SPACE-THEMED VIDEOS TO LAUNCH NEXT MONTH

DAN ALAIMO

PLEASANTON, Calif. -- Many of the biggest chains in the country will launch a new space-themed video sell-through program Nov. 30. "Star Scouts Discover NASA" will be the first tape in a series that will be released direct to video and sold only in supermarkets and drug chains. It will carry a suggested retail price of $14.95 and be backed by $3.5 million in television, radio and print advertising, including a freestanding insert on Nov. 27, astronaut appearances on television shows and four full-page ads in USA Today. In another break with traditional video marketing, Gateways to Space here is selling the children's program through food brokers and manufacturer representatives. "It's going to be exciting. I think they have put together a really great marketing program for it," said Manny Shoemaker, promotional coordinator of general merchandise and health and beauty care at Homeland Stores, Oklahoma City. "If they come through with all the support that they have planned, I think it will be a success," he said. "The first tape in the series will be in limited supply and I think it is really going to take off," said Harold Berthold, director of grocery merchandising at Food Emporium, New York, a division of A&P, Montvale, N.J. "It is going to sell out rather quickly and they are going to have to increase their quantities in the future." Among the other chains that have so far agreed to carry the title are several Kroger Co. divisions, Safeway's Eastern division, Albertson's, Giant Food, Winn-Dixie Stores, Randalls, Tom Thumb Food & Drugs, H-E-B Grocery Co., Marsh Supermarkets, Fred Meyer Inc., Nash Finch Co., Grand Union Co., Price Chopper Supermarkets, Ingles Markets, Hannaford Bros., Vons Cos., Ralphs Grocery Co., Lucky and Gateway Foods. The videos are entertaining and educational, said Jim Gingery, national sales manager of Gateways to Space. Combining animated characters with live actors, the 30-minute programs will teach children about the space program. Former astronauts, including Richard Gordon Jr., will be featured in the 13 titles that will be produced in the next two years, said Gingery. "This program is geared to children ages five to 13, and in the eyes of many of these children, the astronauts are heroes," said Berthold. "It is also a means of limiting the violence that children see on TV today. I think parents will be comfortable with their children watching it." Food Emporium will merchandise the corrugated shippers up front in the stores and at end-aisle locations, he said. "As always, it depends on the space available in the store," said Berthold. In addition to the national advertising that will be done to support the title, Food Emporium also will feature it in its circular. "It will probably have to be listed as 'while supplies last,' " he said. At Homeland, the shippers will either be in the video departments or someplace in the front of the store, said Shoemaker. Because the tapes will not be carried by the mass merchants or warehouse clubs, they will bring a higher margin than the sell-through hits, he noted. "It's a product that you can go out and make a profit on," he said. Most retailers can make between 25% and 40% on the titles, said Gingery.

While Shoemaker is very optimistic about sales of the first tape, he is less sure about the rest of the program. "The proof will be in the pudding. If it does well, we will continue with it. If it doesn't, we may have to back away from it," he said. Gateways to Space is a publicly traded company that was formed just to develop and market these tapes, said Lou Karabochos, chairman, president and chief executive officer. "There are two things that kids love: dinosaurs and space. The 25th anniversary of the first manned lunar landing this past July has helped to ignite the charge, especially in school curriculums," he said. "The Mission of Apollo 13," a movie by Ron Howard starring Tom Hanks, is now in production, Karabochos noted. "Space is in," he said. The first tape in the series will begin shipping on Nov. 7 with a Nov. 30 street date, he said. The second tape will street in February, with the rest coming out every six to eight weeks. "Our alien characters, Cygy and Zendo, are from the planet Kara, and will interact with the TV show in looking back at the space program. They will explore key issues affecting our planet today, like crime, antidrug and the environment, stressing education and family. They soon will be household names," said Karabochos. The company is offering the product primarily through supermarkets because they are the fastest growing class of trade for sell-through video, said Gingery. "Second, we are not interested in retailers carrying a deep inventory. We are limiting retailers to two prepacks per store. Our goal is a quick sell out," he said. "If we opened this to the mass merchandisers, it would be difficult to control retail inventory and, even more important, the retail price," he said. The tape will give retailers greater margin than the big studio sell-through titles because they won't have to compete with the mass merchants, said Frank Kilby, vice president of sales. "The suggested retail price of $14.95 will provide the best return of any nationally distributed and promoted video in the fourth quarter. Supermarket retailers are looking for profitability in the fourth quarter. There is no reason to deep-cut this title," he said. Ten percent of the company's net profits are being donated to the Gateways to Space Foundation, noted Karabochos. "This independent organization will provide grants to noteworthy children's burn centers and child abuse centers," he said. While the tapes are primarily being sold through food brokers and manufacturers representatives, retailers can also obtain them through video distributors if they want, said Gingery. "Unlike the pricing established by some of the studios, we are offering the same price to both our direct partners and to video distributors. The distributor mark-up is between the retailer and the distributor," he said.

"The studios, like Disney, are offering a direct relationship to their most important customers. To us, each supermarket and drug retailer is important," he said.

Additional marketing support will include $15 worth of coupons, an iron-on Star Scout patch like the NASA patches created for each mission and a fan club application, said John Prestage, senior partner. "We also have enclosed an Intergalactic Passport and a sweepstakes entry form. Each entry is a winner of some kind. Kids love mail. All of these will help support the continuity of our 13-tape series," he said.