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Suzy Davidkhanian (00:00):

Take your brand to new heights with in-flight advertising powered by Viasat Ads. High engagement formats, targeted delivery, and self-service tracking make it simple. Reach millions of travelers across leading airlines in a premium captive environment. Join their journey with Viasat Ads. Hi, everyone. Today is Wednesday, December 17th. Welcome to EMARKETER's weekly retail show, Reimagining Retail, an EMARKETER podcast made possible by Viastat Ads. This is the show where we talk about how retail collides with every part of our lives. And I'm your host, Suzy Davidkhanian. On today's episode, we're exploring how Crayola is redefining creativity as a life skill, an inspiring imagination in an entirely new generation. Joining me today, I'm so excited to welcome Victoria Lozano, Chief Marketing Officer at Crayola, joining us from Pennsylvania. Hi, Vicki.

Victoria Lozano (00:59):

Hi, Suzy. Thanks for having me.

Suzy Davidkhanian (01:01):

Thanks for joining us. And principal analyst, Sky Canaves, joining us from Texas. Hi, Sky.

Sky Canaves (01:06):

Hey, Suzy. Great to be here.

Suzy Davidkhanian (01:07):

Thanks for joining us. So for more than 120 years, Crayola has been one of those rare brands that almost everybody has a story about. A first crayon box, a classroom moment, a color you loved so much, you wore it down to a nub. It's a heritage brand in the truest sense, instantly recognizable and woven into childhoods across generations. But as we all know, today's kids are growing up in a very different world, one where creativity has as much to do with digital play as tactile arts and crafts. And with Crayola now in the second year of its Campaign For Creativity, this feels like the perfect moment to explore how a legacy brand expands the definition of creativity in an authentic, modern way. But before we dive in, a quick warmup question: what's your favorite Crayola color and why? Sky, I'm starting with you.

Sky Canaves (01:59):

Oh, Crayola color. So my daughter actually asked me about my favorite color almost every day, and the answer is always red, which is kind of boring. But for Crayola, I think the color that really stood out to me is periwinkle. It's that whimsical-sounding shade of blue, and it's one I still remember and think of fondly.

Suzy Davidkhanian (02:19):

I love that. Vicki, I know it's like asking you to choose a favorite child. Do you have a favorite color?

Victoria Lozano (02:24):

Well, actually, I do. It's wisteria. It's kind of like a lilac type shade of purple, and I just love that color.

Suzy Davidkhanian (02:32):

That's awesome. Me too. I'm a purple person. I love the royal purple. Makes me feel very regal, and it's a very basic color, but I just think it goes with everything. Okay. Crayola's campaign for creativity positions creativity as a life skill, not just an activity. So what made this the right moment for Crayola to elevate that message, Vicki? And what role do you think that Creativity Week and the work you guys are doing with schools really brings that to life?

Victoria Lozano (02:59):

Sure. Well, I would say that Crayola as a brand has really been based on this fundamental belief that creativity really matters and it's not just a nice-to-do activity, but in fact, it's something that is a critical life skill for kids and an incredible kind of a joyful moment of expression for adults. And we've always been guided and driven by that belief, but a couple of years ago, specifically with the campaign of creativity, we've taken a very purposeful step forward of really communicating and sharing that importance. There's a ton of empirical research. There's all this information that really proves that incredible value of creativity as a life skill that helps kids reach their full potential. And this campaign really looks to share that information, be able to elevate the conversation socially around what creativity is and why it matters, and also help parents overcome some of these very practical day-to-day barriers that they may encounter that gets in the way of their ability to be able to nurture their creativity in their kids.

(04:08):

So I think for us, as you said, a lot of things have changed over the last 122 years that Crayola's been around, but at the same time, that part has not, and that is around the importance of creativity. And we know parents believe it at a high level, but they sort of struggle with being able to act up on it, and that's where Crayola comes in. We've been a partner for parents to help raise creatively alive kids for 122 years. And we look at this as the next chapter of how we help parents create simple, creative moments every day that help nurture that.

