Kids' Market

Published by: Packaged Facts

Published: Mar. 1, 1997 - 181 Pages

Table of Contents

1. Executive Summary
   
   Demographics
   
   • Nearly 39 Million Kids Age 5-14
     
   • Kids Population Will Reach 41 Million by Year 2001
     
   • Figure 1-1: Projected Growth of U.S. Population Age 5-14,
     1996-2050 (number)
     
   • Developmental Issues Distinguish Children of Different Age Groups
     
   • Kids Reflect United States' Growing Diversity
     
   • Growing Percentage of Kids Are Bilingual
     
   • Most Children Live in Two-Parent Households
     
   • Most Kids Live in Households of Four or More People
     
   • Both Parents Work in Growing Percentage of Kids' Households
     
   • Kids Are Family-Oriented
     
   • Today's Kids More Savvy, Sophisticated
     
   • But Emotional Needs Still the Same
     
   
   The Market
   
   • Kids' Total Purchasing Power Exceeds $144 Billion Annually
     
   • Table 1-1: Projected Growth Kids Market, 1996-2001 (dollars)
     
   • Market to Near $212 Billion by Year 2001
     
   
   Kids as Consumers
   
   • Kids Love to Shop
     
   • Children Usually Buy Something When They Shop
     
   • Kids Look for Five Attributes in a Store
     
   • Kids Don't Feel Welcome in Most Stores
     
   
   Kid-Targeted Media
   
   • Kids Love Television but Viewing Is Down
     
   • Radio an Important Medium—Especially for Older Kids
     
   • Kids' Print Media Exploding
     
   • Kids a Natural for Interactive Media
     
   
   Marketing to Kids
   
   • Five Motivators Govern Kids
     
   
   Examples of Campaigns and Strategies Targeted to Kids
   
   • Case History: Chuck E. Cheese Pizza
     
   
   Scope and Methodology
   
   • Scope of Report
     
   • Methodology
     
2. Demographics
   
   Introduction
   
   • Kids 5-14: A Powerful Consumer Group
     
   • Special Note
     
   • Figure 2-1: Projected Growth of U.S. Population Age 5-14,
     1996-2050 (number)
     
   
   Population
   
   • Nearly 39 Million Kids Age 5-14
     
   • Kids Population Will Reach 41 Million by Year 2001
     
   • Table 2-1: Projected Growth of Children Age 5-14,
     1996-2050 (number)
     
   • Males Outnumber Females to Age 24
     
   • Table 2-2: Share of Kids 5-14 by Gender (number and percent)
     Kids Market Is Really Several Markets
     
   • Developmental Issues Distinguish Children of Different Age Groups
     
   • Figure 2-2: Share of Kids Population by Age (percent)
     
   • Nearly 12 Million 5- to 7-Year-Olds
     
   • Another 15 Million Are 8-11 Years Old
     
   • 12- to 14-Year-Olds Number 11 Million
     
   • Table 2-3: Share of Kids Population by Age (number and percent)
     
   • Kids Reflect United States' Growing Diversity
     
   • Figure 2-3: Share of Kids Population (Age 5-14)
     by Race, 1996 (percent)
     
   • Regional Distribution of Kids Market
     
   • Half of All Kids Live in Suburbs
     
   • Growing Percentage of Kids Are Bilingual
     
   
   Family Status
   
   • Percentage of Households with Children Declining
     
   • Most Children Live in Two-Parent Households
     
   • One in Four Children Lives in Single-Parent Household
     
   • Growing Percentage of Children Live with Grandparents
     
   • Most Kids Live in Households of Four or More People
     
   • Table 2-4: Share of Kids Population by Number of Siblings, 1995
     (number and percent): None, One, Two, Three, Four, Five
     
   • or More Siblings
     
   • Both Parents Work in Growing Percentage of Kids' Households
     
   • Kids Are More Independent; Assume Role in Running Household
     
   • Kids Are Family-Oriented
     
   • Table 2-5: What Children Would Change About Family or
     Home (percent): 20 Changes
     
