Post time for licensing thoroughbreds

It's no surprise: Licensed toys continue to maintain a place for themselves in the marketplace. Walk down the aisle of any mass retail venue and you're sure to spot a variety of toys bearing the likeness of characters who hail from children's television programs, major motion pictures and storybooks. While many specialty stores often steer away from carrying such product—believing it is best served at the mass level—some shops opt to carry select goods unique to the independent market, which enables them to compete on another level.

And with so much product hitting store shelves and enticing buyers at shows, the sheer amount of it all is enough to make a retailer's head spin! How are they to know what's hot and what's not, who's a passing fancy and who's a keeper? Devoting precious shelf space to a license that doesn't spell longevity only translates to lost dollars—something no store can afford.

In order to determine which licenses have true staying power, PLAYTHINGS has carefully considered more than a few dozen properties in the toy industry. After taking into account their current standing in the marketplace and factoring in their future plans—including new licensee partnerships, in-store events and other promotions—we have selected the triumvirate of licenses that we believe will continue to flourish in the toy arena. Be sure to keep an eye on these major players.

When talking about Clifford the Big Red Dog, what's not to love? Says Leslye Schaefer, senior vice president of marketing and consumer products for Scholastic, "The storylines surrounding Clifford are all about him having a big heart and he's always trying to fix things. He's got a lovable personality and kids can really relate to him."

And clearly they do. The property, which initially launched via a children's book published in 1963, is entering its third season this September on PBS Kids and has amassed quite a following. According to Schaefer, approximately 85 companies have jumped on the Clifford licensing bandwagon, generating a total of $400 million in retail sales. These manufacturers include Toy Island (master toy licensee), Hasbro, Fisher-Price and LeapFrog. Retailers like FAO, which primarily carried Clifford puzzles and plush; J.C. Penney, which focused on soft goods in March 2001 and Target, which carried product in the summer that same year, have been instrumental in helping to launch the Clifford brand.

To further the momentum at retail, Clifford will be part of Wal-Mart's Retailtainment Day this July. This program will feature a variety of new licensed product and encompass special events surrounding the lovable canine.

Schaefer is also excited about Clifford's movement into the grocery chain level of retail, which will further penetrate the brand into even more consumers' homes. This license is featured on Brach's fruit snacks, General Mills' Kix cereal and numerous other foods. In addition, Scholastic recently signed a deal with Lipton Soup, which has become an underwriter of the Clifford television series. Schaefer believes this new foray is a testament to the brand's strong reputation. "When you start to deal with packaged goods—companies that don't typically do promotion deals—that says a lot," she told PLAYTHINGS.

Such increased exposure at retail can only bode well for a dog who will have his own movie next spring (Scholastic is hoping to announce partnership deals at the licensing show), as well as a forthcoming live show tour throughout 2004. And as if that weren't enough, PBS Kids will be airing Clifford's Puppy Days, a new television series highlighting the pup in his earlier years. Scholastic will be promoting this new venture at the licensing show. "There are going to be certain categories that speak to a younger age bracket," she noted.

"We're working very hard to keep Clifford in the hearts and minds of consumers," Schaefer remarked with regard to Scholastic's full-fledged licensing program. And with such a comprehensive plan already in progress, this dog is definitely a kid's best friend.

Having generated more than $2 billion in retail sales worldwide to date, the Spider-Man brand has clearly resonated with consumers and developed a following that has spanned generations. After the web-spinning hero's debut in a late 1960s comic strip came the premiere of a television show that brought his prowess and power to life. Since then, Spidey has appeared in six animated series and his presence has expanded into a range of mediums, including toys, videogames and full-length feature films—all thanks in part to licensor Marvel Enterprises, Inc.

In fall 2001, Marvel launched an expanded licensing program from which new product emerged, like storybooks from Big Guy Books and assorted games from Dufferin.

"A lot of what kicked off this activity was a function of the Activision Spider-Man game," says Russ Brown, vice president, worldwide consumer products, promotions and media sales. "We saw the effect the game had on the merchandise. For instance, [Spidey] Buster Brown shoes starting selling extremely well at Payless."

"Merchandise has been in the marketplace for the past 30 years, and sell-through has been consistently good," he comments. He says that the release of the full-length feature film Spider-Man in 2002 was just the icing on the cake of an already successful brand. "The fact that a movie came along just added the event element; it was a track record for the brand at retail."

