WORKOUT TAPES BUILDING A HOME

PAT NATSCHKE LENIUS

Product change and diversity are driving the growth of the fitness video category. Consequently, retailers can expect a healthy "bump" in exercise tape sales this month, the traditionally strong selling period, but also throughout the year, according to studio and programming supply executives.

The proliferation of titles becoming available in the fitness video category is a sign of its growth potential, the executives said. New celebrities are entering the exercise arena and new exeercise programs are being developed that focus on specific body parts, or that use additional equipment, such as steps, resistance bands, weights and jump ropes.

"The fitness video category is very dynamic. It is a growing marketplace," said Kevin Conroy, vice president of sports and fitness marketing at CBS/Fox Video, New York.

"The marketplace changes every day.

We are learning more about what is right for the body and how to take care of the body. Those trends, data and research have a direct impact on programming and products, and how consumers view exercise," he said.

The exercise and fitness video business has grown to the point where it can be segmented into three distinct areas, said Tim Fournier, national director of sell-through at LIVE Home Video, Van Nuys, Calif.:

Price point-driven, with tapes retailing for $10 or less.

Celebrity-driven.

Infomercial-driven, a recent trend.

"There is room for growth because of the type of product this is. Once an individual feels comfortable with a particular workout, he or she is ready to go on to the next [phase]," said Fournier.

The proliferation of titles in the exercise and fitness video category is what makes this such a dynamic industry, said Mark Gilula, vice president of sales and marketing at ABC Video, Stamford, Conn.

"Each celebrity brings his or her own personality to it. This is like books or music where there are infinite numbers of artists. The motivation factor plays a key part," he said.

Ellen Hochman, vice president of marketing at Maier Group, New York, said there is room for growth because of the current life stage of the baby boomer generation, which is family-raising.

"Baby boomers account for a very large segment of exercise video purchasers. They need the flexibility offered by videos because there is no time to get to the health club. There is also an overall trend in society for people to care more about fitness and looking good," Hochman said.

The fitness and exercise video category is growing to incorporate all demographics, from older people to baby boomers, to younger people and children, both male and female, said Julie Smith, marketing director of A-Vision Entertainment, New York.

"The proliferation of titles tells me the category is growing. There is always room for top-quality programming that appeals to a wide base of interest," Smith said.

This is what the studio and programming supply executives had to say about supermarkets role in the growing fitness category:

Mark Gilula VP, sales, marketing

ABC Video Stamford, Conn.

The most important aspect of merchandising exercise and fitness videos is to display them away from the video department. Merchandise them at the front of the store or in the health food or diet food section. Merchandise and display the product more toward the target audience. This is an impulse item. Make it as easy as possible for the customer to make the purchase.

Exercise tapes that have been exposed on television in infomercials, in spot TV ads or on exercise programs have seen tremendous growth. In the past the best-sellers were celebrity-driven tapes with stars such as Cher or Jane Fonda. Now the stars include Tony Little, Susan Powter and Richard Simmons. The exposure on television translates very successfully into retail.

There will be continued growth. People are constantly looking for new ways to lose weight or get fit.

I see opportunities to tie in with items in the supermarket, with rebates or free-standing inserts. For example, we recently had a free-standing insert that offered a rebate on the "Daytime's Greatest Weddings" video series with purchase of selected Lysol products.

Kevin Conroy VP, sports, fitness marketing

CBS/Fox Video New York

The most important thing supermarkets can do is identify trends and our job is to help them understand these trends. One of the most important trends, which is backed up by lots of research, is fitness stepping.

Studies indicated it was the fastest growing participatory sport in this country last year. More people took up step training last year than rollerblading. More than 9.2 million in this country currently do step training. That is a 35% increase from 1991 to 1992 and about a $200 million business.

When you look at the fitness video market, less than 10% of videos are step-based. There is a huge demand for quality step-based fitness programs considering how fast that market is growing.

All supermarkets have to do is take advantage of what we create, such as the shelf talkers and counter displays, and merchandise and display the product with the same level of expertise as they do with other products.

When you look at the numbers, the supermarket channel represents a significant growing channel for video. It is amazing how well supermarkets have done with video products. The people who purchase our product are currently their shoppers. The predominant purchaser of exercise videos is a woman, age 18 to 49.