   
   Economic Status
   
   • One-Third of All Children Live in or Near Poverty
     
   • One-Third of Children Are Middle Class
     
   • But Largest Percentage Live in Households with Incomes
     
   • in Excess of $50,000
     
   • Figure 2-4: Share of Kids Population by Household Income, 1995
     (percent): Under $12,499 to $50,000 and Over
     
   • Income Higher for Two-Parent Families
     
   • Income Higher Among Whites
     
   • Kids Derive Income from Three Sources
     
   • Approximately 50% of Kids Receive an Allowance
     
   • "Allowance" vs. "Earned Income" Frequently a Matter of Definition
     
   • Allowances Generally Track Age
     
   • Table 2-6: Estimate of Kids' Allowance and Earned Income by Age,
     1996 (dollars and number): Average Weekly Income, Yearly
     
   • Total, Number of Kids, Aggregate Total
     
   • Although Kids' Allowances Have Grown, They Don't Buy as Much
     
   • as They Used To
     
   • Gifts a Significant Source of Income
     
   • Almost All of Kids' Income Is Discretionary...
     
   • ...But Kids Surprisingly Big on Saving
     
   
   Leisure Activities
   
   • TV-Watching Remains Most Popular, But Other Activities Gaining
     
   • Basketball Has Become Kids' Number-One Sport
     
   • Video and Computer Games
     
   • Card Collecting
     
   • How Kids Have Fun
     
   • Kids Like to Belong
     
   • Other Activities, Hobbies
     
   • Table 2-7: Kids (Age 6-14) Activities and Hobbies
     by Gender (percent): 10 Activities
     
   • Kids of All Ages Like to Go to Movies, Watch TV
     
   • Table 2-8: How Children Respond to Media by Age (percent):
     Nine "I Like a Lot..." Responses
     
   
   Issues Important to Children
   
   • Today's Kids More Savvy, Sophisticated
     
   • But Emotional Needs Still the Same
     
   • Kids Just Want to Have Fun
     
   • Factors That Contribute to Happiness
     
   • Table 2-9: What Children Like Best About Themselves (percent):
     10 Attributes
     
   • Kids Share Parents' Values—For the Most Part
     
   • Table 2-10: What is Important: Children vs. Parents (percent):
     23 Attributes
     
   • Kids Admire Their Parents as Role Models
     
   • Kids Think Their Parents Are Doing a Good Job
     
   • Yet Kids Try to Change Parents' Behavior, Too
     
   • Table 2-11: How Kids Try to Influence Their Parents (percent):
     12 Issues
     
   • Kids Value Education
     
   • Kids Are Concerned About the World They Live In
     
   • More Kids' Concerns
     
   • Table 2-12: Kids' Interest in Current Events (percent): 22 Topics
     Kids Mature, Responsible, Pragmatic
     
3. The Market
   
   Market Size and Growth
   
   • Kids' Purchasing Power Exceeds $144 Billion Annually
     
   • Children's Indirect Purchase Influence Estimated at $400 Billion
     
   • Kids Market Growing
     
   • Almost All of Kids' Dollars Are Discretionary
     
   • Children Spend More as They Mature
     
   • Parents Spend More on Older Children
     
   • Table 3-1: Estimated Annual Expenditures on Children, 1995
     (dollars): One-Child, Two-Child, Three-Child Family
     
   • Middle-Income Families Will Spend $238,840 to Raise a Child
     
   • Table 3-2: Estimated Annual Expenditures on a Child Born in
     1995 by Income Group (year and dollars): Age, Low-Income,
     
   • Middle-Income, High-Income
     
   • Parents Encourage Kids to Make Purchase Decisions
     
   • Kids Market Really Three
     
   • As a Primary Market, Kids Spend Heavily in Six Areas
     
   • Kids Spend More Than $7 Billion a Year on Food and Beverages
     
   • Kids Spend $6.8 Billion on Play Items
     
   • Clothing Accounts for $3.7 Billion of Kids' Purchases
     
   • Kids Spend $2.7 Billion on Movies, Videos, and Sports Events
     
   • Video Arcades Account for $2.2 Billion in Kids' Spending
     
   • Kids Spend $1.7 Billion on "Other" Items
     
   • As a Market of Influencers, Kids Manipulate Their
     
   • Parents' Pursestrings
     
   • Parents Spend $117 Billion Per Year on Items for Their Children
     
   • Table 3-3: Total Direct-Influence Expenditures by Parents on
     Children: By Age, 1995 (dollars): Food, Clothing, and
     
