Movers and shakers: 'Bring fun to retail.' - Retailing & Entertainment

Discount Store News, June 19, 1995 by Dawn Wilensky

The synergy between retailing and entertainment-related products continues to grow at the store level. Four of the entertainment industry's biggest movers and shakers discussed with DSN the impact of this relationship and how retailers and suppliers can benefit from a better understanding of each other's businesses, aggressive cross-merchandising promotions and a store environment that is fun and exciting for the consumer.

The executives participating in this roundtable discussion included: Kelley Avery, senior vice president, retail marketing and merchandising, Buena Vista Home Video; Rob Gruen, vice president, retail business development, Warner Brothers Consumer Products; Andrew Kairey, senior vice president, marketing and merchandising, MCA/Universal; and Carole Postal, vice president, retail merchandising, licensing and merchandising, Turner Home Entertainment.

Q. How can retailers maximize the sales opportunities in entertainment-related categories across the store?

Avery (Disney): "Retailers can do several things to maximize sales opportunities. First, they should use key entertainment events to drive traffic into the store to purchase both the hits and other video products. For example, Lion King's video release moved millions of units of our other animated classics where they were displayed together. Second, they should take advantage of the synergies between many of the entertainment-related categories by promoting multiple products within a given franchise. For example, these products should be cross-merchandised by creating a one-stop boutique, or by creating impactful merchandising statements in each department with a cohesive signage program. Done correctly, these efforts will drive sales across various categories."

Gruen (Warner Brothers): "The retailer needs to get behind the entertainment-related product category in two ways. First, they must look at their own internal structure and make sure there is an individual or task force that can assess the various entertainment properties and then coordinate the process while keeping the retailer focused. The second way is to then maximize in-store presentation through advertising, signing, display and crossmerchandising."

Kairey (MCA/Universal): "You push a lot of emotional chords with entertainment-related categories. When you look at books, audio, video and licensed goods, opportunities lie within each, either being merchandised together as an overall collection of related properties, or cross-advertised within each department so that the consumer is being directed where other product exists. It is suggestive selling without the salesperson."

Postal (Turner): "To fully benefit from the power of a strong brand, the retailer should create in-store boutiques or kiosk areas. That allows customers to feel they are a part of the property. It has been proven in retail surveys that boutiqued product sells stronger. Another way to reinforce the brand in specific product areas is to cross-promote the kiosked area with other product categories in the store."

Q. What can an entertainment-related supplier learn from retailers to grow the business?

Avery (Disney): "In order to grow the business, we have developed programs by channel and by account as each retailer has its own needs and customer base. As a supplier, one needs to understand the business philosophy and objectives of each retailer. Once these are understood, suppliers can develop marketing programs that will deliver a 'win-win' situation for all."

Gruen (Warner Brothers): "It is imperative that suppliers know a retailer's goals. Coming out of a strong retail background, I appreciate what a retailer is trying to accomplish by having entertainment-related products. Some retailers may want to increase traffic, others want to improve margins or create a more fun environment, and some want all of the above. A supplier must also understand the challenges that a retailer faces today, know the individual retailer's strengths and weaknesses, and then work within their framework."

Kairey (MCA/Universal): "It's important that retailers continuously educate the supplier by communicating different marketing objectives and plans as it pertains to that specific retailer. Suppliers and retailers can mutually benefit by sharing their promotional window and calendar for the upcoming year so they can work together to maximize selling opportunities."

Postal (Turner): "As an entertainment-related supplier of both classic and new properties, we develop a relationship with the retailer and from there we understand their needs, how they work and how we can most effectively work with them to grow the business. This includes ascertaining preferred vendors, understanding the critical timing needs of retailers and identifying consumer spending habits."

Q. What lessons can retailers learn from the entertainment industry?

Avery (Disney): "Retailers can learn how to bring fun and excitement into the stores not just on a promotional basis, but every day. When selling home entertainment, it is important to create a destination department that is fun and enjoyable to shop. A smart retailer should use a blend of hit and catalog product to drive profitable sales 365 days a year. They can especially maximize strong entertainment properties during theme weeks like 'Baby Week' and seasonal time periods."