An
Interview with Bernard Loomis
former president of Kenner
by d. martin myatt
The
name Bernard Loomis may not be the first to come to mind when one
thinks about the amazing success of Star Wars collectibles, but it
should be. Mr. Loomis helped start
what has for many blossomed into a lifestyle.
From the American
Toy Institute 1992 Hall of Fame:
"During a career spanning five decades, Bernard Loomis served
as president of Kenner, group vice president of General Mills,
partner in a joint venture with Hasbro, consultant to Tyco and head
of his own toy design company. He brought to market an incomparable
portfolio of blockbusters, once selling empty boxes at Christmas
with the promise of a hit toy to be delivered later. An
extraordinary marketer, he proved that breaking rules was often the
best rule of all."
Mr. Loomis's protracted
career in the toy industry enables him to not only speak on the
origins of our favorite toy line, but give some interesting insights
into the toy licensing business in general.

How
difficult was it to work with Lucasfilm back in the day? Were they
strict and secretive, or open to new ideas and relaxed? How involved
were they in the process of creating a figure?
It was never particularly "difficult" to work with
Lucasfilm but you have to understand the separate roles that each of
us played. We never "designed" anything for the Star Wars
films. None of the characters, hardware, or weapons were created by
anyone but George [Lucas] and his people. Our job was to execute the
items, and add the most we could in children's play value to each
product; Package them, merchandise them and advertise them.
It was also [our concern] to be certain that quality and safety
standards were beyond question and they always were. I do believe
that George gives us the highest marks on all of this. All of our
executions were subject to Lucas approval but I am not aware of any
problems on this score. Whatever problems we had with George came after the fact and related
to the original contract, which was at a lower-than-might-have-been
royalty rate, covered all crafts, games and toys, included future
pictures and the right of approval of all other licenses.
To understand this you have to put it in the context of the mid
1970's. Prior to Star Wars, with only minor exceptions, movies were
not a sound basis for toy or any other kind of licensing. Movies
would come and go too quickly for sustained sales to build.
Prior to Star Wars the general feeling about a license was that the
royalty was a substitute for advertising and when you thought about
licensing, it was a lot of Disney and a little bit of Schultz
(Snoopy) with the licensor licensing items and not lines.
We changed the licensing business first with the Six Million
Dollar Man, then with Star Wars, and ultimately with Strawberry
Shortcake and Care Bears where we were both licensee and licensor in
a partnership with American Greetings and integrated the total
project including production of TV specials and a Motion Picture.
When I first saw the Six Million Dollar Man in the early seventies,
it was already on the air. I contacted Universal, went to
California, and said "I want a world wide toy exclusive on the
Six Million Dollar Man". Made the deal for the General Mills
Group and we were off a running - but that's another story.
How did the
Star Wars license come about?
I had one of the few subscriptions in Cincinnati, Ohio to the Daily
Hollywood Reporter, and one day I saw an item about a new picture
from Twentieth Century Fox called Star Wars and I called in one of
my marketing people, Craig Stokely, and asked him to find out about
it. Some time later he reported back and we got some very limited
information that [the film] included robots - and I liked the idea.
We didn't need it though, we had the leading boys' toy in the world,
the Six Million Dollar Man and we had a deal on a new TV series, The
Man From Atlantis, which was being called a sure-fire hit but I
liked the name Star Wars, I liked the robots, and I said "The
picture will come and go, and the following year we'll take a shot
at space with Star Wars".
Well, the picture came but it wouldn't go and the world went crazy.
Where are the toys? My former associate Ray Wagner, now President of
Mattel, and I both remembered the relatively recent failure of a
Mattel space line call Matt Mason; he remembered it more strongly
than I did.
Mark Pevers, [the person] in charge of licensing for Fox, came to
see me in Cincinnati and I expressed the terms on which we would
license Star Wars, and ultimately with no one else
"George says, "if you do Star Wars, you can't go
Close Encounters." That was the first time we heard George's name.
