be one of our highest priorities to see higher representation and closer relations with the supermarket trade," said Bill Sondheim, senior vice president of sales and marketing at Polygram Video, New York.
Suppliers' efforts to do cross-promotions either directly with the supermarket chain or with other food industry manufacturers also will provide added value to children's video.
Said Lola Valenciano, video sales manager at Random House Home Video, New York, "The trend is toward more value-added children's videos. Disney started it with a plush toy with its videos. Others have included mail-in offers with the video."
In addition, retailers will see enhanced value in packaging as more suppliers introduce value-priced multipacks to move volume, and more children's video will be packaged in durable clamshell packages.
"Research shows the clamshell is more consumer-friendly in respect to durability, and it is seen as value-added packaging," said Andrew Kairey, senior vice president of marketing and sales at MCA/Universal Home Video, Universal City, Calif.
Finally, lower pricing of children's titles will allow supermarkets to take advantage of incremental impulse sales if products are properly merchandised.
Here's what some suppliers had to say about the year ahead in children's video and how supermarkets can best take advantage of category growth.
Elaine Perliss senior marketing manager
Columbia TriStar Home Video Burbank, Calif.
Parents are going to want more quality programming. We distribute children's videos by National Geographic that answer that need.
The National Geographic line is known for quality, accuracy and the teaching of geographic knowledge. We will introduce "Really Wild Animals," geared to school-age children. It has different kinds of music, such as rap, reggae and pop. The videos also feature animation, live action, animals and narration by Dudley Moore. They will be priced at $14.95 each.
A supermarket might want to display children's videos on an endcap or display them with other children's products -- for example, in a back-to-school or a Valentine's Day display. Any kind of suggestive selling works really well for children's videos.
Wendy Moss VP, marketing
Sony/Wonder Santa Monica, Calif.
Parents will continue to be interested in what their kids watch. They want to make sure they are watching programming that makes sense and may have an educational slant. Most companies try to create programs that are entertaining, but they may also have an educational edge, with a message or a lesson to be learned.
For the last couple of years the trend has been toward more family viewing of programs. In our case with Nickelodeon, both parents and children watch a lot of the shows. With two parents working, this gives them the opportunity to interact and be involved with their children on a different level.
The supermarket is where the parents shop. They visit the store an average of two times a week. Today's supermarket is much more aggressive in displaying videos, positioning the product on endcaps and letting the consumer know what is available on video.
Lola Valenciano video sales manager
Random House Home Video New York
A lot of us are looking to continue what we consider quality lines. The industry has matured. All of us are looking to continuously bring in new properties. This is a very title-driven market. Most people are just trying to keep their margins.
The trend is toward more value-added children's videos. Disney started it with a plush toy with its videos. Others have included mail-in offers with the video. We may see more of that type of merchandising.
For us, 95% of our line is priced at $9.95. We are specifically targeted for sell-through. 1994 will be a big year for Sesame Street with its 25th anniversary. Not only will there be video promotions, but books and almost all of the licensees will promote and feature items.
Bill Sondheim senior VP, sales, marketing
Polygram Video New York
We are continuing to see fragmentation, with significant properties emerging from a diverse group. The challenge for buyers is to keep a strong eye on emerging trends.
This year one of our highest priorities will be to see higher representation and closer relations with the supermarket trade. We have been successful in penetrating mass merchants and sell-through retailers. Now we need to improve our profile in supermarkets.
George Feltenstein senior VP, general manager
MGM/UA Home Video Santa Monica, Calif.
A lot of our competitors are going into family entertainment. We have been doing that all along.
Many of our classic, family-oriented films can be especially profitable at the grocery level. Many grocery chains have started picking up such classics as "Lassie," "National Velvet," "Chitty Chitty Bang Bang." These are not brand new, but they are timeless. We are looking at reissuing some of our more popular titles in clamshell packaging. It adds to the cost of the product by putting it in a clamshell. We would only do it in the children's arena because of the durability of the clamshell packaging. We may make some of our videos available both ways.
