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Once
Upon A Time, Walt Disney's Mickey Mouse was regarded
as an icon of worldwide mass marketing. But the changing times
forced the Walt Disney company to alter its tactics, and embrace
the concept of selective marketing, so in 1994, the company's
Mouseworks Division was mandated to establish a new publishing
niche: mass merchandiser-priced children's books, designed
and priced to move fast in a high-speed selling environment--the
discount chain toy departments.
The
corporation already had long-standing licensee agreements
with of number of children's book publishers, but it had decided
to organize its own publishing arm in the children's book
category. The division was organized to serve the digital
inventory-controlled world of Target, Kmart, and Wal-Mart.
Things were definitely starting to click for the Mouseworks
Division, but the group needed help from professionals from
outside the "mouse house" to ensure that all bases
were covered, specifically, a firm experienced in selective
marketing practices.
They
hired my firm smart communications, Inc. to help them accomplish
their goals for the children's book line. In addition to our
success in this area, we were a small firm, a decided advantage
to a corporation the size of Disney, which needed to discreetly
infiltrate a new market.
Smaller firms, such as mine, often can more easily navigate
the intensely competitive waters populated by major corporations.
In short, Mouseworks needed us to create demand among the
toy department category managers at the discount mass merchandiser
national chain stores.
Our
test bed title was Snow White, whose release was intended
to coincide with the multimillion-dollar limited-edition rerelease
of "Snow White and the Seven Dwarfs" in home video.
This launch was to be a proving ground for the power of a
Disney "event" and its concomitant capability to
drive add-on sales for the mass merchandise market--our target
market. Given the Mouseworks Management GroupÕs tight media
budget, my media team at SMART quickly discerned that the
best approach was a direct one, to the discount chain store
toy department managers; that is, the category managers of
mass merchandisers such as Target, Kmart, and Wal-Mart. Mouseworks
agreed.
Going
in, we knew we had brand name awareness in our favor. In July
1994, the advertising agency Young & Rubicam had released
the results of its Brand Asset Valuator study that charted
the value of 6,000 brands in terms of relevance, familiarity,
differentiation, and esteem throughout 19 countries. As reported
in Adweek, "Among the highest-ranked properties globally
was the Disney brand, which managed to transcend both national
borders and age group demographics as a highly familiar, relevant,
differentiated, and esteemed property."
Going
against us, however, were two equally challenging opponents,
one from inside and one from outside: Inside: At this point
in time, interdivisional rivalry was at an all- time high
at the Walt Disney Company. Division heads were under tremendous
pressure to perform, and the Mouseworks group was no exception.
Thus, "official" collaboration with other divisions
was not a possibility. The Katzenberg and Eisner factions
were at all out war with each other.
Our
target market, the discount chain toy department managers,
were reluctant to "rock the boat" by dealing directly
with Disney, as many of them had ongoing successful relationships
with distributors of Disney products. Furthermore, many had
experienced or had heard about previous--failed-- attempts
by Disney to deal directly with mass merchandisers in other
product categories, and did not want to take a chance with
Mouseworks' book line.
Once
we recognized that we would not be getting a leg up from other
Disney divisions, we knew we had to focus hard on our second
objective: profiling our target market carefully and completely.
SMART's first tasks, then, were to identify and determine
how to reach the this small, fast-moving, and hard-to-hit
market. Identifying who these people were was the easy part.
Here
are the demographics we identified for discount chain store
toy department managers: They number approximately 1,500 individuals
nationwide. They are generally high-energy, 20-something go-getters
living in a world of licensed toys and Saturday morning television.
They work "on the move," attending meetings and
traveling in the field, buying for regions or groups of mass
merchandiser retail megastores.
They
think and speak of "footprints," the number of square
inches of floor space a given point-of-purchase display will
require, and how much revenue the given item will earn in
the f ootprint. Although there is no member organization for
category managers, these professionals belong to one or more
toy industry organizations. They track vigilantly the information
published in trade publications such as Discount Store News.
They are continuously bombarded with new product deals and
pitches, and therefore are not easy to impress.
Most
important, we learned that, in the toy category, children's
books are a low-interest item, and thus, direct sales efforts
generally fall upon deaf ears, Disney characters notwithstanding.
Clearly, we couldn't do anything to change the politicking
then going on inside Disney, and thus get the help of other
divisions to promote the Mouseworks titles; neither could
we afford to sit back and count on the power of the Disney
name in this fast-forward arena.
Our
research indicated that Mouseworks would have to get out in
the field and prove the merits of its brand products just
like everybody else. Our first move was make use of the category
managers' involvement with the toy industry organizations;
this link provided a viable grapevine for disseminating information--which
we promptly began to do.
The
first Mouseworks press release to the mass merchant retailers
read, "Disney is the closest thing to a guaranteed sale,"
and went on to tout Disney's trademark characteristics of
energy, quality, and creativity, citing the sales generation
power of [such titles as] "101 Dalmatians," "Aladdin,'
"Beauty and the Beast,'" and others. This was a
good beginning, but hardly enough to compel wary and sales-savvy
category managers to deal directly with Disney, for many of
these pros we interviewed alluded to Disney "talking
the talk but not walking the walk" on the back end of
the sale.
