Introduction
Market Overview

• Kids 5-14: A Powerful Consumer Group
• Special Note

1. Demographics
   • [Graphic] Projected Growth of Children Age 5-14: 1994-2050
   
   Population
   • More Than 37 Million Kids Age 5-14
   • Kids Population Will Reach 41 Million by Year 2000
   • [Table] Projected Growth of Children Age 5-14: 1994-2050
   • Males Outnumber Females to Age 24
   • [Table] Share of Kids Population: By Gender
   • Kids Market Is Really Several Markets
   • Developmental Issues Distinguish Children of
   • Different Age Groups
   • Approximately 11 Million 5- to 7-Year-Olds
   • Another 15 Million Are 8-11 Years Old
   • 12- to 14-Year-Olds Number 11 Million
   • [Table] Share of Kids Population: By Age
   • Kids Reflect United States' Growing Diversity
   • [Table] Share of Kids Population by Race: 1994
   • Regional Distribution of Kids Market
   • [Table] Share of Kids Population by Census Region
   • Half of All Kids Live in Suburbs
   • [Graphic] Share of Kids Population: By Locality
   • Growing Percentage of Kids Are Bilingual
   • [Table] Foreign Languages Spoken by Kids 5-14
   
   Family Status
   • Surprise: Most Children Live in Two-Parent Households
   • One in Five Children Live in Single-Parent Households
   • Most Kids Live in Households of Four or More People
   • [Table] Share of Kids Population: By Household Size (1993)
   • Most Kids Live with Other Siblings
   • [Table] Number of Elementary School-Age Children in Household
   • Both Parents Work in Growing Percentage of Kids' Households
   • Kids Are More Independent; Assume Role in Running Household
   • Kids Are Family-Oriented
   • [Table] What Children Would Change About Family or Home
   
   Economic Status
   • One-Fourth of All Children Live in Poverty
   • One-Third of 6- to 14-Year-Olds Are Middle Class
   • One in Five Children Live in Households with Income
   • in Excess of $50,000
   • [Table] Share of Kids Population: By Household Income
   • Income Higher for Two-Parent Families
   • Income Higher Among Whites
   • Income Correlates with Race and Family Structure
   • [Table] 1990 Income Distribution of Families with
   • Children: By Income, Family Structure, and Race
   • Kids Derive Own Income from Three Sources
   • Fewer Than Half Receive Weekly Allowance
   • [Graphic] Share of Kids Who Receive Allowances
   • Most Allowances Less Than $5 a Week
   • [Graphic] Amount of Weekly Allowance and/or Job Earnings
   • Kids' Allowances Grow with Age
   • Although Kids' Allowances Have Grown, They Don't Buy as
   • Much as They Used To
   • [Table] Price of Kids' Purchases: 1965 vs. 1994
   • Fewer Than 10% Have a Paying Job
   • Gifts a Significant Source of Income
   • Almost All of Kids' Income Is Discretionary...
   • ...But Kids Surprisingly Big on Saving
   
   Issues Important to Children
   • Today's Kids More Savvy, Sophisticated
   • But Emotional Needs Still the Same
   • Kids Just Want to Have Fun
   • [Table] Children's Happiness: By Gender
   • Factors That Contribute to Happiness
   • [Table] What Children Like Best About Themselves
   • How Kids Have Fun
   • [Table] Children's Sports Activities: By Gender
   • Kids Like to Belong
   • [Table] Kids Club Membership: By Gender
   • Other Activities, Hobbies
   • [Table] Kids Activities and Hobbies: By Gender
   • Kids of All Ages Like to Go to Movies, Watch TV
   • [Table] How Children Respond to Media: By Age
   • Kids Share Parents' Values—For the Most Part
   • [Table] What is Important: Children vs. Parents
   • 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] How Kids Try to Influence Their Parents
   • Surprise: Kids Value Education
   • [Table] Kids and Education
   • Kids Are Concerned About the World They Live In
   • More Kids' Concerns
   • [Table] Kids' Interest in Current Events
   • Kids Mature, Responsible, Pragmatic
2. The Market
   • [Graphic] Growth in Kids Income: 1987-1994
   