(04:45):

And then you also, you mentioned schools and Crayola Creativity Week is sort of call it a sister program as part of this campaign that really looks at creativity in the classrooms. And how do we help teachers teach what they're required to teach around core subjects, but using creativity as a way of engaging kids, and also having improved learning outcomes? So I think for us, it's really this bigger effort about more creative moments at home every day, creativity as a way of learning in the classroom, and really broader societal impact, awareness, appreciation for creativity as a life skill.

Sky Canaves (05:23):

I think that educational positioning is really salient and unique because there aren't that many brands that have the opportunity to be involved in schools in an official capacity, and certainly not many that kids will be excited to see. When I think about my daughter's school, I know she's exposed to tech brands like Google and Apple, but those aren't brands that are really made to speak to kids. So I think maybe the only other one I can think of is Lego that does initiatives like Lego Robotics, and certainly when they see Crayola, they're going to think, "This is fun." And that makes learning so much easier when it can be gamified almost or infused with creativity because that gives children a lot more agency, and they feel like they're in charge, and they're having fun, and they're going to make the most of it.

Victoria Lozano (06:11):

Yeah. No, that's actually, I think you're putting some words behind exactly what the research have shown is that when you have hands-on creative activities, it helps engage kids. And when they're engaged, the focus shifts from trying to memorize versus really understanding on what they're learning. So ability to sort of read and learn about a solar system, as an example, just from textbooks is very different than if you actually make a model of the solar system that really enables you to not only learn, but retain that knowledge. And that is why it actually has been shown that the use of creativity across core subjects improves learning outcomes. And our top focus, through not only our year-long programs, but also through the Creativity Week program, is around literacy. It is a top priority in schools, but we also get into social, emotional learning and some of the STEM subjects, and I think it is precisely because of that.

(07:10):

And what we find from just both teacher, but also a parent feedback is that kids love doing it because it is fun, but they're learning in a fun way. And a lot of times, the feedback that teachers are giving us is kids want to keep doing it. They want to actually continue the activity because they're enjoying it so much, and anytime you can make learning that much fun, I think that's a win-win.

Suzy Davidkhanian (07:35):

I mean, it sounds like a real unlock, right? How do you use the classroom, which is a tried and true place for kids to learn, and then bring in Crayola in different ways, but it still goes to this idea of nostalgia, right? Parents have to be involved; teachers have to be involved. We all, all of us that are a little bit older, carry that sort of brand love for Crayola. How are you using that? How are you tapping into that emotional connection while you stay relevant and modern?

Victoria Lozano (08:02):

I think a lot of it is really being able to communicate with parents and teachers in a way that really reflects and recognizes what the reality of their life is. Through Campaign For Creativity, we want to be always very careful that we're not preaching to parents. This is not about you should go do this. We're not looking to give them an additional thing to do because God knows, as a parent, you have more than enough to do already, right? You do not need another thing. It's really just recognizing we understand, we see you and here's some simple and easy ways of doing it that incorporates it into your routines, that for parents that incorporates it into what you already have to teach and the way, the standards that you already have to meet and just tries to make it easier and more engaging, it's really, again, recognizing those realities and finding a way for the Crayola brand to be truly helpful, right?

(08:57):

So I think that's one thing, and then the second thing is really a lot of the adults, most adults, or actually all adults that grew up in the United States would have grown up with Crayola. I know Sky, I know you did, and I know Suzy, you did, because I know you've told me before we just jumped on. And I think that emotional connection of having to be part of your memories, your kind of experiences, and being able to not only pass it on, but now experience it with your children and see your children go through that same, there's a big component of not only the positive memories and associations, but also a way to sort of bond and relate across generations and I think Crayola is one of those brands that is able to really tap into that.