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interested, he came back
and agreed to the terms we offered. The royalty rate was 5% and
would go to 6% if Star Wars became a TV series. The following year
we volunteered the increase to 6%. Mark added one condition:
"George says, "if you do Star Wars, you can't go Close
Encounters." That was the first time we heard George's name.
When someone tells me I can't have something, I want to know why.
We made a date to sign the Star Wars deal at the Century Plaza Hotel
In Los Angeles, a few minutes away from the Fox Studio, on a
Saturday morning and out of curiosity made a date for first thing in
the morning earlier in the week to go to Columbia and meet Julia
Phillips the Producer of Close Encounters and the Director Steven
Spielberg.
Steven told us the story of Close Encounters and when he was through
I remarked that it sounded like a great movie but it didn't seem
"toyetic" to which he said " What is "toyetic"
and I said "The property of being expressible in playable figures
and hardware" To which he said "well it's not Star
Wars” I asked him what he knew about Star Wars and he said he had
seen it and agreed that it was quite "toyetic' he also said
that he wasn't too upset, "George was his best friend, and they
had traded pieces" In other words George owned a piece of
Steven's share of Close Encounters and Steven a piece of Star Wars,
which I believe for quite a while were the number one and number
three grossing motion pictures of all times. When the toys went into
production George had us send one of each new toy directly to
Steven.
You were
responsible for the Star Wars early bird set, weren’t you? Where
did the idea come from?
One of the two lonesome decisions I ever made… Baby Alive was the
other one. I still don't understand why people had such difficulty
seeing its merit from the beginning. First you have to understand
the gift giving reality of Christmas. To an enormous number of
people nothing is more important than the giving of gifts at
Christmas time, and at the top of that list is giving to children,
but how many times have you heard "they are through playing
with their toys before the day is over?”
Second,
television advertising of toys has created a situation where the
"normal" pricing of items is out the window.
"Normal" pricing of an item was if a retailer bought an
item for $5 he sold it for $10 and that is still the rule if what
you are buying is not exactly the same item from one store to
another. Mattel's Chatty Cathy started it all in the early sixties.
Mattel’s price to it's direct customers was $9 and the original TV
commercial properly said it was an $18 doll. Fortunately, but
confusingly, for the consumer the actual price to the consumer was
more likely to be from $9.99 to $16.99 and the FTC ruled that we
couldn't put a price on a TV Commercial unless it was the price
generally asked for by the retailer. So the consumer had no idea of
what an item cost until she saw it in a retailer’s ad… the child
never knew or cared much.
"Here we were with an extraordinary demand and no product to fill it
with."
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Here we were with an extraordinary demand and no product to fill it
with. The normal time period from design to production of a properly
designed, engineered, tooled and finally in production toy line is
eighteen months to two years. The market was being flooded with
unsafe plastic tubes that were supposed to be light sabers and I had
to do something about it.
I made a very specific contract with the parents, not the child, buy
this package now and the child would have a pretty picture of all
the Stars Wars Characters for Christmas and, by May of next year
would be among the first to receive the very first Star Wars figures
directly from Kenner---May was certain, we actually completed
shipment by March, and I had seeded America. I could picture kids
all across the country rushing off to school and saying "Look what I
got!" We limited sales to 500,000 units and the 1,500,000 figures in
the Gift Certificate Program led to the sale of 40,000,000 figures
the following year.
Among all the bright people who tried to talk me out of it was the
Head of our Ad Agency that had the Star Wars account. In the
twenty-five years since it happened many people have told me what a
great idea it was.
In 1992 you
were inducted into the Toy Industry Hall of Fame?
My Plaque says in part "He brought to market an incomparable
portfolio of blockbusters, once selling empty boxes at Christmas
with the promise of a hit toy to be delivered later. An
extraordinary marketer, he proved that breaking rules was often the
best rule of all."
