LOS ANGELES - "Xanadu," the Universal motion picture teaming Olivia Newton-John and Electric Light Orchestra as it's principal musical draws, won't reach theatres until mid-August, but it's accompanying singles and album campaign is already off and running.

Universal, together with MCA Records and Jet Records, launched an ambitious program for the feature's current singles and subsequent LP release last Friday (May 16) with a two-day gathering of major record and tape accounts from across the country. With approximately 100 representatives of key rack and retail firms invited, total attendance for the music and movie presentations was said to reach 245, including executives from the participating labels and Universal itself.

Focal point for the huddle was Saturday's (May 17) unveiling of the MCA soundtrack package and the projected long-range push aimed at clinching LP and singles success as a prelude to the film itself. Attendees also saw a product reel featuring key scenes from the film, which is still in production, along with an explanation of the ambitious multi-leveled advertising, merchandising and promotion blitz readied for the film.

Already in release are the first two singles from the feature, ELO's "I'm Alive" and Olivia Newton-John's "Magic." The twin release underscores the album's split between the two artists, as well as the involvement of both John Farrar, Newton-John's longtime producer and songwriting ally, who handled the singer's performance on record, and ELO's Jeff Lynne, who produced the group's selections and the title theme, which features Newton-John.

MCA Distributing president opened the morning music presentation by introducing a troupe of dancers from the film, who performed at several points during the playback of the finished album. Following a greeting by MCA Records president Bob Singer, who stressed the album's crucial role in building consumer awareness prior to the film's opening, guests heard the album itself and a breakdown of marketing strategies.

Promised Bergamo, "We all know that 'Saturday Night Fever' and 'Grease' saved our business in 1978, and 'Xanadu' will save it in 1980."

Sam Passamano, Jr. of MCA Records reviewed the release of the current single six weeks before the album's arrival, slated for the third week in June. With the film to premiere seven weeks thereafter, MCA will aim at the broad-based 12-34 year-old target audience for both the film and movie via it's own record promotions and participation in a comprehensive joint media campaign with Universal. Set to run over two months, that push will include national and local print, television and radio.

Santo Russo, MCA VP or production dev., outlined merchandising aids for the project via a slide presentation, and announced a special merchandising contest. Five special point-of-purchase pieces have been developed for use independently or in combined displays, including a singles display bin to be used with each successive track release from the package, and suitable for twin titles as in the case of the current release; a counter-top album display piece, a mobile suitable for use in hanging, window or counter locations; a six-foot standup; and a poster.

According to Sam Passamano, Sr., accounts will be encouraged to utilize those pieces in customized displays via MCA's three-month "Xanadu Extravaganza," which will award the store employees responsible for the four best displays with prizes of $500. Runners-up will be eligible for prizes of $200 and $100, while account owners will compete for grand prizes including a trip to Australia and a second place prize of a trip to London.

Following that presentation, made on a Universal soundstage, guests were feted with a lunch on the studio lot and then given a preview of the film itself, via the 22-minute product reel. Co-producer Joel Silver underlined the movie's balance of '40's pop elements, linked to Newton-John's billing partner Gene Kelly, and contemporary pop and rock. Universal director of Marketing Neil Lemlein then reviewed the studio's media campaign, which will include "well over $1 million in national and local, prime time and late fringe television," expected to hit 70 percent of the target audience. Extensive radio and print will bring the gross impressions to 20 million, representing 90 percent of the target audience.

Carol Shapiro Janson, executive in charge of publicity for "Xanadu," then reported on key syndicated radio, television and print promotions in the works, and independent promotion consultant Joan Marcus outlined an ambitious fashion tie-in that will carry the "Xanadu" push into major department store chains in 35 major markets, with emphasis on mall locations where LPs will be available. Designer Jack Mulqueen has developed a line of 30 dresses based on the costumes created for Newton-John, to be sold in "Xanadu" boutiques.

Special gift premiums will be awarded to purchasers of those garments, and the participating stores will utilize full-page print advertising locally. That tie-in will kick off via a feature in the August issue of Vogue.