We work very hard at educating our buyers on what the trends are and why the programming is right. Does the program deliver on what it promises? We have prepared lots of data we provide to our salespeople so when we sit down with the video buyer we make it easy to understand what is going on. I encourage people to screen the videos themselves.

The biggest mistake now in the fitness video area is people making decisions based on the celebrity factor. Celebrity involvement is only positive if that person is credible when it comes to fitness.

The most dramatic change has been a shift from the hard workout, "no pain, no gain" of the 1980s to a more realistic approach that exercise is different for everyone. The biggest message now being put forth by everyone from personal trainers to the President's Council on Physical Fitness is that some form of exercise is better than none. You need to determine what is right for you. That premise sets the tone for how and why the marketplace can continue to grow.

The most important thing is that the program be well conceived, well designed and delivers on its promises. The way to do that is to involve experts in the development of the exercise routines.

We see the category in terms of genre. There are general exercise videos, some with roots in dance, some total body workout, some focus on lower body, some on stretching, some on specific body parts. The marketplace has become very segmented, but that is not a bad thing. Different people want to work out different parts of their bodies. Consumers are looking for new, fresh and different workouts to help keep them excited about working out.

The opportunity for growth will never go away. The more we learn, the better the workouts will become. As new and exciting people come along like Keli Roberts, that offers us the opportunity to develop fresh programs. The average consumer owns six to eight programs but is constantly looking for fresh new product. That coupled with new knowledge from the field of medicine means the sky is the limit as far as growth potential.

In October CBS/Fox Video offered a cross-promotion to retailers that tied in its "Jaclyn Smith: Workout for Beauty and Balance" video with Wasa Crispbread, offering a $5 rebate with proofs of purchase.

Ellen Hochman VP, marketing

Maier Group New York

There is a significant increase in fitness video sales right after Christmas. That means there is a big opportunity (for sales) in the whole first quarter. If retailers stock enough product, the fitness products will fly off the shelves.

We recommend displaying the videos in an additional area of the store other than the fitness video rack. A freestanding display of videos can be placed wherever appropriate, based on traffic and the product. One supermarket account had fantastic success by putting a display in the frozen food area near low-calorie entrees.

Because supermarkets operate on a local basis, they can do local promotions. One Midwest chain tied in a fitness video purchase with a discount on membership in a local health club.

Many purchasers of exercise videos also are users of health clubs. It is not an either/or decision. Some people buy the videos to supplement their visits to the health club. The health club and exercise video can be partners in the consumer's desire for a fit and attractive body.

Advertising always helps the retailer. We plan to do heavy TV advertising for our "Buns of Steel" video line in the first quarter.

If a retailer wants to promote exercise videos only once a quarter, I would recommend January and early April. Consumer interest in fitness increases in early April because of it is preswimsuit season. It also can be tied-in with Mother's Day.

There is definitely room for growth in this category. We the marketers have the challenge of constantly giving consumers variety. No matter how much the consumer likes a particular exercise video, he or she always wants something new and different.

Julie Smith marketing director

A-Vision Entertainment New York

The exercise and fitness video category sells year-round, not just in December and January. Fitness is an ongoing interest. But there are certain times of the year when people may make fitness resolutions.

My suggestion to supermarkets is to cross-promote at store level with other related products. It doesn't have to be a national tie-in. Anything related to health and wellness will work, such as with bottled water, healthy frozen entrees, low-fat bakery or snack items. Exercise videos can be promoted in those areas with stickers, flyers, or shelf talkers. Another possibility is the magazine rack at the checkouts. Why not sticker the rack to let customers know they can go back to the video department for an exercise video?

The retailer can even cross-promote in the aisle with vinegar, soy sauce and salad dressing. It works with any product associated with health and wellness.

The category is growing to incorporate all demographics: older people, baby boomers, young people, men and women. Women are still the biggest part of the category, but men are becoming more involved. Women are a much broader base because we live longer and we are taking good care of ourselves.

A lot of programs are now equipment-driven. There are tapes that come with resistance bands or steps. Some people use the videos to learn how to use a piece of fitness equipment before they buy it.