You were once
(hopefully accurately) quoted as saying: “The trouble with
research is that it tells you what people were thinking about
yesterday, not tomorrow. It’s like driving a car using a rearview
mirror.” What are you thoughts on it now?
I am not opposed to research as such I am opposed to using it as a
way to avoid making a decision. Research will tell you what
happened. Often at the expense of creative thinking about what you
want to happen and how to make it happen. "It's like driving a
car using the rearview mirror" is a reasonably accurate quote.
When I first showed the Care Bears to Kenner I was no longer running
the Group and Kenner didn't have to do what I told them. I projected
sales of expensive plush bears in the million plus range. A Procter
and Gamble trained Marketing Manager, who in later years became the
senior marketing executive at Hasbro, responded to my presentation
by saying it couldn't be done and when I asked why, she said
"Because it's never been done". Hopefully her career was
enhanced by discovering that things can often be done that have
never been done before. Don't get the wrong idea, I also did Duke
the Wonder Dog and Steve Scout - I had a great batting average but I
struck out now and then. You stay out of trouble by being realistic
about what is really happening when things go wrong.
Why didn’t
the Star Wars Holiday Special Wookiee family ever get released? They
seemed like a sure-fire seller.
I seem to remember play tests in which the kids really didn't like
them as part of their Star Wars world, perhaps and I don't think I
ever expressed it before, soft and fuzzy is not Star Wars.
Have you seen
the new toys? What is your opinion on the modern Star Wars toy line?
I certainly don't know the new toys as well as you and your fellow
collectors do but I would guess they are equal in execution to the
past. As I said earlier, the Toy manufacturer has no real claim on
the creativity, that part is all George Lucas and his people.
The problem of the moment has been a lack of control in the number
and quantities and prices of what's in the market place - in my
years of introducing and managing the property we all shared a
belief that "Star Wars was Forever". I'm not so sure
enough people at Lucas or Fox or Hasbro are as committed to that as
we all once were.
What do you
think of the adult toy collecting subculture out there? Many
collectors, myself excluded, don’t even remove the figures from
the packages.
At one time in my career Lionel [toy trains] was part of my concern
and at that time I became convinced that Lionel was primarily a
Collector Business and not a Toy Business at all. The Lionel gauge
as opposed to H O made it too expensive to deliver multiple car
train sets and accessories to promote the dwindling interest on kids
parts in playing with trains---but there was a Collector market. We
could make five or six thousand of a new release of an old engine at
a ridiculously high price and they would be swallowed up. With most
buyers believing it was immediately worth more than they paid for
it. It's real and if you never try to sell, you'll never be unhappy.
There are many Lionel Collectors who actually operate vast layouts
and generally they are people whom can readily afford it.
As for toy collectors, remember in addition to Star Wars, I was
associated with Hot Wheels and Barbie too so I ought to understand
the phenomenon better than most, but I don't. If the collecting
becomes a real thing and generates involvement with people and kids
and is a sustaining interest than it certainly is a plus, but if
it's a matter of “some day it's going to be worth a lot of
money" I hope every one gets lucky and sells when they are
ahead.
In 1942 I went off to war and left behind the best collection of
autographs of American League Baseball Players that any kid ever
had, from Al Simmons to Zeke Bonura, from Lefty Grove to Lefty
Gomez, from Babe Ruth to Lou Gehrig… When I came home after three
years in the South Pacific, to our little apartment in the Bronx,
the collection had disappeared.
My mother has been gone for many years and I've told the story about
how she threw out my autograph collection many times, but I
remembered enjoying the collecting and not really caring much about
what it meant or didn't mean to the future.
I probably collected my last autograph around 1937 and am not
certain that it hadn't disappeared before 1942, it's just a story I
tell, but I did enjoy the collecting.
On that,
it’s a safe assumption to say you’re not the only one...
