FAMILY BUSINESS

DAN ALAIMO

Family video rentals are getting more merchandising attention in supermarkets. Video executives are looking more closely at how they present family-oriented movies and other videos in their departments. Many retailers organize them into separate family sections, but some purposely mix them with other categories, using the seal of approval of the Dove Foundation, Grand Rapids, Mich., to differentiate the family titles. "There are people out there who are looking exclusively for family entertainment," said Randy Weddington, video specialist at Harp's Food Stores, Springdale, Ark. "If we get to the point where our new-release collections grow, then family is about the only category we need to hang on to." Retailers are focusing on family videos for three key reasons: · Family-oriented titles are increasing in number and quality. · Most are available at sell-through pricing, resulting in strong profit and depth-of-copy opportunities for rental. · With supermarkets projecting a family image, these titles are a natural fit. "In a grocery store, after your new releases and some older top titles that are still popular, family and children's are the most important," said Teri Severinsen, manager of video services at Roundy's, Pewaukee, Wis. "Some people [in the video industry] tend to forget that the family titles are renting," said Dick Kelly, president of Cambridge Associates, Stamford, Conn., a consulting firm.

"Since it is cheaper for the retailer to buy, then why not? After a couple of rentals, it is paid for," he said. "Family is the focus, which is great," said John Fincher, national account sales manager at Baker & Taylor, Morton Grove, Ill. "It is fantastic for our business, specifically for supermarket retailers." Most retail and video executives define family products as titles that are acceptable and entertaining for young children to watch, but also have strong appeal for adults. Among some recent and upcoming releases that fit into this grouping: MCA/Universal's "Babe"; Warner's "Amazing Panda Adventure"; Columbia TriStar's "Indian in the Cupboard," "Baby-Sitters Club" and "Jumanji"; Disney's "Pocahontas," "A Kid in King Arthur's Court" and "The Big Green," and Turner's "Angus." A number of major studios have recently established special labels to market these products. These include Warner Family Entertainment, 20th Century Fox Family Features, MGM/UA Family Treasures and Columbia TriStar Family Collection. Some in the industry point out that Walt Disney Home Video was the first such label. "There are a lot more family releases coming out, and that is filling a void that was there in previous years," said Bill Bryant, assistant vice president of major accounts and special markets at Ingram Entertainment, La Vergne, Tenn. The new family labels "have increased the number of titles available for rental purposes and the profitability of the supermarkets that carry them. There seems to be an increasing consumer demand for family films, and that is very good news for supermarkets," he said. "If you look at the past couple of years, we've seen more family product start to come out," said Lance Wyckoff, director of operations at Western Video Management Corp., Orem, Utah. The company racks video departments in 32 supermarkets in Hawaii for Foodland, Safeway, Star and Food Pantry. Wyckoff's company keeps separate family and children's sections in the stores it services. "But family is quickly becoming our strongest category," he noted. "The greatest marketing advantage we have in the supermarket environment is that we put that product right in front. So while mom is standing there in the checkout paying for it, the kids are browsing through the department pulling out movies and asking for them. We really try to make the family and children's product stand out," said Wyckoff. Most retailers contacted by SN said they have carved out a separate family section in their video rental departments. But others, like NDC/Mega Marts, Oak Creek, Wis., keep family products with other movies in the various genres such as comedy, drama and action. "We've been successful," said Bob Glisch, vice president of operations. "When you display titles that way, you give consumers the choice of everything in that section. "Our customers know that if they want a comedy, they go to the comedy section. They don't have to check the comedy and the family sections," said Glisch. This is an approach championed by Dick Rolfe, managing director of the Dove Foundation. " 'Family' is not a category of movies, but a category of customers who are interested in all genres of movies," he said. Studies have shown that the first question customers ask themselves is what type of movie they want, he said.

Rolfe recommends segmenting within the various genres using the Dove Seal to differentiate the family-oriented programming. "By grouping the Dove product within a category you are making a stronger statement about family product, and it is quicker for the consumer," he said. The notion that "family" is an audience and not a category has been met with mixed reviews from retailers, although some major chains have embraced it. "It's an intriguing idea, but we have not done that yet," said Clifford Feiock, video coordinator at Nash Finch Co., Minneapolis, which rolled out the Dove program in October. Nash Finch has family sections and also displays Dove-approved titles in the other categories. With the low cost of family titles, why not do it both ways? suggested Kelly of Cambridge Associates. "Put a couple of copies in the general audience section and a couple in the family section," he said. But family sections have proven to be effective for many retailers. "We market family as a category by itself, and place it in the shop close to the children's and Disney section," said a video executive with a Midwestern retailer. "We use it as a buffer to keep the children's section away from the other genres. That way, children don't have to be exposed to the other genre's box art." For example, he noted, "we would never put horror next to children's." Video III, Orem, Utah, which racks over 120 stores for Safeway, Lucky, Smitty's and Buttrey, does the same thing, said Gregg Wright, president.

"For people who are looking for family-oriented videos, it is better to have a section where they can go and know that they are not going to be offended by anything that they look at," he said. "I don't see the point of splitting up the family videos into all these different categories," added Weddington of Harp's. "You still need a section where mothers shopping in grocery stores can go and feel comfortable about getting something for their kids," said Greg Rediske, president of Video Management Co., Tacoma, Wash. The company manages the video inventory for about 275 stores, including Quality Food Centers, Larry's and Haggen. "I think family is a very viable category," he said. In Video Management's departments, family and children's videos are merchandised together, but Rediske is considering breaking out a subsection for preschool products, such as Spot and Barney. "Segmenting is important. It's a much quicker, faster way for customers to find their product," he said. Many supermarket video departments use separate family sections "and for the most part they seem to work very well," said Bryant of Ingram. "Consumers want to find that kind of product, and the supermarkets that merchandise that way have been very successful." Some rental-priced titles aimed at a family audience also do well in supermarkets -- for example, Republic's "Rent-a-Kid" and Moonbeam Entertainment direct-to-video products, such as the "Josh Kirby . . . Time Warrior!" and "Prehysteria!" lines, which are distributed by Paramount Home Video.