The Magical-Market World of Disney

Monthly Review, April, 2001 by Janet Wasko

In its inaugural stop at an Atlanta-area mall, Mayor Bill Campbell welcomed the tour by reading a proclamation from the governor naming February 6 as "Hercules Day" in the state of Georgia. Over the next four days of the engagement, attendance at the mall soared by as much as 30 percent and swelled the parking lot to capacity.

Also in February, Feld Entertainment opened the eighteenth Disney on Ice production, Hercules on Ice--the first time an ice show had opened before the release of a film. Typically, the productions opened one year to fifteen months after a film's opening. By the end of 1997, the show had become one of the top grossing ice shows. Eventually, it would play in twenty-eight cities, for 310 performances over a five-year tour. Accompanying each show were concession stands selling Hercules dolls, caps, flags, t-shirts, plastic cups, and other gifts.

Ironically, the film itself attempts a tongue-in-cheek portrayal of the merchandising and tie-in efforts, featuring "Air Herc" sandals, "Herculade" thirst quencher, and even a "Hercules Store" crammed with figurines. But meanwhile back in the real world, the licensing process for Hercules merchandise had started much earlier, and was reported to include nearly a hundred manufacturers and 6,000 to 7,000 products, which began appearing in stores at least three to four weeks before the film's opening.

The Disney company obviously had high hopes for the merchandising potential of the film. "This is classic Disney entertainment with broad appeal for the whole family," said Sean Mitchell, director of Marketing in Filmed Entertainment Licensing. "The film's appeal is truly across-the-board. At its heart and soul it's a comedy--very smart, very witty, very funny. We think that little boys will want to become Hercules, and little girls want to become Meg. So we try to reflect that in the products we do; the merchandise brings the characters to life."

The Greek theme sent Disney executives into ecstasy: "We've got that whole Greek motif to work with," explained Mitchell. "There are so many icons--Greek flowers and urns, columns and temples, swords and musical instruments. We take these classic icons and, essentially, put them through a 'fun filter' to translate to product in a very entertaining way. From a design standpoint, the scope of mythology provides us with almost limitless opportunities."

As mentioned previously, the Disney company manufactures its own products as well as licensing specific characters and images to other manufacturers. Disney requires a sizable up-front guarantee and a 16 percent royalty fee on wholesale orders, although most other movie tie-ins are around 12 percent.

It is important to point out that the marketing/merchandising effort is not a haphazard or casual affair. Not only are licensees carefully selected, but the Disney company insists on coordinating all aspects of the design and marketing of the products. As one of the licensees explained, "Disney's goal is to have the entire merchandising plan look similar. They want all the products in the store to have the same feel and style. So they'll lead us in their direction. We'll submit artwork, and they may say it should have a slightly different look. They want their property to look uniform; they treat it like a brand." Even the licensees themselves work together, sharing ideas for marketing and participating in joint promotions.