Disney puts more mouse in the house

DSN Retailing Today, June 9, 2003 by Laura Heller

Licensed electronic goods have long been considered novelty items, toys, collectibles or promotional tools. But this year, new product design and increased functionality may just indicate that the category is finally growing up, albeit in a somewhat childish way.

This month Disney Consumer Products launched a line of electronics that are intended to appeal to both children and grown ups. Following up on its release last fall of a line of cordless phones and two-way radios co-branded with Motorola, these latest releases include personal CD players, digital AM/FM radios, an AM/FM stereo boom box, a 13-inch color TV and even a DVD player, all based on the Disney theme.

"It was one of those slap the forehead moments," said Bob Bacon, director of global business development, electronics. "We're a media company but we've never licensed those wonderful black boxes that deliver our content."

Research revealed that CE manufacturers typically marketed to 15- and 16-year-olds and older, rarely younger. "We saw this as a missed opportunity," said Bacon.

And a potentially lucrative one at that. According to Bacon, the company estimates the potential market to be worth approximately $8.6 billion across seven countries. "Even if our analysts are half wrong, that's a pretty sizable market," he said. "We're targeting kids aged six through 12 and families. We designed this from the ground up for a child, we are not taking an adult product and changing a couple of things."

Disney partnered with a company called frog design to come up with fully featured product that both incorporates new technology and can grow as the child does. The 13-inch color TV for example includes 181 programmable channels, a sleep timer function, trilingual on-screen display, front and rear A/V jacks and is bright red yellow with Mickey Mouse ears and feet.

"[But] these are not novelty products," said Bacon. "They are much more sophisticated and can grow with the child."

It also comes with two remote controls, one simple kid-friendly unit and another more fully featured remote intended for parents or older children. Designed to last well beyond the fleeting years of early childhood, the ears and feet are removable, leaving the brightly colored box, and each product is stackable to maximize space and functionality. "From a parents perspective it's important," Bacon said.

The line is available exclusively at Sears, Target and Circuit City.

That the product line is available at specialty CE retailer Circuit City is another feather in Disney's cap, as specialists largely shun such products as beneath a serious electronics outlet.

"It speaks to a lot of the families who come to our stores," said Circuit City spokesman Jim Babb. "It's beautifully designed product, and they've put a lot of thought into (functionality], not just the appearance of the product."

Telephones ring with Disney songs and character voices, and digital audio products feature animated Disney LCD displays. Size and location of the department within Circuit City stores will vary depending on individual stores, but all stores will carry a selection of most products, said Babb. Circuit City is also promoting the line in its weekly circulars.

Licensed electronics are hardly new in the discount channel but Target has been increasing its selection here through partnerships with Sony and its Liv line and a selection of Michael Graves-designed office supplies and limited-edition bulls' eye-based audio and video items. The Disney line joins all of these in the electronics department, with approximately 8 linear feet of space next to the Sony Liv display.

A third wave of product will be released next year. "Ultimately, we are planning for the long term with an entire collection of products," said Bacon. Including: digital cameras, personal computers and MP3 players. A Disney-themed Karaoke machine will come out this fall for the holiday season.

Disney is not alone in trying to enter the CE market with quality licensed CE product. Philips and Nike have joined forces with a branded line of portable, sporty audio products and Sony is increasingly identifying and going after certain segments of the marketplace. Case in point-the Liv line is targeted at women. But Disney's entry marks the first offering of fully featured products for kids.