Hooked on Going Mobile
Hooked on Phonics became a household name thanks to its omnipresent direct response television commercials and infomercials.
Now, the 20-year-old marketer of learning aids for children has put $500,000 toward its first mobile tour to drive sales at retail. It has decked out a school bus and is heading for major retail outlets where it will show customers firsthand how its products work.
The brand didn’t have an in-store presence until 2005 when Educate Inc. purchased it for $13 million. “We have a brand with 99% consumer awareness, but the majority of that awareness was created through infomercials,” says Mark Mashaw, vice president of marketing for Hooked on Phonics. “We wanted to use the tour to generate consumer awareness and attention that our product is available at retail.”
Hooked on Phonics ceased its use of infomercials in January 2005, but still runs TV ads.
Tour stops include Wal-Mart, Target, Toys ‘R’ Us, Kmart and KB Toys. At each location, brand reps will showcase some of Hooked on Phonics’ traditional board books and flash cards, as well as six new electronics toys.
Consumers can board the blue and yellow bus and sample products at demonstration stations and computer kiosks, and view the brand’s TV spots.
For example, visitors can try out the Smart Sticks Letters and Sounds toy, which teaches kids to learn the alphabet and phonemes of each letter through music and graphics. Or they can sample the Phonics Word Master, a device that helps with letter names, sounds and beginning spelling.
About 100,000 discs will be given away featuring Hooked on Phonics lessons.
“In terms of ROI, nothing is going to convert parents into consumers faster than getting their hands on the products and letting them decide,” Mashaw says.
Signage and coupons will drive customers in-store.
The Hooked on Phonics Hop Across America tour, which Engage Marketing is managing, kicks off in August in New York City and runs through October. Other stops include Philadelphia; Baltimore/Washington, D.C.; Chicago; Minneapolis; Orlando, FL; Atlanta; New Orleans, LA; Los Angeles; and Dallas.
The 10-city tour will also appear at high-traffic locations, including South Street Seaport in New York, Chicago’s Navy Pier and the Los Angeles County Fair, among other locations.
Already, the company’s retail presence is showing signs of growth. Solid sales led the brand to expand the number of stores where its products are sold.
In 2005, when Hooked on Phonics first appeared at retail, it had a limited presence mostly in membership clubs, like Sam’s Club. This year merchandise will also sell in all of Target’s 1,502 stores in 47 states, compared to 500 outlets last year. Likewise, about 1,500 Wal-Mart locations carried product in 2006; more than 2,000 stores will sell the items this year.
“It’s all about providing fun, experiential options,” says Marc Rosenberg, chief marketing officer for Zizzle. “We really see this as an important part of the marketing mix.”
The costs for Hooked on Phonics’ products range from $39 to $79; Zizzle’s electronics items cost from $15 to $60.
Parent Educate Inc. sold Hooked on Phonics last month to Sterling Captial Partners and Citigroup Private Equity. The brand will be operated under the corporate name Smarterville Inc.
As part of the tour, PR events will be staged with non-profit Firstbook.org to donate $1 million worth of products to literacy organizations and local libraries in the 10 markets.
Dedicated Web sites at www.HookedOnPhonics.com and www.Zizzle.com will offer details on the events and a virtual tour of the bus. TV and radio spots, PR and e-mails to the Hooked on Phonics’ customer database also support the promotion.
“We think bringing Hooked on Phonics to kids in a fun way will go a long way,” Rosenberg says.
Session: Evolution of the New Media Player: Retail www.thepromoevent.com
