As incentives and premiums, toys have a strong appeal for adults as well as children. This article describes how to use toys effectively in your promotions, where to find suppliers, and how to select the right toys for your target audience.

OVERVIEW

One fast-growing premium and incentive merchandise category is that of toys. And it's not just kids who are turned on. Adults, too, are responding to toys as premiums and incentives for a variety of reasons. Toys cover a wide range of products, from CrackerJacks trinkets to stuffed animals and dolls and remote-control cars and boats.

Many adults are turning to toys as an escape from stress--and as a way of getting in touch with the kid in all of us. Just take an informal survey in your own office to see how many co-workers have some kind of a toy on their desks or in the top drawer. Used appropriately, toys should provide something of perceived value for your target audience. Many adults respond to toys as incentives as a way of giving their children something they couldn't have when they were young.

To get an idea of the special role that toys play in premiums and incentives, consider the following:

• Toys are used extensively as giveaways at trade shows and as door-openers for hard-to-reach customers.
  
  
• Trainers and meeting planners often use toys and games as ice-breakers for meetings or training sessions.
  
  
• Toys imprinted with the company's name or logo double as promotional items that encourage customers to associate the company with fun and good times.
  
  
• Used alone, toys offer a departure from traditional promotions. They can also add an extra dimension to a program that includes various types of merchandise.
  
  
• Even low-cost and low-tech toys can have a high perceived value for both children and adults.

KEY ISSUES

As with any premium or incentive item, the most important question is: Is a toy appropriate to the audience you're trying to reach? Obviously, the likelihood that you will answer yes is a lot higher if you are targeting children. In that case, it becomes a question of whether a particular toy is right for a particular age group. Remember, too, that safety is an important issue in choosing toys for kids, and the federal government sets different standards for different age groups (see Tips on Safety).

A wide variety of toys have been successfully used as premiums and door-openers for adults, but you have to be sure of your audience. A thoughtless selection can send the wrong message and trivialize the goals of your incentive program. A little market research goes a long way in this regard. One instance where toys almost always make sense: including an assortment of high-end toys in a catalog of merchandise awards; that just might add an extra layer of motivation to an otherwise familiar program.

Just as incentive-travel planners make a point of getting a salesperson's spouse and family excited about a potential trip, using toys can also introduce an element of family participation to the motivational mix. Knowing that Mom or Dad has a chance to win a popular toy can unleash family dynamics that few merchandise options can match.

PREMIUMS FOR KIDS

Toys have long been an important promotion item when marketing to children. In fact, the amount of money spent each year on sales promotions for kids is estimated to exceed $1.4 billion, a figure which surpasses the amount spent on advertising to children. Toys as premiums are a major weapon in the battle for market share between Burger King and McDonald's, for instance, and toys are used effectively as premiums for cereals, candies, and other products marketed to children. Even banks use toys as an incentive to encourage parents to open savings accounts for their kids.

Toys are also used as premiums to encourage children to:

Join clubs. Many food product companies--as well as fast-food restaurants--use clubs as a way to build brand recognition, brand loyalty, and to encourage repeat business.
Choose retail outlets. McDonald's and Burger King are the leaders here, but supermarkets, banks, and other retail outlets have also found toys to be an effective premium offer.
Buy products. CrackerJacks may have pioneered the concept, but toys are used as premiums for such products as video cassettes, shampoos, toothpaste, and even other toys.

MATCHING THE TOYS TO THE TARGET

Whether targeting children or adults, using toys as premiums or incentives requires careful consideration. If for adults, will they perceive value in the toy for themselves or their family? If for children, is it appropriate for the age, skills, and abilities of the group you are targeting? Other concerns in selecting the right item:

• Even if the toy is targeted at kids, will it withstand the scrutiny of an adult gatekeeper involved in the purchase? The younger the target, the more thought should go into how a parent might view the toy.
  
  
• Will the toy live up to the expectations created by the image in your catalog or promotional materials?
  
  
• Does it pose any safety hazards? Is it nontoxic? Will it stand up to potential rough treatment, either in shipment or in the hands of kids?

TIPS ON SAFETY

Why is safety an important issue to consider when choosing toys as premiums or incentives? In 2004, an estimated 210,300 children were treated in U.S. hospital emergency rooms after toy-related incidents, and 16 children died. The Consumer Product Safety Commission (CPSC) offers these guidelines:

Under 3 years old. Children under three tend to put everything in their mouths. Even large toys may have small parts that pose a choking danger. Uninflated balloons also can choke a child if they are swallowed. Avoid marbles, balls, and games with balls--anything that has a diameter of 1.75 inches or less. Children at this age also pull, prod, and twist toys, so look for toys that are well made, with tightly secured eyes, noses, and other parts. Avoid toys that have sharp edges and points.

