Marvel’s Paul Gitter oversees the company’s North American licensing deals. In an exclusive interview with YMA, Gitter discusses Marvel’s approach to licensing deals, how the company has been building up to the “Avengers Assemble” in 2012, and capitalizing on the trend of kids mimicking their parents.
Q: Can you describe Marvel’s approach to licensing deals?
A: Everything we do underpins our strategy we set out about eight, nine years ago to build up our event films — Iron Man, Hulk, Thor, Captain America — to the Avengers which comes out July [2012]. It’s the first time an entertainment studio is combining all brands under one umbrella and we are treating it as one master brand. All of our past relationships with retailers and consumer products on individual brands have laid the groundwork for a broad scale Avengers program.
Q: How will the Avengers differ from your usual licensing deals?
A: The deals themselves feature the same structure of our other film properties, but it’s definitely a complex brand. Instead of just one, you have four ingredients [Iron Man, Hulk, Captain America, Thor] to brand merchandise and get SKUs [at retail]. We have to combine less well-known characters, Captain American and Thor, with successful ones, Iron Man and Hulk. Our job is to ensure every character is in as much merchandise and gets an equal share of shelf space. We are working with each big retailer on exclusives that gives them some unique or different advantage.
Q: Can you discuss the strategies behind recent deals with non-traditional retailers such as Williams-Sonoma, Pottery Barn Kids, and Old Navy?
A: The traditional mentality of mass market [licensors], like Disney or Nickelodeon, is about reach. Getting merchandise into as many consumer hands as possible. I don’t want to say we are going after a niche consumer, we still [have deals in] the mass market, but we want new channels. Our primary objective is to be closer to the consumer. We want a stronger, durable relationship [than just selling a t-shirt featuring Iron Man]. Mom may go into a store and not buy something because it’s not the right interpretation or doesn’t take her needs into consideration.
We did a deal with Pottery Barn Kids after looking at Pottery Barn’s domestics and saw an unmet need [for licensed kid furniture]. We then decided to offer designs that are upscale, but retro and vintage. Something that makes sense with the style and art of the Pottery Barn shopper. We also launched an integrated marketing program [to support the collection] where we had characters appear for book signings. We initially started with 5 SKUs and recently expanded to 20 SKUs. Are there people out there who are surprised to see us in these [unexpected channels]? Sure, so be it. We want to be everywhere.
We also noticed the on-going trend that kids emulate their parents, whether it’s pretending to mow the lawn or painting the house. This is definitely happening in the kitchen so we are now just introducing a full line of kid cooking products with Williams-Sonoma [parent company of Pottery Barn Kids]. It will have aprons, pancake molds, cooking gear.
Q: Can you discuss the recent alliance with the NBA?
A: We did a deal with the NBA after we realized we were missing the vertical sports channel distribution, [such as] Modells, Dicks, Sports Authority. It was an untapped opportunity so we partnered with a sports league to give those retailers a reason to carry us. This season is really just a test, with a full deep roll-out next season where we will co-brand with individual markets of every team.
Q: Are you looking to other sports leagues?
A: If the opportunity presents itself we will consider it, but we don’t want to do a deal for the sake of shipping something. We need to be smart about the pace of our programs, but we will look to other leagues for 2013.
Q: Is licensed merchandise dependant on a movie’s success?
A: Marvel is more important than the average commercial in the sky [Gitter’s term that represents CGI-heavy blockbuster movies]. There’s a big difference in our brands and the promotional brands that are only as good as the film. We are fortunate our brands are 50, 60, 70 years old and have a heritage that is passed down from dad to child. Kids may not be introduced to us through a comic book anymore, but they still know about us.
Q: What’s up ahead for 2013 and beyond?
A: We are growing a lifestyle apparel initiative with [the Avenger’s] Black Widow for women. It will include a mix of retailers and reach all ages.
While we looked at villains and see they don’t do as well on their own as our superheroes, we are looking to introduce “Heroes Vs. Villains” in 2013. It will be Marvel’s good over evil, which I think will be a lot of fun.
Contact: Marvel, Paul Gitter, President, Consumer Products North America, 417 Fifth Ave., 2nd Fl., New York, NY 10020; 212-576-4026; pgitter@marvel.com; www.marvel.com.
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