VOLUME 24

Heard on the Playground

What's New This Month

Trend Watch

Heard on the Playground

We’re Living in a Virtual World

One of the latest crazes on the Internet fuses the interaction and community-building of chatrooms with the challenging fun of online games. These multiplayer games let players build their own identities, interact with thousands of other gamers, and enjoy the specific challenges of the game. EA Games’ The Sims Online and NeoPets are two of the biggest names in this genre of online gaming. The Sims Online attracts young adults and teens but does not target kids or tweens. In fact, it will not let any under the age of 13 legally play their game. Meanwhile, NeoPets’ has grown to become one of the largest online-based youth communication networks in the world with an audience that consists mostly of kids, tweens and teens. It receives a whopping 2.7 billion page views per month. Now there is a newer site called Toontown Online. It incorporates many of the same interactive features as the aforementioned sites while specifically targeting the younger end of the youth market spectrum, kids, with the hopes that their "just for me", kid-friendly themes will fit with their pay-for-play format.

Toontown Online allows kids to create their own Toon in the colorful world of Toontown. The challenge comes in defeating the evil robots called Cogs that are trying to turn Toontown into a drab, corporate place. To stop these troublemakers, players use cartoon gags such as cream pies, seltzer water, flower pots, and other comical ammo. Toons can earn bigger and better gags by competing in games and earning jellybean currency. Of course, interacting with other toons is crucial, from teaming up against the Cogs to competing for gags. One interesting feature is that these “chat” interactions are limited to certain phrases such as “Hi there” and “Let’s go fight the Cogs!” This should be reassuring to parents who worry about what their kids are seeing and doing while on the Internet.

Toontown’s website, http://www.toontown.com, is also kid-friendly. It’s laid out as the The Toontown Times newspaper and is just as fun and colorful as the game. In addition to the standard background information on the game, the site entices potential players with premiums such as stickers, posters, trading cards and a monthly newsletter. All necessary software for the game is downloaded from the website. Memberships cost for $79.95 for a full year, $49.95 for six months, or $9.95 for a month.

If a membership to Toontown is anything like a membership to a gym, new members will likely spend plenty of time playing at first. However, videogames tend to be more engrossing than treadmills, so kids will likely do a better job of “sticking with it.” This type of dedication to the site could provide the opportunity for exposure to various forms of marketing, from ”traditional” banner ads on the games’ and fans’ websites to "product placement" within the games. In fact, NeoPets already integrates their client's products into site content in what they refer to as Immersive Advertising®. So, who’s to say Toons won’t also have the luxury of utilizing branded items in their world, like throwing Sara Lee cream pies before taking a break from warding off the Cogs to enjoy an ice cold Pepsi?

What's New This Month

A Real Reality Series for the Youth Market

Who would have known that when Richard Hatch bared all on the original Survivor three summers ago that viewers would be begging for more? From The Bachelor to American Idol, reality shows have all but taken over the airwaves. Depending on how the show is marketed, a large teen audience is often obtained as a secondary audience. Now there’s a reality series that will directly target the youth audience. On August 8, The N, Noggin’s nighttime network for teens will premiere Girls V. Boys, a reality show with teens as the competitors.

Girls V. Boys will incorporate the format of MTV’s Road Rules, another popular show with teens. The series includes six episodes of teen drama and gender conflict. The format includes direct-to-camera commentary and behind-the-scenes banter as they travel on a coach bus. With the way reality shows can edit footage, a small tiff over who gets the last piece of pizza can have more tension than the Cuban Missile Crisis.

The show will engage a girls team and a boys teams in intense and exciting mental and physical competitions for points and prizes. The teams will compete in four challenges: Bare Necessities—going on a scavenger hunt for camping necessities; Half-Time Blitz—competing in a real-life football half-time show; Beach House—racing to build a beach cabana while bundled up in snow gear on a hot summer day; and Centuries Apart—performing and competing in front of a senior-citizen panel of judges. Girls V. Boys will debut with a one-hour special and air regularly at 9:00 p.m. on Fridays.

While other reality shows have continued to push the envelope, this show will no doubt be more appropriate for younger viewers. It may in fact be a little too tame for some teens. In that case, it may end up being a transition show for younger teens and tweens, giving those that are just cutting their teeth on reality programs a younger cast of participants with whom they can more closely relate. It will no doubt reach a younger audience than just about any other reality series, preparing them for this new genre of television that appears not to be going anywhere for a while.