   Market Size and Growth
   • Kids' Total Purchasing Power Exceeds $165 Billion
   • Kids Market Growing
   • Almost All of Kids' Dollars Are Discretionary
   • Children Spend More as They Mature
   • Parents Spend More on Older Children
   • [Table] Estimated Annual Expenditures on Children: 1991 Middle-Income Families Will Spend $218,260 to Raise a Child
   • [Table] Estimated Annual Expenditures on a Child Born in 1991: By Income Group
   • Parents Encourage Their Kids to Make Purchase Decisions
   • Kids Market Really Three
   • As a Primary Market, Kids Spend Heavily in Six Areas
   • [Graphic] How Kids Spend Their Money: By Category
   • Kids Spend Nearly $5 Billion a Year on Food and Beverages
   • [Table] Food Purchases Made by Kids Age 9-15 in Past 2-3 Weeks: By Age
   • Kids Spend $4.7 Billion on Play Items
   • [Table] Top 10 Gift-Wish List for Boys
   • Clothing Accounts for $1.4 Billion of Kids' Purchases
   • [Table] Kids' Sneaker Preferences
   • Kids Spend $1.8 Billion on Movies, Videos, and Sports Events
   • Video Arcades Account for $1.5 Billion in Kids' Spending
   • Kids Spend $1.2 Billion on "Other" Items
   • As a Market of Influencers, Kids Manipulate Their Parents' Pursestrings
   • Kids Responsible for $150 Billion of Influence Purchases Per Year
   • Several Reasons for Kids' Growing Influence
   • Children Shopping More Than They Used To
   • Food the Biggest Influence Target
   • [Table] Children's Influence on Food Brands
   • Children's Food Decisions Affect More Than the Family's Dining
   • Children Influence Family Dining Out Decisions, As Well
   • [Table] Kids' Favorite Fast-Food Restaurants
   • Kids Influence Parents' Selection of Toys and Play Things
   • Children Dress Themselves with Their Parents' Money
   • [Table] Kids Who Have
   • Kids Also Influence Parents' Automobile Purchase
   • Kids Influence Consumer Electronics Purchases
   • Kids Also Influence Non-Food Selections
   • [Table] Children's Influence on Health and Personal
   • Hygiene Products: By Gender
   • Market to Grow to $200 Billion by Year 2000
   • Kids the Entire Future Market
3. 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
   • [Graphic] Where Kids Prefer to Shop
   • [Table] Where Kids Shopped in the Last Month
   • 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
   • [Table] Top Five Attributes Kids Look for in a Store
   • Five Things Kids Would Change About Stores
   • [Table] Five Things Kids Would Add to Stores They Shop
   • 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
4. Kid-Oriented Media
   Television
   • Kids Love Television
   • Kids TV Ad Market Has Doubled in Last Five Years
   • Yet TV-Viewing Patterns Have Changed
   • Kids Watch TV When Their Parents Do
   • Saturday Morning Is Third Most-Popular Time Segment
   • After-School Time Slot Also Important
   • [Table] TV-Viewing Patterns Among Kids 5-14
   • Gender, Racial Differences Appear in TV-Viewing
   • Fox Is Kids-TV Leader
   • Daily Programming Gives Fox an Edge
   • Fox's Kids Club Another Cross-Promotional Arm
   • In 1994, Fox Expanded into Radio
   • Nickelodeon is Number Two with Kids
   • ABC, CBS, and Disney Compete for Kid Viewers
   • 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 for Reaching Older Kids
   • [Table] Children's Radio-Listening: By Gender and Age
   • More Radio Options for Children
   • Most Kids First Exposed to Radio Via Others
   • Radio an Intimate Medium
   
   Print
   • Kids' Print Media Exploding
   • Reasons for Magazines' Appeal
   • Magazines Fulfill Kids' Love of Detail
   • Marketers Find Magazine-Publishing Cost-Effective
   • Sports Illustrated for Kids a Prototype
   • Boys, Especially, Read Comic Books
   • Pre-Teen Girls Seek Out Seventeen and Sassy
   • 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
   
   New Media
   • Kids Are a Natural for Interactive Media
   • This Time Will Be Different
   • Several Publications Planning CD-ROM Versions
   • Club KidSoft Breaking New Ground
   • Other Media Opportunities for the Creative
5. 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
   • Remember: 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
   • Most of All, Kids Want to Have Fun
   • [Table] What Kids Like in a Commercial
   • Only One Way to Find Out What Is Funny to a Kid: Ask
   • Let Them Discover; Don't Teach or Preach
   • Hone Your Message
   • Make It Memorable: Tell a Story
   • Make It Memorable: Include Surprises
   • Make It Memorable: Use Bright Colors and Bold Designs
   • Make It Memorable: Make It Interactive
   • Make It Memorable: Include Heroes
   • Pick Up the Pace, Production Values
   • TV Advertising to Kids Is Regulated
   • TV Advertising Rules Govern Honesty
   • Rules Also Cover Disclaimers
   • CARU Guidelines Govern Safety
   • Use of Slang in Kid Marketing
   • Sportstars Are Safe Celebrity Spokespersons
   • Use of Other Celebrities Can Be Tricky
   • With Research, Marketers Can Launch Products and Celebrities Simultaneously
   • Cause-Related Marketing Big with Kids
   • Promotional Tie-Ins Extend Value, Excitement
   • Kids Clubs Another Form of Promotion
   • School Promotions: Hot But Controversial
   • Guidelines for Promoting to Kids
6. Examples Of Strategies And Campaigns Targeted To Kids
   Food and Beverages
   • Restaurants Compete for Families by Targeting Kids
   • Two Main Attractions: Kid Menus and Kid Activities
   • Kid Activities Include Coloring, Puzzles, and Jewelry Making
   • Kids Menus Go Beyond Hot Dogs
   • "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 Barbie: If Only the Rest of Us Could Age So Well
   • Nintendo Revived Videogame Industry
   • Sega Turns Up the Heat
   • Toymakers Spend More Than $500 Million on Advertising in 1993
   • Hasbro and Mattel the Leading Toy Advertisers
   • [Table] Top 10 Toy Advertisers: By Spending
   • Toys "R" Us the 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
   
   Vacations
   • Family Vacation Travel a $13 Billion Market
   • Club Med Wants Kids
   • Family Cruises Up 28%
   • Hotels Target Family Market
   • Camp Hyatt Takes a Comprehensive Approach
   
   Appendix: Examples Of Advertising And Promotions