Adding A New Niche

What do dentists and fun have in common? For Ohio Art, it's actually quite a lot. Founded by dentist Henry Simon Winzeler 100 years ago, the Bryan, Ohio-based company—which got its start manufacturing metal picture frames and novelties—has grown into a staple of the crafts and activity categories. And, ahead of its second century, Ohio Art is well positioned to continue its history of innovation, according to Martin L. Killgallon III, senior vice president of marketing and product development.

After adding a metal lithography business that still helps to diversify its core holdings to this day, Ohio Art expanded its offerings in the post-WWII era to include metal tea sets, drums and other toys. By far, though, Ohio Art is best known for the Etch A Sketch, which launched in 1960 and has been in production ever since.

“In 2008, our main focuses are on the activity side of the business, certainly with Etch A Sketch and looking for cool and interesting ways to extend that brand,” Killgallon tells Playthings. “To make Etch A Sketch relevant to today's kids, licensing is a natural place to go. We have Dora, Diego, Spongebob, and we're also just launching Cars and Disney Princesses. And Toy Story 3 will be coming out in 2010.”

A 100th anniversary commemorative edition of Etch A Sketch is debuting this year, plus a Hall of Fame toy set that packages the classic with Duncan's original yo-yo and the Slinky. The company also licenses the brand into keychains, pins, pens and candy, with new items in these categories and mobile games due this year.

This ongoing success of Etch A Sketch both inspires the company in its quest to find exciting new product lines and directly supports those efforts through its addition to the company's bottom line, Killgallon adds. “Etch A Sketch is still our number one selling item. That's a once-in-a-lifetime kind of product, but what we're here to do is find the next Etch A Sketch.”

For 2008, that means the company is hoping to continue its diversification further outside of the crafts and activity categories into areas like specialty infant and toddler toys (K's Kids) as well as dolls (Betty Spaghetty). And, alongside an anniversary celebration that will highlight Etch A Sketch, a deeper push into specialty retail channels will hopefully be a hallmark for the company in the coming year, Killgallon says.

“We have been really working to develop our specialty business,” Killgallon says, noting, “We've worked to put a sales infrastructure in place to support that initiative. We've got over 60 reps covering all of the United States ... it's the 20 percent of the business that we weren't really going after [and] it's certainly an area that we're looking to build.”

K's Kids has been a key part of that expansion, Killgallon says. “The consumers are starting to know and recognize the line,” he adds, noting that several products—including I Am the Boss, a dinosaur-shaped ball pit for babies—were singled out for numerous top toy lists and awards in 2007; this year, about 15 to 20 new items will be added to the line. “There's some really beautiful items there,” Killgallon says.

The big news for the brand in 2008 will be a selection of new soft toys that's licensed from Athletic Baby, a popular line of DVDs designed to introduce babies to sports and other physical activities. “We've been working with our K's Kids partner Karen Wong and (Athletic Baby founder) Karen Foster on a line of products around that premise. It's really a first introduction to sports in a fun, really kid-friendly, baby-friendly kind of way. They're great to work with,” Killgallon says.

As for Betty Spaghetty, the company is hoping the line's uniqueness will help define its place in a crowded category. “Dolls is a very competitive segment of the market, and Ohio Art probably wouldn't have taken on Betty Spaghetty if it didn't have such a wonderful activity-based play pattern,” Killgallon says. “We really focused in the early years on the activity side and this time around we've really worked hard to plush up the fun and fashion side.” At least 20 new SKUs will debut this year, and an interactive Betty Spaghetty online world has also been launched, Killgallon says.

Another new Ohio Art brand targeting tweens this year will be Sparkle City, “a way to bring a little bit more excitement and fashion to the arts and crafts area,” Killgallon says. It offers a collection of playsets and pet figures that girls can customize with glitter, collect and display, in line with what the company's research says girls are clamoring for. The company is hoping Sparkle City will be one of next big things in 2008, with lots of room for expansion in '09.

Adds Killgallon, “Today, you have to be very creative in how you approach your business ... We're making a lot of changes for the future now—specialty, definitely, and we're bringing in some newer, younger people that are adding a lot of energy and vitality to the company.”