This fall, a green ogre proved to be a perfect fit for both Halloween and Holiday activity. Subsequently, the launch of DreamWorks' Shrek 2 served as an effective bridge between the two merchandising seasons.

Selling newly released home videos is standard practice for a variety of retailers, from supermarkets and drugstores to the more traditional entertainment and electronics chains. Many a box-office dud gets prominent exposure -- feature ads in circulars, temporary displays near checkout, even promotional incentives. (Anyone interested in a free bag of candy with the purchase of Raising Helen? Anyone?)

The blockbusters, however, become full-blown events, because sales potential is strong (Shrek 2 sold 12.1 million units in five days) and because there's enough related licensed product to stock an impressive lobby display.

The marketing support for Shrek 2 was more noteworthy than most previous releases for several reasons:

Duration. Both M&Ms and Kraft Foods used their tie-ins to fuel Halloween merchandising; General Mills never stopped selling its promotional SKUs after the title's spring theatrical run. That meant Shrek imagery could be found in stores months before the video's Nov. 5 release. And with Rite-Aid using the DVD as centerpiece for its holiday campaign, it will be around for another two months at least.

Depth. Promotional offers tied to videos typically dangle a free product or two, a mail-in rebate, a free plush. When the dust settles, the buyer STILL could have bought it cheaper at Wal-Mart. But for Shrek 2, shoppers in many cases could work the price down to free if they tried hard enough.

Diversity. A lot of consumer brands benefited from Shrek's halo. And not all of them were officially licensed partners.

They were, however, opportunistically aware of the retail scene. That was a piece of advice Bob Connolly, Wal-Mart's marketing chief, gave at the P-O-P Show/Chicago in September: Instead of trying to hatch the next great merchandising program, he suggests, memorize the calendar. And in today's retail environment, that includes the release dates for a variety of entertainment formats. (A videogame called Halo 2 also made some noise this month.)

Interestingly enough, entertainment tie-ins are considered to be among the most ineffective communication tactics for driving sales of product on display, according to a recent survey conducted by the Institute and P-O-P Times. We'll have more on that in December.

Peter Breen
Managing Director, Content
In-Store Marketing Institute