HOLIDAY EXPOSURE

JOEL ELSON

When it comes to film sales, few retailers can ignore the built-in incentive for shoppers to buy for the holidays.

This undoubtedly is the busiest time of the year to move photo supplies, say retailers. The fourth quarter accounts for about 36% of category sales, according to general merchandise buyers and suppliers. The Photo Marketing Association, Jackson, Mich., in its consumer study for 1996, confirms this fact. The study revealed that 35.5% of film for 1996 was purchased in the fourth quarter, 36% of household pictures were taken from October to December, and 34.6% of film rolls processed were done in that quarter.

"The survey also showed that cameras and/or camcorders were used 40.1% of the time in the fourth-quarter period," said Yukihiko Matsumoto, the PMA's associate director of marketing research and analysis.

"This is the time of year, obviously, for film and one-time-use camera impulse buying," he said.

In response to the peak selling season, supermarkets have increased their display space for film and single-use cameras; are using bonus packs, coupons and off-shelf promotions; and are running large ads to remind shoppers of the availability of products and services in their stores.

However, mass merchandisers cast a dark shadow on supermarket chains' film sales this time of year.

Harps Food Stores, Springdale, Ark., for example, doesn't make much more than 5% on film because of the merchandising push by Wal-Mart in this category, said Art Bundy, the chain's nonfood director.

Because of these low gross margins the chain won't devote extra display space to film. "Our company policy is that before a product is displayed with prominence, it must meet a certain gross -- and film doesn't meet that precedent," he added. However, single-use cameras generate around 20% profit for the chain.

Harps slated an extra shipper of single-use daylight and flash cameras at stores. "Flash models sell better this time of year by around two to one compared to nonflash," said the retailer. Film and single-use cameras are promoted with special pricing, Bundy noted.

The chain also has increased its category advertising, using freestanding coupon inserts. "Our one-time camera business is up quite a bit, and the FSIs carry coupons that customers can use for film and one-time-use cameras." said Bundy.

Supermarkets can apply holiday strategies used by mass merchandisers and drug chains, said John Dell, U.S. trade marketing manager of consumer imaging for the grocery channel at Kodak in Atlanta.

Cross merchandising multiple brands of single-use cameras from a four-sided display rack, for example, works well for Wal-Mart, said Dell.

"Supermarkets with space constraints can do the same with a smaller 2-foot rack of one-time use cameras," which he said is growing at the rate of 30% a year.

The food channel's traditional merchandising of single-use cameras on film racks and floor shippers can be supplemented with additional secondary displays. Superstore operators like Wal-Mart and Kmart also successfully cross promote single-use cameras at greeting card, floral and bakery departments, as well as placing waterproof and panoramic camera models near sports equipment, and flash styles close to giftware, said Dell.

As a high-impulse, high-ring product, the one-time-use camera offers supermarket operators, "all the attributes that you could like in a subcategory, and it's a hook that also ties into photo processing," Dell stressed.

Harding's Friendly Markets, Plainwell, Mich., is merchandising extra displays and clip strips of film and single-use cameras, according to Dave Lynham, nonfood buyer.

"It's something we always do in the fourth quarter, including devoting newspaper ads to the entire category and setting up shippers. It spikes higher sales," he said.

For Brookshire Bros., Lufkin, Texas, one-time-use cameras continue to grow the marketplace, according to Pat DeWane, vice president of nonfood. He also believes the advanced photo system has revitalized the industry by offering better quality at a reasonable price .

Brookshire will promote shippers of Kodak single-use Advantix gift cameras packaged with a gift overwrap sleeve that carries a $2 savings off the retail price. Single-use camera shippers with daylight and flash models priced under $15, also are merchandised during the fourth quarter.

The chain has doubled its exposure of Fuji and Kodak film with back-to-back floor stands, J-hooks and clip strips, and a spinner rack in the bakery area.

Affiliated offers a three-roll film pack with a fourth roll of 12 exposures free. The multipacks are supplied from open stock through the depot, and clip stripped in stores.

Kodak, Konica USA, Fuji Photo Film USA and Polaroid are stocked in Affiliated's warehouse. About 150 of 350 retailers the wholesaler supplies with nonfood are participating in its holiday photo merchandising program, added Satterwhite.

According to Satterwhite, advanced photo system camera sales at Affiliated's retailers in west Texas, New Mexico and Colorado have been fair. Holiday shippers feature one-time-use flash and daylight models priced at $10 to $17, and are played up in ads, said the nonfood executive.

"Single-use camera sales have been only fair, and I don't see that the new technology is making a big impact in our area at this time," he added.

Stocking Stuffers

Suppliers are betting on tie-ins and rebate offers to draw holiday shoppers to photo film. Kodak, Rochester, N.Y., has partnered with Coca-Cola Co., Atlanta, to run on-pack coupons for free and discounted Coca-Cola products this holiday. The offer consists of buying a specially marked value pack of Kodak Gold film with a voucher for a free 2-liter bottle of Coca-Cola Classic, or $1.50 off other Coca-Cola products. Buy two or more rolls of any speed of Kodak Royal Gold film and get a mail-in rebate of $1.50 off Coca-Cola products.

The manufacturer also is supplying retailers with holiday-themed promotional signs and point-of-purchase materials for its Image Magic system for making reprints and enlargements.

Konica, Englewood Cliffs, N.J., is running a sweepstakes tied to "The Wubbulous World of Dr. Seuss," aired by Nickelodeon. The sweepstakes includes a trip to New York, a visit to the "Wubbulous" studio, and other prizes. Consumers participate by purchasing Konica 35-mm color print film and single-use cameras.

The promotion includes a free magnet and photo frame featuring Wubbulous characters, free coupon books with special savings on Wubbulous and Konica merchandise, plus a $1 cash rebate on Konica 35-mm color print film and its one-time cameras.

Fuji, Elmsford, N.Y., is featuring tie-ins on three video titles -- "Batman & Robin" and "Free Willy 3: The Rescue," from Warner Home Video, Burbank, Calif., and "NFL's Greatest Moments," from PolyGram Video, New York. With the purchase of either the Batman or Free Willy video, plus either a multipack or three rolls of film or a one-time-use camera, consumers get a $5 mail-in rebate coupon packed inside the videos.

Shoppers also can get a free Batman action figure with the proof of purchase of either a film multipack, three rolls of film or a one-time-use camera and the Batman video.

The free NFL video offer, which has a retail value of $19.95, is available with the purchase of selected stockkeeping units of Fuji videocassettes and audio tapes. The offer is featured in an insert in TV Guide this month.

Fuji also is offering mail rebates of up to $15 toward the cost of processing one roll of its Fujicolor SmartFilm, with the purchase of its Endeavor 24-mm APS System cameras.