Sky Canaves (09:47):

And then the amazing thing to me, as someone who grew up with Crayola four decades ago, is seeing how the brand has just evolved and expanded to really keep up with trends and how children behave nowadays and what their interests in. So it's a great study for brand longevity and achieving that by building and expanding brand offerings. When I think back to how I engaged with Crayola, it was really still that unique product, that box of 64 crayons with that built-in crayon eraser that stood out to me, but now my daughter has had Crayola toys and digital experiences and apps and a much broader range of art supplies, I think, than I did. So I'm able to share with that, but also feel really comfortable in how she engages with the brand because I know it's really supporting her creativity and self-expression.

Victoria Lozano (10:42):

I think that's exactly right. I think Crayola is absolutely really well known for its incredible art supplies, whether it's crayons, Ultra-Clean Washable Markers, pencils, paints, but at the same time, like you mentioned, it's really got an incredible pipeline of innovation and different types of creative experiences that really make that breath and the way that you or your child, though you together can engage integrative experiences really offers a broad offering. So if you kind of think about, I know we're in the middle of the holiday season and when you look at what's actually some of the products that are doing really well and that are really resonating with parents out there, it's products like our Scribble Scrubbie Toys, which are these little, really fun toys that you could color, wash, color again, and really offers endless imagination for endless play or the LiDAR board or one of our most popular products this holiday season is actually a marker airbrush where you could do really fun airbrush effects, but you're using markers to do it.

(11:48):

And those are the kinds of products that did not exist probably when you were a kid, but now is a very significant portion of our business because they do offer all of those incredible opportunities. And we've always really been known as a power brand at back to school, which is our Super Bowl, as we call it, it's our Super Bowl season, but it's a brand that also plays now in spring with a lot of outdoor activities and in holiday with both giftable items as well as stocking stuffers. And we're in the middle of that season as we speak. So I think those are the kinds of experience and expanding the breadth from a product perspective has been absolutely an important component.

(12:28):

So now when you do go to retail and when a consumer actually experiences the brand, they actually see those breadth of experiences and the ways that they can create those creative moments for their kids at home in the very simple turnkey ways, but the experiences that just have so much more range. But it's also things that we do digitally or do from a content perspective that offer additional opportunities and a bigger Crayola ecosystem so that the relationship with the brand can be so much more rich and much more diverse and broader. And you could have those multiple touchpoints to really kind of engage in and experience creativity.

Suzy Davidkhanian (13:08):

I wanted to circle back to this idea around nostalgia, but then we moved on to something even more interesting. So now that you gave me that in, I'm going to come back to this idea of the digital world, but tell us more about how you guys decided to bring back some retired colors, and was that to lean into the moment of nostalgia and what was old is new again, and how did you decide even which colors to bring back?

Victoria Lozano (13:32):

Yeah, no, nostalgia is really huge, and I think, so whether you look at our limited edition program or whether you look at just some of the things that we're currently actually live doing on social media, sharing some of our really old historic advertising, going back to as far back as into 1960s, all of that sparks that emotional connection. And the limited edition, the retired color specifically, was really tapping into this insight around the importance of hot color. And you started this talking about favorite colors, and favorite colors for people have this incredible emotional resonance. It's very personal, it's emotional, it changes the way that we feel when we sort of see our favorite color, when we wear our favorite color.

(14:18):

So we really wanted to tell the story around the importance of color in our lives and how color helps inspire our creativity. So we started the year with the limited edition program where we brought back eight retired colors that came back for limited time only, and that generated incredible response from adults, mind you, not kids, but adults who really leaned down and said, "Oh my God, that was my favorite color when I grew up." And dandelion, we love dandelion. Dandelion should be back permanently. So we came back for a limited time, and I think that program was just incredibly resonant and relevant around that narrative.

(15:03):

And then that was in the beginning of the year and we're sort of ending the year in the fourth quarter with a release of our global color vote where Crayola for the first time went out and I think we surveyed about 1180 countries around the world actually participated and we were able to capture some of the color preferences and what are the favorite colors and also what the differences are, whether it's in the US versus other markets around the world or generationally and really highlight and tell those stories around not only how consumers relate to color, what the favorite colors are, but also what some of these differences are of how different folks in different ages in different geographies relate to colors around them.