Exercise programs are becoming more specialized. When the exercise video business first started, some focused on cardiovascular workouts and some on floor work. Those tapes still exist but now there are also tapes that specialize in strength training, step-training, low impact and other trends. There is a product for everyone.

This category will see continued growth. We all want to feel and look healthy. We are constantly looking for diversity -- we don't want to do the same things every day. Home video allows the consumer to create a library of interests. It is possible to own a variety of fitness videos and it will still be less expensive than joining a health club. The growth potential is endless.

The proliferation of titles tells me the category is growing. There is always room for top quality programming that appeals to a wide base of interests. As in any category, there are consumers who are brand loyal, as well as impulse buyers who will buy what is in stock or on sale. Why not cater to both?

We are continually doing market research to identify what our consumers need. We want to grow with them. We are trying to create products that are part of new trends in movement and equipment. We always want to be on the cutting edge. It is important to us to embrace the best talent and names in the fitness industry. We look to products and people that we feel confident will provide the best and safest programs.

We also are always seeking cross-promotion partners to emphasize awareness in the category. For example, we have the "Shape Video Workout" series that ties in with Shape magazine, which is sold at many supermarket checkouts.

Paul M. Daly national sales manager

PPI Entertainment Group Newark, N.J.

We believe very strongly in sell-through video in supermarkets. Supermarkets have come a long way with that in the last five years. A lot of supermarket video buyers have the opinion that the best months to merchandise fitness videos are in December and January, because people eat during the holidays and go to Christmas parties and then make New Year's resolutions to get back into shape. But mass merchants around the country have learned that these videos sell day-in, day-out. As long as they are in stock, they will sell.

When we talk to supermarket buyers about exercise and fitness videos, we talk about creating events. We suggest posters, shelf talkers, bag stuffers, cooperative advertising. We have different prepacks that will be available for December and January, with price points ranging from $9.98 to $14.98. We have a floor stand that holds 24 units and only occupies 1 square foot of merchandising space.

We have run very successful fitness sell-through promotions with supermarket chains in Rochester, N.Y., St. Louis and Boston. If the retailer really wants to get behind this and capture sales, we can provide fitness stars to do in-store appearances. That makes a big difference. Denise Austin can create a lot of excitement. We will put in all the various titles. People will line up. We will put on about a 30-minute presentation of a fitness video and the celebrity will sign pictures. Usually the video will be on sale at a reduced price. This can result in a 150% to 200% increase in sales.

There is a definite market for exercise videos. Health clubs can be quite expensive. Many people want to exercise in their own home at their own pace. A lot of stars have come out with fitness videos, but it all boils down to the program. There is low impact and high impact.

Fitness videos should represent 15% to 22% of the overall inventory in sell-through in the supermarket. This gives the customer the right product at the right price and in the right quantity.

We see supermarkets moving in the direction of carrying more exercise and fitness videos. They will be restocking inventory quite heavily with fitness videos. On the other side, lots of supermarket chains are not even in video, but buy in-and-out promotions. It is possible to capture sales with a good in-and-out promotion. I would say that 85% of our supermarket customers have video departments.

Steve Merrill sports, fitness director

PolyGram Video New York

December and January is definitely one of the best selling seasons for fitness videos due to holiday and New Year's resolutions. The first week of January is the most important week for health clubs and exercise videos.

The only type of promotion we do with supermarkets is in-and-out. We find they can concentrate more on a title on an in-and-out basis instead of keeping it on the rack for a whole year. It gives us the opportunity to get more frontal display. I would rather the retailer make a concentrated effort for three weeks than put our product on the shelf for three months.

The category is changing because there are so many different types of exercise programs. There is step-training, yoga and aerobic boxing exercises. These programs are being introduced to keep people excited about working out at home.

The category seems to be getting bigger every day. Sales continue to grow. The proliferation of exercise videos is attracting more customers because more people are able to find a video that matches their workout philosophy. It is hard to stay motivated with the same exercise tape. Women are the primary purchasers of exercise videos and probably 95% to 99% of the videos are targeted to women.

We plan to acquire more titles, but stick with a limited number and put a concentrated effort behind them. We offer posters and 10-count store displays. Our aerobic boxing video featuring Sugar Ray Leonard is merchandised with a $5-rebate on Pony shoes.

