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Licensed Drivers

There's no speed limit on sales velocity for these market movers By George Alexander

By Staff -- Playthings, 6/1/2004

Licensed products are returning as principal toy industry drivers in 2004, speeding to market with broadly diverse properties derived from the multiplex to the small screen, from DVDs to books and everything between—even sports.

"This year should be a reversal of last year when there were no blockbuster hits with strong licensing opportunities," Charles Riotto, president of Licensing Industry Merchandisers' Association (LIMA), tells PLAYTHINGS. Among the properties he sees as capable of performing strongly for retailers this year are a slew of spring and summer film releases: Van Helsing, which opened on May 7; Shrek 2, which opened May 21; Harry Potter and the Prisoner of Azkaban, which opened June 4; Catwoman, which opens July 23, and The Thunderbirds, which opens July 30. A number of book and TV-based licenses are also poised to make their presence felt at retail.

Zeroing in on what's hot for the rest of this year and beyond, PLAYTHINGS spoke with film, television and publishing executives about what industry players can expect to see in the marketplace.

Let's go to the movies

An updated horror-style flick from Universal Pictures, Van Helsing opened on May 7 as the first of the big summer spectaculars. The opening weekend's U.S. box office take was $51.7 million and European movie houses brought in $55.3 million, according to Variety, the market-leading B2B covering the film industry and also published by Reed Business Information, publisher of PLAYTHINGS. "Van Helsing products are special; they pay homage to the heritage of the studio—the classic monsters of the 1930s," says Cynthia Modder, senior vice president of licensing and retail development, Universal Studios Consumer Products Group. "They reflect the creative expansion of the classic monsters and capture the new experience of the movie and allow viewers to take a bit of that experience home with them." Jakks Pacific, the mass-market licensee, has produced a broad line of action figures, play sets and activity toys. Funline is licensed for diecast monster trucks, diecast model kits and R/C monster trucks.

On May 21, Shrek 2, DreamWorks SKG's sequel to the hit 2001 animation film, hit theaters. With an all-star cast including Mike Myers, Eddie Murphy, Cameron Diaz, Julie Andrews, Antonio Banderas, Rupert Everett and Larry King, Shrek 2 promises to be as much fun, as adventurous and as successful as the first film.

Says Deron Ellis, vice president of marketing and licensing for Hasbro's boys toys division, "Entertainment is still an important part of the industry and kids continue to look for toys based on their favorite movies. While Hasbro's primary focus is on building our core brands, we will continue to seek licenses with the properties that have long-term franchise potential and make the most sense for us, like Shrek 2, a ground-breaking franchise, which we are thrilled to be part of."

As master toy licensee, Hasbro will offer figures, plush, play sets, accessories and role-play items. Other licensees include Fisher-Price, which will provide themed Viewmaster, Pixter and eClip, and Sababa Toys.

The third installment in the Warner Brothers blockbuster Harry Potter franchise, Harry Potter and the Prisoner of Azkaban, just released, is perfectly timed to stake its claim in summer movie fare. A phenomenon with kids around the world, merchandise from the films, based on the neoclassic J.K. Rowling novel, is some of the most in-demand movie product in recent years.

Warner Bros. Consumer Products reports that Mattel, Lego, Electronic Arts and other licensees have returned with new product to support the film. Mattel toys include Championship Quidditch Game, Magic Powers Harry and Rescue at Hogwarts 3D game, among others. Lego has introduced a new Hogwarts Castle, Hogwarts Express, Knight Bus, Prof. Lupin's Classroom and other toys, while Electronic Arts has released a video game.

What is proving to be one of the most talked-about movies to hit the big screen this summer is Spider-Man 2. Sony Pictures will release the film on June 30 as the sequel to the 2002 blockbuster film starring Tobey Maguire and Kirsten Dunst. Maguire and Dunst return in the follow-up film, capitalizing on the web giant's wide appeal to kids as well as parents hungry for a bit of nostalgia.

"Early reports on sell-through to retailers are sensational. We are on track for great success with our Spider-Man merchandise," says Al Ovadia, Spider-Man Merchandising, LP (SMM). Ovadia says that SMM is very pleased with its partnership with master licensee Toy Biz, a division of Marvel Comics. The company currently counts 65 domestic licensees and 260 international licensees, up by 100.

"Response to Spider-Man has been fabulous. And we're still getting deals everyday," Ovadia tells PLAYTHINGS. In addition to Toy Biz, other licensees include Lego for construction playsets, Activision for interactive, Manley Quest for plush bean bags and balls, and Rose Art for Presto Magic, stickers and playsets.

On July 23 Warner Bros. will unleash its feline adventure Catwoman, starring Oscar-winner Halle Berry, Benjamin Bratt, Sharon Stone and Lambert Wilson. Warner Bros. Consumer Products has licensing agreements with Mattel for a Catwoman Barbie doll, Nakajima for plush toys and Inkworks for trading cards. Electronic Arts will develop, publish and distribute computer and video games.