Tech Trends

Making Every Classroom a Computer Lab

As the business world continues to evolve with the latest technology, so do the classrooms that educate the professionals of tomorrow. Today’s youth is not just educated about technology, they’re educated with it. Since Internet access has expanded from 3 percent in 1994 to 87 percent in 2001, today’s elementary and secondary school students make putting a “dissolve” transition into a PowerPoint presentation look like child’s play. In fact, it already is child’s play for many kids, tweens, and teens.

Texas Instruments recently announced a new product, the TI-Navigator, which could further engrain education via computers into the classrooms of tomorrow. The TI-Navigator is a wireless learning system that can be used easily in any classroom environment. It includes network hubs for each of the student’s desks, allowing them to receive lessons, quizzes and tests from their teacher’s PC, wirelessly. All of this works in alignment with TI handhelds and learning software that students already use.

This TI-Navigator allows teachers to access their students’ level of comprehension on an individual basis and also promotes open discussion and gives quieter students a chance to participate more often. Classroom networks appear to enable teachers to more easily engage in frequent formative assessment, a practice that is scientifically linked to improved student achievement.

While this technology is no doubt at the forefront of where the average schoolroom is, it gives a glimpse of where it is headed. At some point, there will be children who will grow up having known the world no other way, much like kids and tweens who can not comprehend a world without cell phones or the Internet. What could this lead to? As technology continues to shape classrooms, it will directly influence the youth market as well as how marketers will want to speak to them.

Although children will have greater opportunities and resources to learn, their social skills may suffer as teachers are able to give individual attention more easily. Being forced to speak up in class is an important lesson that translates to better communication skills in the future. Ideally, teachers will find a balance and utilize technological advances as a part of a well-rounded education. Still, new dynamics in the classroom will proof to have an impact on both what type of person a child will grow into as well as the types of marketing messages that will most effectively reach them along the way.

Kids

A Breath of Sweet Air

Some candy companies are taking the new unique packaging ideas used in the delivery of adult-targeted mints and are extending them into the candy aisle. California-based JAKKS Pacific has created Tongue Tape, a kid-targeted version of the ultra-thin, melt-in-your-mouth mint strips first marketed to adults by Listerine. Instead of boasting breath-freshening and germ-fighting benefits, Tongue Tape goes for the kid gusto with bold candy flavors and fun packaging.

Tongue Tape hit shelves in February of this year. This initial roll-out included six flavors: “Blue Ratsberry,” “ Lip Lemony Lemon,” “Cherry Pit Stop,” “Oh Oh Orange,” “Growlin’ Grape” and “Howlin’ Hot.” Trying to generate a lot of news for the brand right out of the gate, JAKKS is planning on releasing watermelon, blueberry, fruit punch and apple flavors this summer. Vitamin-enriched, sour and teen/adult-targeted lines will launch in 2004. On the licensing front, the company has signed deals with Hello Kitty®, Strawberry Shortcake® and NASCAR®.

Like any new brand, Tongue Tape faces its share of opportunities and challenges. It has some huge opportunities in the fact that it’s the only kid-targeted brand with this new candy form—thus far. It also seems like it’s getting off to a good start in terms of marketing strategy. The flavors and packaging are definitely kid-friendly, and they are keeping up a stream of news by introducing new flavors, product lines and licenses.

There are some other companies that are looking to stretch the appeal of the resealable tin found in many mints into more classic candies. Tons of power-mint tins are sold each year, and everyone knows how important fresh breath is to adults. Imagine how many of these tins would sell if they had popular candy inside them like SweeTarts®, Runts® or Spree®, knowing how important candy is to kids? That is the question that novelty candy company Bee International is looking to answer by offering the aforementioned favorites in a new line of candy tins targeting kids. Hershey Food Corp. is hoping that their new recloseable plastic tubes filled with kid favorites Jolly Ranchers® and Reese’s Pieces® in a slightly new form will also be a success. Jolly Rancher Rocks are small, round hard candy while Reese’s Mini Pieces are a smaller version of the tasty peanut butter with a candy-coated shell.

All of these products give kids a chance to emulate the eating behavior they see adults and teens doing everyday. Now however, they get to do it while enjoying the sweet taste of an all-together new product or some of their classic favorites. Plus, they get a convenient package that empowers them to decide how much of the candy they want to eat, whenever they want it. This is a huge benefit in kids’ eyes. While they always seem to wolf down the candy all at once, they still want the option of saving some for later. Of course, there is no wrong way to eat Reese’s Mini Pieces.

Tweens

Whats Up with Hilary Duff?

