At our early children's English program we use Letterland. I really love it, it is a very comprehensive system from the UK. It introduces all of the characters of 'Letterland' in a fun way with every character having its own personality and story. You can use the songs, colouring books, etc. I start with phonics at age 2 in my program and even little children of that age love it ! Elm Tree is a distributor.
Hope this helps.