TYING UP LOOSE SALES

MARTY SONNENFELD

Video cross promotions are alive and well, and aiming to stir up sales in supermarkets.

Cross-category promotions are being planned by at least two major studios in the months ahead to give supermarkets the opportunity to boost sales of upcoming video releases. Additional tie-in deals in the near future will take advantage of free offers and rebates on other video titles. As studio release schedules for the year unfold, more cross-promotional opportunities will likely be presented to retailers.

Supermarket retailers surveyed by SN, however, had mixed feelings about cross-merchandising videos with other categories.

Gail Norrick, video manager, Scott's Food Stores, Fort Wayne, Ind., responded, "We sold balloons in the floral department for 'A Bug's Life,' but the store has not tried cross merchandising often." Norrick said that when Scott's has done cross-promotions, she has seen no noticeable bump in video sales.

But Angeli's, Menomine, Mich., had better results using a different tie-in for the same video title. "We did a promotion for 'A Bug's Life' with Kids Cuisine and it definitely impacted sales," said video buyer Maria Boye.

Brent Bailey, video manager, Darrow's Country Market in Baraboo, Wis., and Bill Liesenfeld, supervisor of video departments for Houston's Sak 'N' Sav, both reported that they mainly limit their video tie-ins to sodas and popcorn, but neither thinks the promotions have any significant effect on sales.

B & R Stores, Lincoln, Neb., also does limited cross-merchandising of videos. Bob Gettner, video director, said, "We've done some tie-ins with toys, cards and stickers. That stuff usually works pretty well."

Ingram Entertainment, a video distributor based in La Vergne, Tenn., actively recommneds cross-promotions to supermarkets. "We've helped accounts to develop shelf-talkers, like in frozen foods for promotions with pizza," said Bill Bryant, vice president, sales, grocery and drugs. "We also urge studios to attach coupons directly to the POP displays."

Some supermarkets, including Hilander Foods in Rockford, Ill., and Clyde Evans Markets, Lima, Ohio, report that they have not tried linking video sell-through with other products, and expressed skepticism about the viability. The most common obstacle they cited was lack of space to install displays in non-video aisles.

"We like to keep the videos up front, because there's high theft. Finding different locations with enough space that can be monitored is very hard," said Karen Welch, video buyer for Clyde Evans Markets.

Retailers also reported many other difficulties. B & R's Gettner said, "We've had problems just trying to coordinate with other department managers."

Darrow's Country Market doesn't think cross-merchandising can help with sell-through or rental videos. "If folks aren't going to rent the video, they're not going to rent it regardless of what you give away with it," video manager Bailey observed.

Sometimes, even more fundamental challenges make cross-promotions difficult. Liesenfeld of Sak 'N' Sav maintained, "We're in low income areas. People tend not to read very much."

But despite the retailer trepidation, studios are pressing ahead with an aggressive slate of video tie-ins. Right now, two studios have slated promotions with tie-ins between children's sell-through titles and cereals.

For the August release of "Runaway Reptar" by Paramount Home Video, Hollywood, Calif., Post will introduce a Reptar cereal. Dorrit Ragosine, spokesperson, reported that, in addition to the cereal, "We'll have a tie-in with Campbell's USA and Canada." She said that Campbell's will launch a Reptar chicken soup, with pasta in the shape of the character. "This stuff is great for supermarkets, and it's fun."

As usual, Buena Vista Home Entertainment, Burbank, Calif., has a heavy schedule of cross-promotions. For example, "Doug's 1st Movie" will tie in with Ragu and McDonald's. Consumers who buy the video and three jars of specified Ragu products are eligible for a $5 mail-in rebate.

Buena Vista is also planning holiday promotions in conjunction with Winnie the Pooh videos, Jonathan Taylor Thomas' "I'll be Home for Christmas" and other children's titles. Mitch Koch, general manager, North America, for Buena Vista, said, "Two million boxes of Lucky Charms and Cheerios will have Mickey on the front face for 'Mickey's Once Upon a Christmas.' That will give us unbelievable exposure in the cereal aisle."

Other upcoming tie-in deals from Buena Vista include a free playhouse offer with "Alice in Wonderland," a free stationery desk set with "Madeline: Lost in Paris," a $3 rebate on Disney's "Hercules: Zero to Hero" and "The Great Mouse Detective," and a $5 rebate on "My Favorite Martian," all linked to other titles.

Among other studios, Warner Home Video, Burbank, has a number of cross-promotions slated for its release of the animated "The King and I," particularly emphasizing the day-and-date DVD release. There will be an on-pack whistle premium, a 14-day cruise sweepstakes, a free plush toy offer and a reduced price CD-ROM offer.

Artisan Home Entertainment and Hallmark Home Entertainment, Santa Monica, Calif., have planned cross-promotions for two of its tiles. "Kipper" will be supported by a joint promotion with Nickelodeon, and a toy offer in conjunction with Subway restaurants. With the purchase of "Noah's Ark," consumers will receive a $5 rebate coupon.

For its release of the highly anticipated "Prince of Egypt," DreamWorks Home Entertainment, Glendale, Calif., will heavily advertise the limited availability of an on-pack beanbag toy.

Two recent cross-promotions were directly targeted at supermarkets. Buena Vista's "A Bug's Life" tied in with Kid Cuisine, and Golden Books' "Pat the Bunny Sing with Me," along with a sweepstakes, was promoted on the wrappers of millions of heads of Foxy lettuce. Both received prominent play in many supermarkets.

Retailers, distributors and studios widely agree that simplicity is key to successful cross-merchandising of videos.