Rehtmeyer Design and Licensing has produced and licensed
toys for industry giants such as Mattel, Hasbro, Fisher Price and Milton
Bradley. Besides working with Fortune 500 companies, company President Carol
Rehtmeyer also founded the Toy and Game Industry Foundation,
whose forums provide information for the garage inventor as well. “Nurturing
that imagination and energy is the best way I know to ensure that our industry
continues to thrive,” she says.
Rehtmeyer lays out 10 steps for do-it-yourself product marketing, for those
who dream of creating the next “Gotta have it” toy.
1.
Target. Determine your product reach (who is this product aimed
at: specific demographic, interest group, etc., as well as specific age,
market, etc.)
2. Categorize. Determine where in the store it will be
sold (electronics, plush, boys, girls, educational, novelty, etc.). Each
area of the store has a different personality and typically is serviced
by a different buyer. Some products lend themselves to more than one area
of the store. Make sure the focus is clear so the buyer will not be confused
by the appropriate category. Confusion = no orders.
3. Research. Check out any product in your product category
that would be considered competitive with yours. See where these products
are sold, how they are packaged, their features and price-points. Now,
determine what kind of stores you will be targeting (specialty, mass market,
discount, department store, catalogue, special interest, promotional,
etc.) Use the information you have gathered. These are keys to what the
buyer at each of these targeted retail stores or outlets is willing to
purchase and insight into what your competition or competitive edge might
be.
4. Price. From your research, determine your price-point
target and requirements. You will now work backwards from this price-point
to determine your target manufacturing costs and to modify product components
and materials to meet that price-point. Typically, you will want to achieve
a 4x mark-up from the cost of goods to retail. So, if your product cost
you $1 to manufacture, you will wholesale it to the retailer for $2, and
it will then retail for $3.99.
5. Components and costing. Rehtmeyer Design & Licensing
works with many factories to determine the best cost for the production
of your product. We may suggest additional features to enhance appeal,
reduce costs, etc., or help you substitute items, materials or other components
to reach your goals. The way your product is packaged can be crucial to
the type of store or positioning you may be able to achieve. Unusual packaging
(shapes, sizes) may limit or negate the product's marketability in some
retail environments.
6. Find and learn about buyers. Create a "hit list"
of retailers -- but don't contact them quite yet. You are building your
base and reach right now. Some great resources to get you started include:
American Specialty Toy Retailers Association (ASTRA), Thebloomreport.com
and Rehtmeyer Design & Licensing - Toy Directory online marketing
program. You can attend or exhibit at trade shows, too. They can be a
bit costly, so make sure you have specific, defined goals at any show
you will be exhibiting and know who that show attracts (specialty, mass,
"lookers" but not buyers, just media, etc.) Learn the buyers'
language and what they will expect, demand or want from you. This is your
learning phase. You will need to truly understand how to work with buyers.
You're likely to only have a single chance to get the interest and attention
of a buyer. See our separate article entitled "Speaking the Buyers’
Language" for greater insight on this mysterious language and set
of demands.
7. Timeline. Determine your timeline for getting finished
goods to your buyer. Again, you'll work backwards. From the target date
the product must be in the stores, you will need to consider the following
steps:
a.) In-store date (determined by the buyer) b.) In central warehouse or distributor date (determined
by distribution time requirements -- this could be 30 days or more
prior to the "in-store date") c.) Shipping time (ocean, customs and trucking) to
get to warehouse, distributor or store d.) Selling/marketing time e.) Manufacturing time f.) Tooling time (if required -- typically allow
45 days -- this may be done in conjunction with graphic development) g.) Graphic development time, including time to set
production die-lines, sales sheets, Web development, etc. h.) Product development, enhancements, etc. i.) General business development to set up your company
Note: When working with our team, RDL project managers will assist
you with these time schedules and your needs.
8. Create a marketing strategy. Think about "now":
Consider clever ways to get attention. Promotion and marketing efforts
can be cost effective or even free if you're clever about them. Most stores
like offering in-store demonstrations. Think about contests, mall exposure,
special events and anything else that can get you media attention and
consumer exposure. Think about the "future": Consider product-line
extensions and developing your single product into a product line. Consider
your ultimate goal, too: Do you just want enough sales to be successful
and then sell out or license your product to another company, or do you
want to start your own company like the makers of Cranium™?
9. Sell. Once you know your audience, packaging, and
costs; have production or high quality prototypes and sales sheets; and
are armed with an understanding of who your buyer is and how to sell to
them, you are ready to approach buyers. The larger the retail organization
to whom you are selling, the more demanding they will be. Smaller retailers
are more approachable as a whole and more accepting of prototypes, entrepreneurs
and early-phase presentations. Larger retailers will be more receptive
to finished goods, lines, products and items with recognized brands, licenses
(TV, movies, etc.) and strong promotional and marketing campaigns behind
them.
10. Be passionate and tenacious. No one else will have
the passion and interest to bring your product to market like you will.
Use your passion and interest to bring your product to market. Every major
success story in the toy and game industry came from an inventor or an
independent entrepreneur. You will be as successful as you want to be.