A week after the Catwoman does her dance, on July 30 Universal Studios will release The Thunderbirds. This action-adventure film stars Bill Paxton, Anthony Edwards, Sophia Myles and Ben Kingsley, while Jonathan Frakes (Star Trek Insurrection, Clockstoppers, etc. ) directs.

Cynthia Modder, senior vice president of licensing and retail development, Universal Studios Consumer Products Group, tells PLAYTHINGS, "The film pays homage to the classic 1960's TV series. We are fortunate to have the most innovative and talented teams of professionals working on such an exciting property that will translate into amazing licensed and collectible products."

According to Modder, Bandai is the master toy licensee and will produce action figures, model kits, capsule toys and vehicles. Radio controlled vehicles, walkie-talkies, electronic wrist communication and other electronics will be produced by Columbia Telecommunications.

On November 5, Disney's animated superhero family The Incredibles, featuring the voices of Brad Bird, Holly Hunter, Samuel L. Jackson and Craig T. Nelson, will soar into theaters. "This is a fantastic film with an interesting twist on traditional superhero fare; it centers on a family of super heroes," says Vince Klaseus, vice president and general manager of film franchise marketing worldwide at Disney Consumer Products. He also boasts that the film's multiracial characters present a broad perspective. "Kids and adults will enjoy the film. We have very high expectations," Klaseus adds.

Hasbro serves as master toy licensee for The Incredibles. "Disney and Pixar have an excellent track record of delivering blockbuster films, and these films have translated wonderfully into entertaining product for us," says Hasbro's Ellis. Toys will include action figures, vehicles, boy-oriented plush and role play. Broad retail distribution is planned.

From the tube

Though they are heading into their 16th season, that quirky animated family The Simpsons is still generating strong interest from toy licensees. "The Simpsons' merchandising program is bigger than ever," says Darren Kyamn, Fox senior manager of retail and brand development. He tells PLAYTHINGS that this fall, Kash N' Gold will introduce a consumer electronics line that includes an animated lamp, phone, clock radio and shower radio. This summer The Simpsons Game of Life from Hasbro and Etch-a-Sketch from Sababa Toys will be in stores. A Simpsonized version of the game Operation will be available in fall 2005. Other co-branded games include Wheel of Fortune from Pressman Toys (Jan. 2005). And Applause is expanding its growing line of Simpsons plush with a new series of characters out this summer.

This fall, Warner Bros. will introduce the animated television series The Batman on Cartoon Network and offer some new toys related to the legendary crime fighter. "Mattel will be our first toy licensee to launch toys in conjunction with Batman," says Kelly Gilmore, vice president, toys and theme park licensing, Warner Bros. Consumer Products.

According to Gilmore, the line will include basic and deluxe figures, along with a Batboat featuring a pull-out battery operated motorcycle.

In summer 2005, Warner Bros. releases the live action film Batman Begins and Gilmore tells PLAYTHINGS that Mattel will be the master toy partner. "Look for the complete line of Batman movie product. There will be a highly posable large-figure Batman and some action-packed powered vehicles," she says. Other key partners include Thinkway Toys for role-play and Art Asylum for construction toys.

This year, believe it or not, the famous sailor with a penchant for spinach, Popeye the Sailor Man, turns 75. To mark this historic birthday, King Features Syndicate has launched a huge licensing campaign.

The company will present Popeye's Voyage: The Quest for Pappy, a national primetime TV special on Fox and a deluxe DVD. This will mark the first time Popeye will be presented in three-dimensional CGI. Actor/comedian Paul Reiser ("Mad About You") and Jim Hardison co-wrote the script for the special, and Lions Gate's Family Home Entertainment will release the DVD on November 9, 2004.

"We have great equity behind the Popeye brand and there is a nostalgia element to Popeye. He was born during the Depression, he fights for the underdog, he's loyal, he's American and he has international star power," Nisreen Shocair, director of marketing, King Features Syndicate tells PLAYTHINGS.

Shocair advises that King Features has partnered with Mezco Toyz for action figures and with Action Performance, which will produce and market a line of Popeye collectibles—including die-cast toys—under the NASCAR label.

The DVD front

Lucasfilms is set to release in September, the Star Wars Trilogy on DVD for the first time. Hasbro will bring the "Original Trilogy Collection" to toy store shelves, celebrating the iconic films. It includes the Millennium Falcon vehicle, R2-D2, Han Solo, Darth Vader, Princess Leah, and Luke Skywalker action figures, among others, as well as electronic lightsabers, basic lightsabers and vintage figures. "Regarding Star Wars, our agreement with Lucasfilm runs through 2018, so you can expect to see exciting, innovative toys and games that will keep 'The Force' going for kids and fans well into the future," Hasbro's Ellis tells PLAYTHINGS.

On May 25, New Line Cinema released the DVD and VHS for the sensational The Lord of the Rings: The Return of the King, the final installment in the Peter Jackson franchise. The film has grossed over $1.1 billion in worldwide box office sales, making it the second highest-grossing worldwide theatrical release of all time, according to Amazon.com's Internet Movie Database. With the DVD and VHS release, New Line continues to expand its licensing opportunities. To date, the licensing program has generated a regal $750 million in retail sales worldwide.