Glen Ross senior VP, marketing
Republic Pictures Home Video Los Angeles
There will probably be more video with added value such as a little plush toy. What Republic is trying to encourage with our Children's Television Workshop line is that videos for children can have two purposes: They can entertain and they can educate.
All Children's Television Workshop products include some kind of teaching aid or extra additional value, such as a lyric sheet or a puzzle that complements the video.
Children's video is an evergreen product, unlike other videos that might have a lifespan of a couple of months. Every year a whole new audience is born.
Supermarkets need to look at the market and take better advantage of it. Children's video is a family-oriented product. It has all the right demographics, price points and appeal to fit in a supermarket.
Alan Perper senior VP, marketing
Paramount Home Video division Paramount Theatrical Group Los Angeles
There are a lot of diverse products in the children's video market and a lot of animation. We are glad that "Peanuts" (to be released March 9) is nonviolent. We expect impulse sales will be fantastic, particularly in supermarkets where the consumer is in a destination mode.
Value-added is a very popular merchandising tool. It creates interest in the product. "It's the Easter Beagle, Charlie Brown!" will be offered both as an individual cassette and as part of an Easter gift set featuring the Easter beagle.
We are in the exploratory stage with packaged goods companies on the Peanuts line. There is tremendous interest in value-added ideas that go into our packages and theirs.
Grocery stores need to change their thinking on videos. They can be more than an in-out premium. Video, especially children's video, is an impulse buy. Grocery stores are the final frontier for us.
Andrew Kairey, senior VP, marketing, sales
MCA/Universal Home Video Universal City, Calif.
In packaging, the trend is away from sleeves to clamshells. Research shows the clamshell is more consumer-friendly in respect to durability, and it is seen as value-added packaging. It allows the graphics to be displayed more effectively.
We will release "We're Back! A Dinosaur's Story" on video March 15 and that will be in a clamshell. We are also looking at other properties this would affect.
Another aspect to our video merchandising is the value-added package. Some children's items released in the past included an activity book. Each cassette package of "We're Back! A Dinosaur's Story" will include two inserts: a reusable sticker sheet featuring five characters and a savings booklet valued at more than $20, with coupons, rebates and discounts from companies including Nestle, Hertz, First Alert, Hi Tech Expressions, Carl Buddig Meats, and Universal Studios in Hollywood and Florida.
With our value-added program we are trying to appeal to both the children and their parents.
Supermarkets have the opportunity to cross-merchandise value-added video packages with packaged goods suppliers for a greater merchandising experience.
Ben Tenn executive VP
Best Films & Video Beverly Hills, Calif.
We see tremendous strength in product directly from television, particularly syndicated TV.
There is no such thing as a children's video section. Preschool, grade school and teen-agers have their own specific interests. Putting a Sesame Street or Barney tape next to one for teen-agers is like displaying comedy with horror videos. Supermarkets, which serve so many families, need to segment the children's video section into three separate areas: preschool, grade school and teen-age.
Sergei Kuharsky VP, family entertainment
Warner Home Video Burbank, Calif.
Based on the research we've seen, one of every two titles purchased in sell-through is family-oriented.
Supermarkets have the advantage of being a more convenient location at which to take advantage of rebates and cross-promotions of videos with consumer packaged goods.
Most of the promotions tied in with national packaged goods are readily available in grocery stores. For example, "Free Willy" was cross-promoted with Bumble Bee tuna. The consumer was asked to buy six cans of Bumble Bee tuna and mail in a certificate with proofs of purchase to get a $3 cash rebate on the "Free Willy" video.
"The Secret Garden," which is to be released this month, will be cross-promoted with St. Ives skin and hair care products.
The supermarket can also take advantage of advertising and promotional funds by the studio, distributor and consumer packaged goods company, which should make it possible for the retailer to run bigger ads, build larger displays and have a greater impact on consumers.
Supermarkets should try to avoid just being in the hit business. To really increase video profits you also want to be in the video catalog business. For example, where we will have displays of "Secret Garden" we will promote other items like "Treasure Island" and "Oliver Twist" to help create a more profitable sale. On catalog items, retailers don't have to be as price-competitive with everyone else in the market.