   • Miscellaneous Expenditures
     
   • Several Reasons for Kids' Growing Influence
     
   • Children Shopping More Than They Used To
     
   • Food the Biggest Influence Target
     
   • Children's Food Decisions Affect More Than the Family's Dining
     
   • Children Influence Family Dining Out Decisions
     
   • Kids Influence Parents' Selection of Toys and Play Things
     
   • Children Dress Themselves with Their Parents' Money
     
   • Kids Also Influence Parents' Automobile Purchase
     
   • Kids Influence Consumer Electronics Purchases
     
   • Figure 3-1: Projected Growth of Kids Market, 1996-2001 (dollars)
     
   
   Projected Market Growth
   
   • Market to Near $212 Billion by Year 2001
     
   • Methodology
     
   • Table 3-4: Projected Growth in Kids Market, 1996-2001 (dollars):
     Kids' Income, Parents' Expenditures on Children, Total
     
   • Kids the Entire Future Market
     
4. Kids As Consumers
   
   Shopping Patterns
   
   • Kids Love to Shop
     
   • Evolution of a Shopper
     
   • Cereals First Products Selected, Followed by Toys
     
   • The Co-Purchase
     
   • Kids Shop Alone by Age 6
     
   • Kids Shop Often
     
   • Children Usually Buy Something When They Shop
     
   • Kids Are Impulse Buyers
     
   • 70% of Purchase Decisions Made in Store
     
   • Kids Extremely Brand-Conscious
     
   • Brand Loyalty Highest at the Grocery Store
     
   • Children Assign Quality to National Brands
     
   • Children Favor Status Brands of Clothing
     
   • Brand Loyalties Change with Fashions, Trends
     
   • Peer Pressure Often the Driving Force in Purchases
     
   • Kids Emulate Other—Particularly Older—Kids
     
   • TV Advertising a Big Influence
     
   • Children Take Advertising Seriously
     
   
   At the Retail Level
   
   • The Grocery Store: Where Children First Learn to Shop
     
   • Discount Stores Rate Number One with Kids
     
   • Kids Find What They're Looking for by "Wandering Around"
     