In May, Hasbro introduced The Lord of the Rings Stratego and, according to David Imoff, New Line senior executive vice president of worldwide licensing and merchandising, the company recently closed a deal with Hasbro for a DVD version of Lord of the Rings Trivial Pursuit. The DVD will arrive for the holidays.

Available this month, NECA/Reel Toys has created action figures with detailed weapons and accessories. For the fall, NECA will introduce pewter collectibles for the specialty market.

In July, Toy Biz will introduce 50 new action figures including Fell Beast. The following month, the company will release The Coronation Gift Pack with characters dressed in scene-specific clothing and accessories. Also this summer, Play Along will introduce a new line of The Lord of the Rings Minimates.

For the first time in over 20 years, audiences will be able to see a brand new American Greetings Care Bears film. During the coming holiday season, American Greetings and the Joester Loria Group, the licensing agent for the bears, will release the first ever, full-length direct-to-DVD animated Care Bears feature film, The Journey to Joke-a-lot. The film will coincide with the Second Annual National Care Week.

"Our retailers have told us that the Care Bears DVD will be the lead title for the holiday period and we have major plans for circulars and in-store promotions," says Debra Joester, president of Joester Loria. The DVD will be available at all major retailers, with endcaps and displays including Target, Wal-Mart, Kmart, TRU, Babies R Us, Blockbuster and Meijers.

Joester remarks that four new Care Bears will be introduced in everything from denim to sparkle to corduroy and in new categories like sports and arts and crafts. Also, according to Joester, new Care Bears products for infants including furniture and juvenile products will ship this fall; pre-school learning toys will be expanded and the theme will carry over to publishing, board games and related paper categories.

Page turners

In April, Volo/Hyperion, a division of Disney Worldwide Publishing, released The Power of Five (W.I.T.C.H.), the first in a series of the popular books for girls that have become international sensations; "W.I.T.C.H." comic magazines are sold in 64 countries. The books are about five girls in their early teens who possess special powers.

Ellen Morgenstern, communications director for Disney Worldwide Publishing tells PLAYTHINGS, "We are planning a TV series for next year and eventually a full consumer rollout in the United States." Disney's future plans for W.I.T.C.H. include dolls and apparel.

In March Simon & Schuster released the children's book, Duck for President by illustrator Betsy Lewin and author Doreen Cronin. The book is for kids from preschool to second grade and is the third from this award-winning team that also did Giggle, Giggle, Quack (2002) and Click, Clack, Moo: Cows that Type (2000). The books center on the lives of farm animals with high ambitions.

Tracy van Straaten, executive director of publicity, children's publishing at Simon & Schuster tells PLAYTHINGS that she hopes everyone will show support for Duck for President. MerryMakers is licensed to produce a plush cow from Click, Clack, Moo and the plush duck from Giggle, Giggle, Quack who runs for president in the latest book.

MerryMakers president Clair Frederick expresses optimism that the Duck plush doll will continue to be popular given the success of Duck for President, which is on The New York Times bestseller list for children's picture books. "I've just returned from IRA, the International Reading Association, in Reno where the literary dolls were extremely well received by teachers and librarians who use them often and enthusiastically in the classroom. It's always fun to see our product generate a strong reaction," she says. Further, van Straaten advises that Nickelodeon has optioned the rights to produce a Duck movie.

 

Reinventing the wheel

Even with limited marketing budgets, global corporations have come to a major realization: Strategically thinking—it makes sense to leverage the equity that has been built over the life of their brands, and revitalize.

Companies need to continue to reinvent or revitalize their brands, suggests Ted Mininni, president of Design Force, a metro New York area brand identity and package design firm.

And when it comes to brand revitalization, packaging is a big part of the process, Mininni tells Playthings.

When Wham-O decided to update its brand and package design on its iconic Frisbee product, it was positioned to appeal to a new generation of Frisbee users—and to regain market share among professional sports Frisbee enthusiasts. How? By creating brand packaging to communicate speed, precision and aero-dynamics—appealing to recreational and professional users alike, according to Mininni.

"The single most important asset any corporation owns is its brands," he says. "I can tell you that quantitative and qualitative research are absolutely crucial to creating and maintaining consistent category leaders," he adds.

Quantitative and qualitative research, competent management of brand assets, creating and maintaining consistent category leaders are all keys to optimal brand management, states Mininni.

Easy being green

The big green guy may not be the sharpest tack in the box but Shrek is eminently bankable, engendering images of another kind of green. Long before the first images of Shrek 2 flashed across big screens everywhere last month, the lovable monster was slicensing and dicing his way to consumer products glory. With sounds of cash registers tinkling in their heads, his handlers at DreamWorks SKG lined up roughly 80 licensees. At the top of the heap are master toy licensee Hasbro, Scholastic Books, TDK Mediactive for video games and Hallmark.

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