Ages 3 through 5. Avoid toys made with thin, brittle plastic that might break into small pieces or leave jagged edges. Crayons, marking pens, paint sets, and other household art materials should be marked with the designation ASTM D-4236. That means the product has been reviewed by a toxicologist and, if required, labeled with cautionary information.

Ages 6 though 12. Avoid toys that can be easily damaged or broken. If you're considering a toy gun for a premium, be sure the barrel, or the entire gun, is brightly colored, so that it's not mistaken for a real gun.

CHOOSING A PRODUCT

Trends and tastes in toys change from year to year, if not from day to day. For children, the options for premiums and promotional tie-ins seem endless. The more popular toys will bring the greatest response, of course, but what's popular can change quickly. In years past, popular products (and their knock-offs) were G.I. Joe, Barbie, and Hot Wheels. Today, they might be Beanie Babies, Lion King action figures, or other licensed toy products. Other popular toy offerings include computer games, action figures, remote-control toys, dolls, and collectibles. To reach the widest range of interests and preferences, the best bet is probably to offer a range of toy products through a catalog or gift-certificate program.

Little Debbie Snack Foods, targeting middle-income female consumers aged 18 to 49, used a collectible doll as a premium for its Little Debbie Snack Cakes. It contracted with Mattel, which makes Barbie dolls, to create a Barbie-like Little Debbie, figuring that it might appeal to the target consumers either for themselves or as something they could give to a child. The doll, sold through an on-package offer on approximately 60 million packages, was supported by trade promotions and point-of-purchase advertising. In addition, a national display contest for distributors awarded more than 3,000 dolls. The program resulted in a boost in sales for the snack cakes and the sale of more than 195,000 Little Debbie dolls. In a subsequent promotion targeted to a broader family audience, the company offered a three-pack of Mattel's Hot Wheels delivery vehicles and trucks, all bearing Little Debbie logos.

High-priced toys have been used with great success as door-openers for companies going after small groups of hard-to-reach customers. One company uses remote-controlled cars to gain access to top executives. Sales reps send the car to an executive they want to meet and attach a note asking for an appointment. If the person says yes, the sales rep shows up with the car's control unit and a battery pack. A Connecticut direct marketing company once used a similar approach to reach potential clients. In a series of mailings designed to build interest, it sent the balls and cues to a tabletop pool table. Then, a representative called and offered to deliver the table itself in return for the opportunity to make a 45-minute presentation about the company's direct marketing services.

Comic relief. A telemarketing company in Denver gave a set of beanbags to its telemarketers, along with instructions on how to juggle them. If employees got worked up over a difficult call, they were encouraged to practice juggling for a while to reduce the tension and prepare for their next call. Another company offers its employees a "Stress Kit" that includes wind-up toys, chattering teeth, a rubber clown nose, a comedy audiotape, and several pens shaped like vegetables. The top of the kit reads: "Don't take yourself too seriously."

FINDING SUPPLIERS

Most large toy manufacturers have special-markets departments that will help you with your premium or incentive program, particularly if you're talking about buying large quantities. In addition, many national toy retailers, such as KB Toys and Toys-R-Us, offer gift certificates, and some provide customized incentive programs. Trade shows are a good place to find some of the smaller suppliers (see Conferences and Trade Shows), and the associations listed in the next section can provide names of members that are toy companies or that represent toy manufacturers. Two online directories:

• To find a supplier, go to #9520, Supplier Finder.
• Potentials magazine has an online directory of suppliers and agents serving the premium/incentive market. Go to http://www.lakewood.com/.

ASSOCIATIONS

Click here for a listing of industry associations.

CONFERENCES AND TRADE SHOWS

For a list of Industry Events, go to #9510, Calendar of Industry Events.

BOOKS

Kids As Customers: A Handbook of Marketing to Children, by James U. McNeal, looks at a variety of issues related to marketing to kids. 260 pp. Lexington Books. $39.95; through Amazon.com, $39.95.

Managing to Have Fun, by Matt Weinstein, takes a lighter approach to management that includes using toys, games, and contests to motivate employees. 220 pp. Simon & Schuster. $11; through Amazon.com, $8.80.

1001 Ways to Reward Employees, by Bob Nelson, provides low-cost ideas for rewarding and motivating employees and customers. 276 pp. Workman Publishing. $10.95; through Amazon.com, $8.76.

PUBLICATIONS

Click here for a listing of industry publications.

ONLINE SERVICES

American Demographics puts summaries of its articles on its Web site. Marketing to children is one of the topics covered, and there are discussions about toys and other children's products. Go to http://www.demographics.com/.

RELATED SMN ARTICLES

For information related to this article, see Doc. 3020, Strategies for Success.