Sizing up video strategies for drug chains

Drug Store News, August 18, 1997 by Allene Symons

* Columbia Tristar's executive vice president Paul Culberg said "Our primary strategy is to provide materials that will help the dealer differentiate himself" and deliver the kind of excitement at retail that helps generate repeat visits. "We believe as much as 75 percent to 80 percent of videocassette purchases are impulse," said Culberg. "We know that the principle shopper in drug stores is female," so a life size likeness of Tom Cruise for its spring release of "Jerry McGuire" creates "an event and can drive additional traffic."

"We have a lot of fun with packaging," said Culberg, who noted that there will be more exciting display concepts when Columbia's fall sell through releases are announced soon. Columbia, which is interested in discussing vendor-managed inventory opportunities with drug chains, also has an extensive library besides its new release program, and drug chains "need to be working the catalog," said Culberg. "There is no greater appealing star power than the film business brings to retail," he added, referring to events such as Columbia's August Barbra Streisand promotion.

* Hallmark Home Entertainment senior vice president Glenn Ross explained that this studio's strategy for drug chains has two elements: "We have brand recognition with two very powerful brands that shoppers are used to finding in drug stores. One is Crayola and, in many cases, Hallmark. The demographics of drug stores is very heavily female, and the Hallmark and Crayola demographic is also heavily female, women buying for families and kids."

Second, Ross noted that in product, Hallmark Home Video also offers an "entertainment package" with the Crayola videos, an activity set with crayons and an activity book (in the Crayola Presents Animated Tales), or a CD-ROM (in the Crayola Kids Adventures series), and these videos come with $65 in coupons, including many products found in drug stores, such as Children's Mylanta.

"What we're building is a brand parents already recognize for color and film and quality," said Ross. With an aggressive release schedule planned for the next several years, ' "when parents are looking for something for their kids, and if they do not have a title in mind, they will see Crayola and Hallmark and know there is something for them to buy. We hope to encourage return trips that way," said Ross.

* Lyric Studios is best known for its Barney videos, from the popular character featured on PBS television. Lyric will give consumers more reasons to buy Barney videos this fall when it launches its new $100 interactive plush Barney toy from Microsoft, a voicechip toy which hooks up to a PC (via a CD-ROM) and enables a child to interact with Barney's 4,000 phrases.

By the end of the year, 22 Barney videos will be encoded for use with the interactive Barney toy, offering children a unique video experience. The big splash of the toy's release in Microsoft's $7-million ad campaign this fall should make Barney top of mind for parents and kids.

"There will be so many Barney impressions, there's no way any property can compete with this," noted Lyric's marketing manager Dan Merrell.