Specifically, our selected target, the toy department managers,
wanted to know: Is the product on the planogram? Does the
vendor have up-to-the-minute electronic data interchange capabilities?
Is Saturday morning television support in place? At what spending
level? What's the "pull-through?" Are there movie
tie-ins?
The
electronic technology revolution has changed the playing field.
But at that point, Disney ads in Discount Store News did not
even include a toll-free phone number. And there were no cross-promotions
to home video and children's furniture categories, elements
strongly advocated
Although
at the outset they were unprepared in the then-new high-tech
world of electronic marketing techniques, Mouseworks staff
hit the floor running. They utilized planogram shelf space
management programs and just-in-time inventory control. Mouseworks
trade advertising efforts raised awareness for Mouseworks
when direct sales reps came to call. Slowly but surely, Mouseworks
made it into the mass booksellers.
But
mass merchandise discount retailers were still playing hard
to get. And though Mouseworks kiosks were being placed and
were generating some business, they were not being serviced
rapidly enough to suit the quick-turn demands of the category
managers.
So
Mouseworks put its executives on the road to do store checks
and shelf detailing. A volume pricing schedule was established
that worked on a sliding scale with options for nonreturnable
terms. SMART initially suggested targeting retail buyers of
the Snow White video for a surefire add-on sales opportunity.
The objective was to build direct distribution relationships
with the video buyers as well as the toy buyers within the
mass merchandising universe. We believed that if the Mouseworks
kiosks were located near the video racks, the books would
become an impulse purchase.
This
concept was given the thumbs-down from both Disney and the
mass merchandisers, who contended that Snow White would just
"have to fight it out" in the toy department alongside
every other children's book title.
SMART'
s objective then evolved to build a Mouseworks franchise,
which would accomplish two essential goals: Prevent confusion
of the Mouseworks imprint with that of licensee Crown Books,
which already marketed Disney titles. Commandeer valuable
floor space to enable maximum impact and room for tie-in product
display.
Critical
to achieving these goals was a stand-alone display area that
would make it possible for the Mouseworks books to be shelved
"cover up" instead of "spine up," the
traditional display format for mass-merchandised children's
books. Further, this display would enable the proper positioning
of smaller tie-in titles featuring foil-stamped, pop-up, and
"squeeze me" inserts. Mouseworks' intent was that
the tie-in products would be near, or preferably next to,
their flagship book for maximum impact--to successfully "piggyback"
with the Snow White video launch.
These
objectives were easier said than accomplished, however, because
all our selected targets cared about was that every square
inch of selling space in their respective departments feature
products that would, performance-wise, stack up against perennial
favorites including Barbie, Thomas the Tank Engine or Hot
Wheels.
To
them, it was not a foregone conclusion that because Disney
was spending $8.5 million to launch the Snow White video,
sales of Mouseworks' Snow White book would make it a slam
dunk worthy of premium floor space consideration.
SMART
quickly recognized that to motivate these reluctant decision
makers--our selected target --we had to sell the idea of Snow
White titles as the product, not the Mouseworks imprint as
the product. After all, it was Snow White who had been a best-seller
long before Barbie and Hot Wheels were even a gleam in Mattel's
eye. The title had a history of success that predated Saturday
morning children's programming--indeed, even television itself.
Simply put, when it came to best-sellers, Disney wrote the
book. And that's precisely the point SMART drove home in the
ads it placed for Mouseworks.
To
complement the print ad campaign, Mouseworks designed a quick-to-assemble,
small-footprint point-of-purchase display that could accommodate
all the Snow White titles--covers up--including the "value-added
line extensions" of the foil-stamped, pop-up, and squeeze-me
books. This display proved to make such efficient use of valuable
selling "real estate" that the trade embraced it
enthusiastically.
Snow
White was followed by her sibling characters in the enormously
popular Lion King series, and Mouseworks was off and running.
Because
interdivisional rivalry at Disney during the period SMART
worked with the corporate giant was so intense and ingrained,
we quickly realized that we would have to attack the project
from "outside"; specifically, that we would have
to find the information and support we needed from the target
market itself--in this case, discount store toy managers.
Furthermore, it is imperative to learn how to talk to the
trade effectively; because they are "insiders,"
they have seen and heard all the marketing claims and hype,
and thus are more difficult to impress. They are also reluctant
to "rock the boat," as we found when trying to convince
them to deal directly with Disney, and to break long-standing
distributor relationships.
Finally,
they cannot be convinced to "sublet" valuable selling
floor real estate based on brand name alone, even when that
name carries the history and cachet of Disney. Mass merchandisers
want to hear about price and value, and when you convince
them your product offers those factors, category manager will
generally give such items preferred, or power aisle locations,
which can increase your product's sales by as much as 50 percent.
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