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A
brief, albeit concise, retrospective on Bernard Loomis’
career: |
1958-1959:
Samilson-Loomis. Partner
Samilson-Loomis was a manufacturer's representative
firm that represented a number of small toy manufacturers in
dealing with emerging new discount chains that were becoming
important toy retailers; one was Toy's R Us opening it's
fourth store in Washington D.C. Loomis worked with Toy's R
Us in the development of a toy fishing set and an effective
display rack. The manufacturer was New York Toy and Game.
“Our business was doing well but the opportunities to do
anything really creative was limited and in early 1960
Mattel, a Californian company that had just done $18 million
and was probably in the second [in the] ten toy companies on
the basis of volume, came east looking to add a third person
to their Marketing team…it turned out to be me.”
1960-1970
Mattel: Field Sales Promotion Manager, National Sales
Manager, Vice President Sales, Vice President Merchandising,
Division Vice Pres. (Wheels and Wings (Hot Wheels))
Loomis was part of one of the most exciting and
creative growth stories in the history of American Industry.
Mattel was the first $100 million toy company and then the
first $200 million toy company. In the mid sixties Mattel
became the largest toy company and by the end of the sixties
was four or five times bigger then number two.
“I grew up with Barbie and in the late sixties Mattel
Divisionalized and I took Hot Wheels to market. At the end of
the sixties Mattel, like too many other Public Companies,
fell in love with the price of it's stock and pushed the
numbers too hard. There were strong differences of opinion
at the top management level of the company and I became a
‘consultant’, still within the company.
At the same time General Mills had been busy buying toy
companies Parker Brothers, MPC Model Kits, Craftmaster Paint
by Number, Play Doh, Lionel Trains, and Kenner in the U.S.
as well as companies in England, France, Germany, Holland,
Belgium, Canada, Mexico and Australia.
In addition to my continuing consultant role at Mattel I had
also been accepted into a PHD program at the UCLA Graduate
School of Business. General Mills thought I'd be happier as
President of Kenner - it took them a few months to convince
me, but they did - and we were off to Cincinnati.”
1970-1978
Kenner: President
1978-1981 General Mills: Group Vice President Toy Group (New
York)
1981-1984 M A D (Marketing and Design Group Toy Group of
General Mills) President (New York)
“During my Kenner/General Mills years I had the
best record in the history of the toy industry: Snoopy Tooth
Brush, Baby Alive, SSP, TTP, The Six Million Dollar Man,
Play-Doh Barber Shop, The Tree House, The Bionic Woman, Star
Wars, Strawberry Shortcake, Care Bears Sometime in the late
seventies The General Mills Group fueled by Kenner toys
passed Mattel in volume and profit and I had now been part
of the World's Largest Toy Company when it became the
world's largest toy company for the second time. As a group
vice president, my life was full of people problems and
number problems without enough time to play with toys, which I did best and enjoyed the
most, so I made a
deal with the chairman of General Mills that after getting
the group straightened out I would start a Design and
Development Company within the group, and so MAD was born -
and created a partnership with American Greetings
that parented the huge success of Strawberry Shortcake and
then the Care Bears, with MAD as a partner in all of the
licensing, not just toys.”
1984-1988
G L A D Joint Venture Design Company in partnership with
Hasbro: President (New York)
Loomis functioned as a general consultant to Hasbro
and although his role was not a major one he did have the
satisfaction of being associated for the third time with the
world's largest toy company when it became the world's
largest toy company as Hasbro became Number One. Loomis
developed a marginally successful game with Milton Bradley
called Stage Two which reportedly still has a modest cult
following and licensed a successful line called Super Dough
led by the Flower Making Basket to Tyco.
1988-present
Bernard Loomis Inc. President-Semi retirement activity. (New
York/Florida)
“In association with my daughter Merry, and two
other young talented people (Chris Ericcson and Vinny Baera)
we did a successful doll line called the Quints with
Tyco.”
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Rebelscum would like to give a big
thanks to
Mr. Heiko Ramsey for making this interview possible