   • Kids Visit Clothing Section First, Then Look for Toys
     
   • Kids Look for Five Attributes in a Store
     
   • Kids Don't Feel Welcome in Most Stores
     
   • Five Things Kids Would Change About Stores
     
   • Many Retailers Moving to Meet Kids' Needs
     
   • Other Merchandising Techniques Obvious But Often Overlooked
     
   • Kid Superstores Gaining in Popularity
     
   • Retailer Profile: Toys "R" Us the King of Toy Sales
     
   • Retailer Profile: GapKids and babyGap
     
   • Off-Pricers Compete with Discounted Brands
     
   • Marketing to Kids Draws Parents, Too
     
   • Few Retailers Can Afford to Ignore Kids
     
5. Kid-Oriented Media
   
   Television
   
   • Kids Love Television But Viewing Is Down
     
   • Other Activities Cut Into TV-Viewing Time
     
   • Kids' TV-Viewing Fragmented
     
   • Kids Watch TV When Their Parents Do
     
   • Saturday Morning Is Third Most-Popular Time Segment
     
   • After-School Time Slot Also Important
     
   • Gender, Racial Differences Appear in TV-Viewing
     
   • Fox Is Kids' TV Leader
     
   • Daily Programming Give Fox and Nickelodeon an Edge
     
   • Fox's Kids Club Another Cross-Promotional Arm
     
   • In 1994, Fox Expands into Radio
     
   • Nickelodeon Is Number Two with Kids
     
   • Nickelodeon Also Reaches Kids with Print and Alternative Media
     
   • WB Goes After Kids
     
   • ABC and Disney Compete for Kid Viewers
     
   • CBS Changes Strategy for Saturday A.M. Competition
     
   • TBS Appeals to Kids with 24-Hour Cartoon Network
     
   • MTV Also Big with Kids
     
   • But TV No Longer Guaranteed to Reach Mass Kid Audience
     
   
   Radio
   
   • Radio an Important Medium—Especially for Older Kids
     
   • More Radio Options for Children
     
   • Radio AHHS the Premier Children's Radio Network
     
   • KidStar Radio Spawns More Interactive Media
     
   • ABC and Disney Plan to Compete with CBC
     
   • Fox Also Sees Future in Kids Radio
     
   • Most Kids First Exposed to Radio Via Others
     
   • Radio an Intimate Medium
     
   
   Print
   
   • Kids' Print Media Exploding
     
   • Reasons for Magazines' Appeal
     
   • Kids Are Very Involved with Magazines
     
   • Magazines Fulfill Kids' Love of Detail
     
   • Marketers Find Magazine-Publishing Cost-Effective
     
   • Magazine Advertising More Credible, Easier to Show Parents
     
   • Sports Illustrated for Kids a Prototype
     
   • Time for Kids Accepts Advertisers
     
   • Disney Adventures a Kid-Targeted Entertainment Weekly
     
   • Nickelodeon Magazine—A Take-Along Version of the Kids'
     
   • Television Network
     
   • Crayola Kids Targets Kids and Parents
     
   • Comic Book Fortunes Have Faltered Recently
     
   • GamePro and Nintendo Power Appeal to Boys
     
   • American Girl Builds Self-Esteem and Relationships
     
   • Pre-Teen Girls Seek Out Teen, YM, Sassy, and Seventeen
     
   • Newspapers Not a Big Factor in Kid Marketing
     
   
   Direct Mail
   
   • Kids Love to Get It
     
   • But Direct Mail Expensive and Usefulness Can Fade
     
   • Cooperative Mailings Can Cut Direct-Mail Costs
     
   • Custom Magazines
     
   
   Alternative Media
   
   • Kids a Natural for Interactive Media
     
   • Online Services Launch Sites for Kids
     
   • Kids Use Online Services for Sense of Community
     
   • All Kids Equal on the Web
     
   • Kids Also Get Free Samples on the Web
     
   • LifeSavers Sponsors Web Site for Gamers
     
   • www.gamepro.com Also for Gamers
     
   • FIND/SVP Study Shows How Kids Spend Time Online
     
   • Computer Use a Group Activity
     
   • CD-ROMs Combine New-Fashioned Graphics and High-Tech
     
   • with Old-Fashioned Parental Control
     
   • Other Media Opportunities for the Creative
     
6. Marketing To Kids
   
   Marketing Fundamentals
   
   • Know Your Audience
     
   • Kids Market Is Segmented
     
   • Market Research for Kids Has Its Own Rules
     
   • Segregate Kids by Age and Sex
     
   • Strive for Focus Group Homogeneity
     
   • Online Focus Groups an Exception to the Rule
     
   • Kid-Conducted Research Also an Option
     
   • Fantasy/Reality Shift Takes Place Around Age 7
     
   • Market to an Older Child
     
   • Younger Kids Have Appeal, Too, When They Show Up Their Elders
     
   • Sometimes Best to Market to Parent and Child
     
   • ... But Not to Parent or Child: Failing to Deliver Message Directly
     
   • to Kids Is Risky
     
   • Promote "Sexism": Market to Boys
     
   • Kid-Targeted Advertising Doesn't Have to Include Kids
     
   • Five Motivators Govern Kids
     
   • Kids Want to Feel More Powerful; Hate Feeling Powerless
     
   • Freedom Appeals to All Ages
     
   • Fun and Freedom Closely Linked
     
   • Kids Want to Belong
     
   • Many Marketers Offer Community
     
   • Kids Strive for Mastery
     
   • Kids Find Most Television Commercials "Annoying"
     
