All eyes out for 'reel' winners: themed ads and promos to stir Holiday video traffic

Discount Store News, August 21, 1995 by Dawn Wilensky

NATIONWIDE DSN REPORT -- What do you get when you put a caped crusader, a friendly ghost, six teenage superheroes, a rags-to-riches fairy tale and a guy who thinks he's Santa Claus together on one shelf.

The answer: significant sales and profits, or so retailers hope, as the fourth quarter's Holiday video selling season is fast approaching.

Only time will tell. But the advance word on titles like Warner Bros.' "Batman Forever," MCA/Universal's "Casper," FoxVideo's "Mighty Morphin Power Rangers, The "Movie," and Disney's "Cinderella" and "The Santa Clause" is all positive. Many industry execs are hoping these titles can repeat the stellar performance of "Snow White And The Seven Dwarfs" and "Jurassic Park" last year.

These two titles alone accounted for 11.4% of all videos sold in the fourth quarter of 1994 and were responsible for 16.5% of the consumer dollars spent during that same period, according to a Holiday market snapshot conducted in 1994 by Alexander & Associates, a New York-based research firm.

Expectations are high since the fourth quarter has traditionally proven lucrative for retailers as consumers clamor to fill their shopping carts with everything from the major theatrical releases to non-theatrical releases like children's, sports and special-interest titles.

These gift-minded consumers flocked in significant numbers to discount stores in 1994, and 40.7% bought videos at value-oriented retailers, according to the survey. While mass merchandisers dominated the playing field, competition in other segments was fast and furious. The most aggressive were video specialty stores like Best Buy and music/combo stores like Media Play, which lured 20.6% of consumers into their doors.

Much of Best Buy's success can be attributed to its commitment to its catalog business and aggressive use of special signage, floor displays and in-store loops to highlight every major release on the selling floor, according to Joe Pagano, merchandise manager of Best Buy.

But these retail segments aren't the only ones serving today's entertainment-oriented consumers. Others that made a viable impact include: warehouse clubs, with 6.2% of consumers; supermarkets, 5.7%; drugstores, 3.5%; and department stores, 2%, according to the fourth quarter survey.

"We have been and still are surprised at the exponential growth of the home video business. I think some of this is due to the fact that the window between the theatrical release and the video release is shrinking," said Jim Felt, executive vice president, general merchandise manager at Hills.

Another reason for the excitement in the industry is the powerful releases that typically come out during the fourth quarter. "This year's fourth quarter releases like `Casper,' 'Cinderella,' `Batman Forever' and `The Santa Clause' are among the best and most exciting in the last several years," said Gary Hohnes, a spokesman for Phar-Mor.

Despite all this optimism, retailers and manufacturers aren't resting on their laurels.

Venture, for instance, devotes prime real estate to the video department and uses in-store signage and circular advertising to drive business for both the hot sellers and the catalog titles, according to Flora Dulle, manager of public relations and special events.

Other strategies being utilized are marketing and merchandising programs.

"There was a time when it was enough to stock a modest selection and you would do just fine in the video section. Now we know that the key to real profitability is to get product out of the video section and into the main traffic aisles," said Blake Thomas, senior vice president of marketing for MGM/UA Home Video. "It is a combination of merchandising and promotional strategy. The only hitch is to make it relevant to the customer. If you combine it with like merchandise or with a themed promotion with other titles, it will be successful."

Disney used this strategy with its new Home For The Holiday Video Shop merchandiser to debut Oct. 4, which teams 12 titles from Disney, Buena Vista, Jim Henson and Touchstone Home Video in one display.

"We've had a lot of success with this type of seasonal merchandising promotion," said Kelley Avery, senior vice president, retail marketing and merchandising at Buena Vista Home Video. "It's beneficial for retailers because it brings Disney news and excitement to the video department."

The company will also use the fourth quarter to launch a new Disney branded TV campaign that will drive consumers into the store to purchase not only its latest releases but a broad range of catalog titles as well.

Similarly, Turner Home Entertainment will be showcasing its Christmas kidvid line of eight releases in a 12 or 24 pre-pack display.

Kids are also a focus of ABC Video's release of four remastered Schoolhouse Rock titles and five Holiday titles, including the debut of "The Velveteen Rabbit" and the re-release of four Christmas stories.

MGM/UA Home Video, too, hopes that reorders of its "The Pebble And The Penguin" children's title will continue to be strong well into the fourth quarter, while KidVision is banking on titles like "Kathie Lee's Rock 'N Tots Diner," and Mary Kate & Ashley Olsen's series "The Case of the Christmas Caper," to ring up substantial holiday returns.