Fast food takes a bite out of the toy market

Toys are being served up at fast food chains these days with more speed than a burger to go.

The recent best-selling book Fast Food Nation by Eric Schlosser credits McDonald's as being one of the largest distributor of toys in the world. It's no wonder then that toy companies are lining up to partner with restaurant chains, providing a presence in a non-traditional channel, expanded national distribution and greater brand recognition.

This year marked Cranium's debut partnership with KFC Corp., which offered its Kids Laptop Pack meal with Cranium Cadoo last October through the end of the year. "We were looking for innovative ways to bring Cranium to different places," says Eddie Ranchigoda of Cranium. "We thought Cranium mapped really nicely to the laptop format."

"KFC has been a fantastic partner," Ranchigoda tells PLAYTHINGS. "They've maintained the quality of the presentation." He also cites Toys R Us for enabling the game to feature a $5 coupon off a Cranium game at participating stores.

And the success of the program has translated to a boost in sales. Ranchigoda says the numbers have been "phenomenal; Cadoo has been selling at three times the rate it was the previous year." But he is quick to point out that profits weren't the only push; the program has been "a great way for kids who haven't experienced Cadoo already to appreciate the content in a different way."

KFC, somewhat of a newcomer to the meal deal partnership program, launched its Kids Laptop Pack initiative in June 2002 with its own Wild Animals and Inventors and their Inventions designs. In December of that same year, the company entered its first joint venture: with Nickelodeon, offering a Kids Laptop Pack that incorporated The Wild Thornberrys theme. As with the Cranium Cadoo meal, the packaging featured games and activities for kids ages 6 to 12, including trivia, arithmetic and puzzles.

According to a KFC spokesperson, details of future partnerships in the kids meals arena were still being negotiated at press time.

Another toy company focused on appealing to an expanded demographic via the fast food market is The Alexander Doll Company. In 2002, the manufacturer collaborated with McDonald's to offer collectible dolls with the purchase of a Happy Meal. "This was a way for us to reach the next generation of Madame Alexander collectors," explains Jane Abrahams, director of marketing. "The program served as a way for parents to talk about something they themselves had grown up with and now their own daughters could enjoy."

The program proved so successful, the agreement was renewed in 2003 and extended to four weeks from three weeks. Among the ten 4-inch dolls were a flower girl and ring bearer (expanding on the bride and groom that were introduced the previous year), Rapunzel (from the Storybook series) and Hannah Pepper. According to Abrahams, the dolls sold out in three weeks.

"The program has helped the Madame Alexander brand in terms of recognition, and has helped our retailers purchase other sizes of these dolls," she says. She points out that the dolls featured in the program are available at retail in 8- and 10-inch versions.

Has there been any backlash on the part of serious collectors who are now finding their prized possessions appearing alongside burgers and fries? "Naturally, there's going to be some negativity," Abrahams admits. "But I think if you look at it, everybody goes to McDonald's—whether you're a high-end or a low-end shopper. From our perspective, the experience has been more positive than negative."

This initiative has been equally beneficial to the McDonald's side: McDonald's overall sales were up 10.8 percent in third quarter 2003 and programs like these have contributed to this success. Along with Madame Alexander, Kathy Pyle, director of family/kids marketing, McDonald's, cites Finding Nemo and Sega as other strong programs.

"We look for properties that have a high awareness among kids or are unique properties that also have collector appeal," she tells PLAYTHINGS. "Properties need to have a lot of exposure and a marketing plan already behind them."

Major holidays and other seasonal occasions offer manufacturers an opportunity to showcase product during prime shopping periods. Last Halloween marked the third year Classic Media partnered with Jack in the Box restaurants to offer Boo Buckets featuring Casper the Friendly Ghost. The Boo Buckets were free with the purchase of a Jack's Kid's Meal and contained a $5 off coupon on the purchase of the live-action Casper movie and the animated Casper and Wendy's Ghostly Adventures DVDs.

"The promotion excited many of our retailers, knowing these coupons would drive traffic into their stores," Leslie Levine, head of international licensing, Classic Media, tells PLAYTHINGS. "We believe there was a significant boost in orders at retail from this promotion."

Given its success with Jack in the Box promotions, Classic Media is planning future initiatives with this and other fast food chains. "The QSR (quick service retail) giveaway is an incredible sampling vehicle that aids in building awareness and can drive consumers back to retail with added incentive offers," says Levine.

Programs that tie in with major theatrical releases work well for major studios, enabling them to solidify their presence in the consumer marketplace and toy industry. Last November, Warner Bros. Consumer Products joined forces with Wendy's in a Kids Meal program tied into the release of Warner Bros. Pictures' Looney Tunes: Back in Action. Related in-store point of sale meal bags and tray liners were available at participating locations. In addition, support for the Looney Tunes: Back in Action video game included a Toys R Us $5 coupon inside the meal bags and a game mention on promotional trayliners.

Dave Hedrick, vice president, promotional marketing and branded foods, Warner Bros. Consumer Products, notes the advantages of a toy company/ food vendor venture. "QSR ad buys are typically huge and when coupled with in-store marketing materials, it's a guarantee that a vast majority of consumers will be reached," he tells PLAYTHINGS. "Property awareness will be heightened and consumers, wanting to be part of the excitement, will desire more toys."