An article by New York Times reporter Stuart Elliott confirmed what any parent or consumer of press releases knows: back-to-school is starting earlier as retailers adjust to the rules of the new economy. Under these rules, consumers seem to make fewer trips to stores, so retailers have every incentive to get them to come to their store or find them online. Walmart announced today that it is slashing prices on back-to-school and back-to-college items, going as far to specifically note that Toy Story and Cars licensed backpack/lunch sets would be available on Walmart.com.

Elliott’s report mentions retailers, including Kmart, boasting “Christmas in July” sales, which dovetails with a reporter in yesterday’s Times by Stephanie Clifford which found grocery chains offering bulk deals to consumers in order to maximize in-store revenue. Clifford said grocery chain executives found that “in this economy, with people visiting stores less frequently, spending less per trip and sticking to their shopping lists more closely, the competition to offer more compelling deals is stronger than ever.” And that’s for food!

In this context, it makes sense that Walmart would offer its licensed back-to-school product cheap online while advertising cheap in-store goods. It’s easy to justify the purchase of a Toy Story or Cars item for slightly more money than a generic item when you’re at home, and haven’t spent the time or money to go to the store. Once a consumer is in the store, the inclination to buy generic could take over—the idea of saving a lot of money all at once is appealing, as grocers have discovered.

A Dow Jones Newswires article by Karen Talley hinted that retailers walk a knife-edge while trying to entice consumers to spend money for back-to-school items when those same consumers are used to dirt-cheap promotions around BTS time. In the article, Kit Yarrow, a professor of psychology at Golden Gate University, says that “Parents are going to be shocked and disappointed by the price of goods. They’re going to make sure their kids are outfitted, but won’t go beyond their budgets like they have in the past.

Of course, the entire licensing industry is predicated on the notion that parents will, in fact, go beyond their budgets, if only a little bit. And there’s proof that it’s happening, even now, with Mattel’s Cars 2 merchandise sales pushing company earnings up 56 percent from Q2 last year, which is proof that consumers are rational even in tough times: Even while cutting back on food, it’s worth spending the extra few dollars on a Mater backpack. Retailers might take a hit on BTS merchandise sales, and consumers might spend less, but the best licensors will remain resilient as always.

Target’s Funky New Partnership

Target has teamed with the Hamilton Wood & Type museum of Two Rivers, Wisc., for an apparel line.

Wait… what?

According to an article in The Atlantic by Steven Heller, Target’s Michael Alexin “fell in love” with the museum after seeing a film about it, and set out to create a partnership. The campaign is based around the tagline “Cool Never Fades” and is banking that consumers will know and love old typography enough to see it as a funky retro brand. The line debuted last week, and is perfect for, as Alexin says (wait for it)… Target’s back-to-school collection.

J-Lo and Marc Anthony: Off, but Still On at Kohl’s

Horrors! Jennifer Lopez and Marc Anthony may have split, but their clothing line at Kohl’s will move ahead as scheduled.

In a Daily Mail article by Tamara Abraham, LF USA’s Rick Darling (LIMA 2011 keynote speaker) says that the launch will remain unaffected. “‘We have two separate agreements with Jennifer and Marc and always intended to have separate lines. [Their split] doesn’t impact the agreements in any way.” LF USA sublicenses the brands to Kohl’s.

You may rest easy.

LIMA Elects Six New Reps to Board of Directors

The International Licensing Industry Merchandisers’ Association has added six members to its Board of Directors.

Joining the LIMA Board are:

• Susie Lecker, SVP of Fisher-Price Friends, FP Brands
• Marty Malysz, President, Dependable Solutions, Inc.
• Carla Peyton, SVP, Licensed Consumer Products – The Americas, BBC Worldwide America
• Jennifer Richmond, Managing Director, Richmond Management Group
• James Slifer, VP, Business Development – The Joester Loria Group
• Cheryl Stoebenau, President, CAS Marketing

Leaving the board are Spin Master’s Adam Beder; Making Connections’ Rick Mallow; Marketing on Demand’s Stu Seltzer; Mattel’s Holly Stein; Strand IP’s Robert Strand; and Konami Digital Entertainment’s Careen Yapp.

—Bryan Joiner

Toy licensing of movie franchises has garnered attention from mainstream media this week. Time looked into the relationship between Mattel and Warner Bros. while developing toy products for the new blockbuster Green Lantern. The Wall Street Journal focused on what defines a Cars product. With more franchise blockbuster movies to hit by the year’s end, this can only be the beginning of the movie explosion in toy aisles—with X-Men: First Class currently in theaters; Transformers: Dark of the Moon, Harry Potter and the Deathly Hallows Part 2, Winnie the Pooh, The Smurfs, and Captain America all due by the end of July; and The Muppets releasing in November.

Film studios bring in toy makers early in the development process for a film like Green Lantern in order to ensure brand visibility in toy aisles, according to the Time article, “Green Lantern and Mattel: Friends with Benefits.” Doug Wadleigh, senior vice president of franchise development at Mattel, told Time that Mattel has access and input into big upcoming projects up to 18 months before theater release, and Mattel spent more than a year designing Green Lantern action figures and products.

Toy makers like Mattel give the studios input earlier in the film development process to tell why that particular film could translate into toys. Doing this integrates the toy company with the filmmakers to develop products kids want. Newer brands, like Green Lantern, cost toy makers less money to license the film and come as a lower risk if movie tickets and products don’t sell. Thus, according to Time, Mattel paid Warner Bros. $2.5 million in royalty fees for Green Lantern, expects perhaps $20 million in toy sales for the film, and as a $5-billion-a-year company, is risking much less of a loss if sales don’t do as well as expected. (See USA Today for more about Green Lantern products.)

