It’s fitting that it took a generation for Funko, a company created with its black, cartoony eyes aimed squarely on nostalgia, to finally find its place alongside other larger-than-life icons in the upcoming Macy’s Thanksgiving Day Parade.
It’s also fitting that the 23-year-old collectible toy company is making its parade debut with a balloon rendering of a fairly newish pop culture icon: Grogu, otherwise known as Baby Yoda from the Star Wars series The Mandalorian, which streams on Disney+.
Funko’s inclusion in Macy’s Thanksgiving Day Parade is built on partnerships with Lucasfilm that the brand has been cultivating for 13 years. As the brand looks to its holiday season marketing and its 2022 plans, the triple alliance among the department store brand and the film studio involves a delicate balance: maintaining Funko’s edgy, fan-base with its limited-edition products; at the same time, positioning itself for a wider audience of consumers.
“It was just a no brainer,” Funko CEO Brian Mariotti told Adweek of its choice to create a parade balloon using Baby Yoda. “When Macy’s approached us, we told Lucasfilm, ‘Hey, we thought of you first, this is a huge honor for us as a company. We’d love to partner with you, Lucasfilm, on representing one of your most iconic characters in the parade.’ They were excited—and we were over the moon.”
Super-sized challenges
Of course, going from a 3.25 inch tall vinyl figurine to a 37-feet wide, 29-feet long and 41-feet high Macy’s balloon that attracts 20 million viewers for a live NBC broadcast, is not without complications.
“The main challenge the team faced was keeping the character’s integrity while still making sure the balloon will fly,” said Dave Beré, Funko’s senior director of marketing. “Funko, Macy’s and Lucasfilm have world-class creative teams. So this challenge was met with great creativity and collaboration. There were many times throughout the process where I had to pinch myself. ‘Are we really doing this? It’s so cool!'”
The second challenge is even more obvious: the world is still in the midst of a devastating pandemic.
A hybrid approach
Uncertainty about live events persists. After a televised-only spectacle last year due to social distancing measures, the 95th annual Macy’s Thanksgiving Day Parade is set to return, with the public lining the 2.5 mile route to the retailer’s Herald Square flagship.
“Fans are the DNA of our brand, and in-person events are a key part of how we engage with our fan community,” Beré told Adweek. “Since the start of the pandemic, we’ve had to find new ways to engage with them.”
One of the ways Funko connected with fans of its “pop” figures was through its in-house content studio, dubbed the Fun Entertainment Network. The studio developed livestreams of events as a way to compensate for the inability to gather in person.
“Not everyone can travel to in-person events and, through virtual opportunities, we have created inclusive experiences that all fans can enjoy from wherever they are,” Beré said. “We are looking forward to in-person events with our fans when it is safe to do so.”
The Macy’s parade provided the hybrid event elements Funko has already become comfortable with—albeit on a much larger scale. The use of virtual events is something that the company plans to build on beyond its holiday season marketing.
Brand validation
For Macy’s and Lucasfilm, the collaboration allows those respective brands to reach corners of pop culture that they might otherwise have overlooked or found difficult to naturally tap into. But here to, the ability to align itself with Funko’s more youthful, indie-style had to feel seamless with Macy’s brand identity as well as the other parade characters.
“Funko has their finger on the pulse of pop culture,” said Jordan Dabby, senior director partnership marketing for the Macy’s parade. “Through the Macy’s Parade, we strive to bring the country a mix of classic elements viewers know and love, combined with an exciting offering of new and cutting-edge elements and entertainment. We are thrilled to introduce Grogu, a beloved character that transcends age, culture and is universally adored, to our lineup this year.”
Funko has a three-year commitment for its Baby Yoda balloon to appear in the following two Macy’s Thanksgiving Day Parades. For all parties involved, this aspect is also deemed a “no brainer,” as Star Wars-related products routinely sell well during the holiday season.
“This collaboration brings a timely pop culture icon to the line of march and will delight devoted Star Wars and Funko fans as well as the Parade audience of all ages,” Dabby said.
“Star Wars fans have come to look forward to Funko’s adaptation of their favorite Star Wars characters in pop products,[Funko accessories manufacturing subsidiary] loungefly offerings and more,” said Paul Southern, svp, franchise and licensing, Lucasfilm and National Geographic, for Disney Consumer Products, Games and Publishing. “The Grogu-inspired balloon in the Macy’s Day Parade takes that unique Funko adaptation to quite literally new heights—and we are all so excited to see it this November.”
Funko’s parade alliance has come at a clear point of momentum for the Everett, Washington-based company. Last month, the public company reported that net revenues gained 141% year-over-year, reaching $236.1 million
“The partnership with Macy’s and Lucasfilm is a validation that we’re doing a lot of things right,” Mariotti said. “We always felt like we were synonymous with pop culture. There are tons of wonderful companies that do iconic pop culture, new content, right? Some of them are a lot bigger than us. But no one does pop culture like we do.”