Suzy Davidkhanian (15:49):

I love that. And it's such a great way of reminding all brands it's really important to stay authentic to who you are and to lean into what you're really good at. And for you guys, really, color and understanding color and creativity is part of that. But it's also, and we've been talking about this, where creativity and play in today's world is also sometimes associated to being entertained. And that's very different than when I was younger, when maybe you guys were younger, where it was like ride your bike and play hockey outside or whatever it is that you did that had nothing to do with a screen or a material thing.

(16:23):

And there is a movement to come back to in real-life activities, but there's also that digital component that you can't ignore. Sky, you were talking a little bit about how Evelyn first discovered Crayola. Can you guys both talk to me about what that looks like in terms of both as a parent, but also as Crayola, how do you mix and match? How do you have the right balance? How do you think about activation, entertainment, lifelong skills, but also creativity and play? It kind of all wraps together.

Sky Canaves (16:50):

Yeah. So I'll say I think the hands-on was still really the foundation we probably started before, too with things like finger paints and those washable markers that are a godsend in our home, and then gradually evolving into looking for apps. And as screen time becomes a reality for more parents, I think from my perspective as a parent who's pretty protective of screen time and digital safety, when it came time to explore what apps are good or available for kids, Crayola's like Create and Play and that Scribble Scrubbie Pets app were ones I felt very comfortable with and safe allowing my child to use. They are subscription-based, so there are no ads, there's not going to be any inappropriate or even brain-rotting type of content.

(17:39):

So it's really engaging and creative. It's just like the good, clean fun of playing with art supplies, but in a digital environment. My daughter, at eight, is still in that sweet spot. She doesn't have a phone yet. So she blends very seamlessly between the digital and the hands-on, the tactile. But we also see this even as kids get older into their teens, we see the trends of Gen Z who are so digitally and socially native, but they still want to go to stores and have real-world experiences.

Victoria Lozano (18:07):

No, I think you captured it really well when you talk about the seamless transition between the tactile and the digital. And I think that's exactly right. The way that we think about this is that creativity should not be confined to either or. The canvas does not need to be only physical. I think for us, it is around that seamless integration. So we have incredible tactile products where you can experience hands-on, but when you do have screen time, or you are looking for those kinds of... There's no reason why creativity could not show up on the screen as well, as long as it's the right type of content and it's encouraging the right type of interaction. So you mentioned Create and Play app that is consistently among the top apps on Apple Arcade. As an example, Scribble Scrubbie Pets that actually connects and allows you to have an extended play experience tied to the Scribble Scrubbie Pet product.

(19:06):

So that's creating a bigger Scribble Scrubbies world. There's also a Crayola Adventures app that is a little bit older, targeted, really focused on storytelling and gamified storytelling. And like you said, from a parent perspective, the confidence in Crayola as a brand, we take that very seriously. We value it above all, and the ability for our parents to be able to say, "If it's Crayola," which is exactly what they do say, "If it's Crayola, I don't need to worry about it. I know that it's going to be age-appropriate, it's going to be high quality, it is going to be focusing on creativity as a skill things that I value." So it really becomes those kinds of the digital experiences you as a parent feel good about, and that offers an opportunity to really broaden the way that you interact. And there's room for everything.

(19:57):

There is a room in the value and the hands-on because it does affect how your brain functions differently, but when you are looking digital experiences, there's a way to have creativity show up and to have high-quality digital experiences as well. And that's how we kind of look at it. The canvas could be anything you want it to be, and it's just really making sure that those experiences truly live up to the expectation and the criteria of being fitting under the Crayola promise, honestly, because we are making a promise. So whether it's to a teacher, whether it's to a parent, whether it's to a child, we do make a promise as a brand every time they interact with us in any capacity.

