STUDIOS OFFER SCENARIOS FOR PACKAGED-GOODS TIE-INS

DAN ALAIMO / Additional reporting: ED LIEBER

In response to retailers' difficulties in implementing cross promotions at store level, video suppliers are becoming more sophisticated in designing these programs.

"Where we've seen the biggest impact in supermarkets is with event marketing with large displays when there are a group of promotional partners to create some in-store excitement," said Mitch Koch, senior vice president and general manager of Buena Vista Home Entertainment, North America, Burbank, Calif.

"When properly executed, that formula has brought the most effective results. There are some executional issues, so there might be improvements on a chain-by-chain basis, but we know what the model is for the most impactful supermarket presentation," Koch said.

"We are trying to make the execution easier for the retailers as well," said Scott Haines, vice president of sales for Buena Vista. "We learn from all our programs. This year, we are helping out with signage, we are developing prepacks that easily slide into an endcap display that we know our tie-in partner is buying," he said.

When all the elements come together, everyone is satisfied: the retailer, the studio, the tie-in partners and the consumers, said Koch. "There is a people element and a management philosophy involved that governs where you get the best results. When you have the mix of a supportive buyer and store personnel who are interested in creating an energetic entertainment environment, the cross promotions do very, very well," he said.

One of the most successful approaches has been working closely with big chains to develop customized programs. For example, PolyGram Video, New York, has worked with Kellogg Co., Battle Creek, Mich., to create account-specific events, said Ken Graffeo, senior vice president of marketing.

"We asked, how can we create synergies within the store and create something around the brand? Not only was Kellogg's very receptive to this, but the supermarkets were also very receptive. We see that as a real opportunity. Rather than just focusing on the video title, we started focusing on merchandising their store. The only logistical problem is, we go to two different buyers, but we can work that through," he said.

"We are trying to tie in with more packaged-goods products that are sold in the supermarkets," said Stephanie Kovner, senior director of marketing at BMG Video, New York. "We think that their brand equity just adds value to our titles, and they are often looking for something fun to tie in with," she said.

Whether with cross-promoted titles or otherwise, merchandising excitement is critical in selling videos. "The savvy showmanship-oriented retailers will seize that opportunity and create fun, compelling displays," said Ray Gagnon, senior vice president of sales, national accounts, at Twentieth Century Fox Home Entertainment, Beverly Hills, Calif. "You walk into the supermarket and the candy is right up-front. There is a money-off opportunity with it and the video. It makes perfect sense for supermarkets," he said.