Cross-merchandising of exercise videos makes sense because those who are interested in fitness also are concerned about eating right. Tying in the video with food products that are good for you would definitely work.

Supermarkets have the advantage of traffic, and people who are in a spending mood. If the retailer can catch the customer's attention with a nice display, it may result in an impulse buy.

Ralph Rossi Jr. manager, national accounts

Cabin Fever Entertainment Greenwich, Conn.

Placement is the most important part. I recommend fitness tapes be displayed with healthy foods, but they could also be displayed successfully at the front door or at the checkouts. The video section is not the best place unless you use a floor display of exercise videos and put it at the entrance to the department or at an endcap.

Tim Fournier national director, sell-through

LIVE Home Video Van Nuys, Calif.

The obvious answer to how supermarkets can best merchandise exercise videos is to use manufacturers' displays in high traffic areas. But another idea that is more difficult to implement is cross-promoting fitness videos with related types of merchandise, such as at an end-cap with a diet shake mix.

Supermarkets are great at creating merchandising events. Look at what they do for the Super Bowl. It would be great to put together a fitness theme promotion on a smaller scale during the holiday season, in time for New Year's resolutions.

We have seen the fitness business segment into three different areas: price point-driven, consisting of videos priced $10 and under; celebrity-driven, with more stars involved; and a relatively new phenomenon, infomercial-driven.

There is room for new products because of the type of item this is. Once an individual feels comfortable with a particular workout he or she will be ready to go on to the next (phase).

Supermarkets have often been described as the last frontier of the video business. Depending on what surveys you read, there are 25,000 to 30,000 grocery outlets in existence and only 7% to 10% of them carry video on a daily basis. That represents a lot of room for growth. Females between the ages of 18 to 49 are in the stores on a weekly basis. There is potential for growth as long as we can continue to supply products that these customers want.

LIVE and other manufacturers typically repromote our exercise and fitness video lines in the fourth quarter. That usually means responding to changes in price.

Dave Savoca marketing director

Cabin Fever Entertainment Greenwich, Conn.

The bottom line is, supermarkets should be concerned about the quality of the exercise video and the maximum price should be $19.95. We find that in- and-out promotions using floor stand works very well with supermarkets. Distributors will sometimes put together a floor stand that contains a number of titles from different studios.

We strongly recommend creating a theme display by putting the fitness videos with packaged goods, with health-oriented products, or with bottled water. Because these videos are targeted to people who are shopping in the supermarket, a free-standing display or theme display with health-related items will be more impactful than displaying the videos spine out on a rack in the video department.

The goal for supermarkets is to keep customers interested in visiting the store. By providing different options and a variety of promotions, the store remains fresh for the consumer. We want to encourage customers to walk down various aisles in the store, not just run in to buy what they need. The supermarket has become a traditional business for us.

Andrew Kairey senior VP, marketing, sales

MCA/Universal Home Video Universal City, Calif.

There is a misconception about December and January. Sales certainly start to increase the day after Christmas, but not before. It starts when people start thinking about their New Year's resolutions.

Sales of exercise and fitness videos continue to build from January and February and into March. When the March weather starts to break, sales get even greater in the March-April-May period because of swimsuit season coming up.

Supermarkets can maximize sales during this extended period by getting past the thinking that everything happens in December and January. Take a longer look. There should be a tremendous amount of variety in the assortment carried. The retailer has the opportunity to be diverse and keep inventory fresh and bring in all different types of videos. The retailer could even create genres within the exercise category based on different target audiences and feature a different slant each month.

Harold Weitzberg VP, sales, marketing

Wood Knapp Video Los Angeles

It is important for supermarkets feature exercise videos in a couple of places in the store, if possible, near health or diet foods, as well as in the video section. Exercise videos can be cross-promoted in the cookie and cracker aisle or in the pharmacy. You need to move them out of the video section to really benefit.

It also is important to carry more than the best sellers. You need a wide variety. For example, there are at least 100 different stock keeping units of exercise videos. A supermarket probably should have 30 to 40 different titles beyond the best sellers. Many people who exercise are looking for unique kinds of programs. Some want to focus on specific body parts. Some want to workout with a certain celebrity.