To appeal to another demographic, Marvel created a separate licensing initiative, Spider-Man and Friends, for the preschool market. "We realized that the key purchasing decision is made by the adult," explains Brown. "They understand that this is all about good vs. evil, and they grew up with this character; there is an affinity for him already." So far, the program has signed 15 licensees for the preschool market, including master licensee Toy Biz for action figures and learning toys, Playhut for Spidey-themed pop-up tents and Disguise for Halloween costumes. At licensing show, Marvel is expecting to announce new licensee deals that encompass several additional categories.

Brown says that such licensee partnerships, combined with the brand's long-standing reputation in the mass marketplace, have helped propel Spidey to the prominent place he is in today. In this vein, Marvel is continuing its joint venture, Spider-Man Merchandising L.P., with Sony Pictures Consumer Products to help manage programs arising from the forthcoming animated television series and the movie sequel in July 2004.

Speaking of the movie, PLAYTHINGS got a sneak peek of Spidey in action: While this issue was going to press, the cameras were rolling just outside the magazine's offices as the red-and-blue-clad hero was flying through the air!

In a day and age in which the population becomes increasingly more diverse, a trusted friend who introduces children to the changing world around them—and comes from an ethnically diverse background herself—is a natural fit. Enter Dora the Explorer, a bilingual Latina preschooler who explores the world around her as she set outs on a series of adventures with her pals. According to Nickelodeon Consumer Products' vice president of marketing and toys Jim Davey, Dora's adventurous spirit is what gets viewers so involved in the show. "Kids get to help celebrate Dora's achievement when the task is done," he told PLAYTHINGS. "It makes them want to join in again and again, so they can help her." He notes that the combination of this interactive quality, plus the added advantage of celebrating diversity, distinguishes Dora from other preschool characters—and warrants PLAYTHINGS to deem her as the Everywoman of the 21^st Century.

However, Davey is quick to point out that while Dora is strong-minded, at the end of the day, she knows how to be a kid. "She may be fearless, but she still takes time to laugh and play with her best friend [Boots]," he remarks. "She teaches kids a valuable lesson: that you can solve problems and ask for help if you need it. But Dora's still a preschooler—and any preschooler loves to have fun." The end result is a positive role model for all children, regardless of background.

Davey credits much of Dora's success to both the licensees and retailers that created in-store programs surrounding the fiercely independent young girl. Plush from Gund was a key toy driver at the upstairs and mid-tier markets, like Sears and Mays department stores, he says. In addition, Mervyn's ran a themed promotion of "Dorable" product that encompassed several categories last fall. Since the launch of the property, retail sales of Dora-licensed goods have totaled $500 million to date.

And new product is poised to continue this momentum. Davey comments on the merchandise that focuses on the basic tenants of this property. "We try to maintain her adventurous spirit and sense of empowerment. For example, the voices in Fisher-Price's Magical Friends Singing Dora are in both English and Spanish. Also, we worked closely with the [television] show's cultural consultant on the Fisher-Price's Cowgirl Dora. The doll has a much more Latin flavor, with brighter colors and no fringes on the outfit."

Other licensees that have just come onboard with the Dora program include Little Kids, which will make a new line of bubble toys for Spring 2004, and SportFun, which will produce a collection of sports activity toys, including hopscotch and sprinklers. Davey says that Nickelodeon will also be working with LeapFrog to create new Leapster software due out this fall.

Also this year, Dora will be busily involved in a number of key promotions. A new video from Paramount entitled Dora's Search for the City of Lost Toys is being released this month, and the television show will concentrate on other characters, including Boots and Swiper. Davey notes that both are favorites of young boys, an important demographic in Dora's audience. In addition, Diego, Dora's cousin, will be introduced this fall—further appealing to male viewers—with related product appearing next spring.

Davey says that Nickelodeon is conscious of carefully maintaining Dora's presence without oversaturating the marketplace. "The momentum comes from new elements and experiences on the show," he remarks. "This fall, we'll introduce a new game element to the show called star catching, which will require our viewers to help Dora, and we'll be able to leverage that into a new range of product." This includes a new item from SportFun that includes star-catching items that kids can catch with a net.

"Ultimately, we want to get kids off the couch," he says. To borrow the show's anthem, Nickelodeon can feel confident in saying, "We did it!"