
Playing Up The “l” Factors
That is — Leverage good licenses. Sure, licensed candy can allure a substantial kid-audience, as well as the moms that take them shopping, but characters and icons are not shoo-ins to department profit by any means. Their proper leverage is paramount to success, especially when dealing with the fickle younger set. Thus, top marketing/merchandising tips (as outlined by two of the industry’s top manufacturers) include the following.
Be relevant to the properties’ essence. Make sure the license has a good fit within your
channel.
Be sensitive to price/value — “don’t let the royalty push your price point over the
value of the product at retail,” says Julie Nunn, director of
marketing at CAP Candy.
Make sure the product is as strong as the license. “Kids want the property, but they also want a
cool candy/toy,” reminds Nunn.
Merchandise where kids will be — “at the front end and end caps,” relays
Mike Cavalier, vice president of marketing for Flix Candy/Imaginings 3.
Use POP to bring kids to that spot. “Promote the license loud and proud with header signs,
and shelf danglers,” says Cavalier.
Whenever possible, position licensed candy product with
other licensed non-candy items. “Many
retailers develop feature shops that offer an assortment of licensed goods
that go against the property; this is especially common with movie
properties,” explains Nunn.
Make sure the licensed product packaging is the most
up-to-date with the property. “Licensors
will update their style guides from time-to-time, and kids know when you do
not have the latest character art,” Nunn cautions. “Make sure
the licensed art you carry is the latest and the greatest.”
Work out exclusive promotions. “We did a great program for a major retailer with Harry
Potter merchandise,” Nunn explains. “We produced a $3.99 line
that was merchandised on an end cap — but it was re-packed at a
special volume from others; hence, that retailer was able to offer an
exclusive/attractive price point.”
Include more licensed products in the Christmas, Easter
and summer candy sets. These are seasonal
opportunities with much more potential, according to Cavalier.
Find a product format that works well and continually
rotate good licenses into it. Examples of
these are the Pop Slider from Flix and the Spin Pop from CAP.
As for evergreen
versus “up-to-the-minute” licenses — they both play
important roles in the well-rounded kids’ candy set.
Evergreen licenses “will typically get
wider retail acceptance” and are “good for planogrammed
position in novelty candy sets for about a year and for seasonal set
purposes,” according to Cavalier. They also “offer the business
some stability,” adds Nunn. “Buyers can plan their inventory
and roll out product on a monthly basis based on standard retail
turns.” In addition, manufacturers such as CAP “can offer up
newly refreshed evergreen licensed product for in-line and POG
merchandising,” according to Nunn.
Up-to-the-minute or promotional licenses (such as
movie-related) “are great for generating incremental off-shelf
purchases,” says Cavalier. “The sales spikes can be really high
on these properties and they are typically positioned as in/out in a two-
to three-month window.” In addition to the high volume, promotional
licenses allow manufacturers to “experiment with new product ideas
that may be able to translate to new product platforms,” adds Nunn.
As with most consumable categories lately, consumer
lifestyle issues have found their way into licensed candy, and leading
manufacturers are addressing them head-on. “Today, most all products
in this category need to be positioned for On the Go,” recognizes
Cavalier. “We are also very conscious of trying to provide healthier
alternatives for kids,” he adds. The way he sees it,
“sugar-free, reduced-calorie and healthy/fortified will all be part
of the future trend for licensed candy and snacks.”
CAP’s stance is different, but still with a sense
of responsible marketing. “With the emphasis on ‘health’
in the market, we are positioning our products to be high on ‘play
value’ with a modest portion of candy,” explains Nunn.
“Our goal is to have the licensed property ‘experience’
— i.e. eating the same candy as Harry Potter would — be the
primary value, and the candy offer becomes the secondary value at
retail.”