It seems you can’t go anywhere in the youth space these days without hearing something about former Lizzie McGuire star Hilary Duff. The 15 year-old multitasker has been a hit in the movies, television and music, and she’s soon going to be moving further into fashion, cosmetics and toys (not to mention more music and movies). She’s been doing so much these days it can be a little hard to keep track. But never fear. We have the lowdown on Hilary’s recent endeavors.

Perhaps the biggest piece of news is that Hilary has parted ways with the company and the property that made her a star in the first place. Contract negotiations between Hilary and Disney were called off in late May. This may seem surprising considering the tremendous popularity of the property. The Lizzie McGuire Movie hit theaters May 2 and at press time had generated $41.8 million. The movie’s soundtrack, which contains a song sung by Hilary, went gold and is approaching platinum. There are also Lizzie books and clothing. The Wall Street Journal reported that negotiations were reopened in early June, but no news has been reported since then.

Hilary hasn’t let her troubles with Disney keep her down. In fact, she’s been busier that ever. According to The Hollywood Reporter, The WB is talking with her. In fact, she’s already starring in two musical specials for the network in the coming year: one for her sixteenth birthday on September 28 and a Christmas special during the holiday season. She’s also continuing her efforts in music and movies. She recently shot Cheaper by the Dozen with Steve Martin and Bonnie Hunt, and started filming on Cinderella Story this month. Her album Metamorphoses will hit shelves in late August. The music video for “So Yesterday” has already gone public with the recent Making the Video special on MTV being a likely precursor to a long stay on TRL which is still a tween favorite.

If the flicks and albums weren’t enough to convince us that she wants to be the next J-Lo, Hilary is also branching out further into cosmetics and fashion. “Stuff by Hilary Duff” will feature tween-friendly cosmetics, clothing, accessories, bedding and footwear. The make-up will hit shelves in December, with the rest coming out in 2004. The kid and tween girls that make up the majority of her audience base still play with dolls, so three different styles of Hilary dolls will appear in toy stores in fall 2003.

Savvy marketers targeting tweens are jumping on the Hilary bandwagon. Hasbro’s Tiger Electronics® new VideoNow®, a handheld video player set for production this fall, will feature clips from Lizzie McGuire and Hilary’s music videos, along with many other properties. In fact, Hilary recently shot a new television commercial for VideoNow. Without question, Hilary Duff is currently one of the top stars in tweendom. It will be interesting to see how her attempts to break away from Lizzie and build herself as a brand work out. Will the tweens that follow her now continue to be loyal as the years go on? And which marketers will tap into her “star influence”?

Teens

Hang Teen

The summer months bring images of surf, sand and sun to many. While everyone doesn’t get the opportunity to hit the beach, the recent proliferation of surf-inspired gear may make everyone feel like they have. While there are always suits and beachwear around that would make Frankie Avalon jealous, several budding trends in the past few years point to an increase in more than just yellow polka dot bikinis. Areas of teen interest beyond just swimwear have been affected and there are signs that it could spread even further.

In fact, in our last issue, Youth University featured a look at Hollister, Co., a clothing chain developed by teen retail heavyweight Abercrombie & Fitch with a “West Coast surfer inspiration.” It mentioned their aspirations to grow from their current 93 stores to an eventual 600-800 stores. That number may seem difficult to reach, but with a series of events that started last year, the surfer look and lifestyle seems to be well rooted in the teen world, particularly with girls. And of course, wherever teen girls are firmly planted, teenage boys are sure to be closer than coconuts to a palm tree.

The influence of surfing on fashion is nothing new. Who didn’t have a dad that looked like he was ready to enter a Don Ho look-alike contest every time your family vacation rolled around? What’s new is the increased exposure surfing has received in the media, particularly in vehicles that appeal to teens, movies starring teens, and reality shows. A simple little movie last year, Blue Crush, thrust the audience, many of whom had never donned a wetsuit, deep into Hawaii’s surfing subculture. Starring Kate Bosworth and Michelle Rodriquez, the movie brought in $40 million dollars domestically at the box office, with teens no doubt making up a good portion of the sales. This summer, two new reality TV shows, MTV’s Surf Girls and the WB’s Boarding House: North Shore have also exposed teens to the surf and sand. If you haven’t caught an episode, Surf Girls is about fourteen girls with surf boards as they trek across the globe in search of perfect waves to compete for a spot in the World Championship Tour of Surfing. Meanwhile, North Shore gives a peek into the lives of seven surfers who are already professionals.

