Photo credit: DreamWorks
Challenge:
In 2004, Shrek 2 had earned $929 million at the worldwide box office and was about to become the fastest-selling DVD in history. My job at DreamWorks Home Entertainment was to carry that all the way to the retail shelf, at Kroger, Safeway, Albertsons, CVS, Blockbuster, Kmart, and beyond.
Every major retailer wanted something exclusive. That meant negotiating cross-promotional partnerships with brands like General Mills, M&M's, Pepsi, Frito-Lay, Dial, and Hasbro, nearly 80 brand partners in total, and building programs tailored to what each retailer needed to win.
The result:
Shrek 2 sold over 33 million units worldwide in its first year, generating $458 million in domestic retail revenue and accounting for 80% of DreamWorks Animation's quarterly revenue. It was the top holiday sales leader of 2004 and a record-setter in international markets across more than a dozen countries. Combined with the original Shrek, the franchise crossed $1.6 billion in combined home video sales.
My favorite part:
The Kroger meeting. I flew from Los Angeles to Ohio to pitch their buyer. He was direct: don't show me what my competitors have, I want something bigger.
So I went back, negotiated with multiple brand partners, and returned with the Ultimate Movie Night, an exclusive bundle available only at Kroger: a Shrek 2 DVD, a Totino's Shrek-branded pizza, a bag of Ogre-sized M&M's, and a two-liter Pepsi. Nearly $15 in added value. Dinner, dessert, and a movie in one cart.
No other retailer had it.
The DVD released November 5, 2004. The next morning, I was on a plane to New Zealand for twelve days of hiking. Timing felt about right.
What This Means For My Clients Today:
The best partnerships aren't about splitting costs. They're about creating something neither party could build alone. At DreamWorks, that meant understanding what a buyer needed to win, then working backward through every partner negotiation to make it possible. That's the same instinct I bring to clients today: find the insight, build around what the other person needs, and make it impossible to say no.
