Whistling a happy melody in kids' music; the tempo rises as marketing strategies tune in children, parents

Discount Store News, April 1, 1996 by Pete Hisey

Disney has also rolled out a smaller program in Circuit City stores that carry music. The section is generally merchandised on a dedicated four-way fixture with customized Disney signage.

The company has about 7,000 Mickey Maestro fixtures merchandising a selection of Disney titles in storefronts nationwide. Target, which locates the fixture in its children's apparel area in many markets, has had particular success, Haft said. "Of course, they're the chain that never bailed out of the kids, market, and they're perceived as a destination for children's music."

Ideally, Haft said, Disney would like to see children's audio and video merchandised side-by-side, because of the synergy the two categories develop and to give music higher visibility.

"For the retailer, this approach can really create sales," Haft said. "For instance, we have the soundtrack and read-along versions of top theatrical releases on-shelf well before the movies debut. That gives consumers a chance to try out the movie, to get familiar with the story and the characters. Normally, we have a fast build-up prior to theatrical release, peaking about two weeks after the movie opens."

When the video comes out, the audio products quickly develop a second life, he added. "For instance the 'Pocahontas' soundtrack went to No. 1 before the movie came out, and its already risen from No. 198 to No. 76 in the two weeks since the video release. And it gives us an opportunity for a follow-up product, like `Rhythm of the Pridelands' last year."

Children's record sales have been affected somewhat by the recent slump in the record industry. Haft said that is because kids' music reaches so many different channels of distribution and the category has been insulated to a large degree from the meltdown of Musicland, Wherehouse and other music chains.

"Kids' music is primarily an impulse business anyway," and Disney is available in high-traffic locations like discount, grocery and drug chains, he said.

As kids' music becomes more like adult music - and in Disney's case, that's happening rapidly - such insulation may disappear.

Haft noted that, as a rule, kids' music is sold at or close to full list price, making it one of the most profitable businesses in the mass market, with most retailers averaging up to 40 points in gross margin.

However, as Disney has keyed in to pop trends, its blockbuster soundtracks have been used more often as traffic builders. For instance, "The Lion King" was available for as little as $9.88 during its reign at the top of the charts in 1994. The company charted with 12 different titles last year, and this year will release about 40 titles, many of them designed to appeal to adults as well as to children. For instance, a "Toy Story" sequel will feature star performers singing toy-inspired ditties like "The Toys Are Back In Town," a take-off on Thin Lizzy's '70s hit "The Boys Are Back In Town."

Most labels have found a formula that seems to appeal to today's parents: kid-oriented versions of music their parents grew up with. Disney has a new title on the way called "Rock-a-Bye Baby," featuring lullaby treatments of music by John Lennon, Dire Straits and Elton John, among others.