"It took us awhile to get out on the market with Frogs merchandise," Pfneisel admits, noting that many non-apparel products were not available until the second year. "We've been improving our systems since then. Ideally, we would like to have merchandise in the market at the same time, or shortly after, the campaign is introduced. We are working with the marketing department to get creative direction around the same time TV storyboards are approved. We have to provide the licensees graphics and direction as early as possible, and continue to keep them updated on new graphics that become available, in order to fully maximize the potential of each ad campaign."

The Lizards represented the first time that merchandise associated with an Anheuser-Busch commercial appeared on store shelves concurrently with the premiere of the ad. "We did not have knowledge of what was coming with the Frogs," says Pfneisel. "Now we can go to licensees with a tight creative direction and give them ample time to get the products on the market."

Anheuser-Busch uses images like this one of a lizard model to provide licensors with guidance to keep characters "on model." © Anheuser-Busch.

How long a life span will Frogs and Lizards merchandise have? "This is something we, the licensing department, do not have control over," Pfneisel remarks. "We will continue to leverage the popularity of the Lizards [and Frogs] through licensed merchandise as long as the brand marketing group continues to develop and air the commercials."

Laurie Ann Goldman, director of worldwide licensing for Coca-Cola, points out that it takes two weeks to three months to develop a commercial, but 12 to 18 months to develop and ship a product line. "It's not an ideal situation," she says, noting that temporary compromises are sometimes necessary. Coca-Cola's live-action "Holiday Caravan" ad, for example, featured a group of lighted tractor-trailers decorated with Christmas graphics. Lighted die-cast trucks represented a natural product category, but development time was too long for them to be introduced in conjunction with the first commercial. Instead, licensees used existing molds from other Coca-Cola die-cast trucks and added new graphics; the next season, the line was expanded.

Fitting Ad-Related Merchandise Into the Brand Effort
Brand licensors whose programs already incorporate appropriate categories for ad-related graphics such as t-shirts, gifts, novelties and collectibles usually offer advertising-related opportunities virtually exclusively to existing licensees. Forty percent of Anheuser-Busch's 100 Budweiser licensees are involved with the Frogs and Lizards, while 50%-75% of Coca-Cola licensees sell Polar Bear merchandise.

The short window of opportunity and high sales levels associated with ad campaigns present a far different situation from traditional brand-licensing efforts, which generate relatively steady sales over a long period. "You need to hit the market while the commercial is receiving maximum visibility," says Pfneisel. "This is not the case with our core line of merchandise."

One danger perceived by brand licensors is that a hot advertising character could oversaturate the market and dilute the core brand, the company's greatest asset. "With Spuds McKenzie, Anheuser-Busch reacted to an opportunity without much planning or tactical strategy," Pfneisel remarks. "With the Frogs, Lizards and other more recent ad-related graphics, we have been more selective about choosing the proper product lineup and licensees with the most appropriate distribution channels, to maximize our potential while still protecting the integrity of the brand image. With Spuds, the primary objective was to maximize revenue potential. With the campaigns of the '90s, the emphasis is more on enhancing the brand image, while still maximizing revenue potential."