Suzy Davidkhanian (20:38):

Absolutely. And it's what we talk a lot as well, just on the retail front more broadly, right? Digital now is an entry point for a lot of younger consumers, but you have to be everywhere they are, whether that's analog, and you have to be able to go seamlessly from one channel to the next, which brings me to, you have this whole new Crayola Experience, and that's becoming a key part of your brand world. Can you tell us a little bit more about these immersive experiences and how they help broaden and deepen the brand love that you're seeing for Crayola, and maybe even where you're thinking about going next with that?

Victoria Lozano (21:13):

Well, similar to the way that our apps really create and curate really positive, exciting, high-quality experiences in the digital world, Crayola Experiences does the same thing in the world of location based entertainment. So these are gated attractions that you could go to as a family, where we create and curate a really incredible hands-on creative experience. Our average length of stay at Crayola Experience locations tends to be between three to four hours. It is a family trip, family activity where we really lean into fun, color, characters, hands-on creative experiences, and it's an opportunity for you as a family to come, make some positive, really positive family memories. But also, you don't have to be able to really think about it. What do we make? I don't need to set up. I don't need to clean up, which is one of the pains for a lot of parents, pain points.

(22:11):

And I just come in, have a really positive, exciting experience that my kids love. I feel good about the fact that it's actually helping them develop that creativity and deliver those kinds of experiences. But for us, it also allows us to showcase some of the products and technologies that Crayola has to offer. So that was the vision behind Crayola Experience, and we have locations that are open and operating in the US. We're in the process of actually building additional location in China as well as in South Korea, as well as excited to be able to bring more and open more locations in other places in the US and other places around the world.

Suzy Davidkhanian (22:49):

I already can see Sky is adding that to her list of things to do. I do want to ask you for a rapid fire type answer because we're in the final stretch of the holidays. And I just want to know in a sentence or two, what's top of mind for each of you as we head into these last few days? What are you looking at, whether it's shopper behavior, gifting, trends?

Victoria Lozano (23:09):

What's top of mind for us is really we're having a really good holiday season, but honestly, the bulk of the holiday season is still to come. And it's really exciting to see the way that the Crayola brand overall, but also some of our key toy and arts and craft items, are resonating and how they're showing up on gift lists everywhere. So, just really exciting to see how the season shapes up, and really excited to see and hear about the millions of kids that are going to end up with a lot more incredible creative experiences as a result of Crayola being on the gift list this holiday season.

Suzy Davidkhanian (23:46):

I heard gift list. I heard gift list. That's what you're looking out for. Sky, what are you looking for?

Sky Canaves (23:50):

Yeah. Well, we know that consumers are very mindful about spending this year. And even though we think of holiday categories in general as being discretionary, the holiday spending really isn't. And that's even more so the case when it comes to kids; they're the last that parents will be willing to cut back spending on. So even as we see more trading down behavior in areas like grocery and buying private label and hunting for deals or even smaller ticket splurges, we see that the spending will still be there. And I think a brand like Crayola would be very well-positioned this holiday season because it does offer a lot of very affordable price points in its assortment, as well as a reputation for quality, which really speaks to the value-seeking consumer. They're not just looking for the cheapest product; they're looking for the best value for their money.

Victoria Lozano (24:39):

And I think value is a very relevant point because Crayola is just a great value for what you get and the amount of experience that comes in each of our product. So I think for all the reasons you said, it's a perfect holiday gift.

Suzy Davidkhanian (24:53):

That's all the time we have for today. Thank you, Vicki.

Victoria Lozano (24:55):

Thank you so much. I really enjoyed talking to you.

Suzy Davidkhanian (24:58):

And thank you, Sky.

Sky Canaves (24:59):

Thanks. Great to be with you both.

Suzy Davidkhanian (25:00):

And thank you, listeners, and to our team that edits the podcast. Please leave a rating or review, and remember to subscribe. I'll see you for more Reimagining Retail next Wednesday. And on Friday, join Marcus for another episode of Behind the Numbers, an EMARKETER podcast made possible by Viasat Ad.