   • But Kids Like Ads That Are Funny
     
   • Find Out What Is Funny to a Kid: Ask
     
   • Let Them Discover; Don't Teach or Preach
     
   • Hone Your Message
     
   • Kids Like Commercials to Tell a Story
     
   • Kids Love Surprises
     
   • Make It Memorable: Use Bright Colors and Bold Designs
     
   • Make It Interactive
     
   • Make It Memorable: Include Heroes
     
   • Pick Up the Pace, Production Values
     
   • Licensing Still Hot
     
   • TV Advertising to Kids Is Regulated
     
   • Online Advertising Has Its Own Rules
     
   
   Use of Slang in Marketing to Kids
   
   • Use of Slang Is Risky
     
   • Yet Kid-Directed Speech Can Be Colorful
     
   
   Use of Celebrities When Marketing to Kids
   
   • Sport Stars Are Favorite Celebrity Spokespersons
     
   • Use of Other Celebrities Can Be Tricky
     
   • With Research, Marketers Can Launch Products and
     
   • Celebrities Simultaneously
     
   
   Cause-Related Marketing
   
   • Cause-Related Marketing Big with Kids
     
   • Nickelodeon Scores Big with "Big Help"
     
   • Promotional Tie-Ins Extend Value, Excitement
     
   • Kids Clubs Another Form of Promotion
     
   • School Promotions: Hot But Controversial
     
   • Guidelines for Promoting to Kids
     
7. Examples Of Strategies And Campaigns
   Targeted To Kids
   
   
   Food and Beverages
   
   • Restaurants Compete for Families by Targeting Kids
     
   • Kids Menus Go Beyond Hot Dogs
     
   • Kid Activities Include Coloring, Puzzles, and Jewelry Making
     
   • "Kids Eat Free" Concept Boosts Weeknight Traffic
     
   • Big Boy's Frequent Diners Club for Kids
     
   • McDonald's Reputation Built on Families and Fun
     
   • Burger King Is King of Kids Clubs
     
   • Supermarkets Beginning to Recognize Kids' Importance
     
   • as Customers
     
   • The Crowley Case Study
     
   • The Piggly Wiggly Case Study
     
   • Wegman's Good Food Tours
     
   • Kellogg's Appeals to Kids—and to the Kid in Every Adult
     
   • Chuck E. Cheese Pizza
     
   
   Play and Leisure Items
   
   • United States Leads the World in Toy Sales
     
   • Toy Industry Tremendously Volatile
     
   • Classic Toys the Exception to the Rule
     
   • That Irrepressible Barbie
     
   • Nintendo Revives Videogame Industry
     
   • Sega Turns Up the Heat
     
   • Sony PlayStation Changes Videogame Market in 1996
     
   • Videogame Advertising Some of the Most Impressive
     
   • Toys "R" Us Is King of Toy Sales
     
   
   Kids Video
   
   • Kidvid Growing by Leaps and Bounds
     
   • Disney the Leader in Kidvid Sales
     
   • Other Studios Storming the Field
     
   • PolyGram Targets Boys with X-Men and Power Rangers
     
   • KidVision Another Newcomer
     
   • Golden Home Video Sees Literacy Value
     
   
   Apparel
   
   • Kids' Apparel Market Is Skyrocketing
     
   • Sneakers Lead the List of "Must-Have" Items
     
   • Style the Dominant Factor
     
   • Nike the Current Footwear Leader
     
   • Reebok Targets Kids with Weebok and Reebok Kids
     
   • Licensed-Team Apparel Big with Kids
     
   • Designer Clothes for Kids
     
   
   Health & Beauty Care
   
   • Kids Market Growing Strong
     
   • Bold Colors, Fruity Scents, Fun Packaging Appeal to Kids
     
   • Licensed Characters Strong in HBC Field
     
   • Big Brands Also Strong in Kids' HBC
     
   • Kimberly-Clark Launches Kleenex for Kids
     
   • Grocery Stores Have an Edge in Kids HBC
     
   
   Appendix: Examples Of Advertising And Promotions
   
   

Abstract

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