So why is surfing appearing more and more in mainstream pop culture? And, what impact will this increased presence have? For starters, it has always had the image of being “cool” yet is relatively foreign to most. Not everyone can match the tan and blonde hair that most surfers possess. However, they do have an attainable quality about them, which is important with this age group who often aspire up in both age and image. It also combines the best of two worlds, sports and fashion, for many girls. When the Women’s National Soccer Team won the World Championship in 1999, it gave new life to the idea that girls can do anything boys can do. Adding some Spice Girls “girl power” gave the movement even more steam. The recent proliferation of “surfer chicks” modifies the message. Now girls can do anything that boys can, but they can still look and feel like girls.

While teenage girls in the Midwest won’t be running to the banks of the Mississippi River to try and catch a wave, they will have more surf-inspired fashion to choose from. And maybe other sports will work to incorporate a higher sense of fashion in their offerings. Even if this recent wave rolls right back out like the tide, future generations can be rest assured that their dads will still have a good shirt to wear to the beach.

Trend Watch

The Natural Solution

While the recent lawsuit that some teens filed against McDonald’s was not taken too seriously by most of the public, the expanding waistlines and threat of future health risks has been embraced by a number of social activist organizations that will continue to advocate change. According to data from the Center for Disease Control, 15 percent of kids ages 6-19 and 10 percent of preschoolers ages 2-5 are considered obese. These numbers are currently at an all-time high. Food marketers face a daunting environment. They must consider multiple factors: these advocacy groups that are demanding change; consumers that are still holding onto the indulgent trend; and retailers who still want to carry products consumers buy. So what is being done to change this trend you may ask?

A focus on dietary health has led to an expansion of product offerings far broader than just low calorie or fat-free varieties. Natural and organic foods have shown tremendous growth over the past decade, especially the last few years. However, it has still been a challenge for the mass market. In the nineties, many food companies set up joint ventures with pharmaceutical companies to make and market nutricutical foods (foods high in nutrition). Consumers did not want to pay for these higher-priced foods and almost all of these joint ventures have ended. Recent numbers show that acceptance of this category has grown as marketers have found ways to better meet their consumers’ needs.

Overall, natural product sales rose 6.6 percent in 2002 to $36.4 billion with over three quarters (77%) of the sales coming from natural retailing and mass market channels. Food makes up 60 percent of these sales ($21.8 billion). Products that contain no artificial ingredients or added color, and are only minimally processed, are labeled and considered to be “natural.” Within that category, 44 percent ($9.6 billion) of the products are labeled “organic.” According to Organic Consumer Trends 2001, product sales for organic foods (products that consist of at least 95 percent organically produced materials) alone could reach $20 billion by 2005. Some of these projected sales will likely come from a variety of new natural and organic food that target the youth population, either directly or indirectly.

Recently, Horizon Organic Holding Corporation, the leading brand of certified organic foods, unveiled new yogurt and milk products that target various segments of the youth market, from babies all the way up to teens. Their Whole Milk Baby Yogurt and Organic Yo-Yos cup yogurt are intended for the toddler crowd. Yogurt Tubes incorporate the fun and portable packaging innovation that has made GoGurt popular with tweens. Also, Horizon has a new line of flavored single-serve milk in kid favorite flavors like chocolate and strawberry. On top of that, Horizon Organic announced they reached a deal to sell their new single-serving milk cartons in 2,500 Starbucks outlets nationwide. Coffeehouses continue to be a happening hangout for teens, so while they may continue to order their Frappuccinnos, seeing the Horizon name in what they deem to be a “cool” environment will help develop a positive brand image. Tweens and teens have also been known to frequent a convenience store or two in their free time and often spend their own money there.

7-Eleven and their 5,800 stores in the United States announced their intention to offer “Better-for-You Natural, Organic Snacks.” Specifically, they want to provide customers healthy alternatives when they crave the crunch of chips and other snacks. For example, there are Terra Chips with 40% less fat than other potato chip brands, or Carb Solutions, a high-protein low-carbohydrate chip in flavors like Nacho and Barbeque. Once again, teens will most likely not be the main consumers, but they will be exposed to this new “natural” habitat. Teens are often early adapters of products, so there will be a number that give these offerings a try. The real question is, will 7-11 come up with a way to make an organic Slurpee?

Youth University is brought to you free each month by WonderGroup.

We hope you find Youth University valuable and helpful. WonderGroup, a 360º youth marketing agency provides services including: Advertising, New Product Development, Research and Promotions. You can learn more about WonderGroup at www.wondergroup.com or by calling Greg Livingston, theshadow@wondergroup.com, at (513) 357-2950.

VOLUME 24

Table of Contents

See you next month!