Studios, however, increase the likelihood of reward by focusing on films with the potential for sequels, spin-offs, products, games, and even theme-park attractions, according to The Wall Street Journal’s article “Cars 2 Is Already a Hit–In Stores.” WSJ cites an estimate that Cars 2 cost slightly less than Toy Story 3’s $200 million production costs. In order for Disney’s Pixar Animation Studios to generate profits beyond breaking even on production costs, the studio looks for merchandise tie-ins for a portion of its films.

Target announced earlier this month its collection of merchandise inspired by Cars 2, which hits theaters June 24. Fur further integration, Target features a dedicated boutique of Cars 2 products online at Target.com/Cars2, including an interactive experience with the movie’s characters and an exclusive custom animated TV spot created for Target by Disney•Pixar.

“Fans are clamoring for Cars-inspired merchandise that brings the stories and characters from the film to life,” said Bruce Morrison, senior vice president of sales at Disney Consumer Products, in a press release. “Target has captured some of the movie’s magic through its expansive Cars 2 assortment, and we know fans will love it.”

Disney and its licensees also have products lining Walmart and Toys “R” Us shelves, and merchandise expands through multiple departments, with products such as Kleenex, shampoo, food items, kids’ furniture, sleeping bags, and video games, according to WSJ. Furthering franchise expansion, Disney has plans to open a 12-acre Cars Land at it California Adventure theme park next year, and DisneyToon animation studio is working on Cars spin-off direct-to-DVD films.

In another WSJ article, “Franchise Guardian at Pixar Tries to Keep Cars 2 on High Road,” Pixar’s Jay Ward said he seeks to keep merchandise tie-ins authentic, measuring by “truth in materials,” such as a heavier car moving slower than a lighter counterpart. He also monitors products for accuracy to the characters and the world they live in.

Cars 2 may sell more merchandise than any single previous Disney film, including Toy Story 3, which set the bar last year with $2.8 billion in merchandise sales, according to WSJ. The first Cars installment has sold an average of $2 billion annually since 2006.

With focus on films’ potential for retail sales, it’s not surprising that Warner Bros.’s Legendary Entertainment is negotiating with Mattel, in this case to receive film rights to the Hot Wheels toy car line, according to Variety. By purchasing film rights from a well-known toy line, it’s hard to imagine a toy maker more seamlessly integrated into a film.

—Melissa Tinklepaugh

Target Corporation announced Thursday that its collection of merchandise inspired by Disney·Pixar’s Cars 2, arriving in theaters June 24, will feature products such as the Racing Rivals Buddy Pack; Change Ups Racing Track set; Topper Deckington, a double-decker bus vehicle; Cars 2 Guess Who game; and a bedding pattern. The Target collection also features Lego Ultimate Build Francesco and the Fisher Price Wheelies Racing Rivalry Track.

“Target’s collaboration with Disney offers our guests a wide selection of playful products inspired by the Cars 2 star characters, Lightning McQueen and Mater,” says Casey Carl, senior vice president of merchandising at Target. “From play sets and electronic devices to bedding and apparel, Target is the destination that Disney·Pixar movie fans are racing to for merchandise at an exceptional value.”

A dedicated boutique of Cars 2 merchandise can also be found online at Target.com/Cars2, which has an expanded assortment of products inspired by the film and an interactive experience featuring the movie’s exciting characters. The site also houses the exclusive, custom animated TV spot created by Disney·Pixar for Target, featuring favorite characters from the film. In the spot, two cars race toward their nearest Target store when a surprise competitor comes up from behind and leaves them in the dust. The 30-second spot began airing June 4.

Hmm… how to announce Bravo’s new deal? Should I say it “hits the mark?”
Should I say it’s “spot-on?” Nah. I’ll stick with this one: Bravo’s new DVD partnership is on Target.

Ha.

Bravo and Target announced today that DVDs of the network’s series will be sold exclusively at the retailer nationwide beginning April 13. The Target exclusive promotion marks the first ever partnership between the two entities, and the DVD sets will be sold for a 12-week run. DVD titles include The Real Housewives of Atlanta, The Real Housewives of New York City, Emmy-Award winning Kathy Griffin: My Life On The D-List, Top Chef: Chicago, Flipping Out, The Millionaire Matchmaker, The Rachel Zoe Project, and Million Dollar Listing.

The Bravo disc sets will debut in the DVD department at Target and Target.com, and will be sold separately at a special value. The Bravo and Target exclusive promotion has been developed through the NBC Universal Television, DVD, Music and Consumer Products Group.

HIT Entertainment has selected Fisher-Price, Inc. as the global master toy licensee for Angelina Ballerina, it was announced today.

The toy line will be based on the all-new CG animated series, Angelina Ballerina The Next Steps that sees the aspiring prima ballerina at a school for the performing arts where she is exposed to diverse styles of music and dance. The series, which launched in September 2009, currently airs in the US, Canada, UK, Ireland, Australia and France, and is slated to launch in 30 more countries in 2010.

Fisher-Price, a subsidiary of Mattel, Inc., plans to develop, manufacture and market a variety of toys, dolls and role play items for girls 4 to 7 years old for figures and dolls; playsets, dollhouses, and vehicles; plush toys; and preschool toys including electronic learning and developmental toys.

The line will be produced under the Mattel brand name, with the first items scheduled to launch in the US in fall 2010 exclusively at Target and Target.com. Fisher-Price will debut its Angelina Ballerina line at mass retailers in the rest of the world starting in 2011.